The Government attaches utmost importance to the need for improving Governance and service delivery to the common man. One of the important tenets in this direction is the effective use of IT based applications under e-Governance initiatives. In line with this, the Ministry of Finance has taken-up the initiative of raising an e-Book.
This provides an easy access to various initiatives including good governance initiatives taken under the Ministry of Finance (MoF) and an IT enabled platform. MoF hopes this will be useful to the citizens and an important step in bringing the governance closer to the public.
Ministry of Finance (MoF) is happy to launch this initiative on “Sushashan Diwas” (Good Governance Day).
Ministry of Finance Team
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
(i) As part of the Government’s commitment to the principle of ‘Minimum Government and Maximum Governance’, Expenditure Management Commission was constituted on 5.9.2014 to review the allocative and operational efficiencies of Government expenditure. The Commission will submit its interim report before the Budget of 2015-16 and its final report before the Budget of 2016-17.
(ii) In the wake of severe calamities like Cyclones, Floods and Droughts etc., an amount of ₹ 427.06 crore, ₹ 10.74 crore, ₹ 1.42 crore, ₹ 82.77 crore, ₹ 83.13 crore, ₹ 172.33 crore, ₹ 18.51 crore and ₹ 1000.00 crore has been released to the States of Andhra Pradesh, Arunachal Pradesh, Himachal Pradesh, Karnataka, Madhya Pradesh, Uttarakhand, Telangana and J&K respectively for taking up immediate rescue, relief and restoration works.
(iii) Department of Expenditure has enhanced the delegation of powers for appraisal and approval of Plan Schemes and Projects at all levels. All schemes and projects up to ₹ 500 crore can now be approved by Central Ministries themselves, and only projects above ₹ 1000 crore are now required to be sent to the Cabinet for approval.
(iv) Swachh Bharat Kosh (SBK) has been set up to attract Corporate Social Responsibility (CSR) funds from corporate sector and contributions from individuals and philanthropists in response to the call given by Hon’ble Prime Minister on 15th August, 2014 to achieve the objective of Clean India (Swachh Bharat) by the year 2019, the 150th year of the birth anniversary of Mahatma Gandhi through Swachh Bharat Mission.
(v) Direct Benefit Transfer (DBT) : The vision of DBT is to transfer cash or benefits directly to the beneficiaries’ accounts, preferably Aadhar seeded, cutting down several layers of the intermediaries in order to achieve timely and more frequent payments, target intended beneficiaries more accurately, remove fake, ghost beneficiaries and de duplicate and improve efficiency in delivery system. This is also to create transparency and accountability in government delivery systems and empower beneficiaries.
(vi) Central Pension Accounting Office (CPAO) has initiated process of issuing e-PPO to the pensioners. The CPAO has introduced the facility to see the first credit of pension in the pensioners/family pensioners bank account through its website.
DEPARTMENT OF FINANCIAL SERVICES
(vii) Financial Inclusion and Pradhan Mantri Jan Dhan Yojana (PMJDY):To increase banking penetration and promoting financial inclusion and with the main objective of covering all households with at least one bank account per household across the country , a National Mission on Financial Inclusion named as Pradhan Mantri Jan Dhan Yojana (PMJDY) announced by Hon’ble Prime Minister in his Independence Day Speech on 15th August, 2014 was formally launched on 28th August, 2014 at National level by Hon’ble Prime Minister.
(viii) Licensing small banks, payments banks and other differentiated banks: The Reserve Bank of India (RBI) formulated and released guidelines for licensing of payments banks and small finance banks in the private sector on November 27, 2014.
(ix) Varishta Pension Bima Yojana(VPBY): Government revived the 2003-04Varishta Pension Bima Yojana(VPBY) for one year for senior citizens over 60 years of age to enable a pension between ₹ 500 and ₹ 5000 per month against a stipulated purchase price, implying a monthly rate of return of 9%. Quarterly, biennual and annual options are also available.
(x) Cabinet Approval for Revival of 23 District Central Cooperative Banks: The Cabinet approved the Scheme for revival of 23 unlicensed District Central Cooperative Banks (DCCBs) in four States, comprising 16 in Uttar Pradesh, 3 in Jammu & Kashmir, 3 in Maharashtra and 1 in West Bengal. Under the Scheme, the total capital infusion envisaged would be ₹ 2375.42 Crore, of which the commitment from the Central Government would be ₹ 673.29 Crore. State Governments would provide ₹ 1464.59 Crore and NABARD ₹ 237.54 Crore.
