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August 22, 2026
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Independent PMLA proceedings require separate anticipatory bail assessment; predicate-offence protection alone cannot establish pre-arrest protection.
Protection in a predicate-offence FIR does not automatically extend to independent PMLA proceedings. Anticipatory bail in a money-laundering investigation must be assessed under the applicable PMLA condition and on the material connecting the applicant to alleged proceeds of crime. Relevant considerations include the financial trail, recorded statements, bank-account analysis, compliance with summonses, cooperation with inquiry, and the need for personal participation in evidence collection and confrontation with documentary and digital material.
August 22, 2026
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Financial accessibility for Divyangjans requires compliance standards, practical implementation measures and stronger institutional capacity across financial services.
Accessibility of financial services for Divyangjans was examined through a workshop focused on public sector banks, insurance companies, regulators and public financial institutions. Discussions covered accessibility standards, compliance requirements, legal provisions, practical implementation challenges and institutional best practices under the Sugamya Bharat initiative. Participants considered operational measures to strengthen institutional capacity, inclusivity and equitable access to financial services.
August 22, 2026
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Audit quality enhancement for small and medium auditors emphasises technology, global standards, inspection insights and stronger financial reporting.
Audit quality and financial reporting reliability were the focus of NFRA's outreach programme for small and medium audit firms. The programme promoted professional capacity-building, alignment with contemporary global standards, adoption of appropriate audit technology, and the public-interest role of the accountancy profession. Technical sessions covered audit strategy documentation, risks of material misstatement, and practical lessons from audit-firm oversight to support improved day-to-day audit practice and high-quality financial reporting.
August 22, 2026
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Cartelisation by agro-input dealer associations attracted monetary sanctions, cease-and-desist directions, and mandatory competition-compliance training for responsible officials.
Cartelisation by the two agro-input dealer associations and named individuals contravened Section 3(3)(b) read with Section 3(1) of the Competition Act, 2002. Monetary sanctions were imposed, and association office-bearers were held liable under Section 48. The parties and liable officials were directed to cease and desist from future anti-competitive conduct and to organise competition-compliance training to promote awareness and compliance within the associations.
August 22, 2026
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Circular economy partnerships promote resilient value chains, resource efficiency and sustainable growth alongside evolving India-EU trade integration.
India-Finland circular economy cooperation is being developed through business, technology, investment and commercial partnerships supporting resource-efficient and sustainable growth. Discussions focused on competitive and resilient value chains based on circularity, traceability, resource efficiency and sustainable business practices. Circular economy principles extend beyond waste management into product design, value chains, resource use, skills development and new business models. The India-EU free trade agreement remains subject to legal review and formal ratification and is not yet in force.
August 22, 2026
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Bid rigging through pre-bid exchange of sensitive price information attracted penalties and cease-and-desist directions in tyre procurement.
Bid rigging in tyre procurement was established where Rekha Agencies and SS Marketing exchanged commercially sensitive price-bid information before submitting bids for the Himachal Pradesh Tender 2013. The concerted conduct contravened the prohibition on anti-competitive agreements and bid rigging. Monetary penalties and cease-and-desist directions were imposed on both enterprises. An official of Rekha Agencies was also penalised for liability arising from the contravention, while proceedings against the official of SS Marketing stood abated following his death.
August 22, 2026
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Import tariffs on Canadian products trigger potential retaliatory levies after bilateral negotiations fail to reach agreement.
Import tariffs on Canadian products are set to be imposed by the United States at a 50% rate after bilateral negotiations did not produce an agreement. The measures cover products including hockey sticks and tongue depressors and affect a limited share of Canada's annual exports to the United States. Canada has indicated possible retaliatory levies, intensifying the bilateral trade dispute.
August 21, 2026
