Nirmala Sitharaman has taken various steps to boost the economy since she became FM
Nirmala Sitharaman achievements: There was a lot of talk about the struggling economic growth of India throughout the year 2019. It has been said that people don’t have enough money to match the supply of manufacturers. This has decreased the demand which impacted auto, food, textile industries heavily resulting in mass-scale job losses. Indian Finance Minister regularly took various steps to curb the economy and increase the liquidity in the Indian market. Let’s look at some of those crucial steps:
1. A plan is outlined to make Indian $5 trillion economies with emphasis on increasing the investment. The government has also taken steps to help NBFCs and HFCs to curb consumption.
2. Under the partial credit guarantee scheme, the government has provided support to NBFCs and HFCs. A sum of Rs 4.47 lakh crore is sanctioned to support NBFCs and HFCs which includes Rs 1.29 lakh crore for pool buyout o assets.
3. 17 proposals worth more than Rs 7,000 crore is already approved and while Rs 20,000 crore will be approved over the next two weeks under the partial credit guarantee scheme.
4. To increase the investment in the country, the government has taken various steps to boost investment, bank recapitalization, support real estate, corporate tax, and credit expansion.
5. The Finance Ministry has also cleared dues worth more than 60 % of 32 CPSEs in the last two months to increase the liquidity in the market.
6. More than Rs 72,201 crore worth of loans is sanctioned under the new external benchmarking scheme till Nov 27.
7. A total of Rs 60,314 crore of capital has been infused into PSU banks. PSU Banks have disbursed Rs 2.2 lakh crore to corporates and Rs 72,985 crore to MSMEs.
8. From Rs 3.38 lakh crore Budgeted CAPEX expenditure, 66 percent has been taken so far. Higher government capital expenditure helps in crowding in private investment. 32 CPSEs’ April-Nov CAPEX is at Rs 98,000 crore. Road and Railway ministries will have undertaken CAPEX of Rs 2.46 lakh crore by the end of 2019.
9. Reality fund of Rs 25,000 crore is created for last-mile funding for stalled projects. Changes have been made in IBC to allow projects facing insolvency to avail funds under the scheme.
10. Foreign Direct Investment of $35-billion in the first half of FY20 is achieved against the $31 billion in the same period last year.
11. Rs 1.57 lakh crore tax is refunded this year vs Rs 1.23 lakh crore refunded last year. The step is likely to boost consumption in the economy. Income tax refunds reached up to 27 percent so far in Financial Year 2019-2020.
12. Necessary Changes were made in IBC: Ringfencing successful bidders of stressed assets from prosecution.
13. Government Banks were merged to revive the banks which were in loss.
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