Source: United States House of Representatives – Representative Byron Donalds (R-FL)
Donalds Bipartisan Bill To Put The American Taxpayer First Advances To House Floor With Vote Of 24-15
Washington, November 25, 2024
WASHINGTON – The U.S. House Committee on Oversight and Accountability advanced H.R. 9040 – “The Bipartisan Taxpayer Exposure And Risk Reduction (TERRA) Act” out of committee and to the floor of the U.S. House of Representatives with vote a of 24-15.
The Donalds TERRA Act includes innovative provisions that will ensure government prioritizes the interests of the hardworking American taxpayer. This America First legislation will reduce risk to taxpayers, ensure that government is held accountable, increase fiscal responsibility, and promote market-driven efficiency.
H.R. 9040 – “The TERRA Act” is one of more than one hundred pieces of legislation introduced by Congressman Donalds during the 118th Congress and is cosponsored by Congressman Raja Krishnamoorthi (D-IL).
Background:
Instructs federal agencies with credit, guarantee, or insurance risk on their balance sheets to develop and implement strategies to transfer such risk to the private sector—provided it is of benefit to the taxpayers
Identifies existing barriers to such types of risk transfer and ensures agencies address obstacles to minimizing taxpayer financial risk exposure
Builds on the stability and efficiency already provided by credit and insurance risk transfer in several federal programs
NEXT FIVE YEARS PRESENT A UNIQUE OPPORTUNITY TO REALIZE ‘SABKA VIKAS’; UNION BUDGET 2025-26 AGRICULTURE, MSME, INVESTMENT, AND EXPORTS TO BE FOUR POWERFUL ENGINES IN JOURNEY OF DEVELOPMENT
FOCUS ON GARIB, YOUTH, ANNADATA AND NARI IN THE BUDGET
Posted On: 01 FEB 2025 1:01PM by PIB Delhi
Next five years is seen as a unique opportunity to realize ‘Sabka Vikas’, said the Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman while presenting the Union Budget 2025-26 in Parliament today. In her budget speech, the Union Finance Minister emphasized on stimulating balanced growth of all regions.
The Minister highlighted that our economy is the fastest-growing among all major global economies. Our development track record of the past 10 years and structural reforms have drawn global attention. Confidence in India’s capability and potential has only grown in this period, the Minister added.
The Union Budget 2025-26 highlights Government’s efforts to accelerate growth, secure inclusive development, invigorate private sector investments, uplift household sentiments, and enhance spending power of India’s rising middle class.
Specifying Agriculture, MSME, Investment, and Exports to be four powerful engines in journey of development, the Minister underlined that this budget aims to initiate transformative reforms across six domains. During the next five years, the domains of Taxation, Power Sector, Urban Development, Mining, Financial Sector and Regulatory Reforms will augment our growth potential and global competitiveness. The Finance Minister said that in the journey of development, “Our Reforms” is the fuel; where, “Inclusivity” is a guiding spirit; and the “Viksit Bharat” is the destination.
Focussing on Garib, Youth, Annadata and Nari in her Union Budget 2025-26 speech, the Union Finance Minister underscored on proposed development measures spanning ten broad areas. These are namely, Spurring Agricultural Growth and Productivity; Building Rural Prosperity and Resilience; Taking Everyone Together on an Inclusive Growth path; Boosting Manufacturing and Furthering Make in India; Supporting MSMEs; Enabling Employment-led Development; Investing in people, economy and innovation; Securing Energy Supplies; Promoting Exports; and Nurturing Innovation.
The Union Minister observed that “Viksit Bharat” encompasses zero-poverty; hundred per cent good quality school education; access to high-quality, affordable, and comprehensive healthcare; hundred per cent skilled labour with meaningful employment; seventy per cent women in economic activities; and farmers making our country the ‘food basket of the world’.
Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman presented Union Budget 2025-26 in the Parliament today. The highlights of the budget are as follows:
Budget Estimates 2025-26
The total receipts other than borrowings and the total expenditure are estimated at ₹ 34.96 lakh crore and ₹ 50.65 lakh crore respectively.
The net tax receipts are estimated at ₹ 28.37 lakh crore.
The fiscal deficit is estimated to be 4.4 per cent of GDP.
The gross market borrowings are estimated at ₹ 14.82 lakh crore.
Capex Expenditure of ₹11.21 lakh crore (3.1% of GDP) earmarked in FY2025-26.
AGRICULTURE AS THE 1ST ENGINE OF DEVELOPMENT
Prime Minister Dhan-Dhaanya Krishi Yojana – Developing Agri Districts Programme
The programme to be launched in partnership with the states, covering 100 districts with low productivity, moderate crop intensity and below-average credit parameters, to benefit 1.7 crore farmers.
Building Rural Prosperity and Resilience
A comprehensive multi-sectoral programme to be launched in partnership with states to address under-employment in agriculture through skilling, investment, technology, and invigorating the rural economy.
Phase-1 to cover 100 developing agri-districts.
Aatmanirbharta in Pulses
Government to launch a 6-year “Mission for Aatmanirbharta in Pulses” with focus on Tur, Urad and Masoor.
NAFED and NCCF to procure these pulses from farmers during the next 4 years.
Comprehensive Programme for Vegetables & Fruits
A comprehensive programme to promote production, efficient supplies, processing, and remunerative prices for farmers to be launched in partnership with states.
Makhana Board in Bihar
A Makhana Board to be established to improve production, processing, value addition, and marketing of makhana.
National Mission on High Yielding Seeds
A National Mission on High Yielding Seeds to be launched aiming at strengthening the research ecosystem, targeted development and propagation of seeds with high yield, and commercial availability of more than 100 seed varieties.
Fisheries
Government to bring a framework for sustainable harnessing of fisheries from Indian Exclusive Economic Zone and High Seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands.
Mission for Cotton Productivity
A 5-year mission announced to facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties.
Enhanced Credit through KCC
The loan limit under the Modified Interest Subvention Scheme to be enhanced from ₹ 3 lakh to ₹ 5 lakh for loans taken through the KCC.
Urea Plant in Assam
A plant with annual capacity of 12.7 lakh metric tons to be set up at Namrup, Assam.
MSMEs AS THE 2ND ENGINE OF DEVELOPMENT
Revision in classification criteria for MSMEs
The investment and turnover limits for classification of all MSMEs to be enhanced to 2.5 and 2 times respectively.
Credit Cards for Micro Enterprises
Customized Credit Cards with ₹ 5 lakh limit for micro enterprises registered on Udyam portal, 10 lakh cards to be issued in the first year.
Fund of Funds for Startups
A new Fund of Funds, with expanded scope and a fresh contribution of ₹ 10,000 crore to be set up.
Scheme for First-time Entrepreneurs
A new scheme for 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs to provide term-loans upto ₹ 2 crore in the next 5 years announced.
Focus Product Scheme for Footwear & Leather Sectors
To enhance the productivity, quality and competitiveness of India’s footwear and leather sector, a focus product scheme announced to facilitate employment for 22 lakh persons, generate turnover of ₹ 4 lakh crore and exports of over ₹ 1.1 lakh crore.
Measures for the Toy Sector
A scheme to create high-quality, unique, innovative, and sustainable toys, making India a global hub for toys announced.
Support for Food Processing
A National Institute of Food Technology, Entrepreneurship and Management to be set up in Bihar.
Manufacturing Mission – Furthering “Make in India”
A National Manufacturing Mission covering small, medium and large industries for furthering “Make in India” announced.
INVESTMENT AS THE 3RD ENGINE OF DEVELOPMENT
Investing in People
Saksham Anganwadi and Poshan 2.0
The cost norms for the nutritional support to be enhanced appropriately.
Atal Tinkering Labs
50,000 Atal Tinkering Labs to be set up in Government schools in next 5 years.
Broadband Connectivity to Government Secondary Schools and PHCs
Broadband connectivity to be provided to all Government secondary schools and primary health centres in rural areas under the Bharatnet project.
Bharatiya Bhasha Pustak Scheme
Bharatiya Bhasha Pustak Scheme announced to provide digital-form Indian language books for school and higher education.
National Centres of Excellence for Skilling
5 National Centres of Excellence for skilling to be set up with global expertise and partnerships to equip our youth with the skills required for “Make for India, Make for the World” manufacturing.
Expansion of Capacity in IITs
Additional infrastructure to be created in the 5 IITs started after 2014 to facilitate education for 6,500 more students.
Centre of Excellence in AI for Education
A Centre of Excellence in Artificial Intelligence for education to be set up with a total outlay of ₹ 500 crore.
Expansion of medical education
10,000 additional seats to be added in medical colleges and hospitals next year, adding to 75000 seats in the next 5 years.
Day Care Cancer Centres in all District Hospitals
Government to set up Day Care Cancer Centres in all district hospitals in the next 3 years, 200 Centres in 2025-26.
Strengthening urban livelihoods
A scheme for socio-economic upliftment of urban workers to help them improve their incomes and have sustainable livelihoods announced.
PM SVANidhi
Scheme to be revamped with enhanced loans from banks, UPI linked credit cards with ₹ 30,000 limit, and capacity building support.
Social Security Scheme for Welfare of Online Platform Workers
Government to arrange for identity cards, registration on e-Shram portal and healthcare under PM Jan Arogya Yojna, for gig-workers.
Investing in the Economy
Public Private Partnership in Infrastructure
Infrastructure-related ministries to come up with a 3-year pipeline of projects in PPP mode, States also encouraged.
Support to States for Infrastructure
An outlay of ₹1.5 lakh crore proposed for the 50-year interest free loans to states for capital expenditure and incentives for reforms.
Asset Monetization Plan 2025-30
Second Plan for 2025-30 to plough back capital of ₹ 10 lakh crore in new projects announced.
Jal Jeevan Mission
Mission to be extended until 2028 with an enhanced total outlay.
Urban Challenge Fund
An Urban Challenge Fund of ₹ 1 lakh crore announced to implement the proposals for ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’ and ‘Water and Sanitation’, allocation of ₹ 10,000 crore proposed for 2025-26.
Nuclear Energy Mission for Viksit Bharat
Amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act to be taken up.
Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of ₹20,000 crore to be set up, 5 indigenously developed SMRs to be operational by 2033.
Shipbuilding
The Shipbuilding Financial Assistance Policy to be revamped.
Large ships above a specified size to be included in the infrastructure harmonized master list (HML).
Maritime Development Fund
A Maritime Development Fund with a corpus of ₹ 25,000 crore to be set up, with up to 49 per cent contribution by the Government, and the balance from ports and private sector.
UDAN – Regional Connectivity Scheme
A modified UDAN scheme announced to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years.
Also to support helipads and smaller airports in hilly, aspirational, and North East region districts.
Greenfield Airport in Bihar
Greenfield airports announced in Bihar, in addition to the expansion of the capacity of Patna airport and a brownfield airport at Bihta.
Western Koshi Canal Project in Mithilanchal
Financial support for the Western Koshi Canal ERM Project in Bihar.
Mining Sector Reforms
A policy for recovery of critical minerals from tailings to be brought out.
SWAMIH Fund 2
A fund of ₹ 15,000 crore aimed at expeditious completion of another 1 lakh dwelling units, with contribution from the Government, banks and private investors announced.
Tourism for employment-led growth
Top 50 tourist destination sites in the country to be developed in partnership with states through a challenge mode.
Investing in Innovation
Research, Development and Innovation
₹20,000 crore to be allocated to implement private sector driven Research, Development and Innovation initiative announced in the July Budget.
Deep Tech Fund of Funds
Deep Tech Fund of Funds to be explored to catalyze the next generation startups.
PM Research Fellowship
10,000 fellowships for technological research in IITs and IISc with enhanced financial support.
Gene Bank for Crops Germplasm
2nd Gene Bank with 10 lakh germplasm lines to be set up for future food and nutritional security.
National Geospatial Mission
A National Geospatial Mission announced to develop foundational geospatial infrastructure and data.
Gyan Bharatam Mission
A Gyan Bharatam Mission for survey, documentation and conservation of our manuscript heritage with academic institutions, museums, libraries and private collectors to be undertaken to cover more than 1 crore manuscripts announced.
EXPORTS AS THE 4TH ENGINE OF DEVELOPMENT
Export Promotion Mission
An Export Promotion Mission, with sectoral and ministerial targets, driven jointly by the Ministries of Commerce, MSME, and Finance to be set up.
BharatTradeNet
‘BharatTradeNet’ (BTN) for international trade to be set-up as a unified platform for trade documentation and financing solutions.
National Framework for GCC
A national framework to be formulated as guidance to states for promoting Global Capability Centres in emerging tier 2 cities.
REFORMS AS FUEL: FINANCIAL SECTOR REFORMS AND DEVELOPMENT
FDI in Insurance Sector
The FDI limit for the insurance sector to be raised from 74 to 100 per cent, for those companies which invest the entire premium in India.
Credit Enhancement Facility by NaBFID
NaBFID to set up a ‘Partial Credit Enhancement Facility’ for corporate bonds for infrastructure.
Grameen Credit Score
Public Sector Banks to develop ‘Grameen Credit Score’ framework to serve the credit needs of SHG members and people in rural areas.
Pension Sector
A forum for regulatory coordination and development of pension products to be set up.
High Level Committee for Regulatory Reforms
A High-Level Committee for Regulatory Reforms to be set up for a review of all non-financial sector regulations, certifications, licenses, and permissions.
Investment Friendliness Index of States
An Investment Friendliness Index of States to be launched in 2025 to further the spirit of competitive cooperative federalism anounced.
Jan Vishwas Bill 2.0
The Jan Vishwas Bill 2.0 to decriminalize more than 100 provisions in various laws.
PART B
DIRECT TAX
No personal income tax payable upto income of Rs 12 lakh (i.e. average income of Rs 1 lakh per month other than special rate income such as capital gains) under the new regime.
This limit will be Rs 12.75 lakh for salaried tax payers, due to standard deduction of Rs 75,000.
The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment.
The new Income-Tax Bill to be clear and direct in text so as to make it simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation.
Revenue of about ₹ 1 lakh crore in direct taxes will be forgone.
Revised tax rate structure
In the new tax regime, the revised tax rate structure will stand as follows:
0-4 lakh rupees
Nil
4-8 lakh rupees
5 percent
8-12 lakh rupees
10 percent
12-16 lakh rupees
15 percent
16-20 lakh rupees
20 percent
20- 24 lakh rupees
25 percent
Above 24 lakh rupees
30 percent
TDS/TCS rationalization for easing difficulties
Rationalization of Tax Deduction at Source (TDS) by reducing number of rates and thresholds above which TDS is deducted.
