Stimulus package funding: Govt weighs fiscal push for growth

download (2).jpgSource: Business Standard, Sept 22, 2017

The government is considering increased spending in order to revive the economy and is open to allowing the fiscal deficit to widen beyond its target for the year. A stimulus package in the range of Rs 40,000-50,000 crore is being discussed in the government, though these figures could not be immediately confirmed.

Back-of-the-envelope calculations show that a Rs 40,000-crore increase in capital spending could lead to a fiscal deficit of 3.5 per cent of the gross domestic product, against the Budget estimate of 3.2 per cent. Assuming the budgeted total revenue figure for 2017-18 remains constant, for each additional spending of Rs 10,000 crore, the fiscal deficit as a percentage of GDP roughly increases by a little less than 0.1 per cent.

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Current account deficit seen at 1.2-1.3 per cent of GDP in FY18: Icra

download (1)Source : Economic Times, Sept 17, 2017

India’s current account deficit (CAD), which widened to a four-year high in April-June, is likely to touch USD 30-32 billion, or 1.2-1.3 per cent of GDP by March-end 2018, says a report.

CAD increased to USD 14.3 billion, or 2.4 per cent of gross domestic product (GDP), in the first quarter of the current fiscal from USD 0.4 billion in the year ago period. In FY17, CAD was at USD 15.2 billion, or 0.7 per cent of GDP.

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CCEA gives nod to Rs 10,881-cr dairy processing & infrastructure fund

Source: The Economic Times, Sept. 12, 2017

The Cabinet Committee on Economic Affairs (CCEA) today approved a Dairy Processing and Infrastructure Development Fund with an outlay of Rs 10,881 crore for 2017-18 to 2028-29 to boost the dairy sector.

The new fund to be managed by the National Dairy Development Board (NDDB) and theNational Dairy Development Cooperation(NCDC) will be used to provide loan for building an efficient milk procurement system and other processing infrastructure.

“The CCEA approved the Dairy Processing Infrastructure Development Fund(DIDF) with an outlay of Rs 10,881 crore. This was a budget announcement. It will benefit improving milk cooperatives and also farmers,” Law Minister Ravi Shankar Prasad told reporters after the meeting. Read the rest of this entry »

Sebi plans new rules to push for merger of mutual fund schemes

Source: LiveMint.com, Sept 07, 2017

Mumbai: The Securities and Exchange Board of India (Sebi) is pushing mutual funds to merge common investment plans and cut high expenses charged to investors.The markets regulator proposes to introduce rules to that effect as part of the next set of reforms after 2012, when it allowed investors to buy directly from fund houses and save on broker commissions, and removed internal sub-limits within the expense ratio.

Expense ratio is the percentage of assets spent to run a mutual fund. A lower expense ratio bodes well for investors. Removing internal sub-limits allowed fund houses more flexibility in deciding how they wanted to spend the money they received from investors towards the expense ratio.

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Govt blocks bank accounts of 200,000 dormant firms

Source: LiveMint.com, Sept 06, 2017

New Delhi: The finance ministry on Tuesday restricted directors of around 200,000 dormant companies struck off official records from accessing their firms’ bank accounts.

The move is a precautionary measure aimed at preventing misuse of the bank accounts, said a finance ministry official who spoke on condition of anonymity.A large section of these firms may have failed to comply with the requirement of submitting annual reports and other filings as their businesses had failed to take off. Some of them have come under the scanner of the income-tax department for suspected money laundering and stock price manipulation.

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Centre notifies new Rs.200 note

Source: The Hindu Business Line, Aug 23, 2017

New Delhi: The Centre on Wednesday notified currency notes of the denomination of ₹200, which is expected to not only curb counterfeit money, but also ease the high demand for low-denomination currency.

“…On the recommendations of the Central Board of Directors of the Reserve Bank of India, the Central Government hereby specifies the denomination of bank notes of the value of two hundred rupees,” said an official notification.

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Cabinet fast tracks merger of PSU banks

download (5).jpgSource: Business Standard, Aug 24, 2017

New Delhi: The Cabinet on Wednesday approved a framework to speed up mergers of public sector banks, the first of which could take place by March.

The mergers will not involve any cash but only share swaps. The government also said there would be no job losses after any of the mergers. PSU bank unions had gone on a strike on Tuesday.

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