Financial Frugality: Govt's Diwali Directive to Prevent Festive Splurge
The Indian Finance Ministry has advised financial institutions to halt wasteful spending on festival gifts to maintain fiscal discipline. This follows GST reforms aimed at boosting spending and mitigating US tariff impacts, with an estimated GDP rise of Rs 2.2 lakh crore from these measures.
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Amidst the festive season, the Indian Finance Ministry has urged fiscal prudence across financial institutions, including the Reserve Bank of India, advising them to avoid expenditure on festival gifts. This directive aims to curtail non-essential spending and promote fiscal discipline, beginning with Diwali.
A part of a broader strategy to invigorate the economy, the government has slashed GST rates on 375 items and adjusted income tax relief, potentially injecting Rs 2.2 lakh crore into the GDP, now approaching USD 4 trillion.
At a time of heightened governmental efforts to boost consumption among the middle class, the importance of public sector discipline stands highlighted to ensure responsible utilization of public resources without compromising on economic stimulation.
(With inputs from agencies.)
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