The limit for tax deduction on interest for senior citizens doubled from the present Rs 50,000 to Rs 1 lakh.
The annual limit of Rs 2.40 lakh for TDS on rent increased to Rs 6 lakh.
The threshold to collect tax at source (TCS) on remittances under RBI’s Liberalized Remittance Scheme (LRS) increased from Rs 7 lakh to Rs 10 lakh.
The provisions of the higher TDS deduction will apply only in non-PAN cases.
Decriminalization for the cases of delay of payment of TCS up to the due date of filing statement.
Reducing Compliance Burden
Reduction of compliance burden for small charitable trusts/institutions by increasing their period of registration from 5 years to 10 years.
The benefit of claiming the annual value of self-occupied properties as nil will be extended for two such self-occupied properties without any condition.
Ease of Doing Business
Introduction of a scheme for determining arm’s length price of international transaction for a block period of three years.
Expansion of the scope of safe harbour rules to reduce litigation and provide certainty in international taxation.
Exemption of withdrawals made from National Savings Scheme (NSS) by individuals on or after the 29th of August, 2024.
Similar treatment to NPS Vatsalya accounts as is available to normal NPS accounts, subject to overall limits.
Employment and Investment
Tax certainty for electronics manufacturing Schemes
Presumptive taxation regime for non-residents who provide services to a resident company that is establishing or operating an electronics manufacturing facility.
Introduction of a safe harbour for tax certainty for non-residents who store components for supply to specified electronics manufacturing units.
Tonnage Tax Scheme for Inland Vessels
The benefits of existing tonnage tax scheme to be extended to inland vessels registered under the Indian Vessels Act, 2021 to promote inland water transport in the country.
Extension for incorporation of Start-Ups
Extension of the period of incorporation by 5 years to allow the benefit available to start-ups incorporated before 1.4.2030.
Alternate Investment Funds (AIFs)
Certainty of taxation on the gains from securities to Category I and Category II AIFs which are undertaking investments in infrastructure and other such sectors.
Extension of investment date for Sovereign and Pension Funds
Extension of the date of making investments in Sovereign Wealth Funds and Pension Funds by five more years, to 31st March, 2030, to promote funding from them to the infrastructure sector.
INDIRECT TAX
Rationalisation of Customs Tariff Structure for Industrial Goods
Union Budget 2025-26 proposes to:
Remove seven tariff rates. This is over and above the seven tariff rates removed in 2023-24 budget. After this, there will be only eight remaining tariff rates including ‘zero’ rate.
Apply appropriate cess to broadly maintain effective duty incidence except on a few items, where such incidence will reduce marginally.
Levy not more than one cess or surcharge. Therefore Social Welfare Surcharge on 82 tariff lines that are subject to a cess, exempted.
Revenue of about ₹ 2600 crore in indirect taxes will be forgone.
Relief on import of Drugs/Medicines
36 lifesaving drugs and medicines fully exempted from Basic Customs Duty (BCD).
6 lifesaving medicines to attract concessional customs duty of 5%.
Specified drugs and medicines under Patient Assistance Programmes run by pharmaceutical companies fully exempted from BCD; 37 more medicines added along with 13 new patient assistance programmes.
Support to Domestic Manufacturing and Value addition
Critical Minerals :
Cobalt powder and waste, the scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals fully exempted from BCD.
Textiles:
Two more types of shuttle-less looms fully exempted textile machinery.
BCD rate on knitted fabrics revised from “10% or 20%” to “20% or ` 115 per kg, whichever is higher.
Electronic Goods:
BCD on Interactive Flat Panel Display (IFPD) increased from 10% to 20% .
BCD reduced to 5% on Open Cell and other components.
BCD on parts of Open Cells exempted.
Lithium Ion Battery:
35 additional capital goods for EV battery manufacturing, and 28 additional capital goods for mobile phone battery manufacturing exempted.
Shipping Sector:
Exemption of BCD on raw materials, components, consumables or parts for the manufacture of ships extended for another ten years.
The same dispensation to continue for ship breaking.
Telecommunication:
BCD reduced from 20% to 10% on Carrier Grade ethernet switches.
Export Promotion
Handicraft Goods:
Time period for export extended from six months to one year, further extendable by another three months, if required.
Nine items added to list of duty-free inputs.
Leather sector:
BCD on Wet Blue leather fully exempted.
Crust leather exempted from 20% export duty.
Marine products:
BCD reduced from 30% to 5% on Frozen Fish Paste (Surimi) for manufacture and export of its analogue products.
BCD reduced from 15% to 5% on fish hydrolysate for manufacture of fish and shrimp feeds.
Domestic MROs for Railway Goods:
Railways MROs to benefit similar to the aircraft and ships MROs in terms of import of repair items.
Time limit extended for export of such items from 6 months to one year and made further extendable by one year.
Trade facilitation
Time limit for Provisional Assessment:
For finalising the provisional assessment, time-limit of two years fixed, extendable by a year.
Voluntary Compliance:
A new provision introduced to enable importers or exporters, after clearance of goods, to voluntarily declare material facts and pay duty with interest but without penalty.
Extended Time for End Use:
Time limit for the end-use of imported inputs in the relevant rules extended from six months to one year.
Such importers to file only quarterly statements instead of a monthly statement.
NO INCOME TAX ON AVERAGE MONTHLY INCOME OF UPTO RS 1 LAKH; TO BOOST MIDDLE CLASS HOUSEHOLD SAVINGS & CONSUMPTION
SALARIED CLASS TO PAY NIL INCOME TAX UPTO ₹ 12.75 LAKH PER ANNUM IN NEW TAX REGIME
UNION BUDGET RECOGNISES 4 ENGINES OF DEVELOPMENT – AGRICULTURE, MSME, INVESTMENT AND EXPORTS
BENEFITTING 1.7 CRORE FARMERS, ‘PRIME MINISTER DHAN-DHAANYA KRISHI YOJANA’ TO COVER 100 LOW AGRICULTURAL PRODUCTIVITY DISTRICTS
“MISSION FOR AATMANIRBHARTA IN PULSES” WITH A SPECIAL FOCUS ON TUR, URAD AND MASOOR TO BE LAUNCHED
LOANS UPTO Rs. 5 LAKHS THROUGH KCC UNDER MODIFIED INTEREST SUBVENTION SCHEME
FY-25 ESTIMATED TO END WITH FISCAL DEFICIT OF 4.8%, TARGET TO BRING IT DOWN TO 4.4% IN FY-26
SIGNIFICANT ENHANCEMENT OF CREDIT WITH GUARANTEE COVER TO MSMEs FROM ₹ 5 CR TO ₹ 10 CR
A NATIONAL MANUFACTURING MISSION COVERING SMALL, MEDIUM AND LARGE INDUSTRIES FOR FURTHERING “MAKE IN INDIA”
50,000 ATAL TINKERING LABS IN GOVERNMENT SCHOOLS IN NEXT 5 YEARS
CENTRE OF EXCELLENCE IN ARTIFICIAL INTELLIGENCE FOR EDUCATION, WITH A TOTAL OUTLAY OF ₹ 500 CRORE
PM SVANIDHI WITH ENHANCED LOANS FROM BANKS, AND UPI LINKED CREDIT CARDS WITH ₹ 30,000 LIMIT
GIG WORKERS TO GET IDENTITY CARDS, REGISTRATION ON E-SHRAM PORTAL & HEALTHCARE UNDER PM JAN AROGYA YOJANA
₹ 1 LAKH CRORE URBAN CHALLENGE FUND FOR ‘CITIES AS GROWTH HUBS’
NUCLEAR ENERGY MISSION FOR R&D OF SMALL MODULAR REACTORS WITH AN OUTLAY OF ₹ 20,000 CRORE
MODIFIED UDAN SCHEME TO ENHANCE REGIONAL CONNECTIVITY TO 120 NEW DESTINATIONS
₹ 15,000 CRORE SWAMIH FUND TO BE ESTABLISHED FOR EXPEDITIOUS COMPLETION OF ANOTHER 1 LAKH STRESSED HOUSING UNITS
₹ 20,000 CRORE ALLOCATED FOR PRIVATE SECTOR DRIVEN RESEARCH DEVELOPMENT AND INNOVATION INITIATIVES
GYAN BHARATAM MISSION FOR SURVEYAND CONSERVATION OF MANUSCRIPTS TO COVER MORE THAN ONE CRORE MANUSCRIPTS
FDI LIMIT ENHANCED FOR INSURANCE FROM 74 TO 100 PER CENT
JAN VISHWAS BILL 2.0 TO BE INTRODUCED FOR DECRIMINALISING MORE THAN 100 PROVISIONS IN VARIOUS LAWS
UPDATED INCOME TAX RETURNS TIME LIMIT INCREASED FROM TWO TO FOUR YEARS
DELAY IN TCS PAYMENT DECRIMINALISED
TDS ON RENT INCREASED FROM ₹ 2.4 LAKH TO ₹ 6 LAKH
BCD EXEMPTED ON 36 LIFESAVING DRUGS AND MEDICINES FOR TREATING CANCER, RARE AND CHRONIC DISEASES
BCD ON IFPD INCREASED TO 20% AND ON OPEN CELLS REDUCED TO 5%
BCD ON PARTS OF OPEN CELLS EXEMPTED TO PROMOTE DOMESTIC MANUFACTURING
TO BOOST BATTERY PRODUCTION, ADDITIONAL CAPITAL GOODS FOR EV AND MOBILE BATTERY MANUFACTURING EXEMPTED
BCD EXEMPTED FOR 10 YEARS ON RAW MATERIALS & COMPONENTS USED FOR SHIP BUILDING
BCD REDUCED FROM 30% TO 5% ON FROZEN FISH PASTE AND 15% TO 5% ON FISH HYDROLYSATE
Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Union Budget 2025-26 in Parliament today. Here is the summary of her budget speech;
PART A
Quoting Telugu poet and playwright Shri Gurajada Appa Rao’s famous saying, ‘A country is not just its soil; a country is its people.’ – the Finance Minister presented the Union Budget 2025-26 with the theme “Sabka Vikas” stimulating balanced growth of all regions.
In line with this theme, the Finance Minister outlined the broad Principles of Viksit Bharat to encompass the following:
a) Zero-poverty;
b) Hundred per cent good quality school education;
c) Access to high-quality, affordable, and comprehensive healthcare;
d) Hundred per cent skilled labour with meaningful employment;
e) Seventy per cent women in economic activities; and
f) Farmers making our country the ‘food basket of the world’.
The Union Budget 2025-2026 promises to continue Government’s efforts to accelerate growth, secure inclusive development, invigorate private sector investments, uplift household sentiments, and enhance spending power of India’s rising middle class. The Budget proposes development measures focusing on poor (Garib), Youth, farmer (Annadata) and women (Nari).
The Budget aims to initiate transformative reforms in Taxation, Power Sector, Urban Development, Mining, Financial Sector, and Regulatory Reforms to augment India’s growth potential and global competitiveness.
Union Budget highlights that Agriculture, MSME, Investment, and Exports are engines in the journey to Viksit Bharat using reforms as fuel, guided by the spirit of inclusivity.
1st Engine: Agriculture
Budget announced ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states covering 100 districts to increase productivity, adopt crop diversification, augment post-harvest storage, improve irrigation facilities, and facilitate availability of long-term and short-term credit.
A comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme will be launched in partnership with states to address underemployment in agriculture through skilling, investment, technology, and invigorating the rural economy. The goal is to generate ample opportunities in rural areas, with focus on rural women, young farmers, rural youth, marginal and small farmers, and landless families.
Union Finance Minister announced that Government will launch a 6-year “Mission for Aatmanirbharta in Pulses” with special focus on Tur, Urad and Masoor. Central agencies (NAFED and NCCF) will be ready to procure these 3 pulses, as much as offered during the next 4 years from farmers.
The Budget has outlined measures to Comprehensive Programme for Vegetables & Fruits, National Mission on High Yielding Seeds, and a five year Mission for Cotton Productivity amongst other measures to promote agriculture and allied activities in a major way.
Smt. Sitharaman announced the increase in loan limits from Rs. 3 lakh to Rs. 5 lakh for loans taken through Kisan Credit Cards under modified interest subvention scheme.
2nd Engine: MSMEs
Finance Minister described MSMEs as the second power engine for development as they constitute for 45% of our exports. To help MSMEs achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs enhanced to 2.5 and 2 times, respectively. Further, steps to enhance credit availability with guarantee cover have also been announced.
The Finance Minister also announced the launch of a new scheme for 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs. This will provide term loans up to Rs. 2 crore during the next 5 years.
Smt. Sitharaman announced that the Government will also implement a scheme to make India a global hub for toys representing the ‘Made in India’ brand. She added that the Government will set up a National Manufacturing Mission covering small, medium and large industries for furthering “Make in India”.
3rd Engine: Investment
Defining Investment as the third engine of growth, the Union Minister prioritized investment in people, economy and innovation.
Under the investment in people, she announced that 50,000 Atal Tinkering Labs will be set up in Government schools in next 5 years.
Smt. Nirmala Sitharaman announced that broadband connectivity will be provided to all Government secondary schools and primary health centres in rural areas under the Bharatnet project.
She said Bharatiya Bhasha Pustak Scheme will be implemented to provide digital-form Indian language books for school and higher education.
Five National Centres of Excellence for skilling will be set up with global expertise and partnerships to equip our youth with the skills required for “Make for India, Make for the World” manufacturing.
A Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of 500 crore.
Budget announced that Government will arrange for Gig workers’ identity cards, their registration on the e-Shram portal and healthcare under PM Jan Arogya Yojana.
Under the investment in Economy, Smt Sitharaman said Infrastructure-related ministries will come up with a 3-year pipeline of projects in PPP mode.
She added that an outlay of Rs 1.5 lakh crore was proposed for the 50-year interest free loans to states for capital expenditure and incentives for reforms.
She also announced the second Asset Monetization Plan 2025-30 to plough back capital of Rs 10 lakh crore in new projects.
The Jal Jeevan Mission was extended till 2028 with focus on the quality of infrastructure and Operation & Maintenance of rural piped water supply schemes through “Jan Bhagidhari”.
