Measures To Correct The Country's Fiscal Deficit Level

GOVERNMENT OF INDIA

MINISTRY OF  FINANCE

UNSTARRED QUESTION NO-3006

ANSWERED ON-20.12.2011

(a) Whether it is a fact that the country’s fiscal deficit for the first 6 months has crossed 70 per cent of its full year target;
(b) If so, the details thereof; and
(c) the steps/measures initiated by Government for correction in this regard?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI NAMO NARAIN MEENA)


(a) and (b) No Sir. For the period upto September,2011, the fiscal deficit is Rs.2,80,810 crore which is 68 per cent of the Budget Estimates for 2011-12.

(c) To contain the Fiscal Deficit, Government has advised all Ministries/Departments to adhere to the expenditure ceilings in the Budget Estimates 2011-12. They have also been advised to meet additional expenditure requirements, if any, during the year through savings from the overall expenditure outlays. Instructions have also been issued to concerned Departments to make concerted efforts to achieve the revenue collection targets for 2011-12.

Twitter Link To This Post
Facebook Link To This Post
Google + Link To This Post

YS Chowdary Facebook
YS Chowdary Twitter
YS Chowdary Blog
YS Chowdary Wikipedia

Revision Of Fiscal Deficit Target

GOVERNMENT OF INDIA

MINISTRY OF  FINANCE

RAJYA SABHA

UNSTARRED QUESTION NO-2225

ANSWERED ON-13.12.2011

(a) whether Government is considering to revise the Fiscal Deficit Target; and
(b) if so, the details thereof; and the reasons therefor ?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI NAMO NARAIN MEENA)


(a) and (b) : As per Budgetary procedure, the Revised Estimates for Fiscal Deficit of current year are presented with the Budget estimates of the next financial year.

Twitter Link To This Post
Facebook Link To This Post

YS Chowdary Facebook
YS Chowdary Twitter
YS Chowdary Blog
YS Chowdary Wikipedia 
YS Chowdary YouTube

Impact Of Scam On Economic Growth

GOVERNMENT OF INDIA

MINISTRY OF  FINANCE

QUESTION NO  1587

ANSWERED ON  16.08.2011

Will the Minister of FINANCE be pleased to satate :-


(a)whether it is a fact that various scams that took place in the country have hobbled reforms and economic growth of the country;

(b)if so, the details thereof;

(c)whether routine decision making by Government has also slowed which has in turn also affected the economic growth of the country; and

(d)the steps taken/being taken by Government to improve the economic growth of the country?
  
ANSWER
      

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)

(a) The Indian economy weathered the global economic crisis of 2008 well and bounced back to register real GDP growth (at factor cost at constant prices), of 8.0 and 8.5 per cent during 2009-10 and 2010-11, respectively. The government is actively pursuing economic reforms to help India grow on a sustainable path.

(b) Does not arise.

(c) No, sir.

(d) The Government has pursued prudent macroeconomic policies on an ongoing basis with a countercyclical focus in recent years, strengthened structural measures to promote growth, develop product as well as financial markets, and increased social spending to provide a stronger foundation to protect the poor.

Twitter Link To This Post
Facebook Link To This Post

YS Chowdary Facebook
YS Chowdary Twitter
YS Chowdary Blog
YS Chowdary Wikipedia

Harassment By Micro-Finance Institutions

MINISTRY OF  FINANCE

UNSTARRED

QUESTION NO . 50

ANSWERED ON 09.11.2010

Will the Minister of FINANCE be pleased to satate :-

(a) the details of major domestic and foreign companies engaged in micro- finance in India and their annual turn-over during the last three years;

(b) the details of annual interest earned by these companies during the last three years;

(c) whether Government is aware of the suicide committed by people in Andhra Pradesh and other States due to harassment by these companies;

(d) if so, the details thereof;

(e) whether Government intends to impose cap on rates of interest charged by these companies and also to bring in any regulatory authority; and

(f) if so, the details thereof? 

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA )

(a) & (b): The Small Industrial Development Bank of India(SIDBI) has reported details of the major companies engaged in Micro Finance in India and their annual turnover during the last three financial years(FY), as under: (Rs. Crore)

(c ) to (f): The Government of India had in September, 2010 written to all Chief Executive Officers of Public Sector Banks advising them to ensure that the rates of interest charged by the MFIs to the eventual beneficiaries are reasonable. The Banks were also advised to ensure that MFIs do not resort to ever greening of the loans. In this regard, the RBI through its Master Circular on the Fair Practice Code dated July 1st, 2010, advised NBFCs that though Interest Rates are not regulated by the RBI, rates of interest beyond a certain level may be seen to be excessive and can neither be sustainable nor be confirming to normal financial practice. The Boards of NBFCs were therefore advised to lay out appropriate principles and procedures and determine interest rates, processing and other charges. There have been reports about suicides in the State of Andhra Pradesh(A.P) . The A.P. Government was of the view that these suicides are related to the usurious rates of interest and the recovery practices being adopted by the MFIs. To curb these practices, the A.P. Government promulgated the Andhra Pradesh Microfinance Institution (Regulation of Moneylenders) Ordinance, 2010 on 15th October, 2010. Recently, the RBI has set up a Sub-Committee of the Central Board of Directors of the Reserve Bank to study the issues and concerns in the microfinance sector. 

Twitter Link To This Post
Facebook Link To This Post

YS Chowdary Facebook
YS Chowdary Twitter
YS Chowdary Blog
YS Chowdary Wikipedia

 

Increase In Repo Rate By RBI

MINISTRY OF FINANCE

UNSTARRED

QUESTION NO . 56

ANSWERED ON 09.11.2010

Will the Minister of FINANCE be pleased to state :- 

(a) whether it is a fact that RBI is planning to increase the repo rate or the rate at which banks borrow short-term funds from the Central Bank by 25 basis points to 6 per cent;

(b) if so, the details thereof and reasons therefor;

(c) whether RBI has also hiked the reverse repo rate by 50 basis points to 5 per cent to contain inflation which is still hovering around 8.5 per cent;

(d) whether following the RBI`s move the loans like Home, Car and other retail loans shall become more costlier; and

(e) if so, the steps taken by Government to keep the lending rates under control?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)

(a) to (c): On the basis of the assessment of macroeconomic situation, the Reserve Bank in its Mid-Quarter Review on September 16, 2010 increased the repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 5.75 per cent to 6.0 per cent and the reverse repo rate under the LAF by 50 basis points from 4.5 per cent to 5.0 per cent. Subsequently, in its Second Quarter Review of Monetary Policy for 2010-11 released on November 2, 2010 the Reserve Bank further increased the repo and reverse repo rates by 25 basis points each. Accordingly, the repo rate stands raised to 6.25 per cent and the reverse repo rate to 5.25 per cent. The Reserve Bank had taken into account both global and domestic macroeconomic situation in calibrating this policy move and, in particular, it was guided by the domestic growth drivers, inflation/inflationary expectations and the liquidity position. These actions are expected to sustain the anti-inflationary thrust in the face of persistent inflation risks aggravated by the structural nature of food price increases while at the same time being moderate enough not to disrupt growth.

(d) & (e): Changes in the policy rate (Repo and reverse repo rates) are transmitted to banks’ lending rates with a lag, depending on several factors. There is no evidence as of now of any notable increase in interest rates.

Twitter Link To This Post
Facebook Link To This Post

YS Chowdary Facebook
YS Chowdary Twitter
YS Chowdary Blog
YS Chowdary Wikipedia