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Rupee exchange-rate movement reflected geopolitical tensions, crude oil conditions and market intervention, while export payment rules expanded rupee invoicing.
Foreign Trade Policy amendments facilitate export invoicing and receipt of payments in Indian rupees. For exports to countries outside the Asian Clearing Union, export contracts and invoices may be denominated in Indian rupees or any foreign currency. The earlier general requirement that export earnings be received in a freely convertible currency is thereby eased, while applicable rules continue to vary according to destination.
August 21, 2026
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Non-controlling land-bordering country ownership permits eligible foreign investment through the automatic route, subject to sectoral conditions and reporting.
Foreign direct investment may use the automatic route where non-controlling beneficial ownership from a land-bordering country in the investor entity does not exceed 10%, subject to sectoral caps, entry routes and other applicable conditions. The beneficial ownership test applies at the investor-entity level. Eligible investors need not obtain separate prior Government approval after reporting relevant information to the Government. The framework replaces the earlier approval requirement applicable even to minimal beneficial ownership from land-bordering countries.
August 21, 2026
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Climate-resilient urban water security modernises Chennai's supply and sanitation systems through ring-main infrastructure, digital monitoring, and safer sewer operations.
Chennai Climate-Resilient Water Security and Sewerage Project modernises and expands water supply and sanitation infrastructure through a loan arrangement between the Government of India and the Asian Development Bank. Measures include new pipelines, upgraded pumping stations, performance-based utility operations, and a comprehensive ring-main system to improve water-pressure balance, distribution efficiency, reliability and climate resilience. Digital monitoring and advanced blockage-detection technology are intended to improve operational decisions, customer responsiveness and worker safety while eliminating hazardous manual sewer inspections.
August 21, 2026
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Capacity-based taxation targets undeclared pouch-packing machinery used for clandestine pan masala and tobacco production and untaxed clearances.
Capacity-based taxation of pan masala and specified tobacco products is determined by the number, type and capacity of installed pouch-packing machines. Searches at interconnected manufacturing and trading premises detected unregistered operations using undeclared machinery for clandestine manufacture and clearance of pan masala, scented jarda and gutkha without payment of GST, HSNS cess and central excise duty. Finished goods, raw materials, packing materials and machinery were seized. The manufacturing firm's proprietor was prima facie identified as managing the operation and was arrested under the applicable cess and central excise laws.
August 21, 2026
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Technology risk oversight requires Urban Co-operative Banks to retain accountability while building shared and role-specific capabilities.
Urban Co-operative Banks must strengthen digital and risk-management capabilities as technology dependence exposes them to cyber threats, fraud, service-provider failures and common-platform vulnerabilities. Outsourcing critical systems does not transfer the bank's responsibility for oversight, safeguards and continuity. Boards and senior management must retain sufficient knowledge to supervise external providers effectively. Mission SAKSHAM supports role-specific, continuous capability building through physical and online learning, while collective infrastructure and shared expertise can supplement individual institutional capacity.
August 21, 2026
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Foreign exchange market modernisation prioritises delegated decisions, customer transparency, digital workflows, local-currency settlement and accountable risk management.
Foreign exchange market modernisation advances a facilitative, principles-based framework based on delegated decision-making by Authorised Dealers, risk-based reporting, and customer-centric service standards. Authorised Dealers must apply clear internal policies, avoid unnecessary documentation, disclose charges, timelines and grievance mechanisms, and ensure consistent treatment of comparable transactions. Local-currency settlement requires viable trade corridors, competitive hedging, correspondent relationships and robust AML/CFT controls. Digital workflows, electronic trading and reporting infrastructure should improve transparency and resilience, while automated tools remain subject to explainability, review and data-protection safeguards.
August 21, 2026
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Sugar price containment measures restrict stockholding, permit duty-free imports, and strengthen inventory verification to deter hoarding.