Government will set up an Urban Challenge Fund of Rs.1 lakh crore to implement the proposals for ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’ and ‘Water and Sanitation’.
Under the investment in Innovation, an allocation of ₹20,000 crore is announced to implement private sector driven Research, Development and Innovation initiative.
Finance Minister proposed National Geospatial Mission to develop foundational geospatial infrastructure and data which will benefit urban planning.
Budget proposes Gyan Bharatam Mission, for survey, documentation and conservation of more than 1 crore manuscripts with academic institutions, museums, libraries and private collectors. A National Digital Repository of Indian knowledge systems for knowledge sharing is also proposed.
4th Engine: Exports
Smt. Sitharaman defined Exports as the fourth engine of growth and said that jointly driven by the Ministries of Commerce, MSME, and Finance; Export Promotion Mission will help MSMEs tap into the export market. She added that a digital public infrastructure, ‘BharatTradeNet’ (BTN) for international trade was proposed as a unified platform for trade documentation and financing solutions.
The Finance Minister mentioned that support will be provided to develop domestic manufacturing capacities for our economy’s integration with global supply chains. She also announced that government will support the domestic electronic equipment industry for leveraging the opportunities related to Industry 4.0. A National Framework has also been proposed for promoting Global Capability Centres in emerging tier 2 cities.
The government will facilitate upgradation of infrastructure and warehousing for air cargo including high value perishable horticulture produce.
Reforms as the Fuel
Defining Reforms as the fuel to the engine, Smt. Sitharaman said that over the past 10 years, the Government had implemented several reforms for convenience of tax payers, such as faceless assessment, tax payers charter, faster returns, almost 99 per cent returns being on self-assessment, and Vivad se Vishwas scheme. Continuing with these efforts, she reaffirmed the commitment of the tax department to “trust first, scrutinize later”.
Financial Sector Reforms and Development
In a demonstrated steadfast commitment of the Government towards ‘Ease of Doing Business’, the Union Finance Minister proposed changes across the length and breadth of the financial landscape in India to ease compliance, expand services, build strong regulatory environment, promote international and domestic investment, and decriminalisation of archaic legal provisions.
The Union Finance Minister proposed to raise the Foreign Direct Investment (FDI) limit for the insurance from 74 to 100 per cent, to be available for those companies that invest the entire premium in India.
Smt. Sitharaman proposed a light-touch regulatory framework based on principles and trust to unleash productivity and employment. She proposed four specific measures to develop this modern, flexible, people-friendly, and trust-based regulatory framework for the 21st first century, viz.:
High Level Committee for Regulatory Reforms
To review all non-financial sector regulations, certifications, licenses, and permissions.
To strengthen trust-based economic governance and take transformational measures to enhance ‘ease of doing business’, especially in matters of inspections and compliances
To make recommendations within a year
States will be encouraged to be onboarded
Investment Friendliness Index of States
An Investment Friendliness Index of States will be launched in 2025 to further the spirit of competitive cooperative federalism.
Mechanism under the Financial Stability and Development Council (FSDC)
Mechanism to evaluate impact of the current financial regulations and subsidiary instructions.
Formulate a framework to enhance their responsiveness and development of the financial sector.
Jan Vishwas Bill 2.0
To decriminalise more than 100 provisions in various laws.
Fiscal Consolidation
Reiterating the commitment to stay the course for fiscal consolidation, the Union Finance Minister stated that the Government endeavours to keep the fiscal deficit each year such that the Central Government debt remains on a declining path as a percentage of the GDP and the detailed roadmap for the next 6 years has been detailed in the FRBM statement. Smt. Sitharaman stated that the Revised Estimate 2024-25 of fiscal deficit is 4.8 per cent of GDP, while the Budget Estimates 2025-26 is estimated to be 4.4 per cent of GDP.
Revised Estimates 2024-25
The Minister said that the Revised Estimate of the total receipts other than borrowings is ₹31.47 lakh crore, of which the net tax receipts are ₹25.57 lakh crore. She added that the Revised Estimate of the total expenditure is ₹47.16 lakh crore, of which the capital expenditure is about ₹10.18 lakh crore.
Budget Estimates 2025-26
For FY 2025-26, the Union Finance Minister stated that the total receipts other than borrowings and the total expenditure are estimated at ₹34.96 lakh crore and ₹50.65 lakh crore respectively. The net tax receipts are estimated at ₹28.37 lakh crore.
PART B
Reposing faith on middle class in nation building, the Union Budget 2025-26 proposes new direct tax slabs and rates under the new income tax regime so that no income tax is needed to be paid for total income upto ₹ 12 Lakh per annum, i.e. average income of Rs 1 Lakh per month, other than special rate income such as Capital Gain. Salaried individuals earning upto ₹ 12.75 Lakh per annum will pay NIL tax, due to standard deduction of ₹ 75,000. Towards the new tax structure and other direct tax proposals, Government is set to lose revenue of about ₹ 1 lakh crore.
Under the guidance of Prime Minister Shri Narendra Modi, the Government has taken steps to understand the needs voiced by the people. The direct tax proposals include personal income tax reform with special focus on middle class, TDS/TCS rationalization, encouragement to voluntary compliances along with reduction of compliance burden, ease of doing business and incentivizing employment and investment.
The Budget proposes revised tax rate structure under the new tax regime as follows;
Total Income per annum
Rate of Tax
₹ 0 – 4 Lakh
NIL
₹ 4 – 8 Lakh
5%
₹ 8 – 12 Lakh
10%
₹ 12 – 16 Lakh
15%
₹ 16 – 20 Lakh
20%
₹ 20 – 24 Lakh
25%
Above ₹ 24 Lakh
30%
To rationalize TDS/TCS, Budget doubles limit for tax deduction on interest earned by senior citizens from the present ₹ 50,000 to ₹ 1 Lakh. Further, TDS threshold on rent has been increased to ₹ 6 Lakh from ₹ 2.4 Lakh per annum. Other measures include, increasing of threshold to collect TCS to ₹ 10 Lakh and continuing with higher TDS deductions only in non-PAN cases. After the decriminalization of delay in payment of TDS, delay in TCS payments has now been decriminalized.
Encouraging voluntary compliance, Budget extends time-limit to file updated returns for any assessment year, from the current limit of two years, to four years. Over 90 Lakh taxpayers paid additional tax to update their income. Small charitable trusts/institutions have been given the benefit by increasing their period of registration from 5 to 10 years, reducing compliance burden. Further, tax payers can now claim annual value of two self-occupied properties as NIL, without any condition. Last budget’s Vivad Se Vishwas Scheme has received a great response, with nearly 33,000 tax payers having availed the scheme to settle their disputes. Giving benefits to senior and very senior citizens, withdrawals made from National Savings Scheme Accounts on or after 29th of August, 2024 have been exempted. NPS Vatsalya accounts also to get similar benefits.
For ease of doing business, Budget introduces a scheme for determining arm’s length price of international transaction for a block period of three years. This is in line with global best practices. Further, self harbor rules are being expanded to provide certainty in international taxation.
To promote employment and investment, a presumptive taxation regime is envisaged for non-residents who provide services to a resident company that is establishing or operating an electronics manufacturing facility. Further, benefits of existing tonnage tax scheme are proposed to be extended to inland vessels. To promote start-up ecosystem, period of incorporation has been extended for a period of 5 years. To promote investment in the infrastructure sector, Budget extends the date of making investment in Sovereign Wealth Funds and Pension Funds by five more years, to 31st March, 2030.
As part of rationalization of Customs tariffs of industrial goods, Budget proposes to; (i) Remove seven tariffs, (ii) apply appropriate cess to maintain effective duty incidence, and (iii) levy not more than one cess or surcharge.
As relief on import of Drugs/Medicines, 36 lifesaving drugs and medicines for treating cancer, rare diseases and chronic diseases have been fully exempted from Basic Customs Duty (BCD). Further, 37 medicines along with 13 new drugs and medicines under Patient Assistance Programmes have been exempted from Basic Customs Duty (BCD), if supplied free to patients.
To support Domestic Manufacturing and Value Addition, BCD on 25 critical minerals, that were not domestically available, were exempted in July 2024. The Budget 2025-26 fully exempts cobalt powder and waste, scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals. To promote domestic textile production, two more types of shuttle-less looms added to fully exempted textile machinery. Further, BCD on knitted fabrics covering nine tariff lines from “10% to 20%” revised to “20% or ₹ 115 kg, whichever is higher”.
To rectify inverted duty structure and promote “Make in India”, BCD on Interactive Flat Panel Display (IFPD) increased to 20% and on Open cells reduced to 5%. Further to promote manufacture of Open cells, BCD on parts of Open Cells stands exempted.
To boost manufacturing of Lithion-ion battery in the country, 35 additional capital goods for EV battery manufacturing, and 28 additional capital goods for mobile phone battery manufacturing added to the list of exempted capital goods. Union Budget 2025-26 also continues exemption on BCD on raw materials, components, consumables or parts for ship building for another ten years. Budget also reduced BCD from 20% to 10% on Carrier Grade ethernet switches to make it at par with Non-Carrier Grade ethernet switches.
For export promotion, Budget 2025-26 facilitates exports of handicrafts, fully exempts BCD on Wet Blue leather for value addition and employment, reduce BCD from 30% to 5% on Frozen Fish Paste and reduce BCD from 15% to 5% on fish hydrolysate for manufacture of fish and shrimp feeds.
Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman said that Democracy, Demography and Demand are key pillars of Viksit Bharat journey. She said that the middle class gives strength of India’s growth and the Government has periodically hiked the ‘Nil tax’ slab in recognition to their contribution. She said the proposed new tax structure will substantially boost consumption, savings and investment, by putting more money in the hands of the middle class.
Launching ceremony of 9th ACTCM Barge, LSAM 23 (Yard 133) was held on 31 Jan 25 at M/s Suryadipta Projects Pvt Ltd, Thane. Chief Guest for the launching Ceremony was Cmde R Anand, AGM (COM)/ ND (Mbi).
The contract for construction of eleven (11) Ammunition Cum Torpedo Cum Missile Barge was concluded with MSME Shipyard, M/s Suryadipta Projects Pvt Ltd, Thane on 05 Mar 21. These Barges have been indigenously designed and built by the Shipyard in collaboration with an Indian Ship Designing firm and Indian Register of Shipping (IRS). Model testing was undertaken at Naval Science and Technological Laboratory (NSTL), Visakhapatnam to ensure seaworthiness. The Shipyard has successfully delivered eight of these Barges till date and are being utilised by Indian Navy for its operation evolutions by facilitating Transportation, Embarkation and Disembarkation of articles/ ammunition to IN platforms both alongside jetties and at outer harbours.
These Barges are proud flag bearers of “Make in India” and “Aatmanirbhar Bharat” initiatives of Government of India.
The Indian Navy will host the inaugural edition of the Indian Navy Half Marathon (INHM), on 02 Feb 25 at New Delhi.
Over ten thousand participants are expected to compete across three race categories: 21.1 km, 10 km and 5 km runs, making it an inclusive event for runners of all calibers and backgrounds. This landmark event is being organised in partnership with IDFC FIRST Bank.
Preparations are underway to deliver an unforgettable experience for every participant. The event will be hosted at the Jawaharlal Nehru Stadium, with the race route covering India Gate and the historic Kartavya Path.INHM will be flagged off by the Hon’ble Minister of Youth Affairs and Sports, Government of India, Shri Mansukh L Mandaviya. In addition, the event will also be graced by senior officers and distinguished personalities from the Armed Forces, civilian guests and renowned sportspersons.
To celebrate the dedication of the most committed runners, we proudly introduceThe Indian Navy Slam – a prestigious honour awarded to those who complete all four races organized by the Indian Navy in Kochi, Visakhapatnam, Mumbai, and New Delhi. This distinctive recognition embodies the discipline and determination of the Indian Navy, reflecting the perseverance and grit of runners.
Indian Oil Corporation Limited also joins as an Associate Partner and the event has garnered strong support from key agencies, with the Delhi Police and New Delhi Municipal Council (NDMC) playing pivotal roles in ensuring the event’s success.
The event aims to celebrate the spirit of fitness, discipline, and national pride. With a striking race route, esteemed dignitaries, and the unwavering support of key partners, the event is set to inspire all participants. With this inaugural edition, the Indian Navy reaffirms its commitment to foster a culture of health, resilience, and camaraderie. We eagerly anticipate an exhilarating race day on 2nd Feb 25 and look forward to welcome all participants to this spectacular sporting event in the heart of New Delhi.
Source: Hong Kong Government special administrative region
Public invited to vote in Taxi Service Commendation Scheme 2024 Public invited to vote in Taxi Service Commendation Scheme 2024 ***************************************************************
The Transport Department (TD) said today (February 1) that the Taxi Service Commendation Scheme 2024 will be open for public voting starting from today. Members of the public are welcome to cast their votes online by May 31 through the Committee on Taxi Service Quality’s (CTSQ) website (www.ctsq.org.hk/voting) or by scanning the QR code on the scheme’s publicity material (see Annex). Jointly launched by the CTSQ and the TD, the scheme has received a record high number of over 1 400 nominations in total for the Quality Taxi Drivers and Good Driver, Good Service awards. Among them, 70 nominees for the Quality Taxi Drivers award and six for the Good Driver, Good Service award were shortlisted for public voting. After the end of public voting, a professional assessment panel will evaluate the driving records, conduct, in-service training records, commended behaviour and passengers’ satisfaction of the drivers, as well as the management on taxi service quality, application of advanced technology in enhancing the efficiency and quality of taxi service, and social responsibility of the management teams. Twenty nominees for Quality Taxi Drivers and two for Good Driver, Good Service obtaining the highest combined scores from the public voting and professional assessment panel will receive the awards, while the driver given the highest score from public voting will be named the Most Popular Taxi Driver. In addition, the taxi service management team with the highest score from the panel will receive the Quality Taxi Service Management Team award. A spokesman for the TD appealed to members of the public and tourists to vote and join hands to recognise the quality taxi services provided by trade practitioners and enhance the image of the industry. Apart from promotional materials displayed inside taxi compartments, at other modes of public transport and the information plates at taxi stands, the scheme is also publicised through the TD’s website, the HKeMobility mobile application and collaboration with the Hong Kong Tourism Board.