DEPARTMENT OF ECONOMIC AFFAIRS
(xi) Several measures taken by the Government in the past seven months which augur well for the growth of Indian economy as evidenced in the following outcomes:
in April-October, 2013. Foreign Exchange Reserves stood at US$ 314.7 billion as on December 5, 2014.
(xii) Initiatives to promote savings rate in the economy:
(xiii) Initiatives taken by SEBI on Good Governance in past seven (7) months:
(xiv) ECB / trade credit permission has been digitalized using the on-line application tracking system (ATS) of the RBI. The ATS, which can be accessed via a web browser over the internet, allows applicants to submit and track the status of the submitted application.
(xv) Real Estate Investment Trusts (REITs)/Infrastructure Investment Trust (InvITs) – Government has announced REITs and InVITs – innovative financing instruments for financing real estate and infrastructure projects. REITs have been successfully used as instruments for pooling of investments in several countries. InvITs seeks to facilitate similar structure for infrastructure projects. This will allow original equity investor to exit their investments which is expected to give a fillip to both, cash strapped real estate projects and infrastructure projects. Guidelines/ Regulations issued by SEBI.
DEPARTMENT OF REVENUE
Central Board of Direct Taxes (CBDT)
(xvi) While broadening the tax base and providing an equitable tax regime has been the underlying theme of the tax policy of the government, sustained economic growth continues to be the prime objective. Even in the limited fiscal space several important and path breaking initiatives for reviving the economy, promoting investment in manufacturing sector and measures of rationalising tax provisions so as to reduce litigation were introduced through the Finance (No.2) Act , 2014.
(xvii) Tax clarity and Dispute Resolution:
(xviii) Non-adversarial tax regime:
In furtherance of its objective to improve the efficiency and equity of the tax system and to promote voluntary compliance, the emphasis of the government has been for providing a non-adversarial tax regime. Accordingly, the Central Board of Direct Taxes has issued detailed instructions to its field formations to ensure that the dignity of the taxpayers is respected while dealing with them, no frivolous demands are raised and no unnecessary litigation is continued.
(xix) Measures to curb Black Money
The Government is committed to take all possible measures to check the menace of black money in the country. These measures include putting in place robust legislative and administrative frameworks, systems and processes with due focus on capacity building and integration of information and its mining through increasing use of information technology. Certain major recent initiatives include the following:
Central Board of Excise and Customs (CBEC)
(xx) Measures to boost domestic manufacturing sector: A number of changes in the customs and excise duty structure including rectification of inverted duty structure have been made to promote domestic manufacture, attract new investment, increase capacity utilization & enable domestic value addition in sectors, such as electronics & IT, steel, chemicals & petrochemicals, and renewable energy.
(xxi) Rationalization of customs duty structure:
(xxii) Relief Measures:
(xxiii) Clean Environment Initiative:
(xxiv) Trade Facilitation:
DEPARTMENT OF DISINVESTMENT
(xxv) Actual disinvestment: Government has disinvested 5% equity in SAIL and realized ₹ 1,720 crore. This Offer for Sale (OFS) of Shares through Stock Exchange Mechanism was one of the best ever by the Government in terms of high percent subscription and low discount offered.
(xxvi) Operationalizing the Action Plan on Disinvestment: CCEA approved the disinvestment proposals of Coal India Ltd (10% equity), ONGC (5%), NHPC (11.36%), PFC (5%) and REC (5%). Government sees disinvestment of CPSEs as a tool for realizing their productive potential, while improving corporate governance, public accountability, participation of the people and raising resources for priority Government social and economic programs.
(xxvii) Making the disinvestment program more inclusive: Earlier there was no reservation for retail investors in OFS. However, on 8 August, 2014, SEBI has mandated that minimum 10% of the offer size shall be reserved for retail investors in OFS and a discount has also been made admissible to them. Subsequent to this amendment in OFS Guidelines, Government has approved upto 20% of the offer size being reserved for retail investors. Further, retail investors may be allocated shares at a discount. This is likely to improve public participation in the disinvestment program.
(xxviii) Minimum Public Shareholding norms: In August 2014, SEBI has amended the minimum public shareholding norms for every listed CPSE. After this amendment, every listed CPSE has to increase its public shareholding to at least 25%, within a period of 3 years. This is likely to give further impetus to disinvestment of CPSEs with attendant benefits.