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Government's steps to boost growth
Why is it in the news ?
- The Finance Minister Nirmala Sitharaman announced a slew of measures to revive economic growth.
More in the news
- Following are the important measures announced by the finance minister to boost the growth:
- Automobile sector:
(1) The government will make auto loans cheaper and the banks will launch the repo rate or external benchmark linked loan products.
(2) Finance minister lifted the ban on the purchase of new vehicles for replacing all old vehicles by government departments.
- BS4 vehicles purchased up to March 2020 will all remain operational for their entire period of registration.
- Revision of one-time registration fees being deferred till June 2020.
- Decriminalisation of CSR violations:
(1) The corporate social liability (CSR) violations would not be treated as criminal offences and would instead be a civil liability.
(2) It will allow the corporations to think and employ their CSR funds in an effective way without fear.
- Capital Infusion in PSBs:
(1) Finance Minister announced infusion of ₹70,000 crore in capital to the PSBs- as announced in the Budget.
(2) This will benefit corporates, retail borrowers, MSME, small traders etc.
(3) Many banks, which had reported the April-June earnings, saw their common equity tier-I capital depleted.
(4) These lenders will be benefited as their capital levels will improve.
- Surcharge on FPIs withdrawn:
(1) Finance minister withdraw the much debated surcharge on the foreign portfolio investments (FPIs).
(2) It will help in restoring the confidence of foreign investors in the Indian capital market and help in reversing the outflows seen in the recent past.
(3) More than $3 billion flowed out of the Indian market since the budget.
- Angel tax withdrawn:
Source
The Hindu.