Ends/Saturday, February 1, 2025Issued at HKT 11:00
NO INCOME TAX ON ANNUAL INCOME UPTO Rs. 12 LAKH UNDER NEW TAX REGIME LIMIT TO BE Rs. 12.75 LAKH FOR SALARIED TAX PAYERS, WITH STANDARD DEDUCTION OF RS. 75,000
UNION BUDGET 2025-26 BRINGS ACROSS-THE-BOARD CHANGE IN INCOME TAX SLABS AND RATES TO BENEFIT ALL TAX-PAYERS
TAX SLAB RATE REDUCTION AND REBATES TO RESULT IN SUBSTANTIAL TAX RELIEF TO MIDDLE CLASS, THEREBY BOOSTING HOUSEHOLD CONSUMPTION EXPENDITURE AND INVESTMENT
Posted On: 01 FEB 2025 1:28PM by PIB Delhi
Reaffirming Government’s commitment to the philosophy of “trust first, scrutinize later”, the Union Budget 2025-26 has reposed faith in the Middle class and continued the trend of giving relief in tax burden to the common tax–payer. Presenting the Budget in the Parliament today, Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman proposed an across-the-board change in tax slabs and rates to benefit all tax-payers.
Giving the good news to tax payers, the Finance Minister stated, “There will be no income tax payable upto income of Rs. 12 lakh (i.e. average income of Rs.1 lakh per month other than special rate income such as capital gains) under the new regime. This limit will be Rs.12.75 lakh for salaried tax payers, due to standard deduction of Rs. 75,000.” Tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them, she added.
Smt. Sitharaman stated, “The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment”. In the new tax regime, the Finance Minister proposed to revise tax rate structure as follows:
0-4 lakh rupees
Nil
4-8 lakh rupees
5 per cent
8-12 lakh rupees
10 per cent
12-16 lakh rupees
15 per cent
16-20 lakh rupees
20 per cent
20- 24 lakh rupees
25 per cent
Above 24 lakh rupees
30 per cent
The total tax benefit of slab rate changes and rebate at different income levels can be illustrated in the table below:
While underlining Taxation Reforms as one of key reforms to realize the vision of Viksit Bharat, Smt. Sitharaman stated that the new income-tax bill will carry forward the spirit of ‘Nyaya’. The new regime will be simple to understand for taxpayers and tax administration, leading to tax certainty and reduced litigation, she informed.
Quoting Verse 542 from The Thirukkural, the Finance Minister stated, “Just as living beings live expecting rains, Citizens live expecting good governance.” Reforms are a means to achieve good governance for the people and economy. Providing good governance primarily involves being responsive. The tax proposals detail just how the Government under the guidance of Prime Minister Shri Narendra Modi has taken steps to understand and address the needs voiced by our citizens, Smt. Sitharaman added.
AGRICULTURE IS THE FIRST ENGINE FOR INDIA’S DEVELOPMENT JOURNEY: BUDGET 2025-26 MAKHANA BOARD TO BE ESTABLISHED IN BIHAR
NATIONAL MISSION ON HIGH YIELDING SEEDS TO BE LAUNCHED
SECOND GENE BANK WITH 10 LAKH GERMPLASM LINES TO BE SET UP
FIVE- YEAR MISSION FOR COTTON PRODUCTIVITY ANNOUNCED
KISAN CREDIT CARD LOAN LIMIT RAISED FROM Rs. 3 LAKH TO Rs. 5 LAKH
12.7 LAKH METRIC TONS UREA PLANT TO BE SET UP AT NAMRUP, ASSAM
ANDAMAN & NICOBAR AND LAKSHADWEEP ISLANDS WILL BE THE SPECIAL FOCUS OF THE NEW FRAMEWORK FOR SUSTAINABLE HARNESSING OF FISHERIES
Posted On: 01 FEB 2025 1:27PM by PIB Delhi
Emphasizing ‘Agriculture as the first engine’ for India’s development journey, Union Budget 2025-26 tabled in Parliament today by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman, announced a slew of measures to spur Agricultural Growth and Productivity, thereby benefitting the Annadata.
Announcing the Government’s decision to establish a Makhana Board in Bihar, Smt. Sitharaman said it will improve production, processing, value addition, and marketing of makhana as well as support the people engaged in these activities to be organized into Farmer Producer Organizations (FPOs). She added that the Board will provide handholding and training support to makhana farmers and also work to ensure they receive the benefits of all relevant Government schemes.
The Minister stated that a National Mission on High Yielding Seeds will be launched with an aim to strengthen the research ecosystem, targeted development and propagation of seeds with high yield, pest resistance and climate resilience, and commercial availability of more than 100 seed varieties released since July 2024.
To provide conservation support to both public and private sectors for genetic resources and ensure future food and nutritional security, the Minister said that the second Gene Bank with 10 lakh germplasm lines will be set up.
Announcing the ‘Mission for Cotton Productivity’, Smt. Sitharaman highlighted that the five-year mission will facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties. She said the mission will benefit lakhs of cotton growing farmers as the best of science & technology support will be provided to farmers. Aligned with the Government’s integrated 5F vision for the textile sector, the Minister remarked that the mission will help in increasing incomes of the farmers as well as ensure a steady supply of quality cotton for rejuvenating India’s traditional textile sector.
Noting the importance of Kisan Credit Cards (KCC) in facilitating short term loans for around 7.7 crore farmers, fishermen, and dairy farmers, the Minister announced the enhancement of loan limit under the Modified Interest Subvention Scheme from Rs. 3 lakh to Rs. 5 lakh for loans taken through the KCC.
Smt. Sitharaman announced the setting up of Urea plant with annual capacity of 12.7 lakh metric tons at Namrup, Assam. This, she said will further augment urea supply and help to achieve Atmanirbharta in urea production, along with the recently reopened three dormant urea plants in the Eastern region.
Highlighting that India ranks second-largest globally in fish production and aquaculture with the Seafood exports valued at Rs. 60 thousand crore, the Union Minister remarked that the Government will bring in an enabling framework for sustainable harnessing of fisheries from Indian Exclusive Economic Zone and High Seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands, which will unlock the untapped potential of the marine sector.
INVESTMENT AND TURNOVER LIMITS FOR CLASSIFICATION OF ALL MSMEs TO BE ENHANCED TO 2.5 AND 2 TIMES RESPECTIVELY CREDIT GUARANTEE COVER FOR MICRO AND SMALL ENTERPRISES ENHANCED FROM 5 CRORE TO 10 CRORE
10 LAKH CUSTOMIZED CREDIT CARDS WITH A 5 LAKH LIMIT FOR MICRO ENTERPRISES REGISTERED ON UDYAM PORTAL TO BE INTRODUCED IN THE FIRST YEAR
NEW FUND OF FUNDS of Rs. 10,000 CRORE TO BE SET UP FOR START-UPS
A NEW SCHEME TO PROVIDE LOANS UP TO 2 CRORE DURING THE NEXT 5 YEARS FOR 5 LAKH WOMEN, SCHEDULED CASTES AND SCHEDULED TRIBES FIRST-TIME ENTREPRENEURS TO BE LAUNCHED
EXPORT PROMOTION MISSION TO FACILITATE EASY ACCESS TO EXPORT CREDIT AND SUPPORT MSMEs TO TACKLE NON-TARIFF MEASURES IN OVERSEAS MARKETS ANNOUNCED
Posted On: 01 FEB 2025 1:17PM by PIB Delhi
The Union Budget 2025-26 sees the next five years as a unique opportunity to realize ‘Sabka Vikas’, stimulating balanced growth of all regions and achieving the goal of Viksit Bharat.
The Union Budget defines MSMEs as one of the powerful engines for the story of development and the proposed development measures supports MSMEs to accelerate growth and secure inclusive development.
Revision in classification criteria for MSMEs
While presenting the Union Budget 2025-26 in Parliament today, the Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman said “To help MSMEs achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively.” The details are in Figure 1.
She further said that this will give them the confidence to grow and generate employment for our youth.
Rs. in Crore
Investment
Turnover
Current
Revised
Current
Revised
Micro Enterprises
1
2.5
5
10
Small Enterprises
10
25
50
100
Medium Enterprises
50
125
250
500
(Figure 1)
Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman stated that currently, over 1 crore registered MSMEs, employing 7.5 crore people, and generating 36 per cent of our manufacturing, have come together to position India as a global manufacturing hub. She also remarked “With their quality products, these MSMEs are responsible for 45 per cent of our exports.”
Significant enhancement of credit availability with guarantee cover
Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman said that to improve access to credit, the credit guarantee cover will be enhanced:
a) For Micro and Small Enterprises, from 5 crore to 10 crore, leading to additional credit of 1.5 lakh crore in the next 5 years;
b) For Startups, from 10 crore to 20 crore, with the guarantee fee being moderated to 1 per cent for loans in 27 focus sectors important for Atmanirbhar Bharat; and
c) For well-run exporter MSMEs, for term loans up to 20 crore.
Credit Cards for Micro Enterprises
Union Minister Smt. Nirmala Sitharaman announced that customized Credit Cards with a 5 lakh limit for micro enterprises registered on Udyam portal will be introduced. She further remarked that in the first year, 10 lakh such cards will be issued.
Fund of Funds for Startups
In her Budget speech, Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman said, “The Alternate Investment Funds (AIFs) for startups have received commitments of more than 91,000 crore. These are supported by the Fund of Funds set up with a Government contribution of 10,000 crore.” She announced that now, a new Fund of Funds, with expanded scope and a fresh contribution of another 10,000 crore will be set up.
Scheme for First-time Entrepreneurs
Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman announced that a new scheme will be launched for 5 lakh women, Scheduled Castes and Scheduled Tribes first-time entrepreneurs. She informed that this will provide term loans up to 2 crore during the next 5 years. In her speech she said, “The scheme will incorporate lessons from the successful Stand-Up India scheme. Online capacity building for entrepreneurship and managerial skills will also be organized.”
Deep Tech Fund of Funds
Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman informed that a Deep Tech Fund of Funds will also be explored to catalyze the next generation startups as a part of this initiative.
Export Promotion Mission
Union Minister for Finance & Corporate Affairs, Smt. Nirmala Sitharaman stated that an Export Promotion Mission, with sectoral and ministerial targets, driven jointly by the Ministries of Commerce, MSME, and Finance will be set up. She also informed that the Mission will facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets.
1.57 lakh startups and 17.28 lakh jobs mark a decade of progress
India has firmly established itself as the third-largest startup ecosystem in the world, with over 1.57 lakh certificates issued by Department for Promotion of Industry and Internal Trade (DPIIT) for recognition of startups as of December 31, 2024. The nation’s entrepreneurial landscape, fuelled by more than 100 unicorns, is redefining innovation and creating new opportunities across sectors. Major hubs like Bengaluru, Hyderabad, Mumbai, and Delhi-NCR have been at the forefront of this transformation, while smaller cities are increasingly contributing to the momentum with over 51% of the startups emerging from Tier II/ III cities. Through initiatives like Startup India, the government has played a pivotal role in nurturing this growth and empowering the next generation of entrepreneurs.
Startup India
Launched on 16th January 2016, Startup India is a flagship initiative by the Government of India to foster innovation and create a thriving startup ecosystem. Its goal is to drive economic growth and generate large-scale employment opportunities. By supporting startups in their
growth journey, the initiative encourages innovation and design. Through various schemes, it aims to empower startups to scale and succeed.
Progress and Impact:
Startup Growth: The number of DPIIT-recognised startups has risen from around 502 in 2016 to 1,57,706 as of December 31, 2024.
Job Creation: Startups have created over 17.28 lakh direct jobs as of December 31, 2024, with the IT Services sector leading at 2.10 lakh jobs, followed by Healthcare & Lifesciences (1.51 lakh) and Professional & Commercial Services (96,474).
Women-Led Startups: As of December 31, 2024, a total of 75,935 recognised startups include at least one-woman director (as per self-reported data of recognized startups), showcasing the rise of women entrepreneurs in India.
Ease of Doing Business & Tax Benefits: Simplified compliance, self-certification, and tax exemptions for three years have streamlined operations for startups.
Startup India Seed Fund Scheme (SISFS)
Launched in 2021 with a corpus of ₹945 crore, the SISFS supports startups at various stages, including proof of concept, prototype development, product trials, market entry, and commercialisation. The scheme, operational since 1st April 2021, is overseen by the Experts Advisory Committee (EAC), which evaluates and selects incubators for fund allocation.
Progress and Impact:
213 incubators have been approved under the scheme as of December 2024.
A total of 2,622 startups have benefited from ₹467.75 crore in funding as of December 2024.
Fund of Funds for Startups (FFS) Scheme
Launched in June 2016 with a corpus of ₹10,000 crore, the Fund of Funds for Startups (FFS) aims to boost access to domestic capital for startups. Managed by SIDBI, it funds SEBI- registered Alternative Investment Funds (AIFs), which then invest in startups through equity and equity-linked instruments.
Progress and Impact:
By 2024, ₹6,886 crores have been committed by DPIIT to SIDBI and ₹11,687 crore was committed by SIDBI to AIFs under the FFS scheme as of December 2024.
This commitment catalyzed investments of ₹21,276 crore in 1,173 startups.
Credit Guarantee Scheme for Startups (CGSS)
The Credit Guarantee Scheme for Startups (CGSS) provides credit guarantees for loans to DPIIT-recognised startups from Scheduled Commercial Banks, NBFCs, and Venture Debt Funds. Implemented by the National Credit Guarantee Trustee Company Limited (NCGTC), it aims to offer credit guarantees up to a specified limit, easing access to funding for startups.
Progress and Impact:
As of January 3, 2025, the scheme has guaranteed 260 loans worth ₹604.16 crore to 209 startups.
Among these, ₹27.04 crore has been allocated to 17 women-led startups.
Other Notable Schemes
Atal Innovation Mission (AIM)
Launched in 2016 by NITI Aayog, the Atal Innovation Mission (AIM) aims to promote innovation and entrepreneurship across India. It includes initiatives like Atal Tinkering Labs at the school level to foster creativity, Atal Incubation Centres to build a robust startup ecosystem, and Atal Community Innovation Centres to serve unserved and underserved regions. The Atal New India Challenges focus on product and service innovations with national impact. All initiatives are monitored through real-time MIS systems, with third-party reviews for continuous improvement.
Progress and Impact:
Till date, 10,000 Atal Tinkering Labs have been established in schools across India under AIM.
As of December 18, 2024, a total of 3,556 startups have been incubated in 72 Atal Incubation Centres (AICs), creating 41,965 jobs.
