Seventh Bi-monthly Monetary Policy Statement, 2019-20 – Resolution of the Monetary Policy Committee (MPC) Reserve Bank of India

A day after Modi govt began its economy rescue in right earnest with a Rs 1.70 lakh crore coronavirus counter, the Reserve Bank of India joined the big fight today with a host of measures aimed at minimising the damage from Covid-19.
These measures come just hours after Moody’s Investors Service cut India’s growth forecasts for 2020 calendar year to 2.5% from 5.3%. The MPC decided by 4-2 majority to reduce repo rate by 75 basis points to 4.4 per cent. The reverse repo rate was cut by 90 bps to 4 per cent, creating an asymmetrical corridor.

Finance Minister unveils EASE Roadmap for Banking of the Future EASE 3.0 Reforms

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman unveiled EASE 3.0, the Public Sector Bank (PSB) Reforms Agenda 2020-21 for smart, tech-enabled banking, and the PSB EASE Reforms Annual Report 2019-20 on February 26, 2020 during an event in New Delhi.

Union Budget 2020 – Highlights, Key Takeaways, Detailed Analysis & Impact on various Sectors

The Union Budget has been structured on the overall theme of “Ease of Living.” The Finance Minister said that the Union Budget Aims: To achieve seamless delivery of services through Digital governance; To improve physical quality of life through National Infrastructure Pipeline; Risk mitigation through Disaster Resilience; Social security through Pension and Insurance penetration.
The budget is woven around three prominent themes:
Aspirational India in which all sections of the society seek better standards of living, with access to health, education and better jobs. Economic development for all, indicated in the Prime Minister’s exhortation of “SabkaSaath, SabkaVikas, SabkaVishwas”. Caring Society that is both humane and compassionate, where Antyodaya is an article of faith.

The three broad themes are held together by

Corruption free – policy-driven good governance
Clean and sound financial sector.

The three components of Aspirational India are- a) Agriculture, Irrigation and Rural Development , b) Wellness, Water and Sanitation and c) Education and Skills

Economic Measures to Boost Economy by the Finance Minister

To boost liquidity in the market, the government has cleared dues worth more than 60% of 32 CPSEs in the last two months.
Smt. Nirmala Sitharaman, Union Minister for Finance & Corporate Affairs, held a press conference on the measures taken to boost economy. Chief Economic Adviser K. Subramanian, gave a presentation on Major Interventions to Boost Economy.Rs 20kcr proposals likely to get nod in 2 weeks; FM promises support to any sector that needs help. Finance minister Nirmala Sitharaman promised support to any other sector that may need help following a finance ministry presentation on ‘Major Interventions to Boost the Economy’ in the Capital on Friday.

State Finances: A Study of Budgets of 2019-20

Reserve Bank of India (RBI) released the report titled “State Finances: A Study of Budgets of 2019-20”, an annual publication that provides information, analysis and an assessment of the finances of state governments. With several states facing state elections this summer, presentation of their final budgets was delayed till July-September 2019. This year’s Report analyses the underlying dynamics of budget estimates (BE) for 2019-20 against the backdrop of actual for 2017-18 and revised (and provisional accounts) outcomes for 2018-19. The Report addresses the theme of “Debt: States’ Medium Term Fiscal Challenges”. A time-series data published in State Finance Reports from 1990-91 is also released along with this Report.

Corporate tax cut, MAT relief: Key takeaways from Nirmala Sitharaman’s press conference and Impact on Economy

The NDA government slashed corporate taxes in the boldest economic step yet in its second term in an attempt to awaken animal spirits and revive private investment. Finance Minister Nirmala Sitharaman on Friday slashed corporate tax rates worth ₹1.45 trillion paid by domestic manufacturers, making the country one of the lowest tax regimes in Asia.