Latest news with #FiscalResponsibilityandBudgetManagement
Time of India
5 days ago
- Business
- Time of India
Maharashtra legislative assembly passes bill for supplementary budgetary demands worth Rs 57,509.7 crore
Mumbai: The state legislative assembly on Wednesday passed the bill for supplementary budgetary demands worth a steep Rs 57,509.7 crore. This will add to the financial strain of the state, which not only faces its highest-ever debt projection at Rs 9.3 lakh crore but also its steepest revenue deficit at Rs 45,890.9 crore for 2025-26. But finance minister Ajit Pawar, who moved the bill, said there was nothing to fear as state govt was well within the fiscal norms under the Fiscal Responsibility and Budget Management (FRBM) limit. Pawar said that state govt would try to get more funds from the Centre this year, more than the Rs 9,000 crore received last year. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai Responding to criticism that he was biased in allocating funds and was depriving opposition MLAs of funds, Pawar said that he wasn't the "owner of the govt alone" and that all three partners — BJP, NCP, and Shiv Sena — were part of govt. "So people must not teach me how to run the department. I was finance minister in the erstwhile MVA govt too, and I know how to take everyone along. We will try to get more funds from the Centre. We are getting interest-free loans from the centre for a period of 50 years too," he said. Pawar added: "We need to create new revenue sources. For now, we are not violating any fiscal norms or rules and are below the 3% limit. I won't go beyond the powers given to me by the legislature and cabinet." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Тези обувки са висш пилотаж в мъжката мода. ZAROTRAVEL® КУПИ СЕГА Undo Supplementary demands are additional funds sought by govt beyond allocations made in the budget, which was tabled in March. The current demands account for 8.2% of the total expenditure projected in the state budget. Maharashtra will soon have rural and urban local body polls, including high-profile municipal corporations like BMC, which will see a prestige war between the govt and the Opposition. As a result, the demands are mainly aimed at urban and rural infrastructure projects like Metro rail, support for municipal bodies, road and irrigation schemes, and the Simhastha Kumbh Mela. Also, allocations have been suggested for welfare schemes, including the Mahatma Jyotirao Phule Health Scheme, Sanjay Gandhi Niradhar Yojana, schemes for the elderly, payment for female anganwadi workers, and scholarships for backward students. The urban development department, which controls the state's 29 municipal corporations, was allocated the highest share in the supplementary demands at Rs 15,465.1 crore. The public works department, which faced agitations from contractors over unpaid dues, was allocated Rs 9,068.4 crore. Other departments with large allocations include public health (Rs 6,952 crore), rural development (Rs 4,733.1 crore), and social justice (Rs 3,798.9 crore).
Indian Express
5 days ago
- Business
- Indian Express
Maharashtra Assembly passes supplementary demands worth Rs 57,509.71 crore
The state Legislative Assembly on Wednesday passed the supplementary budgetary demands worth Rs 57,509.71 crore to allocate funds for various schemes and projects. The supplementary demands were presented by Finance Minister Ajit Pawar on the first day of the three-week monsoon session, with an eye on the upcoming civic body polls and infrastructure projects. This will add to the financial strain of the state which not only faces its highest-ever debt projection at Rs 9.3 lakh crore but also its steepest revenue deficit at Rs 45,890.9 crore for 2025-26. Supplementary demands refer to the additional funds required for various schemes, programmes, and projects beyond what is allocated in a budget. During the Maharashtra Budget session in March 2025, Pawar had tabled supplementary demands worth Rs 6,480.20 crore. Pawar assured the lower House that there was nothing to fear with the massive amount of over Rs 50,000 crore and said that the state government was well within the fiscal norms under the Fiscal Responsibility and Budget Management (FRBM) limit. The Opposition members, however, objected on the discrepancies and bias in the distribution of funds between ruling and opposition and deteriorating financial condition. Pawar, however, informed the House that efforts are underway to secure more funds from the Centre this year, surpassing the Rs 9,000 crore received previously. Addressing allegations of bias in fund distribution and neglect of Opposition MLAs, Pawar said that governance is a collective responsibility shared by all three alliance partners—BJP, NCP, and Shiv Sena and he is not running it alone. 'This is a coalition government. I'm not running it alone, so there's no need for anyone to lecture me. I have handled the Finance portfolio in the MVA government as well and I know how to work inclusively,' he said adding that the state is also receiving 50-year interest-free loans from the Centre. Pawar also stressed the need to identify new sources of revenue to strengthen the state's finances. 'As of now, we are well within the 3 per cent fiscal deficit limit and not breaching any financial regulations. I will not exceed the authority granted to me by the cabinet and legislature,' he stated. The government has presented supplementary demands—requests for funds beyond the original budget tabled in March—amounting to 8.2 per cent of the total projected expenditure. With crucial rural and urban local body elections ahead, including for the high-stakes BMC, these demands are focused on infrastructure and development. Out of the total demands, Rs 15,465.13 crore have been allocated to the Urban Development Department, headed by Pawar's fellow Deputy Chief Minister Eknath Shinde, ahead of the elections in 29 civic bodies, including the Brihanmumbai Municipal Corporation (BMC). The financial arrangement is made to undertake various development works within the jurisdiction of urban local bodies. Further, Rs 11,042.76 crore has been earmarked for various grants as per the recommendations of the 15th Finance Commission. As road contractors across the state intensify their protests against the non-payment of dues worth Rs 80,000 crore, the state government has allocated Rs 9,068.49 crore for the Public Works Department (PWD) to clear the pending dues for carrying out road and bridge works. The government has earmarked Rs 3,228.38 crore for the refund of stamp duty cess collected for Metro projects and other development works by municipal corporations, municipalities, municipal councils, and zilla parishads.