MeitY Startup Hub (MSH)
India is home to one of the most vibrant startup ecosystems with close to 30,000+ tech startups, making it the 3rd largest startup ecosystem in the world. The MeitY Startup Hub (MSH) aims to foster a vibrant innovation and startup ecosystem by uniting technology innovation stakeholders and promoting economic growth through innovation and technological advancement. It serves as a central hub, ensuring synergies among incubation centres, Centres of Excellence on Emerging Technologies, and other platforms supported by the Ministry of Electronics and Information Technology. MSH facilitates the sharing of resources, best practices, and ideas across the entire innovation and startup ecosystem.
Progress and Impact:
5,310+ startups, 495+ incubators, and 328+ labs are part of the MeitY Startup Hub (MSH) scheme.
Over the last 10 years, India’s startup ecosystem has experienced tremendous growth, becoming the third-largest in the world. With initiatives like Startup India, SISFS, CGSS, FFS, and sector-specific schemes such as AIM and MSH, the government has played a pivotal role in fostering innovation, creating jobs, and supporting entrepreneurs. This dynamic collaboration among stakeholders has strengthened the ecosystem, driving economic growth and empowering the next generation of innovators. Looking ahead, India’s startup landscape is set to reach even greater milestones.
Union Budget boosts Shipbuilding with New Mega Clusters in India: Sonowal Budget Sets Up Maritime Development Fund (MDF) of ₹25,000 crores, propels India’s Maritime Sector
SBFAP 2.0 revamped to optimise cost disadvantages, boost capacity of Indian Shipyards & spur domestic shipbuilding production
New Credit Note Scheme for Ship Breaking in Indian Yards – Incentivises buying of new ships in India
₹6100 crores to upgrade, modernise & automate Indian Ports operations to upscale efficiency
Basic Customs Duty (BCD) exemption on inputs for Shipbuilding & Ship Breaking extended for 10 years
Posted On: 01 FEB 2025 4:39PM by PIB Delhi
The Union Budget has placed strong impetus to realise the huge potential of India’s shipping sector. The forward-looking document aims at further enabling India’s shipbuilding industry with spurring & innovative initiatives to drive investment, generate income for the economy, train and employ human capital and create value for the future of the country. The Union Minister of Ports, Shipping & Waterways, Shri Sarbananda Sonowal welcomed the budget and termed it progressive policy statement towards realising the vision of Prime Minister Shri Narendra Modi of a Viksit Bharat by 2047.
On the occasion, Shri Sonowal said, “IwelcometheUnionBudgetpresentedinParliamenttoday.Thisbudgetservesas acatalystfor economic growth, aligning with Prime Minister Narendra Modi ji’svisionofa‘ViksitBharat,AtmanirbharBharat.’IcongratulateFinanceMinister Nirmala Sitharaman ji for presenting a forward-lookingbudgetthatembodiestheprinciplesofgoodgovernance,progressivereforms, and innovative policymaking. This budget not only strengthens business and trade sentiment but also acts as a springboardforeconomicexpansion,capacitybuilding,andsolution-driven holistic development of the society and growth of theeconomy.Byunlockingvalueandenrichingnationalassets,itlaysthefoundationforsustainedprogressandpeople-centricdevelopment. Thebudgetaimstogeneratewealth,drivewelfareinitiatives,and foster public participation in nation-building. It safeguards the interests of future generations while elevating the quality of life for the peopleofBharat.”
The Union Budget proposes to set up Maritime Development Fund (MDF) to support India’s Maritime sector by providing financial assistance, via equity or debt securities. The initial corpus of the fund is pegged at ₹25,000 crores – where the Government contribution will be 49%. The remaining balance will be contributed by Major port authorities, other government entities, Central PSEs, Financial Institutions as well as private sector. This fund will directly benefit in financing for ship acquisition. It aims at boosting Indian flagged ships share in the global cargo volume upto 20% by 2047. Further, indigenous fleet will reduce dependability of foreign ships, improve Balance of Payment and secure Strategic interests of the country. By 2030, MDF is aiming at generating upto ₹1.5 lakh crore investment in the shipping sector.
Speaking on the initiatives for spurring the India’s Maritime sector, the shipping minister, Shri SarbanandaSonowal said,“Itisreassuringtosee thatthebudgetaryinitiativesforIndia’smarinesectorarefocusedonunlocking its vast potential and enhancing existing assets through upgrades, modernisation, and automation. A key highlight is our ministry’s development of new shipbuilding clusters of 1.0 to 1.2 Million Gross Tonnage (GT) each.ThisstrategicpushiscrucialinrealisingIndia’svisionofbecominga$30trillioneconomyby 2047.ByleveragingthePublic-PrivatePartnership(PPP)model,theschemeis designed to attract private investment, promote modernisation, andadvancegreentechnologies.TheseeffortswillenhanceIndia’sglobal competitiveness,drivesustainablegrowth,andsolidifyitspositionasaleadingGlobalMaritimeHub.”
The Union Budget provided a shot-in-the-arm to India’s domestic shipbuilding industry after it announced new mega shipbuilding clusters in the country. This scheme will provide direct capital support in the form of creating the breakwater along with capital dredging. It also proposes a 10-year rent holiday for the land, if not provided at a nominal rate. Investment is also designed to support creation of trunk infra like roads, utilities, sewage treatment among others. The proposed allocation of ₹6,100 crore aims to support India’s existing shipyards in upgrading, modernising, and automating their operations, enhancing efficiency, utilisation, and overall output.
The Union Budget has also extended the Shipbuilding Financial Assistance Policy (SBFAP) 2.0, aimed at providing direct financial subsidies to Indian shipyards. This initiative seeks to help in securing orders by offsetting operational cost disadvantages, thereby strengthening the domestic shipbuilding industry. To be financed via Budgetary support, the total outlay of the scheme is ₹18,090 crores.
Another innovative scheme announced in the budget is the Shipbreaking Credit note. This scheme incentivises Ship Scrapping by issuing a Credit Note of 40% of the scrap value which can be reimbursed to buy new Made in India ships.
Adding further, Shri Sonowal said, “India’s maritime sector haswitnessedsignificantprogresssince2014, andwiththelatest announcementsbytheFinanceMinister,weareconfidentthatthe shipbuildingindustrywillserveasacatalystforeconomicgrowth.While the Shipbuilding Financial Assistance Policy (SBFAP) is designed to provide financial incentives to Indian shipyards, the Ship-breakingCreditNotefurtherstrengthensthedomesticindustryby encouraging investment and expansion. These measures are expectedtodrivecapitalinflows,createemploymentopportunities,andenhancesectoralcompetitiveness.Additionally,arenewedfocuson training and human capital development will ensure a skilled workforce, equipping professionals with expertise in modern shipbuilding technologies, automation, and sustainable maritime practices.ThisholisticapproachwillnotonlysupportindustrygrowthbutalsopositionIndiaasagloballeaderinshipbuildingandmaritimeinnovation.”
Highlighting the need to develop trained professionals in the sector, the budget allocated specific funds for training and development of human resources in order to leverage India’s position as a global leader in maritime human capital. The budget provided for Shipbuilding Capability Development Centres (SCDC) is aimed propping up platform for development of innovative ship design and engineering solutions as well as testing & evaluation of Shipping projects. An outlay of ₹1200 crores have been earmarked for this. Additional provision of ₹1040 crores have been announced for providing capital and operational assistance to the existing and upcoming shipbuilding design and training centres from the private sector. A budgetary allocation of ₹610 crores is proposed for a support scheme for Research & Development (R&D) and innovation in ship technology. This initiative will foster development of new and improved shipbuilding technologies. New incentives are projected to generate 11 lakhs of direct or indirect employment.
In a welcome move for the shipping industry, the Union Budget also proposes include Large Ships of certain size in to the Infrastructure Harmonised Master List (HML). This will make them eligible for benefits such as easier access to long-term financing and tax incentives. This will also attract private investment and enhance fleet modernisation.
In a boost to the inland waterways in the country, the Tonnage Tax Scheme is now extended to Inland vessels. This will encourage more cargo movement as the vessels will avail tax benefit from its capacity, instead of profit. This will further incentivises shipping companies to invest in inland waterways vessels as it becomes financially more viable. The extension of PM GATI SHAKTI Portal to private players will further bring efficiency in cargo movement via multi modal infra planning at a more economical rate.
In the Union Budget 2025-26 presented by the Union Minister of Finance and Corporate Affairs Smt Nirmala Sitharaman today, Mining has been identified along with five other domain areas, namely Taxation; Power Sector; Urban Development; Financial Sector; and Regulatory Reforms, for transformative reforms, which will augment India’s growth potential and global competitiveness during the next five years.
To encourage mining sector reforms in States, including those for minor minerals, sharing of best practices and the institution of a State Mining Index has been announced. Further, a policy for recovery of critical minerals from tailings has been announced. Good tailings management will increase domestic availability of critical minerals and also promote the domestic processing industry.
The budget has also announced the elimination of customs duty on several scrap items, which will promote the recycling industry in the country. The elimination of copper, brass, lead and zinc scraps will benefit the domestic secondary producers by reducing their costs. This will also provide a level playing field vis-à-vis international secondary producers, and enable Indian players to compete globally and increase exports of secondary/downstream products. Duty elimination on scraps of 12 critical minerals (including copper), cobalt powder and lithium ion battery scrap will provide feedstock to the critical mineral recycling industry at a lesser cost, making this industry more competitive, and also promote investments in newer capacity.
Shri Yogesh Kumar Baweja, Director General of the Central Bureau of Communication (CBC), Union Ministry of Information and Broadcasting, visited the multimedia exhibition themed ‘Janbhagidari se Jankalyan’, set up at Mahakumbh, Prayagraj. The exhibition showcases the programmes, policies, schemes and achievements of the Government of India over the past 10 years.
After visiting the exhibition, the Director-General said that the exhibition effectively presents the Indian Government’s schemes and achievements. Developed using new technologies like anamorphic walls, LED TV screens, and holographic cylinders, this multimedia exhibition provides the public with better information about various schemes. He added that the goal of the exhibition is to inform people about the government’s efforts and initiatives, so they can benefit from these policies, programmes and schemes.
During the visit, the Director-General assessed the work being carried out by the Ministry of Information and Broadcasting at the Mahakumbh 2025, and held a review meeting with CBC and PIB officials. He instructed them to coordinate effectively and manage communication and promotional activities efficiently.
This digital exhibition has been an innovative platform for informing devotees and visitors about the government’s major schemes, policies, and efforts for national unity. Running from January 13 to February 26, the exhibition is based on the theme ‘Unity is the Strength of Society’, showcasing government initiatives like ‘One Nation, One Tax’, ‘One Country, One Power Grid’ and ‘One Nation, One Ration Card’, to unite the country.
Additionally, the exhibition highlights schemes related to entrepreneurship, self-employment, and economic empowerment, embodying the spirit of public participation for public welfare. Through LED screens, digital displays, and audio-visual media, this exhibition not only promotes economic and social empowerment but also serves as a medium for connecting the masses using modern technology. Devotees are not only gaining detailed information about government schemes but are also becoming more aware of their role in nation-building.
SACRAMENTO – Governor Gavin Newsom today announced the following appointments:
Kimberly Rutledge, of Sacramento, has been appointed Director of the Department of Rehabilitation, where she has been Deputy Director of Legislation and Communications since 2022. She held several positions at the California Department of Social Services from 2016 to 2022, including Chief of the Adult Programs Policy and Quality Assurance Branch and Adult Protective Services Program Liaison. Rutledge held several positions at United Domestic Workers of America, AFSCME Local 3930 between 2012 and 2016, including Budget and Policy Analyst and Assistant Legislative Director. She was an Independent Policy Consultant at the County Welfare Directors Association of California from 2011 to 2012. Rutledge was a Sweeney Graduate Intern on Disability Policy at the National Academy of Social Insurance in 2011. She was a Graduate Policy Intern at the Disability Community Resource Center from 2010 to 2011. Rutledge was a News Copy Editor at the Sacramento Bee from 2005 to 2009. She is a member of the National Academy of Social Insurance. Rutledge earned a Master of Social Welfare degree from the University of California, Los Angeles and a Bachelor of Journalism degree from the University of Missouri, Columbia. This position requires Senate confirmation, and the compensation is $200,004. Rutledge is a Democrat.
Gloria Earl, of Sacramento, has been appointed Deputy Secretary of Administrative Services at the California Health and Human Services Agency. Earl has been Principal and Founder at Endurement, LLC since 2022 and Executive Project Manager at Department of Social Services since 2021. Earl was a Guest Services Ticket Taker at Sacramento Kings from 2015 to 2022. She was Union Secretary and Treasurer at the International Alliance of Theatrical Stage Employees Local B-66 Union from 2019 to 2022. Earl was the Regional Support Manager at the California Workforce Development Board from 2019 to 2021, where she was previously the Program Implementation Manager from 2016 to 2019. She held several roles at the Employment Development Department from 2008 to 2016, including Workforce Services Division Regional Advisor, Associate Governmental Program Analyst in the Veterans Program Unit, and Disability Insurance Program Representative for Paid Family Leave. Earl was an Underwriting Assistant at Zurich North American Insurance Company from 2007 to 2008. She was an Underwriting Assistant at Chubb Insurance Company from 2006 to 2007. Earl was a Workers Compensation Insurance Technician Specialist at the State Compensation Insurance Fund from 2005 to 2006, where she was previously a Workers Compensation Insurance Technician from 2001 to 2005. She was a Service Consultant at Aetna Healthcare from 1998 to 2001. Earl is a member of the California State Supervisors Association. This position does not require Senate confirmation, and the compensation is $145,000. Earl is a Democrat.
David Swanson Hollinger, of Ventura, has been appointed Chief Deputy Director, Children and Families Programs at the Department of Social Services. Swanson Hollinger has been a Consultant at SH Consulting since 2024. He held several roles at Ventura County Human Services Agency from 2013 to 2024, including Deputy Director, Senior Program Manager and Program Manager for Children and Family Services. Swanson Hollinger was Behavioral Health Manager at Ventura County Behavioral Health Department from 2008 to 2013. He was Director of Program Development at Five Acres – The Boys and Girls Aid Society from 2003 to 2008. Swanson Hollinger was Manager at L.A. Care Health Plan from 2000 to 2003. He is Co-Chair of the Prevention and Early Intervention Committee at the California Child Welfare Council and a Tri-Chair of the California Department of Social Services Family First Prevention Services Advisory Committee. Swanson Hollinger earned a Master of Social Work degree and Master of Public Health degree from University of California, Los Angeles and a Bachelor of Arts degree in Sociology from University of California, Berkeley. This position requires Senate confirmation, and the compensation is $196,452. Swanson Hollinger is a Democrat.
