Finance Minister Arun Jaitley on Friday chaired a meeting with financial sector regulators during which they gave proposals for the Union Budget to be presented on February 1. The meeting comes at a time when the government is grappling with fiscal pressures amid muted indirect tax collections and weak economic recovery.
The Financial Stability and Development Council (FSDC) is a high-powered body, whose members include RBI Governor Urjit Patel, Sebi Chairman Ajay Tyagi, IRDAI Chief T S Vijayan, PFRDA Chairman Hemant Contractor and IBBI Chairman M S Sahoo. Senior finance ministry officials including revenue secretary Hasmukh Adhia, economic affairs secretary Subhash Chandra Garg, banking secretary Rajiv Kumar and Chief Economic Adviser Arvind Subramanian also attended the meeting.
Ministry of Corporate Affairs secretary and chairman IBBI have been added as members of Council via a government notification in September 2017. “The Regulators presented their proposals for the Union Budget 2018-19 concerning development of their respective sectors. The Council deliberated over these proposals. Concerned Ministries/Departments were advised by the Council to examine respective proposals in detail for appropriate further decision,” a finance ministry statement said.
Union Budget for 2018-19 would be presented by Jaitley in Parliament on February 1. The regulators inputs, coming just ahead of the presentation of the Union Budget, are crucial as these impact the most important financial segments of the economy.
In the last meeting of the FSDC in August, Chief Economic Adviser Subramanian had made a presentation on the state of economy. The Council had then noted that India has macro-economic stability on the back of improvements in its macro-economic fundamentals, structural reforms with the launch of the Goods and Services Tax (GST), action being taken to address the Twin Balance Sheet (TBS) challenge, extraordinary financial market confidence, reflected in high and rising bond and especially stock valuations and long-term positive consequences of demonetization.