Finance Minister Nirmala Sitharaman on Friday asked the ministries and the government departments to clear all the overdue payments to MSMEs and all those who have supplied goods and services to them.
“No overdue payment should be with any ministry… My intention is to make sure that the government does not sit on the payments that are due. The government does not sit on capex than it has planned. I’m gearing up the machinery so that what is expected outside to happen should also be enabled from us,” Sitharaman told reporters after meeting top officials of 21 key infra ministries.
This is part of a series of steps being taken by the government to boost growth. The country’s economy grew at the slowest pace at 5% in over six years in the first quarter of this fiscal year.
BOON TO MSMES
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- Finance Minister Nirmala Sitharaman has announced yet another measure to lift growth from a six-year low
- The government will not sit on funds and it will ensure that “money reaches the ground”, said the minister
- She said the governm-ent aims to clear Rs 20,000 crore dues by the first week of October
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So far during the current fiscal, various ministries have cleared Rs 40,000 crore out of Rs 60,000 crore due mainly to micro, small and medium enterprises (MSMEs) for the supply of goods and services, and the remaining amount not locked in litigation too will be paid by the first week of October. She also said that 90% of the GST refunds have been cleared.
To give a push to infrastructure spending aimed at boosting growth, the finance minister also asked all the ministries to provide their capital expenditure plans for next four quarters in an effort to boost growth.
“Within next week, we will have a clear picture of what is the capex by ministries in next four quarters,” she said adding the government’s expenditure plan is well on track.
The Budget has projected a total expenditure of the central government for 2019-20 at Rs 27.86 lakh crore. Of this, capital expenditure is Rs 3.38 lakh crore.
Expenditure secretary G C Murmu said that the most infrastructure ministries have reached 50% of their capex target for the current fiscal.
Zee Media Newsroom
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