Dr. Hernando Garzon, of St. Helena, has been appointed Chief Medical Officer at Emergency Medical Services Authority, where he has been Interim Chief Medical Officer since 2021. Garzon was an Emergency Medicine Physician at The Permanente Medical Group from 1992 to 2023. He earned a Doctor of Medicine degree from New York University and a Bachelor of Arts degree in Chemistry from Williams College. This position requires Senate confirmation, and the compensation is $234,600. Garzon is a Democrat.
Jon Lamirault, of Los Angeles, has been appointed Deputy Director of the California African American Museum, where he has been an Operations Manager since 2024. Lamirault held two positions at Target Corp from 2012 to 2024, including Store Operations Director from 2017 to 2024, and Human Resource – Executive Team Leader from 2012 to 2017. He was an Associate Director at JVS SoCal from 2008 to 2012. Lamirault earned his Master of Science degree in Organizational Development, and his Bachelor of the Arts degree in Philosophy from the University of La Verne. This position does not require Senate confirmation, and the compensation is $143,688. Lamirault is registered without party preference.
Lindsay Buckley, of Sacramento, has been appointed Director of Communications at the California Air Resources Board. Buckley has been the Deputy Executive Director of Strategic Planning and Media at the California Energy Commission since 2019. She held several positions at the California Air Resources Board from 2013 to 2019, including Information Officer II from 2018 to 2019, Special Assistant to the Chair from 2015 to 2017, and Information Officer I from 2013 to 2015. Buckley was a Program Coordinator at the Institute for Local Government from 2010 to 2013. She was a Sustainability Task Force Member at the City of Chico from 2009 to 2010. Buckley was a Part-Time Instructor at California State University, Chico from 2009 to 2010. She was a Program Representative at Great Valley Center from 2008 to 2010. Buckley earned a Master of Public Policy degree from California State University, Sacramento, and a Bachelor of Science degree in Communication Design, Instructional Design, and Technology from California State University, Chico. This position does not require Senate confirmation, and compensation is $165,000. Buckley is a Democrat.
Marvin Southard, of Avila Beach, has been appointed to the Behavioral Health Services Oversight and Accountability Commission. Southard was a Professor of Practice at the University of Southern California from 2015 to 2019. He was the Director of Mental Health for the County of Los Angeles from 1998 to 2015. Southard was Director of Mental Health for the County of Kern from 1993 to 1998. He is a member of the California Institute for Regenerative Medicine (Stem Cell) Board, California Institute of Behavioral Health Sciences, Network for Social Work Management, and Proxy Parent Foundation. Southard earned a Doctor of Philosophy degree in Social Work from University of California, Los Angeles, Master of Social Work degree in Community Organizing and Social Planning from University of California, Berkeley, and Bachelor of Arts degree in Philosophy from St. John’s College and Theologate. This position does not require Senate confirmation, and there is no compensation. Southard is a Democrat.
Michael Bernick, of San Francisco, has been appointed to the Behavioral Health Services Oversight and Accountability Commission. Bernick has been Special Counsel at Duane Morris LLP since 2018. He was Counsel at Sedgwick LLP from 2004 to 2018. Bernick was Counsel at Arnelle & Hastie from 1986 to1999. He was Director of the California Employment Development Department from 1999 to 2004. Bernick was Director at the Bay Area Rapid Transit District from 1988 to 1996. He is a Board member of the Golden Gate Regional Center, Board member at the California Policy Center for Intellectual and Developmental Disabilities, and Job Club leader at the adult autism group, AASCEND. Bernick earned a Juris Doctor degree from University of California, Berkeley, a Master of Arts degree in Philosophy from Oxford University and a Bachelor of Arts degree in Political Science and Government from Harvard University. This position does not require Senate confirmation, and there is no compensation. Bernick is a Democrat.
Karen Larsen, of Sacramento, has been appointed to the Behavioral Health Services Oversight and Accountability Commission. Larsen has been Chief Executive Officer at Steinberg Institute since 2022. She was Director of Health and Human Services for the County of Yolo from 2016 to 2022, where she was Mental Health Director from 2014 to 2022. Larsen was Director of Behavioral Health at CommuniCare Health Centers from 1999 to 2014. She was Program Director at The Effort – WellSpace Health from 1993 to 1997. Larsen earned a Master of Science degree in Marriage and Family Therapy and a Bachelor of Arts degree in Psychology from California State University, Sacramento. This position does not require Senate confirmation, and there is no compensation. Larsen is a Democrat.
Pamela Baer, of San Francisco, has been appointed to the Behavioral Health Services Oversight and Accountability Commission. Baer was President and Owner of Markitlink, a brand strategy Direct Mail Agency from 1988 to 2000. She is a Lifetime Director of the San Francisco General Hospital Foundation, Founder and Board Chairman of the Transform Mental and Behavioral Health Fund at Zuckerberg San Francisco General Hospital, Board member of the Giants Community Fund, Advisory Board Member of Family House Inc. and Nest, Founders Circle member of Every Mother Counts, and member of The Kennedy Forum and Bay Area Regional Council of Dignity Moves. Baer earned a Bachelor of Business Administration degree in Finance and Marketing from the University of Texas at Austin. This position does not require Senate confirmation, and there is no compensation. Baer is a Democrat.
Gayle Miller, of Sacramento, has been appointed to the Milton Marks “Little Hoover” Commission on California State Government Organization and Economy. Miller has been Managing Director, Transition, Institutional Relationships and Investments, for Brookfield Asset Management since 2024. She was Senior Counselor on Infrastructure and Clean Energy Finance in the Office of Governor Newsom from 2021 to 2024. Miller was Chief Deputy of Policy at the California Department of Finance from 2019 to 2024. She was Senior Policy Advisor at the California Department of Tax and Fee Administration from 2018 to 2019. Miller was Deputy Controller, Director of Policy in the Office of the State Controller from 2017 to 2018. She served as a Principal Consultant in the Office of the State Senate President pro Tempore from 2016 to 2018. Miller held several positions in the California State Senate, including Consultant in the Office of Research from 2014 to 2016, Staff Director for the Governance and Finance Committee from 2006 to 2014, and Principal Consultant at the Revenue and Taxation Committee from 2001 to 2005. She was Director of Government Affairs at Anthem Blue Cross from 2005 to 2006, Legislative Director in the Office of State Assemblymember Alan Lowenthal from 1999 to 2001, and a Legislative Aid and Assembly Fellow in the Office of State Assemblymember Tom Torlakson from 1997 to 1999. Miller earned a Master of Business Administration degree in Strategy and Communications from the University of California, Berkeley and a Master of Business Administration degree in Economics and Finance from Columbia University. This position does not require Senate confirmation, and there is no compensation. Miller is a Democrat.
Press Releases, Recent News
Recent news
Jan 31, 2025
News What you need to know: Governor Newsom issued an executive order to maximize the capture and storage of additional water from upcoming storms in Northern California. SACRAMENTO — In anticipation of a multi-day, significant atmospheric river in Northern…
Jan 30, 2025
News SACRAMENTO – Governor Gavin Newsom today announced the following appointments:Jacqueline Yannacci, of Folsom, has been appointed Executive Director of California Volunteers in the Governor’s Office of Service and Community Engagement, where she has been Chief…
Jan 30, 2025
News What you need to know: Governor Newsom is deploying resources and thousands of personnel to communities throughout Northern California in anticipation of a potentially major storm system. SACRAMENTO – With an atmospheric river expected to arrive in Northern…
India is the sixth-largest exporter of textiles and apparels: Economic Survey India exported textile items worth USD 34 billion in 2023: Economic Survey
Over 45 million people employed directly, Textile sector is one of the largest employment generators: Economic Survey
Posted On: 01 FEB 2025 8:08PM by PIB Delhi
In its assessment of the textile sector, the Economic Survey highlights that India is the sixth largest exporter of textiles and apparel globally, contributing significantly to the Gross Domestic Product of the country, industrial production and exports. The sector is also one of the largest employment generators, with over 45 million people employed directly, including many women and the rural population. As further evidence of the inclusive nature of this sector, nearly 80 % of its capacity is spread across Micro, Small and Medium Enterprises (MSME) clusters in the country.
The Survey stated that India exported textile items worth USD 34 billion in 2023, with apparel constituting 42% of the export basket, followed by raw materials/semi-finished materials at 34% and finished non apparel goods at 30%. Europe and the US consumed nearly 66% of India’s apparel exports, 58% of finished non-apparel goods and 12% of raw materials/semi-finished materials. Other prominent destinations include the UK (8%) and the UAE (7%). The Survey points out that textile exports remained resilient throughout the COVID-19 period (2020 to 2022).
The Survey concludes that Government programs like PM MITRA through creating textile parks with world-class plug-and-play infrastructure would support integrated supply chains, and also attract foreign direct investments into the textile sector. It adds that as MMF products require heavy research and development suited to different use cases, the National Technical Textiles Mission (NTTM) has been approved with an outlay of ₹1,480 crore with research as a key component. During 2024, 168 research projects have been approved under the NTTM mission. It adds that Scheme for Rebate of State and Central Taxes and Levies has also been extended up to 31 March 2026 to encourage exports. The Economic Survey concludes that India’s textile sector has several tailwinds working in its favour that augur well for the sector.
Union Home Minister and Minister of Cooperation Shri Amit Shah hails Budget 2025 as a blueprint for the Modi government’s vision for building a developed and premier India in every sector The middle class is always in PM Modi’s heart
Now, no tax will have to be paid on income upto Rs.12 lakhs
This budget, encompassing every sector from farmers, poor, middle class to education of women and children, nutrition, and health, as well as startups, innovation and investment, is the roadmap for Modi Ji’s vision of an AatmaNirbhar Bharat
The budget is a reflection of the Modi government’s commitment to the welfare of farmers
Budget-2025 gives wings to the dreams and aspirations of the youth
Budget 2025 breathes new energy into life and development in cities through the ₹1 lakh crore Urban Challenge Fund
Budget 2025 is a new opportunity and means for the prosperity of gig workers,Now, they will not only receive an identity card by registering on the e-Shram portal, but also get benefits of health facilities
Union Home Minister and Minister of Cooperation congratulates Prime Minister Shri Narendra Modi Ji and Finance Minister Smt. Nirmala Sitharaman Ji for the inclusive and farsighted budget
Posted On: 01 FEB 2025 7:20PM by PIB Delhi
Union Home Minister and Minister of Cooperation Shri Amit Shah hailed Union Budget 2025 as a blueprint for the Modi government’s vision for building a developed and premier India in every sector.Union Home Minister Shri Amit Shah congratulated Prime Minister Shri Narendra Modi and Finance Minister Smt. Nirmala Sitharaman for this inclusive and farsighted budget.
In a series of posts on X platform, Shri Amit Shah said that Union Budget 2025 as a blueprint for the Modi government’s vision for building a developed and premier India in every sector. He said that this budget, encompassing every sector from farmers, poor, middle class to education of women and children, nutrition, and health, as well as startups, innovation and investment, is the roadmap for Modi Ji’s vision of an AatmaNirbhar Bharat.
Union Home Minister and Minister of Cooperation said, the middle class is always in PM Modi’s heart. The Budget announcedzero income tax till ₹12 Lakh Income. The proposed tax exemption will go a long way in enhancing the financial well-being of the middle class, he added.
Shri Amit Shah said, the budget reflects the Modi government’s commitment to the welfare of farmers. He said, the announcement of the Prime Minister Dhan-Dhanya Krishi Yojana aims at increasing production capacity in the 100 lowest crop productivity districts, benefiting nearly 1.7 crore farmers. Additionally, Pulses Self-Reliance Mission and Cotton Productivity Mission will promote the prosperity of farmers and enhance nutritional security.
Union Home Minister and Minister of Cooperation said, from budget to the Cabinet, farmers are at the core of the Modi government’s schemes and policies. He said, in order to achieve self-reliance in urea production, the government has decided to set up a urea plant in Assam with a capacity of 12.7 lakh metric tons in Budget 2025. Along with this, the decision to increase the loan amount under the Kisan Credit Card (KCC) from Rs. 3 lakh to Rs. 5 lakh will provide significant relief to farmers.
Shri Amit Shah congratulated MSME sector for the doubling of the credit guarantee cover, adding ₹1.5 lakh crore. He said this will scale up start-ups and foster manufacturing hubs. Shri Shah said that the budget’s focus on footwear, leather and toy manufacturing industries will spur jobs in the grassroots, advancing PM Modi Ji’s vision of a Viksit Bharat.
Union Home Minister said, the UDAN scheme is proving to be beneficial in providing air connectivity to new cities and promoting affordable transportation. Shri Shah said, in Budget2025, the scheme will be expanded with 120 new airports to be developed across the country. He said that this will increase the capacity to accommodate an additional 4 crore air passengers and further enhance transportation in remote areas.
Union Home Minister and Minister of Cooperation said, PM Shri Narendra Modi gives new wings to the dreams and aspirations of our youth in the Union Budget 2025. He said that the goal to add 75,000 medical seats in five years, accommodate 6,500 more students in 5 IITs, and grant 10,000 research fellowships through IITs and IISc will refuel the growth engine of our nation with the technological prowess of our youth.
Shri Amit Shah saidthat in order to further enrich the scientific mindset and aspirations for research among the youth of the country,Budget 2025 is extremely significant. Home Minister said that the decision to establish 50,000 Atal Tinkering Labs in government schools over the next five years will promote innovation among the new generation. He said that the announcement to set up 5 National Centres of Excellence for skill enhancement of the youth is commendable.
Union Home Minister said,in Budget 2025, the Modi government has given important gifts to the people of Bihar. Shri Shah said, the establishment of the Makhana Board, the Western Koshi Canal Project in Mithilanchal, the expansion of IIT Patna, the National Institute of Food Technology, Entrepreneurship and Management, and decisions related to the greenfield airport will make Bihar a hub for education, business, connectivity, farmer welfare, and employment in the coming years.
Shri Amit Shah said, in Budget 2025, the announcement of making books available in digital format in Indian languages through the ‘Bharatiya Bhasha Pustak Yojana’ will breathe new life into Indian languages. This decision will prove to be crucial in connecting the new generation with Indian languages and making education more inclusive.