India.com
01-07-2025
- Business
- India.com
GST Stands Out As A Landmark Reform That Has Reshaped India's Economic Landscape: PM Modi On 8-Years Of GST
New Delhi: Prime Minister Narendra Modi has remarked that eight years since GST was introduced, it stands out as a landmark reform that has reshaped India's economic landscape. "By reducing the compliance burden, it has greatly improved the Ease of Doing Business, particularly for small and medium enterprises", Shri Modi stated. The Prime Minister posted on X: "Eight years since it was introduced, GST stands out as a landmark reform that has reshaped India's economic landscape. By reducing the compliance burden, it has greatly improved the Ease of Doing Business, particularly for small and medium enterprises. GST has also served as a powerful engine for economic growth, while fostering true cooperative federalism by making states equal partners in this journey to integrate India's market." Eight years since it was introduced, GST stands out as a landmark reform that has reshaped India's economic landscape. By reducing the compliance burden, it has greatly improved the Ease of Doing Business, particularly for small and medium enterprises. GST has also served as… — Narendra Modi (@narendramodi) July 1, 2025 Journey of GST: Key Milestones - 2000: GST was first conceptualized; a committee was set up to design the framework. - 2003–04: The Fiscal Responsibility and Budget Management (FRBM) Committee recommended implementing GST. - 2006: The Union Finance Minister announced in the Budget Speech that GST would be introduced from April 1, 2010. - 2009: The first discussion paper on GST was released, laying the groundwork for public and stakeholder engagement. - 2011: The Constitution (115th Amendment) Bill was introduced in Parliament to incorporate GST provisions. - 2011–13: The GST Bill was referred to a Standing Committee for further review. - 2014: The 115th Amendment Bill lapsed with the dissolution of the 15th Lok Sabha. - 2014–15: A fresh Constitution (122nd Amendment) Bill was introduced and passed in May 2015. - August 2016: The Constitution (101st Amendment) Act was enacted, paving the way for GST. - September 2016: The GST Council was formed and held its first meeting. - May 2017: The GST Council finalized and recommended all supporting rules. - 1st July 2017: GST was officially rolled out across India, replacing multiple indirect taxes with a single tax system.
