T V SOMANATHAN
Sharpen focus on education and health this Budget, experts urge FM
Although the pandemic is behind us, the focus on the health sector shouldn't be diluted, he added. There were also suggestions to tightly monitor the implementation of all such social sector schemes, he added. Facilities at schools and hospitals need to be further improved and vacancies filled up on time, some of them said in the meeting. In the interim Budget for FY25 in February, the government had pegged the outlay for the Ministry of Health and Family Welfare at ₹90,659 crore, up marginally from the FY24 budget estimate of ₹89,155 crore. This outlay also includes spending on health research.
Economists bat for capex push, fiscal prudence and more jobs at pre-Budget meet
Budget 2024: The focus on the quality of spending, sans mindless freebies, and steps to further curb inflationary pressure should continue, some of the economists told finance minister Nirmala Sitharaman at the customary pre-budget consultation, advising against reckless giveaways. Successful tackling of inflation, they said, would be the biggest pro-poor move.
From tax schemes to pension demands: Modi's new finance minister has their work cut out as challenges mount
A day after PM Narendra Modi and his new council of ministers were sworn in, speculation was high about the next finance minister. Questions were arising whether Nirmala Sitharaman will continue in her role in the finance ministry or take on a different ministry this term. However, with PM's recent announcement of ministries, the air has now been cleared. The responsibilities remain the same for Sitharaman this time around: boosting the economy and navigating challenges amid global uncertainties.
Monitor cyber threat, bring all departments on e-bill platform, Somanathan tells pay and accounts officers
Finance Secretary T V Somanathan urged pay and accounts officers to bring government departments on e-bill platform and monitor cyber security threats. He emphasized on improving bill payment efficiency and complete implementation of e-bill system. The e-bill processing system enables online claim submission and real-time tracking by suppliers and contractors.
FSDC holds 28th meeting; to formulate strategy to simplify and digitalise KYC process in financial sector
The Union Finance Minister, Nirmala Sitharaman, chaired the 28th meeting of the Financial Stability and Development Council (FSDC), focusing on implementing council decisions and Union Budget announcements. Key discussions included prescribing uniform KYC norms, inter-usability of KYC records, simplification and digitalisation of KYC processes, promoting fund-raising by social enterprises, and addressing unauthorised lending through online apps.
India to remain on alert for 'hot money' after bond index inclusion
India will monitor flows of foreign funds after its inclusion into JPMorgan's emerging market debt index to prevent 'hot money' and volatility in currency and bond markets. The government's concern is with longer-term investors who exit passively without reflecting economic conditions. India plans to raise nearly 200 billion rupees through sovereign green bonds in the 2024/25 fiscal year, maintaining a similar level as last year
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The ratings rumble: Sitharaman's prudent budget revives an old dispute
Three credit rating agencies hold over 90 per cent of the global market. Two of these agencies have said that FM Sitharaman's interim budget changes little for them at this time. The government has been for long complaining about the rating agencies failing to acknowledge India's improving economic conditions and of biases in their approach.
Budget 2024:Government likely to stick to fiscal discipline, may strengthen National Pension System
The budget team, marked by stability, sees Finance Minister Nirmala Sitharaman preparing for her sixth consecutive Budget. Finance Secretary T V Somanathan and DIPAM Secretary Tuhin Kanta Pandey, integral to the team since assuming leadership roles, may handle two complete Budgets in 2025 due to extended tenures under the Modi government's approach.
Govt confident of adhering to 5.9% fiscal deficit target: Finance Secretary
The government is confident in meeting the budgeted 5.9% fiscal deficit target for the current fiscal year, despite the extension of the free ration scheme. Finance Secretary T V Somanathan stated that the decision to extend the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) doesn't deviate from the fiscal consolidation path. The scheme, providing 5 kilograms of free foodgrains monthly to 81.35 crore poor people, was extended for another five years at a cost of approximately Rs 11.80 lakh crore. The fiscal deficit for April-October stood at Rs 8.03 lakh crore, constituting 45% of the full-year budget estimate.
Shorter terms of reference to help 16th FinComm make recommendations: Finance Secretary T V Somanathan
The Union Cabinet, chaired by Prime Minister Narendra Modi, earlier this week approved the Terms of Reference (ToR) of the 16th Finance Commission, which will make recommendations for the five-year period beginning April 1, 2026. Talking to reporters, Somanathan said the working group, which was instrumental in framing the ToR, paid attention to the points raised by states and drafted a ToR that is shorter than those of the previous finance commissions.
Cabinet gives a go ahead to Terms of Reference for 16th Finance Commission, free ration scheme extension
The union cabinet on Wednesday likely approved a few terms of the 16th Finance Commission in a meeting held on Tuesday, as per media reports. However, there has not been any official announcement yet.
India's retail inflation likely to ease by December: Finance Secretary
India's retail inflation is expected to ease by December due to favorable seasonal factors, according to Finance Secretary T V Somanathan. Inflation remained above the central bank's tolerance band for the second consecutive month in August, primarily driven by spikes in food prices caused by erratic weather conditions.