Union Home Minister said, the Union Budget 2025 breathes new energy into life and development in cities through the ₹1 lakh crore Urban Challenge Fund. While the fund will revitalise our cities as the cradles of growth and quality life, the announcement of ₹1.5 lakh crore 50-year interest-free loans to states and a ploughback of capital of ₹10 lakh crore will further strengthen the purpose, he added.
Shri Amit Shah said, the Budget 2025 unleashes Bharat’s gigantic strength in the power sector by announcing a mammoth ₹20,000 crore Nuclear Energy Mission. He said, the mission will impel Bharat to produce 100 GW of nuclear energy by 2047 while developing 5 indigenous small modular reactors. Also, the amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will revitalise the industry with private sector investments.
Union Home Minister and Minister of Cooperation said, Budget 2025 equips our maritime and shipping industries with the winning edge. He said, with the ₹25,000 crore Maritime Development Fund and the extension of the exemption of BCD on raw materials, components, consumables, or parts for the manufacturing of ships for another ten years, these sectors are poised to dominate the competition in the global markets.
Shri Amit Shah said, the Budget 2025 brings the healing touch to the lives of the ailing by providing full exemption from Basic Customs Duty on 36 lifesaving drugs & medicines and proposing day care cancer centres in all district hospitals in the next 3 years and 200 of them in 2025-26 alone.
Union Home Minister said, Budget 2025 is also a new opportunity and means for the prosperity of gig workers. He said, now, gig workers will not only receive an identity card by registering on the e-Shram portal, but they will also get benefitsof health facilities. He said that with the expansion of the PM Svanidhi Yojana, street vendors will be able to link with UPI and avail credit cards up to ₹30,000, as well as receive more loans from banks.
बजट-2025 विकसित और हर क्षेत्र में श्रेष्ठ भारत के निर्माण की दिशा में मोदी सरकार की दूरदर्शिता का ब्लूप्रिंट है।
किसान, गरीब, मध्यम वर्ग, महिला और बच्चों की शिक्षा, पोषण व स्वास्थ्य से लेकर Start Up, Innovation और Investment तक, हर क्षेत्र को समाहित करता यह बजट मोदी जी के…
The proposed tax exemption will go a long way in enhancing the financial well-being of the middle class. Congratulations to all the beneficiaries on this occasion.#ViksitBharatBudget2025
#ViksitBharatBudget2025 किसान कल्याण की दिशा में मोदी सरकार के संकल्प का प्रतिबिंब है। बजट में 100 सबसे कम फसल उत्पादकता वाले जिलों में उत्पादन क्षमता बढ़ाने के लिए ‘प्रधानमंत्री धन-धान्य कृषि योजना’ की घोषणा से लगभग 1.7 करोड़ किसान लाभान्वित होंगे।
बजट से लेकर कैबिनेट तक, मोदी सरकार की योजनाओं और नीतियों के केंद्र में किसान होते हैं।
यूरिया उत्पादन में आत्मनिर्भरता के लिए #ViksitBharatBudget2025 में सरकार ने असम में 12.7 लाख मीट्रिक टन की क्षमता का यूरिया प्लांट खोलने का निर्णय लिया है।
Congratulations to the MSME sector for the doubling of the credit guarantee cover, adding ₹1.5 lakh crore. This will scale up start-ups and foster manufacturing hubs. The budget’s focus on footwear, leather and toy manufacturing industries will spur jobs in the grassroots,… pic.twitter.com/WH4XctgBdZ
उड़ान योजना नए शहरों को एयर कनेक्टिविटी प्रदान कर किफायती यातायात की दिशा में उपयोगी साबित हो रही है।#ViksitBharatBudget2025 में उड़ान योजना का विस्तार करते हुए इसके तहत देशभर में 120 नए हवाईअड्डे विकसित किए जाएंगे। इससे 4 करोड़ अतिरिक्त हवाई यात्रियों की क्षमता विकसित होगी और…
PM Shri @narendramodi Ji gives new wings to the dreams and aspirations of our youth in the Union Budget 2025. The goal to add 75,000 medical seats in five years, accommodate 6,500 more students in 5 IITs, and grant 10,000 research fellowships through IITs and IISc will refuel the…
देश के युवाओं में वैज्ञानिक दृष्टिकोण और अनुसंधान के प्रति आकांक्षा को और अधिक समृद्ध बनाने के लिए #ViksitBharatBudget2025 अत्यंत महत्त्वपूर्ण है।
सरकारी विद्यालयों में अगले 5 वर्षों में 50 हजार अटल टिंकरिंग लैब्स की स्थापना के निर्णय से नई पीढ़ी में इनोवेशन को बढ़ावा मिलेगा।… pic.twitter.com/4Q9giTEiF3
बजट-2025 में मोदी सरकार ने बिहारवासियों को महत्त्वपूर्ण उपहार दिए हैं।
बिहार में मखाना बोर्ड की स्थापना, मिथिलांचल में वेस्टर्न कोशी नहर परियोजना, IIT पटना का विस्तार, National Institute of Food Technology, Entrepreneurship and Management और ग्रीनफील्ड एयरपोर्ट संबंधी निर्णयों…
बजट-2025 में ‘भारतीय भाषा पुस्तक योजना’ के माध्यम से डिजिटल रूप में भारतीय भाषाओं में पुस्तकें उपलब्ध कराने की घोषणा से भारतीय भाषाओं को नया जीवन मिलने वाला है।
यह निर्णय भारतीय भाषाओं से नई पीढ़ी को जोड़ने और शिक्षा को अधिक समावेशी बनाने दिशा में अहम साबित होगा।…
The Union Budget 2025 breathes new energy into life and development in cities through the ₹1 lakh crore Urban Challenge Fund. While the fund will revitalise our cities as the cradles of growth and quality life, the announcement of ₹1.5 lakh crore 50-year interest-free loans to… pic.twitter.com/asmrN5fstP
The #ViksitBharatBudget2025 unleashes Bharat’s gigantic strength in the power sector by announcing a mammoth ₹20,000 crore Nuclear Energy Mission. The mission will impel Bharat to produce 100 GW of nuclear energy by 2047 while developing 5 indigenous small modular reactors.… pic.twitter.com/NWNfGzvRBK
#ViksitBharatBudget2025 equips our maritime and shipping industries with the winning edge. With the ₹25,000 crore Maritime Development Fund and the extension of the exemption of BCD on raw materials, components, consumables, or parts for the manufacturing of ships for another…
The #ViksitBharatBudget2025 brings the healing touch to the lives of the ailing by providing full exemption from Basic Customs Duty on 36 lifesaving drugs & medicines and proposing day care cancer centres in all district hospitals in the next 3 years and 200 of them in 2025-26…
#ViksitBharatBudget2025 गिग वर्करों की समृद्धि का नया अवसर और नया माध्यम भी है। अब गिग वर्कर ई-श्रम पोर्टल पर पंजीकृत होकर न केवल पहचान पत्र पाएंगे, बल्कि स्वास्थ्य सुविधाओं से भी लाभान्वित होंगे।
साथ ही, पीएम स्वनिधि योजना के विस्तार से रेहड़ी-पटरी वाले UPI से जुड़कर ₹30,000… pic.twitter.com/MCV2e4M8h3
“Amazing” Union Budget, says Union Minister Shri Ashwini Vaishnaw; Thanks Prime Minister & Finance Minister for continued big allocation in a row to Railways with a focus on safety 200 new Vande Bharat trains, 100 Amrit Bharat trains, 50 Namo Bharat rapid rail & 17,500 general non AC coaches to revolutionize travel experience for masses in next 2 to 3 years.
Indian Railways to become the second highest freight carrying Railways in the world aiming to touch target of 1.6 billion tonnes of cargo by the end of this fiscal
Posted On: 01 FEB 2025 6:43PM by PIB Delhi
Thanks to the big allocation in Union Budget, Indian Railways is all set to expand faster, safer & comfortable rail travel for all across the country. The country can expect 200 new Vande Bharat trains, 100 Amrit Bharat trains, 50 Namo Bharat rapid rail and 17,500 general non AC coaches in next two to three years time. Terming Union budget “amazing”, the Union minister Shri Ashwini Vaishnaw thanked Prime Minister and Union Finance Minister for allocating the big amount of 2,52,000 crore rupees for the financial year (FY) 2025-26 as gross budgetary support to Ministry of Railways, second time in row. The new trains & modern coaches will go a long way in serving the low & middle class people, he added.
Union Minister for Railways, Information and Broadcasting, electronic & IT, said that Union Budget is a roadmap for Viksit Bharat. This year’s Budget mentions infrastructure development projects of railways to the order of four lakh sixty thousand crore rupees. Focusing on safety, budget allocates one lakh sixteen thousand crore rupees for expenditure in this year to augment the safety of Indian Railways through various projects. Talking to media in Rail Bhawan, after presentation of Union Budget in Lok Sabha, he said that it not only seeks to create employment by means of investment but gives a big relief to middle class with reduced income tax burden.
Earlier, Government besides allocating Indian Railways, same allocation of Rs. 2,52,000 crore as was done in last fiscal year also provided for Rs. 10,000 crore from extra budgetary resources to meet its expenses & modernize it, thus taking the Capital Expenditure, Capex to Rs. 2,62,000 crore. This means expenditure on assets, acquisition, construction and replacement will be met out of funds from not only Gross Budgetary Support (including Railway Safety Fund and Rashtriya Rail Sanraksha Kosh), but the General Revenues of Indian Railways. Provision of Rs. 200 crore out of Nirbhaya Fund is also there in the budget. Railways will mobilize additional Rs. 3,000 crore rupees from its internal resources.
Reimbursement of losses on operation of strategic lines has been kept at 2739.18 crore in Budget Estimate 2025-26 as against 2602.81 crore in last fiscal’s Revised Estimates 2024-25. An amount of 706 crore is provided in this fiscal year towards debt servicing of market borrowings for National Projects. With this, the net revenue expenditure of Indian Railways is placed at Rs. 3,02,100 crore in this year’s Budget Estimate as against 2,79,000 crore in revised estimate of last fiscal. This fiscal’s gross budgetary support is almost 9 times of what it was only Rs. 28,174 cr. in 2013-14.
Talking to media, Union Minister said that Indian Railways is all set to become the second highest freight carrying Railway touching 1.6 billion tonnes of cargo by the end of this fiscal. On the high speed trains, he said India aims to have 7000 km of high speed rail network supporting the speed of 250 km per hour by 2047. Talking about sustainability, Railway Minister mentioned that India Railways will achieve 100 percent electrification by the end of FY 2025-26. Besides as the Budget announced Small Modular reactors as a source of non fossil energy, Indian Railways will take lead in our electrification efforts.
*****
Dharmendra Tewari/Shatrunjay Kumar
For more press releases & official information, follow PIB Railway’s Channel
Source: United States Senator for Virginia Tim Kaine
WASHINGTON, D.C. – Today, U.S. Senator Tim Kaine (D-VA) released the following statement after President Donald Trump signed executive orders to impose a new 25 percent tax on goods from Canada and Mexico, and a new 10 percent tax on goods from China:
“Virginians want lower prices, not higher ones, and the last thing we need are new, senseless taxes on imports from America’s three largest trading partners. During President Trump’s first term, his trade wars hit Virginia hard. Our farmers and foresters were especially affected, but everyone suffered. Everyone, that is, except for Trump’s cronies—billionaires, bitcoin bros, and offshore bandits. Here we go again.”
Kaine is committed to protecting Virginia families from price hikes imposed by tariffs. Yesterday, he introduced the Stopping Tariffs on Allies and Bolstering Legislative Exercise of (STABLE) Trade Policy Act to rein in chaos that Trump could create by unilaterally imposing tariffs on allies and nations with a congressionally-approved trade agreement. Last week, he introduced the Protecting Americans from Tax Hikes on Imported Goods Act to shield American families and businesses from increased costs by limiting the president’s authority to impose unlimited tariffs under the International Emergency Economic Powers Act (IEEPA), a law never intended to be used for tariffs.
Why has any discussion about Israel, its violations of international law, and the international legal expectations for third party states to hold IDF soldiers accountable not been addressed in Aotearoa New Zealand?
ANALYSIS:By Katrina Mitchell-Kouttab
Palestine Solidarity Network Aotearoa national chair John Minto’s campaign to identify Israeli Defence Force (IDF) soldiers in New Zealand and then call a PSNA number hotline has come under intense criticism from the likes of Winston Peters, Stephen Rainbow, the Jewish Council and NZ media outlets. Accusations of antisemitism have been made.
Despite making it clear that holding IDF soldiers accountable for potential war crimes is his goal, not banning all Israelis or targeting Jewish people, there are many just concerns regarding Minto’s campaign. He is clear that his focus remains on justice, not on creating divisions or fostering discrimination, but he has failed to provide strict criteria to distinguish between individuals directly involved in human rights violations and those who are innocent, or to ground the campaign in legal frameworks and due process.
Any allegations of participation in war crimes should be submitted through proper legal channels, not through the PSNA. Broader advocacy could have been used to address concerns of accountability and to minimise any risk that the campaign could lead to profiling based on religion, ethnicity, or language.
While there are many concerns that need to be addressed with PSNA’s campaign, why has the conversation stopped there? Why has the core issue of this campaign been ignored? Namely, that IDF soldiers who have committed war crimes in Gaza have been allowed into New Zealand?
PSNA’s controversial Gaza “genocide hotline” . . . why has the conversation stopped there? Why has the core issue about war crimes been ignored? Image: PSNA screenshot APR
Why has any discussion about Israel, its violations of international law, and the international legal expectations for third party states to hold IDF soldiers accountable not been addressed? Why is criticism of Israel being conflated with racism, even though many Jewish people oppose Israel’s war crimes, and what about Palestinians, what does this mean for a people experiencing genocide?
Concerns should be discussed but they must not be used to protect possible war criminals and shield Israel’s crimes.
It is true that PSNA’s campaign may possibly target individuals, including targeting individuals solely based on their nationality, religion, or language. This is not acceptable. But it has also uncovered the exceptionally biased, racist, and unjust views towards Palestinians.
Racism against Palestinians ignored Palestinians have been dehumanised by Israel for decades, but real racism against Palestinians is being ignored. As a Christian Palestinian I know all too well what it is like to be targeted.
