FinMin revises cash management system to attune to GST

New guidelines issued for salaries, bulk expenditures

by Arjit Singh Bhambra

The ministry of finance has revised the cash management system of the central government to adjust to the new GST regime, as per a report in Economic Times. Accordingly, the ministry of home affairs has issued guidelines to possibly avert any situation of temporary mismatch in cash outflows and inflows. According to the guidelines, salaries of government employees will be released on the last working day of each month. All departments are required to time bulk expenditure items of more than Rs.20 billion in the last month of each quarter. Bulk releases of Rs.2-20 billion should be kept between 21st and 25th of any month. Prior approval of the ministry is required for preparation of any major expenditure exceeding Rs.2 billion outside the suggested dates. Not more than 33 per cent of the expenditure of budget estimates in the last quarter and 15 per cent in the last month of the financial year shall be permissible. This restriction shall be observed both scheme-wise as well as for the demand for grants as a whole.

References
1. http://economictimes.indiatimes.com/news/economy/policy/gst-regime-brings-new-cash-management-system-for-govt-expenses/articleshow/61036496.cms
CMIE STATISTICS
Unemployment Rate
Per cent
4.8 +0.1
Consumer Sentiments Index
Base September-December 2015
92.2 -0.4
Consumer Expectations Index
Base September-December 2015
90.5 -0.3
Current Economic Conditions Index
Base September-December 2015
95.0 -0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Dec 16 Mar 17 Jun 17 Sep 17
New projects 2.32 3.77 2.02 0.88
Completed projects 1.00 1.91 1.13 0.70
Stalled projects 1.13 0.70 2.66 0.64
Revived projects 0.18 0.67 0.29 0.14
Implementation stalled projects 0.82 0.33 0.67 0.50
Updated on: 19 Oct 2017 4:20PM
Quarterly Financials of Listed Companies
(% change) Sep 16 Dec 16 Mar 17 Jun 17
All listed Companies
 Income 2.1 6.2 10.2 10.2
 Expenses 1.9 6.3 11.9 10.5
 Net profit 14.6 40.3 16.8 -18.9
 PAT margin (%) 6.9 6.1 6.1 5.4
 Count of Cos. 4,503 4,503 4,427 4,257
Non-financial Companies
 Income 0.6 5.9 11.8 10.9
 Expenses -0.2 7.2 15.5 11.1
 Net profit 26.7 24.6 -1.1 -24.3
 PAT margin (%) 6.9 6.2 6.3 5.3
 Net fixed assets -9.2 7.5
 Current assets 8.1 2.1
 Current liabilities 11.7 8.5
 Borrowings 3.1 4.9
 Reserves & surplus 8.4 6.5
 Count of Cos. 3,476 3,482 3,432 3,324
Numbers are net of P&E
Updated on: 19 Oct 2017 4:30PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 12.6 10.0 5.0 1.0
 Expenses 12.8 9.9 5.1 1.2
 Net profit 1.0 -2.2 1.1 -15.2
 PAT margin (%) 3.5 3.2 3.2 3.0
 Assets 14.3 12.3 9.4 8.8
 Net worth 9.6 9.6 8.8 7.7
 RONW (%) 6.8 6.2 6.1 5.3
 Count of Cos. 25,932 23,621 23,131 19,375
Non-financial Companies
 Income 11.9 9.7 4.1 0.0
 Expenses 12.3 9.3 4.3 -0.6
 Net profit -8.4 -2.4 -6.3 6.5
 PAT margin (%) 2.4 2.2 2.1 2.7
 Net fixed assets 12.9 11.6 13.1 13.9
 Net worth 7.9 8.2 7.3 7.0
 RONW (%) 5.5 5.1 4.9 5.6
 Debt / Equity (times) 1.1 1.1 1.1 1.0
 Interest cover (times) 2.1 2.0 1.9 2.0
 Net working capital cycle (days) 72 69 67 67
 Count of Cos. 20,312 18,893 18,620 15,945
Numbers are net of P&E
Updated on: 21 Sep 2017 10:15AM

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