Nirmala Sitharaman Finance Minister has sought approval from Parliament for recapitalising of insurance companies which state-owned with Rs 2,500 crores in this financial year. This move of Finance Minister will help to improve the financial health of insurer, help them to meet regulatory requirements and facilitate the eventual sale of government stake in them.
FM Nirmala Sitharaman tabled in Lok Sabha on Thursday for the capital infusion which is the part of first supplementary demand. The government wants to spend an additional Rs 21,246 crore, out of which net cash outgo will be Rs 18,995.51 crore. The rest of the amount will be met by savings from other expenses.
The government also wants to spend about Rs 8,820 crore for the newly formed union territories of Jammu and Kashmir and Ladakh. The government is seeking clearance for fresh spending and for reallocation of certain unspent amounts amid an economic slowdown. The Finance Ministry had earlier clarified that it will not cut any welfare or capital spending. The corporate tax cut announced in September is expected to cost the exchequer about Rs 1-1.5 trillion.
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