Indian Express
28-06-2025
- Politics
- Indian Express
‘Can't spoil children's future': Supriya Sule affirms NCP-SP's participation in ‘Three Language Policy' stir
Nationalist Congress Party (SP) leader Supriya Sule on Saturday affirmed the party's participation in the Hindi language imposition protest to be held on July 5, jointly organised by the Maharashtra Navnirman Sena (MNS) and Shiv Sena (UBT). While addressing reporters in Nagpur, Sule accused the Maharashtra government of 'attempting to spoil the future of children' by making Hindi compulsory up to Class 4 under the 'Three Language Policy'. She stressed that language education is an 'important social issue' and not a political one, which should be taken very seriously with the guidance of experts. On the Maharashtra government mandating Hindi as the default third language in schools, NCP(SP) MP Sule said, 'This is an important social issue for us. It is not a political issue. Language education is an issue that should be taken very seriously. We should move forward under the guidance of experts. No other state is working in this manner. I don't understand why Maharashtra is taking such an insistent stance. We cannot spoil the future of children to please someone. Nationalist Congress Party (Sharad Pawar) will participate in the march (announced by Shiv Sena-UBT along with Raj Thackeray) with full force. Education is a serious issue for us.' She also clarified that while a committee might have recommended Hindi, committees only provide recommendations, and the final decision rests with the government. She refuted claims that the decision was made during the Mahavikas Aghadi government Speaking on the issue of Shaktipeeth Mahamarga, Sule highlighted that the Finance Ministry has 'red-flagged' or noted concerns about the high cost of the project. She stated that the Shaktipeeth Expressway project's budget exceeds the limits set by the Fiscal Responsibility and Budget Management (FRBM) Act, and if the cost burden increases, '22% of the government's funds would be consumed solely by repayments,' she said. Shaktipeeth Mahamarga is touted as a transformative route connecting key religious and economic regions. She also pointed out that the loan for the Shaktipeeth Expressway project is being acquired at a higher interest rate, which is unusual for special projects that typically receive loans at 6.35 per cent. Furthermore, she mentioned considerable opposition to land acquisition in affected areas and that experts suggested upgrading the existing road instead of building a new parallel one. Sule found it 'a cause for serious concern' if the state's finance department is raising objections, likening it to a household spending significantly more than it earns. Sule also held a meeting with party workers in Nagpur to discuss the party's preparation for local body elections. Sule said, 'Any political party is ready for polls 24/7, and when they are not busy in elections, they are serving people. We will decide on names when the dates for local body elections approach.' During her visit to Nagpur, Sule also paid her respects to Dr Babasaheb Ambedkar at Deekshabhoomi.
Indian Express
24-06-2025
- Business
- Indian Express
Siddaramaiah meets Nirmala Sitharaman, seeks ‘growth-friendly devolution' of taxes under 16th Finance Commission
The Karnataka government Tuesday petitioned the Union government to advocate a pro-growth approach when taxes are devolved to states by the 16th Finance Commission (FC). In a meeting with Union Finance Minister Nirmala Sitharaman, Chief Minister Siddaramaiah requested the Centre to reduce the 'over-reliance on income-distance criterion' and discuss Revenue Deficit Grants in their current format. Karnataka's share in tax devolution was reduced by 23 per cent from 4.713 per cent of the divisible pool of taxes under the 14th FC to 3.647 per cent under the 15th FC. 'A major reason for this is the over-reliance on the income-distance criterion, which received 45% weightage under the 15th FC. The State has requested the 16th FC that the weightage for income-distance should be reduced by 20 percentage points and reallocated to fiscal contribution – which is the State's share in national GDP,' a statement issued by the Chief Minister's Office said. The income-distance criterion, one of the parameters used to allocate tax shares to states, refers to the prioritisation of states with lower per capita income by providing them with a larger share in the divisible pool of taxes. This is the second petition Karnataka submitted in June regarding the 16th FC, being implemented from the 2026-27 fiscal. The first was during the meeting between Siddaramaiah and Commission Chairman Arvind Panagariya on June 13. The Commission is expected to submit its report on the devolution of taxes and distribution of other tax shares to states by the end of October. Revenue Deficit Grants in their current format, Siddaramaiah said, 'are against the principles of fiscal discipline as proposed in the Fiscal Responsibility and Budget Management framework'. The grants should be redistributed among all states, Karnataka has urged in the meeting. These are among the multiple recommendations made by Karnataka to address the revenue loss suffered due to the reduced share in taxes. Siddaramaiah requested Sitharaman to include the proposals from Karnataka 'in the Union government's Memorandum to the 16th Finance Commission as a growth-friendly devolution will ensure that all States are empowered to contribute their best to India's development journey.' Karnataka has been at odds with the Central government over reduced share in taxes under 15th FC from 2021-22 to 2025-26. The special grant of 11,495 crore for Karnataka recommended by the 15th FC was also not released to Karnataka, due to which the state lost out on Central funds to the tune of Rs 80,000 crore. Last year, Siddaramaiah, along with Cabinet colleagues, staged a protest in Delhi against the 'injustice' in tax devolution and demanded the release of various grants assured by the Centre to the state. Last year, the Karnataka government petitioned the Supreme Court against the Central government over the delay in releasing relief for regions affected by the 2023 drought. The state estimated losses of Rs 35,162 crore due to crop loss in an area of 48 lakh hectares and sought Rs 18,174 crore in September 2023 to take up relief works. In April 2024, the Centre released Rs 3,454 crore to Karnataka.