Sugar price containment measures include stock limits for dealers, consumption-based inventory restrictions for bulk consumers, duty-free raw sugar imports, and physical verification of mill stocks to prevent hoarding and artificial scarcity. Price increases are attributed to lower domestic output, festive demand, crop damage, tighter global supplies, and speculation rather than sugar diversion for ethanol. Earlier crushing is advised to improve seasonal availability, while the ethanol programme supports management of sugar surpluses, mill liquidity, and timely sugarcane payments.
August 21, 2026
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Cross-border insolvency enforcement constrains asset recovery as Evergrande liquidation, founder asset confiscation, and audit-related claims continue.
Evergrande's insolvency process involves liquidation proceedings for its mainland property-development unit and its Hong Kong-listed holding company. Cross-border recovery is constrained by separate Hong Kong and mainland China legal systems, particularly because most operational assets are located in mainland China. Liquidators are pursuing asset-tracing and recovery measures against the founder and connected persons, as well as claims concerning pre-collapse audits. Investigations identified revenue overstatement through manipulated financial data. Creditor recoveries are expected to be limited due to substantial liabilities and constraints on asset realisation.
August 21, 2026
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Foreign exchange reserves rose through higher currency assets and gold holdings amid measures to attract external forex inflows.
India's foreign exchange reserves increased during the reporting week, led by higher foreign currency assets and gold reserves. Foreign currency assets include the dollar-value effects of movements in non-US currencies held as reserves. Special drawing rights declined marginally, while the reserve position with the International Monetary Fund increased marginally. Concessional swap arrangements formed part of measures to attract foreign-exchange inflows, while earlier reserve movements were linked to rupee pressure and dollar-sale intervention in the foreign-exchange market.
August 21, 2026
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Incremental tariff recovery aligns airport user charges with completed infrastructure, preventing passengers from funding non-operational capital projects prematurely.
User development fees and airport tariffs for Bengaluru International Airport have been revised for the April 2026 to March 2031 control period. The incremental Average Revenue Requirement framework excludes costs of identified high-value capital projects from tariffs until the relevant assets are completed, commissioned and available for users. Incremental tariff recovery may begin only upon operational availability, aligning charges with infrastructure use, reducing premature recovery risk for passengers and airlines, and encouraging timely completion of major capital works.
August 21, 2026
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Customer experience analytics enables banks to convert real-time feedback into operational improvements across high-value customer journeys.
Customer experience analytics is used in banking to transform customer data and real-time feedback into operational improvements across key customer journeys. Operational teams retain responsibility for strategy and execution, supported by in-house analytics and technology platforms for multi-channel journey mapping, journey analytics and prioritisation of high-value customer segments. AI-driven customer experience management tools capture customer signals, analyse journey performance and operationalise actionable insights across teams.
August 21, 2026
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Predicate-offence dependency limits retrospective addition of old FIRs to preserve money-laundering proceedings after the original scheduled offence is closed.
Predicate-offence dependency under the Prevention of Money Laundering Act requires an ECIR to rest on a subsisting scheduled offence. Closure of the FIR forming its basis through an accepted cancellation report prevents continuation of money-laundering proceedings unless that closure is overturned. A previously registered FIR cannot be belatedly added merely to preserve an existing ECIR and coercive powers. Where statutory requirements are met, an independently registered ECIR may be required. Expansion of an ECIR cannot rest solely on tenuous factual links between successive disputes.
August 21, 2026
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Indian rupee export invoicing rules now permit overseas contracts and invoices in rupees or foreign currency for eligible destinations.
Foreign Trade Policy provisions were amended to facilitate invoicing of overseas exports and receipt of export payments in Indian rupees. For exports to countries outside the Asian Clearing Union, export contracts and invoices may be denominated in Indian rupees or any foreign currency, replacing the earlier general requirement that export earnings be received in a freely convertible currency. The applicable requirements vary according to the destination country.

