Finance Minister: Asks the States to follow the path of fiscal discipline; Addresses the 2nd Conference of State Finance Secretaries;



Finance Minister: Asks the States to follow the path of fiscal discipline; Addresses the 2nd Conference of State Finance Secretaries; asked the States to spend more on development of infrastructure, social and rural sector which deserve more attention of the Government today.

The Union Finance Minister Shri Arun Jaitley asks the States to follow the path of fiscal discipline.Shri Jaitley asked the State Governmentts to spend effectively and with in their given resources. He said that there is more fiscal space available to the Statesnow a days after implementation of the 14th Finance Commission recommendations. He said that now the Centre has no discretion as far as allocation of resources to the States are concerned. The Finance Minister was addressing the 2nd Meeting of State Finance Secretaries here today. The Finance Minister asked the States to spend more on development of infrastructure, social and rural sector which deserve more attention of the Government today. The Finance Minister said that at present, the public expenditure is main driver of growth in view of challenging global situation. He asked the State Governments to spend effectively in such a manner that there is optimum use of resources without leakages.

Earlier speaking on the occasion, the Minister of State for Finance Shri Jayant Sinha said that the Centre and the States have to work in tandem in complete cooperation with each other to achieve the common goal of common good and ensure that benefits of various schemes reach to the last man. He asked the State Governments to use the Direct Benefit Scheme (DBT) and JAM Trinity i.e. Jan dhan, mobile,Aadhar vehicle to ensure that the benefits of various schemes reach to the last man without delay and any pilferages.

Earlier in his welcome address, the Finance Secretary Shri Ratan P Watal said that for the Centre, it had to meet its financial commitments laid down in Budget and at the same time remain on the path of fiscal consolidation. He said that we, at Union level were able to meet the fiscal deficit target of 3.9% of GDP without enforcing budgetary cuts on the Plan Expenditure side. The Central Assistance for State and UT plans were enhanced from Rs.2,04,784 crore to Rs.2,16,108 crore at 2015-16 (RE). This may probably be the first time in recent past that allocations under the CASP head were enhanced at RE Stage. Finance Secretary said though there are challenges in terms of implications arising out of 7th Pay Commission and OROP, emphasis of the Central Government has been on ensuring macro-economic stability and prudent fiscal management. Towards this end, the Centre is committed to remain within the mandated Fiscal deficit target of 3.5% for 2016-17.

The Finance Secretary said that the global economy is still struggling and it may take some time for it to stablise. Economic shocks elsewhere in the world are felt in domestic markets. Despite the sluggish external scenario, the Indian economy has shown steady improvements in recent period. Rating agencies across world have also estimated that India would the engine of global growth. He said that the GDP growth rate has picked-up from 6.6% in 2013-14 to 7.2% in 2014-15 and further to 7.6% in 2015-16. The FOREX reserves, current account balance have also improved considerably giving room for optimism. The rate of inflation remains contained. Shri Watal said that it is a historic period for India to harness its full potential and to contribute to the growth and stability of the world economy as well.

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Government of India and the Republic of Maldives Sign two Agreements today for the Exchange of Information with respect to taxes and for the Avoidance of Double Taxation of Income Derived from International Air Transport
The Government of the Republic of India and the Government of the Republic of Maldives signed two Agreements - for the Exchange of Information with respect to Taxes and for the Avoidance of Double Taxation of Income derived from the International Air Transport here today during the visit of the President of Maldives to the national capital.

The Agreement for the Exchange of Information with respect to Taxes is based on international standards of transparency and exchange of information. It covers taxes of every kind and description imposed by the Governments of India and Maldives. The Agreement enables exchange of information, including banking information, between the two countries for tax purposes, which will help curb tax evasion and tax avoidance.

The Agreement will enhance mutual co-operation between the two countries by having effective exchange of information in tax matters.

The second Agreement provides for relief from double taxation for airline enterprises of India and Maldives by way of exemption of income derived by the enterprise of India from the operation of aircraft in international traffic, from Maldivian tax and vice-versa. The object of the Agreement is that profits from the operation of aircraft in international traffic will be taxed in one country alone and accordingly the taxing right is conferred upon the country to which the enterprise belongs. The Agreement will provide tax certainty for airline enterprises of India and Maldives.
The Agreement further provides for Mutual Agreement Procedure for resolving any difficulties or doubts arising as to the interpretation or application of the agreement.

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Auction for Sale (Re-issue) of Government Stocks
The Government of India have announced the Sale (re-issue) of (i) “7.35 per cent Government Stock 2024” for a notified amount of Rs. 3,000 crore (nominal) through price based auction, (ii) “7.59 per cent Government Stock 2029” for a notified amount of Rs. 8,000 crore (nominal) through price based auction, (iii) “7.50 per cent Government Stock 2034” for a notified amount of Rs. 2,000 crore (nominal) through price based auction, and (iv) “8.17 per cent Government Stock 2044” for a notified amount of Rs. 2,000 crore (nominal) through price based auction. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai on April 13, 2016 (Wednesday).

Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 13, 2016. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

The result of the auctions will be announced on April 13, 2016 and payment by successful bidders will be April 18, 2016 (Monday).
The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India(RBI) vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.


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  Finance Minister to leave for United States tomorrow on a 7-Day Official Visit; to attend Spring Meetings of World Bank and IMF; To participate in Institutional Investors Meet and Long term and pension funds for making investment in India.
The Union Finance Minister Shri Arun Jaitley will leave tomorrow evening on a 7-day official visit to United States from 13th to 19th April, 2016. As part of the first leg of his US visit, the Finance Minister will arrive in Washington D.C. in early morning on 13th April, 2016. On the same day, he will address at Carnegie Endowment for International Peace “Steering India Towards Growth”.

Next day, on 14th April, 2016, the Finance Minister Shri Jaitley will hold one to one meeting with his US counterpart and US Treasury Secretary Mr. Jack Lew. It would be followed by the 6th Economic and Financial Partnership Dialogue between India and USA. In the afternoon, the Finance Minister will participate in BRICS NDB Board of Governors Meeting followed by the BRICS Finance Ministers and Central Bank Governors Meeting. The Finance Minister is also proposed to meet the Chinese Finance Minister in the evening. The Finance Minister will later attend the G-20 Reception and G-20 Working Dinner.

Next day, on 15th April, 2016, the Union Finance Minister Shri Arun Jaitley will participate in G-20 Session for Finance Ministers and Central Bank Governors. Thereafter, he will participate in the Special Event to honor the UN Secretary General in nurturing World Bank UN Partnership.

On 16th April, 2016, the Finance Minister will participate in IMFC Governors Meet followed by the IMFC Plenary Session and Development Committee Plenary meeting among others.

On 17th April, 2016, the Union Finance Minister will leave for New York. During his stay in New York, the Finance Minister will participate and address the Asia Society Event “Make In India-The New Deal” on 18th April, 2016. The Finance Minister will also hold meeting with Long-Term Funds and Pension Funds on “Invest in India”.

On 19th April, 2016, the Finance Minister will address the Special Session of General Assembly of UN on the World Drugs. The Finance Minster is also proposed to participate in Institutional Investors Meet on the same day.
. The Finance Minister will leave for back home next day i.e. 20th April, 2016 and will arrive in national capital on 21st April, 2016 after completing his 7-day official visit to US. 

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