Ministry of Finance Current Affairs - 2020

GoI: No New Schemes for a year

On June 5, 2020, the Government of India announced that no new schemes will be approved till March 31, 2021. Till then, the schemes under Pradhan Mantri Garib Kalyan Yojana and Atma Nirbhar Bharat Abhiyan are to be implemented.

Highlights

The Government of India will implement the schemes that were announced under Atma Nirbhar Bharat Abhiyan and Pradhan Mantri Garib Kalyan Yojana alone. All the other ministries have been asked to stop sending requests for new scheme.

This is being done to manage available finances efficiently. According to GoI, the announcement is being made as there is un-precendented demand on public financial resources and there is a huge need to use the available resources in a prudent way. Government of India had earlier frozen Dearness Allowance of Employee salaries till 2021 as well.

Atma Nirbhar Bharat Abhiyan

The scheme was launched to improve the growth of the country. The scheme announced several measures and covered almost all sections of the society. It allocated Rs 20,000 lakh crores. The scheme covered agriculture, fisheries, MSME, street vendors, mining, migrant workers, Jal Jeevan Mission, MGNREGA, Public Distribution System, etc. The scheme also intends to provide houses and food for the migrant workers that have returned to their native places.

Pradhan Mantri Garib Kalyan Yojana

The scheme was launched to ease lives of the people of India during the COVID-19 crisis. It aimed to provide rice, wheat and pulses at affordable rates and also free for a short period.

Status Paper on Government Debt released

On May 22, 2020, the Ministry of Finance released Status Paper on Government Debt 2018-19. According to the report, the overall debt of centres and states declined by 68.7% in March 2018 to 68.6% in 2019.

Highlights

The Status Paper on Government Debt is being produced by the Ministry of Finance since 2010. Current debt of India stands at Rs 1.3 crore crore.

Key Findings of paper

The debt of central government dropped marginally from 45.8% in 2017-18 to 45.7% in 2019, The external debt was 2.7% of GDP. The Average Interest Cost of the centre remained unchanged in the year 2018 to 2019. Around 94% of centre’s liabilities were of domestic debts.

The tenure of the longest security was 37 years.

Government Debt

The Government Debts are classified as internal debt and external debt. The Internal Debts include non-marketable and marketable debt. External debt refers to debt borrowed from all the sources outside the country.

Government Liabilities are classified into liabilities in public account and debt contracted against Consolidated Funds of India.