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Ministry of Finance Year Ender 2023: Department of Expenditure

December 27, 2023

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In the dynamic landscape of fiscal management, the Department of Expenditure (DoE) oversees the public financial management system in the Central Government and matters connected with State finances.

Implementing the recommendations of the 15th Finance Commission, DoE approved grants-in-aid totalling Rs. 1,79,140 crore to State Governments for the fiscal year 2023-24. These grants encompass various crucial sectors such as post-devolution revenue deficit, health, disaster management, and local bodies, demonstrating a comprehensive approach to regional development.

Through, the Data Gap Initiative, initiated in response to the 2007-08 global financial crisis, the Controller General of Accounts transitioned India's statistical system from ‘RED’ to ‘AMBER’, aligning with international standards. This commitment to transparent and comparable government finance statistics reflects the nation's resilience in anticipating and addressing vulnerabilities.

The Public Financial Management System (PFMS) has been a cornerstone in the implementation of Direct Benefit Transfer (DBT), a crucial aspect of the Digital India Initiative. With over 104.02 crore beneficiaries registered under various schemes, PFMS has facilitated the efficient transfer of funds, with an emphasis on real-time tracking and accessibility. The DBT Payment Summary since its inception showcases a substantial increase in both the number of schemes and the amount disbursed, underlining the system's impact.

Furthermore, the integration of treasury systems across States and Union Territories through the Single Nodal Account (SNA) framework has streamlined fund flow and expenditure tracking. The GIFMIS Vertical, eGramSwaraj Interface, and initiatives like SNA-SPARSH and the Central Nodal Account (CNA) Implementation exemplify the commitment to e-Governance and digital transformation.

The Special Assistance to States for Capital Expenditure, with its multi-faceted approach, stands out as a strategic move to boost state economies. This includes untied funds, incentives for scrapping old vehicles, urban planning reforms, financing reforms in urban local bodies, and housing initiatives.

In the pension domain, the Central Pension Accounting Office's (CPAO) innovative initiatives, including the DIRGHAYU Mobile Application and Virtual Pension Adalat, demonstrate a commitment to addressing the needs of pensioners efficiently.

Lastly, the Vivad Se Vishwas Scheme, introduced in the Union Budget 2023-24, has provided relief to MSMEs and sought to settle pending contractual disputes, further fostering economic stability. These achievements collectively underscore the Department of Expenditure's unwavering commitment to fiscal prudence, transparency, and inclusive development in the year 2023.

Following are some of the major achievements of the Department of Expenditure, Ministry of Finance, in 2023:

Data Gap Initiative

In 2009, the G-20 Finance Ministers and Central Bank Governors endorsed the ‘Data Gap Initiative’ (DGI) to address gap in data revealed by 2007-08 Global financial crisis. The crisis underscored the importance of reliable, timely and internationally comparable Government Finance Statistics (GFS) data on the general government for early detection of sources of vulnerability and taking timely corrective measures.

The Controller General of Accounts (CGA) plugged the gap in India's Statistical System by transitioning from 'RED' to ‘AMBER' label, showcasing the Ministry of Finance, Government of India's commitment of sharing reliable, timely and internationally comparable data as per DGI Recommendation.

The data was presented in conformity with the definitions of the Government Finance Statistics Manual, 2014 (GFSM 2014) by the CGA in coordination with the Department of Expenditure and Department of Economic Affairs, MoF, as well as IMF-SARTTAC (South Asia Regional Training and Technical Assistance Centre) to the International Monetary Fund (IMF).

Direct Benefit Transfer (DBT) Through Public Financial Management System (PFMS)

Through Public Financial Management System [PFMS]

  • Public Financial Management System (PFMS) makes a direct and significant contribution to the Digital India Initiative of Government of India enabling Direct Benefit Transfer for beneficiaries for Ministries/departments in Government of India.

DBT Through PFMS Aims to Achieve

  • Complete tracking of realisation of funds from its release to credit into the bank account of intended beneficiaries.
  • 'Just in time' transfer of funds.

Direct Benefit Transfer (DBT)

  • Payments in 1,016 schemes, including state schemes, are made through PFMS.
  • PFMS-External System Integration: More than 113 payment systems in India are integrated with PFMS.

Almost all the Centrally Sponsored Schemes (CSS) and Central Sector Schemes (CS) are on the PFMS and all the Major Banks including RBI have interface with PFMS.

