The Indian Government on overdrive now

On July 8, 2019, I had done this blog post when the Finance Minister appeared to walk back on her silently profound announcement in the budget that the government, going forward, would maintain its stake in central public sector undertakings at 51% taking into account the stake held by goverment-owned financial institutions. Now, few months later, she has managed to get it cleared by the Cabinet Committee. See the press release here. Kudos for her persistence.

Then, the government had announced strategic sale in select public sector enterprises. See press release here.

The Cabinet has approved the Taxation Laws (Amendment) Bill 2019.

Last week, the government had announced a resolution mechanism for financial service providers. Dewan Housing Finance will be a test case. Andy Mukherjee wonders if it might work. Reading between the lines, he is not sure that it would not.

Together with the Supreme Court decision on the sale of Essar Steel to Mittal Steel, it has been a good week for the government and for the Finance Minister.

The demons of fiscal deficit and goverment borrowing for the reminder of 2019-20 and that of government data are the two big ones that remain be slayed.

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