India to clock highest growth rate among top 5 global economies in foreseeable future: Finance secretary T V Somanathan
India is currently the fifth largest economy in the world. The top four are US, China, Japan and Germany. An S&P Global report had earlier this month projected India's economy to double to USD 6.7 trillion by 2031, from USD 3.4 trillion currently. "India is already the world's fifth largest economy and it is the largest country by population. India's rate of growth by any measurement is much faster than the top four. Today we can safely say that all four are likely to have lower growth rates than India in the foreseeable future.
Want a good pension? Stay put for 30 years or more in NPS
In several cases, such as Himachal Pradesh and other states, contractual workers were absorbed as full-time government employees much later during their service and did not see full accumulation from NPS at the time of exit, government sources told TOI.
16th Finance Commission expected to be set up by end of November, says Finance Secy Somanathan
The 16th Finance Commission, a constitutional body that makes suggestions on Centre-state financial relations, is expected to be constituted by the Indian government by the end of November. The commission is responsible for recommending the ratio in which tax is to be divided between the Centre and states for five years starting April 1, 2026.
Committee on review of pension system for govt employees consulting stakeholders: FinMin
The Finance Secretary-headed committee to review the pension system for government employees is in the process of consulting stakeholders and is yet to finalise its report, the ministry said on Thursday. The ministry in April set up a committee under Finance Secretary T V Somanathan to review the pension scheme for government employees and suggest any changes, if needed, in the light of the existing framework and structure of the National Pension System (NPS).
Congress will 'compel' Centre to implement old pension scheme in entire country: Rajasthan CM Ashok Gehlot
"Under the chairmanship of finance secretary, the Centre has formed a committee to find out a way forward for what can be done after combining OPS and NPS. They formed the committee after we mounted pressure," he said. The chief minister was addressing a 'Kisan Mahasammelan' in Maulasar of Nagaur district on the sidelines of inflation relief camp review.
Withdrawal of Rs 2,000 notes unlikely to hit money supply: Top finance ministry Officials
Finance secretary TV Somanathan said: "There is adequate supply of smaller-denomination notes in the economy to substitute for the ₹2,000 notes. I don't see any impact whatsoever on the economy." Economic affairs secretary Ajay Seth said it is only an exchange of notes of one denomination for smaller denominations. "Money supply to the economy will remain unaffected. The currency (the ₹2,000 note) continues to be a legal tender".
The debate on National Pension System
As per its terms of reference, the committee will suggest whether any changes are warranted given the existing framework and structure of the National Pension System (NPS), also called the new pension scheme, as applicable to government employees.
Finance Ministry sets up panel to review pension system for government employees
The Indian Finance Ministry has created a committee led by Finance Secretary T V Somanathan to review the pension system for government staff. The committee will undertake an analysis of existing framework and structure of the National Pension System (NPS) and suggest if there are any necessary changes. The team will take fiscal implications, impact on budget and protect citizens to maintain fiscal prudence. Members of the committee will include the secretary for the Department of Personnel and Training, the special secretary for the Department of Expenditure and the chairman of the Pension Fund Regulatory and Development Authority.
FinMin issues draft scheme for settling disputes related to govt contracts
For ongoing litigation where physical activity in the disputed contract is ongoing, the settlement amount would be 20 per cent of the net claim amount -- claims by the contractors minus counter-claim by the procuring entity. In cases where the total claim amount exceeds Rs 500 crore, the procuring entities will have an option not to accept the settlement request of the contractor, as per the draft scheme.
Govt to come out with discussion paper for settlement of contractual disputes
The scheme would cover disputes relating to government contracts which are currently under arbitration or litigation. Under the scheme, which would be voluntary, contractors can come forward for resolution of disputes by accepting a specified percentage of the contract value.
Finance Secy should re-examine his theory that housing loan not a saving: P Chidambaram
"The Finance Secretary should re-examine his theory that a Housing Loan is not a saving," Chidambaram said. In his remarks as quoted in the interview, the finance secretary said, "I don't agree with the perception that the old regime encourages saving. For the simple reason, if you look at the structure of the tax deductions, half of them are for savings and half of them are for dis-savings like housing loan or interest on housing loan. Is the housing loan a saving?"
India 'fairly' confident of cutting fiscal deficit to 4.5% of GDP in 3 years, says official
On Wednesday, the government in its 2023/24 budget set a fiscal deficit target of 5.9% of gross domestic product for the coming financial year, down from the current year's target of 6.4% of GDP. India's fiscal year starts on April 1.
Indian economy to grow over 7 per cent in FY23, says finance secretary T V Somanathan
New Delhi, Aug 31 (PTI) Indian economy is on course for a 7-plus per cent growth rate in the current fiscal year, finance secretary T V Somanathan said on Wednesday. Commenting on the first quarter GDP growth rate of 13.5 per cent, he said the economy is 4 per cent above pre-Covid levels.
Low budgetary allocation to healthcare: Finance Secretary T V Somanathan says it is primarily states' responsibility
At a post-Budget interaction of the industry with Finance Minister Nirmala Sitharaman, lobby grouping CII President T V Narendran said the spending on healthcare, though higher than in the past, is 1.3 per cent of GDP, while the expectations are that the government should spend over 3 per cent.
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