Direct Benefit Transfer Payment Summary Since Inception

Financial Year

Number of schemes

Total transactions

(in cr)

Amount Paid

(in lakh cr)

2014-15

56

2.19

0.06

2015-16

90

6.75

0.22

2016-17

162

10.11

0.31

2017-18

296

16.55

0.90

2018-19

414

50.97

1.39

2019-20

507

102.37

2.46

2020-21

603

126.88

2.89

2021-22

891

190.36

3.14

2022-23

1081

266.14

3.29

2023-24
(upto 30.11.2023)

1016

167.94

2.14

 

Major Highlights of Direct Benefit Transfer

  • More than 104.02 crore beneficiaries registered under various DBT schemes as of September 2023.
  • Rs. 37,844.42 crore paid through 18.92 crore transactions under Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Yojana during the FY 2023-24 till November 2023.
  • On boarding of PAHAL scheme of MoPNG on PFMS:
  • The payment for PAHAL (Pratyaksh Hastantarit Labh) gas subsidy started w.e.f 1st August 2021 onwards having largest number of beneficiary i.e. over 30 crore.
  • Rs. 8,142.49 crore paid under the scheme through 76.95 crore transactions during FY 2023-24 till November 2023.
  • DBT Tracker:
    • With an average 17,200 hits per day, payment tracker (Beta Version) has successfully met the needs of beneficiaries since its deployment on August 23,2023. Total hits as on 05.12.2023 is 21,00,764.

  • Sending Sms To DBT Beneficiaries Across All Schemes
  • PFMS sends SMS of transactions under various DBT schemes to ensure more and more citizen centric services for DBT Beneficiaries.
  • As in November 2023 around 4,66,50,704 SMS sent under 412 DBT Scheme in FY 2023-24.

National Scholarship Portal

  • To enable scholarship beneficiaries to know their Credit status, PFMS has developed and deployed the 'Track NSP Payment' Status for scholarship payments functionality.
  • The 'one stop' portal for Indian students applying for scholarships aims to reduce discrepancies and provide a common, effective and transparent way to disburse scholarships by bringing together hundreds of scholarships run by Central and State Governments.

 

SINGLE NODAL ACCOUNT (SNA)

  1. Integration of treasury systems across various States and Union Territories (UTs)
  • Full seamless Treasury Integration (TI) achieved across all 31 State Treasuries
  • Budget and expenditure data are consistently exchanged in the new format through an API, maintaining regular and effective data flow.
  • The TI interface allows observation of State Treasuries w.r.t. transferring funds to Single Nodal Account (SNA) within specified timelines in compliance with the Department of Expenditure Office Memorandum dated 23/03/2021
  • Share of states and Central are displayed separately with date-wise listing of SNA releases.

  1. SINGLE NODAL ACCOUNT (SNA) IMPLEMENTATION
  • All schemes successfully onboarded by PFMS.
  • 4,396 schemes onboarded on SNA Module of PFMS for all Centrally Sponsored Schemes (CSS) across all the States and UTs.
  • Standalone systems like Samagra Shiksha, National Health Mission etc. used by the states are also integrated for MIS with PFMS.
  • New CSS framework SNA module fully operationalised in all the States.
  • SNA ensures efficient cash management and reduces float in the system.
  • CSS fund flow monitoring and tracking through SNA.

 

Central Nodal Account (CNA) Implementation

  • Procedure of release of funds under Central Sector Schemes (CS) revised on 09.03.2022.
  • CS fund flow monitoring and tracking through Central Nodal Account (CNA) module of PFMS.

CNA Implementation MODEL 1

  • Release funds through Reserve Bank of India for the Central Sector Schemes having GBE greater than Rs. 500 crore
  • 57 schemes onboarded under Model 1 till date on PFMS.

CNA Implementation MODEL 2

  • Release funds through Scheduled Commercial Banks (SCB) for the Central Sector Schemes having GBE less than Rs. 500 crore.
  • 210 schemes onboarded under Model 2 till date on PFMS.

eGramSwaraj Interface with PFMS

  • To strengthen e-Governance in Panchayati Raj Institutions (PRIs) across the country, Ministry of Panchayati Raj (MoPR) currently implements a user friendly web-based portal eGramSwaraj to bring in better transparency in the decentralised planning, progress reporting and work-based accounting.
  • Public Finance Management System (PFMS), Department of Expenditure, facilitates seamless payment processes for Panchayats through the eGramSwaraj portal.
  • PFMS eGramSwaraj integrated with over 2.63 lakh Panchayats out of 2.78 lakh (Zila, Gram, Block panchayats and Tribal Local Bodies) onboarded for their payment transactions.
  • PFMS operates in a seamless two-way data flow - information from Panchayats (received through PFMS-State treasury systems module) is automatically populated on the eGramSwaraj portal.
  • PFMS notifies interest credited to Panchayats by banks.

