Nirmala Sitharaman meets Finance Commission chief, Goa CM ahead of Budget

Finance Commission Chairman NK Singh on Tuesday called on Union Minister of Finance and Corporate Affairs Nirmala Sitharaman in New Delhi. She also met veteran BJP leader Murli Manohar Joshi and Goa Chief Minister Pramod Sawant. Sawant discussed various issues pertaining to the state of Goa.

The meetings come just over a week before the Union Budget for the fiscal year 2020-21 is tabled by Sitharaman in the Parliament.

READ | BIG: Centre To De-criminalise Income Tax Act & PMLA, Says FM Sitharaman Before Budget 2020

Finance Commission chief meets power minister

NK Singh and a delegation of the Finance Commission also met Union Power Minister Raj Kumar Singh. Core issues concerning power sector reforms central to Union and State finances were considered in depth. Discussions were held to go beyond achieving the current reduction targets of AT&C (Aggregate Technical and Commercial) losses of state electricity distribution companies (DISCOMs).

READ | Nirmala Sitharaman: States Opposing CAA Implementation Is 'unconstitutional'

Steps to improve health of power sector

The Power Ministry is looking in ways to reduce the dependence of private and public sector industries on state utility firms to supply energy. Plans were also discussed to implement direct cash transfers for all consumers eligible for the subsidy. The Ministry is in the advanced stage of building a consensus prior to cabinet approval, particularly on manner and appointment of State regulators, obligations on regulators for annual tariff changes as well as incentives and disincentives to improve the health of the power sector.

The Power Ministry said that far-reaching changes in the sector would need an amendment to the Electricity Act. For this, the ministry would submit revised proposals to the Finance Commission after consulting with the States for enabling these to be factored in the final report which the Commission would submit to the government later in the year.

READ | FM Sitharaman Leads Iconic 'Halwa Ceremony' As Budget 2020 Countdown Officially Begins

Union Budget on Feb 1

Nirmala Sitharaman would table the Union Budget on February 1 in the Parliament at a time when the economy is under severe stress. GDP growth, according to the government's own estimates, is expected to fall to 5 per cent for FY2019-20. The Centre has slashed corporate tax rates, rolled back additional taxes on the rich and have injected fresh capital into stalled housing and infrastructure projects over the last couple of months.

READ | FM Sitharaman Dubs Proposal Of States To Not Implement CAA As 'unconstitutional'