Finance Minister Nirmala Sitharaman, with her proactive and engaging approach to governance, turns 65 on August 18, 2024. As one of India's most dynamic finance leaders, Sitharaman has consistently shaped the nation's fiscal policies and economic landscape through innovative reforms and strategic decisions. On this special occasion, we take a closer look at some of her significant achievements and recent developments that mark her tenure.
1. Central Goods and Services Tax Amendment Bill
In a notable move during the recent monsoon session of Parliament, Finance Minister Sitharaman introduced the Central Goods and Services Tax (GST) Amendment Bill. Despite opposition protests, the Lok Sabha passed crucial amendments to GST laws, including a substantial 28% tax on the total bet value in online gaming, casinos, and horse racing. This legislative change aims to streamline tax regulations and bolster government revenue from these high-value sectors.
2. GST Council Meeting Updates
The Union Cabinet has also approved legislative changes to enforce the GST Council's decision, which mandates a 28% GST on the full value of bets placed in online games, casinos, and horse races. Sitharaman highlighted in the Rajya Sabha that this move, following the 50th GST Council meeting, is expected to significantly increase revenue from current levels, reflecting a targeted approach to enhance tax compliance and revenue generation.
3. Emphasis on Flagship Schemes
FM Sitharaman has consistently emphasized the importance of flagship government schemes in her policy agenda. She has urged Regional Rural Banks (RRBs) to focus on the successful implementation and saturation of programs such as PM Jan Dhan Yojana, PM Mudra Yojana, Atal Pension Yojana, and others. These schemes are pivotal in promoting financial inclusion and economic empowerment across rural India.
4. New Income Tax Slabs
In a landmark decision, Sitharaman announced new income tax slabs in her budget speech aimed at providing relief to the hardworking middle-class citizens. The new tax regime, now the default, features an increased exemption limit of Rs. 7 lakh. While the old tax slabs remain in place, this reform is expected to simplify tax compliance and offer financial respite to many taxpayers.
5. Amalgamation of Public Sector Banks
A significant achievement under Sitharaman’s leadership has been the successful amalgamation of several public sector banks. The 2020 consolidation led to the merging of Oriental Bank of Commerce and United Bank of India into Punjab National Bank, Syndicate Bank into Canara Bank, Andhra Bank and Corporation Bank into Union Bank of India, and Allahabad Bank into Indian Bank. This strategic move was designed to strengthen the banking sector, enhance operational efficiency, and improve customer service.
6. Latest Developments
Recently, FM Sitharaman has also been involved in addressing the challenges of economic diversification and digitalization. Her recent initiatives include promoting the adoption of digital payment systems and enhancing financial literacy through various government programs. Additionally, she has been actively working on strengthening India’s fiscal policies to better adapt to global economic changes and internal economic challenges.
As Finance Minister Nirmala Sitharaman celebrates her 65th birthday, her impactful contributions to India's economic and financial framework are noteworthy. From major legislative reforms to strategic bank consolidations, her tenure has been marked by a commitment to enhancing fiscal policy and promoting economic growth. On this milestone birthday, we reflect on her achievements and look forward to her continued leadership in shaping India's economic future.
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