 

Government Integrated Financial Management System (GIFMIS) Vertical

  • GIFMIS was developed by PFMS in support of the Digital India Initiative of the Prime Minister.
  • GIFMIS enables end-to-end digital processing of all other types of payees of Government.
  • As part of end of end digitalisation of payments, eBill module was developed under GIFMIS on PFMS platform.
  • e-bill System for Central Government Ministries was launched on 02/03/2022.
  • GIFMIS rolled out in 447 Pay and Accounting units of 52 Ministries/ Departments and 6 UTs without Legislature.
  • Majority of payment units of all Civil Ministries/Departments covered in this Financial Year.

Advantages of Government Integrated Financial Management System (GIFMIS) Vertical:

  • Convenience to vendors/suppliers/contractors in submitting bills/claims without physically approaching the offices
  • Shorter bill payment cycle after delivery of store/services
  • Online tracking of the bill position by vendors/suppliers/contractors
  • More effective audit trails in the payment system
  • Promoting Digital India & reducing carbon footprint by paperless system
  • Effective tool to Government disbursements in pandemic-like situations

 

SINGLE NODAL ACCOUNT - SNA-SPARSH

  • SNA SPARSH has been developed under GIFMIS on the PFMS platform to facilitate 'Just-in-time' releases under Centrally Sponsored Schemes and is currently being piloted.
  • Aims to achieve 'Just-in-time' fund flow from Centre and State Consolidated Funds through an integrated network of State IFMIS and e-kuber of RBI.
  • Facilitates more effective cash management.

Key features:

  • The Union Government's share in fund release based only on incurred actual expenditure followed by a claim against the expenditure.
  • State's account to be pre-funded with Union Government's share before making the payment to the end beneficiary.

Onboarded States: Rajasthan, Karnataka and Odisha

PILOT at advanced stages of implementation, to be rolled out soon: Telangana, Jharkhand, Chhattisgarh, Assam, Gujarat, Bihar, and Andhra Pradesh

SNA SPARSH schemes for Phase 1 pilot roll out: Rashtriya Uchchattar Shiksha Abhiyan (RUSA) and Swachh Bharat Mission (Grameen) (SBM -G)

SNA SPARSH schemes for Phase 2:

  • Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM ABHIM)
  • Pradhan Mantri Matsya SampadaYojna (PMMSY)
  • Pradhan Mantri Matru Vandana Yojana
  • Conservation of Natural Resources and Ecosystem are to be onboarded on SNA SPARSH in phase 2.

Initiatives by Central Pension Accounting Office (CPAO)

Authorisation of Pension Cases

  • Total Cases 1,01,788
  • New Pension Payment Orders 50,593
  • Revision Pension Cases 51,195

DIRGHAYU Mobile Application

  • App was launched by Union Minister Dr. Jitendra Singh on 27th Feb, 2023.
  • DIRGHAYU App provides various services viz. Downloading of SSA, Status of Grievances, Details of last 24 Transactions in Pension Account etc.
  • Bilingual app available on Google Play Store iOS version under testing.

Virtual Pension Adalat:

  • Two virtual pension Adalat organised in 2023 for prompt and quick redressal of grievances of Central Government Civil Pensioners

Escalation matrix on the CPAO Dashboard

  • CPAO has developed an escalation matrix to ensure timely resolution of grievances. Status of pending grievances is sent to the senior management of CPAO, authorised banks and ministries/ departments via automated e-mail.
  • The Matrix was made live on 23.10.2023.

SPECIAL FACILITATION

  • A Separate Desk for Paramilitary Pensioners/Family Pensioners for faster grievance resolution established in CPAO.

Finance Commission Grants to States

The 15th Finance Commission (XV-FC) has recommended the grants-in-aid of Rs.1,79,140 crore to the State Governments under the following heads for the year 2023-24:

  • Post Devolution Revenue Deficit Grant
  • Grants to Local Bodies
  • Health Sector grant
  • Disaster Management Grants (SDRMF/NDRMF)

Grants released to State Governments under various components during 2023-24:

S/No.

