FinMin will meet with CPSE chiefs to boost capital spending
New Delhi, September 5 () To revive the sagging economy, the Ministry of Finance will meet on Friday with the heads of central public sector companies (CPSE) to instill in them the need to accelerate capital spending.
The government has a capital expenditure plan of Rs 3.3 lakh crore during the current fiscal year. These include expenses of the Ministry of Railways and Road Transport.
In addition, several CPSE have allocated funds for expansion and capacity improvement.
According to official sources, the Ministry of Finance will review the progress made by several CPSE regarding their planned capital expenditures for the current fiscal.
Since private sector investment is not made, sources said that the government and CPSE are the largest spenders who play an important role in increasing liquidity and demand.
The meeting, which will be chaired by Secretary of Expenditure G C Murmu, will also review the outstanding issues, sources said.
This will be part of the series of meetings that will be held at the Ministry of Finance to find ways to revitalize the fallen economy, which reached a minimum of more than 6 years of 5 percent during the first quarter of the current financial year.
Meanwhile, the ministry reviewed on Thursday the capital expenditure made by various ministries.
Secretary DEA (Department of Economic Affairs) Shri Atanu Chakraborty and Secretary Expenses Shri GC Murmu today reviewed the capital expenditures made by the Ministries of Road and Highway Transport, Railways, Telecommunications and Housing and Urban Affairs, said the ministry in a Tweet on Thursday. .
The country's economic growth has plummeted for the fifth consecutive quarter to a minimum of more than six years of 5 percent in the three months ending in June, as consumer demand and private investment slowed amid deterioration of the world environment.
Finance Minister Nirmala Sitharaman announced a series of measures, including the reversal of the super-rich tax on foreign and domestic capital investors, the exemption of new companies from the 'angel tax', a package to address the anguish in the automobile sector and the consolidation of the banking sector.
The automobile sector faces the worst crisis in about 20 years and reports suggest thousands of job losses. In real estate, the number of unsold homes has increased, while fast-moving consumer goods companies have reported a decrease in volume growth and loans to MSMEs (micro, small and medium enterprises) that create Employment has actually decreased.
The minister also said that the issue of delays in CPSE payments to project developers will be monitored by the Expenditure Department and the entire process will be reviewed by the Cabinet Secretariat. Regarding the contractual disputes by the government and the CPSE, she had said that the government had decided to pay 75 percent of the debt in advance, provided that the arbitration was in favor of the plaintiff. DP CS HRS