Components

Grants release during 2023-24   (Rs. in crore)

Upto 6th Dec, 2023

1.

Post Devolution Revenue Deficit Grant

34448.64

2.

Urban Local Bodies Grant

12180.19

3.

Rural Local Bodies Grant

20222.88

4.

Health Sector Grant

2760.69

5.

Central Share of State Disaster Response Fund

10234.00

6.

Central Share of State Disaster Mitigation Fund

2147.60

7.

Release of additional Central assistance from National Disaster Response Fund

250.15

 

Grand Total

82744.15

 

Scheme For Special Assistance To States For Capital Expenditure

  • Aims to boost states in capital expenditure through 50-year interest free loan to States.
  • The Scheme was extended in the financial years 2021-22 and 2022-23.
  • An amount of Rs. 11,830.29 crore, Rs. 14,185.78 crore & Rs. 18,195.35 crore released under the Scheme in 2020-21, 2021-22, and 2022-23.
  • Scheme redesigned and expanded on request from states for FY2023-24.
  • An amount of Rs. 1.30 lakh crore allocated including an amount of Rs. 30,000 crore, as an incentive in eight areas.

Scheme For Special Assistance to States for Capital Investment 2023-24

Part-I (untied)

  • Rs. 1,00,000 crore allocated to States in proportion to their share of central taxes and duties.
  • Capital Expenditure amounting to Rs. 91,471.43 crore has been approved for the States of Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttar Pradesh, Uttarakhand and West Bengal.
  • Out of which Rs. 57,090.39 crore has been released to eligible States.

Part-II (Incentives for Scrapping of Old Vehicles)

  • Rs. 3,000 crore earmarked for scrapping of State Government vehicles and ambulances older than 15 years.
  • The Scheme incentivises states to:
    • Waive of liabilities on old vehicles
    • Provide tax concessions to individuals for scrapping of old vehicles
    • Set up of automated vehicle testing facilities
  • Capital Expenditure amounting to Rs. 112.50 crore has been approved for the States of Bihar, Chhattisgarh and Punjab.
  • Out of which Rs. 31.25 crore has been released to State of Bihar and Chhattisgarh.

Part-III (Urban Planning Reforms)

  • Rs. 15,000 crore earmarked to promote affordable housing, comprehensive mobility, and conserve Blue-Green infrastructure, for sustainable urbanisation.

Part-IV (Financing Reforms In Urban Local Bodies)

  • Rs. 5,000 crore earmarked to improve creditworthiness of cities (Municipalities / Urban Local Bodies) and making them ready for municipal bonds by incentivising property tax governance reforms and ring-fencing of user charges on urban infrastructure.

Part-V (Housing for Police personnel above or as part of Police Stations in Urban Areas)

  • Rs. 2,000 crore earmarked to increase the housing facility for the police personnel and their families in urban areas thereby saving the time and energy of the police personnel wasted in commuting to reach the place of their duty.
  • Capital Expenditure amounting to Rs. 1,684.80 crore has been approved for the States of Assam, Bihar, Chhattisgarh, Goa, Gujarat, Himachal Pradesh, Karnataka, Maharashtra, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tamil Nadu, Telangana and Uttarakhand.
  • Out of which Rs. 820.97 crore has been released to eligible States.

Part-VI (Construction of Unity Malls)

  • Rs. 5,000 crore earmarked to promote national integration.
  • Incentive to carry forward the concept of "Make in India”.
  • Promotes construction of one Unity Mall per State.
  • Capital Expenditure amounting to Rs. 2,945.64 crore has been approved for the States of Assam, Bihar, Chhattisgarh, Goa, Gujarat, Harayana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Meghalaya, Nagaland, Odisha, Punjab, Telangana, Tripura and Uttarakhand.
  • Out of which Rs. 1,393.32 crore has been released to these States.

Part-VII (Children and Adolescents’ Libraries & Digital Infrastructure)

  • Rs. 5,000 crore to States for setting up of a physical library with infrastructure for accessing the National Digital Library resources at panchayat and ward level.
  • Capital Expenditure amounting to Rs. 1,942.54 crore has been approved for the States of Assam, Karnataka, Meghalaya and Uttar Pradesh.
  • Out of which Rs. 971.27 crore has been released to these States.

Part-VIII ('Just-In-Time' Release Using RBI'S E-Kuber Model)

  • As on 31st October 2023 capital investment projects of States worth Rs. 96,206.27 crore approved and Rs. 58,494.19 released so far under the Scheme for 2023-24.
  • Under this Part, a State will be eligible for an incentive amount equivalent to 10 percent of the Central share of a Scheme brought under the 'Just-in Time' model through RBI's e-Kuber system.
  • In addition, a State will be eligible for incentive upto Rs. 100 crore if as per SNA reports, more than 95 percent of the releases of the Central share are made by the State Government in 2023-24 to the respective Single Nodal Account (SNA) within the time limit.

Net Borrowing Ceilings (Nbc) For The Year 2023-24

  • Normal Net Borrowing Ceiling for States fixed at 3 percent of Gross State Domestic Product (GSDP), i.e. Rs. 8,59,988 crore, for FY 2023-24 as recommended by Fifteenth Finance Commission [XV-FC].
  • Approval issued for raising Rs. 6,99,016 crore for Open Market Borrowing (OMB) & of Rs. 69,370.81 crore for availing Negotiated Loan during FY2023-24.
  • Further, States allowed extra borrowing ceiling equivalent to employer and employee share of contribution of its employees with actual NSDL/trustee bank as per the guidelines of National Pension Scheme (NPS), over and above the normal net borrowing ceiling of 3% of GSDP, for FY2023-24.
  • Extra borrowing ceiling of Rs. 60,876.80 crore allowed to 22 States in 2023-24 (as on 27.10.2023) for NPS contribution by complying States.

Additional Borrowing Of 0.5% Of GSDP Linked To Performance In Power Sector

  • XV-FC has recommended performance based additional borrowing space of 0.50 percent of Gross State Domestic Product (GSDP) to States in the power sector, over and above the normal net borrowing ceiling.
  • OBJECTIVE 
    • Improves operational and economic efficiency
    • Promotes sustained increase in paid electricity consumption
    • This special dispensation is recommended from 2021-22 to 2024-25
  • FY 2021-22: 12 States permitted Rs. 39,175 crore on basis of stipulated reform criteria
  • FY 2022-23: 6 States allowed of Rs. 27,238 crore
  • FY 2023-24: States eligible for Rs. 143,332 crore (approx), on recommendation of Ministry of Power

S.No.

Name of the State

Amount (Rs. in crore)

2021-22

2022-23

1

Andhra Pradesh

3716

5858

2

Assam

1886

2473

3

Himachal Pradesh

251

-

4

Kerala

4060

4263

5

Manipur

180

-

6

Meghalaya

192

-

7

Odisha

2725

-

8

Rajasthan

5186

6122

9

Sikkim

191

170

10

Tamil Nadu

7054

-

11

Uttar Pradesh

6823

-

12

West Bengal

6911

8352

 

Total

39175

27238

 

Vivad Se Vishwas Scheme

  • Vivad se Vishwas scheme was announced in Union Budget 2023-24

Vivad Se Vishwas I (Relief For MSMEs)

  • Scheme provided relief to MSMEs unable to comply with Central Government contracts due to COVID-19 pandemic.
  • This Scheme was launched on 11th April 2023. Last date for submission of claims was 31.07.2023.
  • As on 01.12.2023, 43,904 claims involving more than Rs. 650 crore by MSMEs settled by the Government.

Vivad Se Vishwas II (Contractual Disputes)

  • This scheme was launched for settling pending public procurement related contractual disputes of Central Government.
  • This Scheme was launched on 29th May, 2023. Last date for submission of claims was 31.10.2023.
  • More than 900 claims worth Rs. 20,000 crore received. Claims worth Rs. 1,652 crore have already been settled and remainder is under examination by the respective Ministries/ Departments/ Organisation.

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Topics

Acts Income Tax