In fact, it was only recently at a New Zealand First State of the Nation gathering last year that Winston Peter’s followers called me a terrorist for being Palestinian and told me that all Muslims were Hamas lovers and were criminals.
The question that has been ignored in this very public debate is simple: are Israeli soldiers who have participated in war crimes in Aotearoa, if so, why, and what does this mean for the New Zealand Palestinian population and the upholding of international law?
By refusing to address concerns of IDF soldiers the focus is deliberately shifted away from the actual genocide happening in Gaza. If IDF soldiers have engaged in rape, extrajudicial executions, torture, destruction of homes, or killing of civilians, they should be investigated and held accountable.
Countries have a legal and moral duty to prevent war criminals from using their nations as safe havens.
Since 1948, Palestinians have been subjected to systematic oppression, apartheid, ethnic cleansing, violence and now, genocide. From its creation and currently with Israel’s illegal occupation, Palestinian massacres have been frequent and unrelenting.
This includes the execution of my great grandmother on the steps of our Katamon home in Jerusalem. Land has been stolen from Palestinians over the decades, including well over 42 percent of the West Bank. Palestinians have been denied the right to return to their country, the right to justice, accountability, and self-determination.
Living under illegal military law We are still forced to live under illegal military law, face mass arrests and torture, and our history, identity, culture and heritage are targeted.
Almost 10 children lose one or both of their legs every day in Gaza according to the UN agency for Palestinian refugees (UNWRA). 2.2 million people are starving because Israel refuses them access to food. 95 percent of Gaza’s population have been forced onto the streets, with only 25 percent of Gaza’s shelters needs being met, according to the Norwegian Refugee Council.
One out of 20 people in Gaza have been injured and 18,000 children have been murdered. 6500 Palestinians from the Gaza Strip were taken hostage by Israel who also stole 2300 bodies from numerous cemeteries. 87,000 tons of explosives have been dropped on all regions in the Gaza Strip.
Dr Ghassan Abu-Sittah, a British Palestinian reconstructive surgeon who worked in Al Shifa and Al Ahly Baptist hospital and who is part of Medicine Sans Frontiers, estimates as many as 300,000 Palestinian civilians, most of them children, have been murdered by Israel.
This is because official numbers do not include those bodies that cannot be recognised or are blown to a pulp, those buried under the rubble and those expected to die and have died of disease, starvation and lack of medicine — denied by Israel to those with chronic illnesses.
‘A Genocidal Project’: real death toll closer to 300,000. Video: Democracy Now!
As a signatory to the Geneva Convention, the Rome Statute of the International Criminal Court (ICC), and UN resolutions, New Zealand is expected to investigate, prosecute and deport any individual accused of these serious crimes. This government has an obligation to deny entry to any individual suspected of war crimes, crimes against humanity or genocide.
IDF has turned war crimes into entertainment Israel has violated all of these, its IDF soldiers filming themselves committing such atrocities and de-humanising Palestinians over the last 15 months on social media.
IDF soldiers have posted TikTok videos mocking their Palestinian victims, celebrating destruction, and making jokes about killing civilians, displaying a disturbing level of dehumanisation and cruelty. They have filmed themselves looting Palestinian homes, vandalising property, humiliating detainees, and posing with dead bodies.
They have turned war crimes into entertainment while Palestinian families suffer and mourn. Israel has deliberately targeted civilians, bombing schools, hospitals, refugee camps, and even designated safe zones, then lied about their operations, showing complete disregard for human life.
Israel and the IDF’s global reputation among ordinary people are not positive. Out on the streets over 15 months, millions have been demonstrating against Israel. They do not like what its army has done, and rightly so. Many want to see justice and Israel and its army held accountable, something this government has ignored.
Israel’s state forced conscription or imprisonment, enforced military service that contributes to the occupation, ethnic cleansing, systematic oppression of a people, war crimes and genocide is fascism on display. Israel is a totalitarian, apartheid, military state, but this government sees no problems with that.
The UN and human rights organisations like Amnesty International and Human Rights Watch have repeatedly condemned Israeli military operations, including the indiscriminate killing of civilians, the use of white phosphorus, and sexual violence by Israeli forces.
While not all IDF soldiers may have committed direct atrocities, those serving in occupied Palestinian territories are complicit in enforcing illegal occupation, which itself is a violation of international law.
Following orders not an excuse The precedent set by international tribunals, such as Nuremberg, establishes that following orders is not an excuse for war crimes — meaning IDF soldiers who have participated in military actions in occupied areas should be subject to scrutiny.
This government has a duty to protect Palestinian communities from further harm, this includes preventing known perpetrators of ethnic cleansing from entering New Zealand. The presence of IDF soldiers in New Zealand is a direct threat to the safety, dignity, and well-being of our communities.
Many Palestinian New Zealanders have lost family members, homes, and entire communities due to the IDF’s actions. Seeing known war criminals walking freely in New Zealand re-traumatises those who have suffered from Israel’s illegal military brutality.
Survivors of ethnic cleansing should not have to live in fear of encountering the very people responsible for their suffering. This was not acceptable after the Second World War, throughout modern history, and is not acceptable now.
IDF soldiers are also trained in brutal tactics, including arbitrary arrests, sexual violence, and the assassination of Palestinian civilians. The presence of war criminals in any society creates a climate of fear and intimidation.
Given their history, there is a concern within New Zealand that these soldiers will engage in racist abuse, Islamophobia, or Zionist hate crimes not only against Palestinians and Arabs, but other communities of colour.
New Zealand society should be scrutinising not just this government’s response to the genocide against Palestinians, but also our political parties.
Moral bankruptcy and xenophobia This moral bankruptcy and neutral stance in the face of genocide and racism has been clearly demonstrated this week in Parliament with both Shane Jones and Peter’s xenophobic remarks, and responses to the PSNA’s campaign.
Winston Peter’s tepid response to Israel’s behaviour and its violations is a staggering display of double standards and hypocrisy. Racism it seems, is clearly selective.
His comments about Mexicans in Parliament this week were xenophobic and violate the principles of responsible governance by promoting discrimination. Peters’ comments that immigrants should be grateful creates a hierarchy of worthiness.
Similarly, Shane Jones calling for Mexicans to go home does not uphold diplomatic and professional standards, reinforces harmful racial stereotypes and discriminates based on one’s nationality. Mexicans, Māori, and Palestinians are not on equal standing as others when it comes to human rights.
Why is there a defence of foreign soldiers who may have participated in genocide or war crimes in the occupied Palestinian territories, but then migrants and refugees are attacked?
“John Minto’s call to identify people from Israel . . . is an outrageous show of fascism, racism, and encouragement of violence and vigilantism. New Zealand should never accept this kind of extreme totalitarian behaviour in our country”. Why has Winston Peter’s never condemned the actual racism Palestinians are facing — including ethnic cleansing, forced displacement, and apartheid?
Why has he never used such strong language and outrage to condemn Israel’s actions despite evidence of violations of international law? Instead, he directs outrage at a human rights activist who is pointing out the shortcomings of the government’s response to Israels violations.
IDF soldiers’ documented atrocities ignored Peters has completely ignored IDF soldiers’ documented atrocities and distorted the campaign’s purpose for legal accountability to that of violence.
There has been no mention of Palestinian suffering associated with the IDF and Israel, nor has the government been transparent in admitting that there are no security measures in place when it comes to Israel.
For Peters, killing Palestinians in their thousands is not racist but an activist wanting to prevent war criminals from entering New Zealand is?
Recently, Simon Court of the ACT party in response to Minto wrote: “Undisguised antisemitic behaviour is not acceptable . . . military service is compulsory for Israeli citizens . . . any Israeli holidaying, visiting family or doing business in New Zealand could be targeted . . . it is intimidation towards Jewish visitors . . . and should be condemned by parties across Parliament.”
This comment is misleading, and hypocritical.
PSNA’s campaign is not targeting Jewish people, something the Jewish Council has also misrepresented. It is about identifying Israeli soldiers who have actively participated in human rights violations and war crimes in the occupied Palestinian territories.
It intentionally blurs the lines between Israeli soldiers and Jewish civilians, as the lines between Palestinian civilians and Hamas have been blurred.
Erases distinction between civilians and a militant group Even MFAT cannot use the word “Palestinian” but identifies us all as “Hamas” on its website. This erases the distinction between civilians and a militant group, and conflates Israeli military personnel with Jewish civilians, which is both deceptive and dangerous.
The MFAT website states the genocide in Gaza is an “Israel-Hamas” conflict, denying the intentional targeting of Palestinian civilians and erasing our humanity.
Israel’s assault has purposely killed thousands of children, women and men, all innocent civilians. Israel has not provided any evidence of any of its claims that it is targeting “Hamas” and has even been caught out lying about the “mass rapes and burned babies”, the tunnels under the hospitals and militants hiding behind Palestinian toddlers and whole generations of families.
Despite this, MFAT had not condemned Israeli war crimes. This is not a just war. It is a genocide against Palestinians which is also being perpetrated in the West Bank. There is no Hamas in the West Bank.
The ACT Party has been silent or outright supportive of Israel’s atrocities in Gaza and the West Bank, despite overwhelming evidence of war crimes. If they were truly concerned about targeting individuals as they are with Minto’s campaign, then they would have called for an end to Israel’s assaults against Palestinians, sanctioned Israel for its war crimes, and called for investigations into Israeli soldiers for mass killings, sexual violence and starving the Palestinian people.
What is clear from Court and Seymour (who has also openly supported Israel alongside members of the Zionist Federation), is that Palestinian lives are irrelevant, we should silently accept our genocide, and that we do not deserve justice. That Israeli IDF soldiers should be given impunity and should be able to spend time in New Zealand with no consequences for their crimes.
This is simply xenophobic, dangerous and “not acceptable in a liberal democracy like New Zealand”.
New Zealand cartoonist Malcolm Evans with two of his anti-Zionism placards at yesterday’s “march for the martyrs” in Auckland . . . politicians’ silence on Israel’s war crimes and violations of international law fails to comply with legal norms and expectations. Image: Asia Pacific Report
Erased the voice of Jewish critics ACT, alongside Peters, Prime Minister Christopher Luxon, Labour leader Chris Hipkins, and the Jewish council have erased the voice of Jewish people who oppose Israel and its crimes and who do not associate being Jewish with being Israeli.
There is a clear distinction, something Alternative Jewish Voices, Jewish Voices for Peace, Holocaust survivors and Dayenu have clearly reiterated. Equating Zionism with Judaism, and identifying Israeli military actions with Jewish identity, is dangerously antisemitic.
By failing to distinguish Judaism from Zionism, politicians and the Jewish Council are in danger of fuelling the false narrative that all Jewish people support Israel’s actions, which ultimately harms Jewish communities by increasing resentment and misunderstanding.
Antisemitism should never be weaponised or used to silence criticism of Israel or justify Israel’s impunity. This is harmful to both Palestinians and Jews.
Seymour’s upcoming tenure as deputy prime minister should also be questioned due to his unwavering support and active defence of a regime committing mass atrocities. This directly contradicts New Zealand’s values of justice and accountability demonstrating a complete disregard for human rights and international law.
His silence on Israel’s war crimes and violations of international law fails to comply with legal norms and expectations. He has positioned himself away from representing all New Zealanders.
While we focus on Minto, let’s be fair and ensure Palestinians are also being protected from discrimination and targeting in New Zealand. Are the Zionist Federation, the New Zealand Jewish Council, and the Holocaust Centre supporting Israel economically or culturally, aiding and abetting its illegal occupation, and do they support the genocide?
Canada investigated funds linked to illegal settlements Canada recently investigated the Jewish National Fund (JNF) of Canada for potentially violating charitable tax laws by funding projects linked to Israeli settlements in the occupied Palestinian territories, which are illegal under international law.
In August 2024, the Canada Revenue Agency (CRA) revoked the Jewish National Fund of Canada’s (JNF Canada) charitable status after a comprehensive audit revealed significant non-compliance with Canadian tax laws.
On the 31 January 2025, Haaretz reported that Israel had recruited the Jewish National Fund to illegally secretly buy Palestinian land in the Occupied Palestinian Territories. What does that mean for the New Zealand branch of the Jewish National Fund?
None of these organisations should be funnelling resources to illegal settlements or supporting Israel’s war machine. A full investigation into their financial and political activities is necessary to ensure any money coming from New Zealand is not supporting genocide, land theft or apartheid.
The government has already investigated Palestinians sending money to relatives in Gaza, the same needs to be done to organisations supporting Israel. Are any of these groups supporting war crimes under the guise of charity?
While Jewish communities and Palestinians have rallied together and supported each other these last 15 months, we have received no support from the Jewish Council or the Holocaust Centre, who have remained silent or have supported Israel’s actions. Dayenu, and Alternative Jewish voices have vocally opposed Israel’s genocide in Gaza and reached out to us. As Jews dedicated to human rights, justice, and the prevention of genocide because of their own history, they unequivocally condemn Israel’s actions.
Given the Holocaust, you would expect the Holocaust Centre and the Jewish Council to oppose any acts of violence, especially that on such an industrial scale. You would expect them to oppose apartheid, ethnic cleansing, and the dehumanisation of Palestinians as the other Jewish organisations are doing.
Genocide, war crimes must not be normalised War crimes and genocide must never be normalised. Israel must not be shielded and the suffering and dehumanisation of Palestinians supported.
We must ensure that all New Zealanders, whether Jewish, Israeli or Palestinian are not targeted, and are protected from discrimination, racism, violence and dehumanisation. All organisations are subject to scrutiny, but only some have been.
Instead of just focusing on John Minto, the ACT Party, NZ First, National, and Labour should be answering why Israeli soldiers who may have committed atrocities, are allowed into New Zealand in the first place.
Israel and its war criminals should not be treated any differently to any other country.
We must shift the focus back to Israel’s genocide, apartheid, and impunity, while exposing the hypocrisy of those who defend Israel but attack Palestinian solidarity.
The Taxi Service Commendation Scheme 2024 is open for public voting until May 31, the Transport Department said today.
Members of the public are welcome to cast their votes online or by scanning the QR code printed on the scheme’s promotional materials for the “Quality Taxi Drivers” and “Good Driver, Good Service” awards.
The department said this year’s scheme received a record high number of over 1,400 nominations for the “Quality Taxi Drivers” and “Good Driver, Good Service” awards. Among them, 70 nominees for the “Quality Taxi Drivers” award and six nominees for the “Good Driver, Good Service” award were shortlisted for public voting.
At the same time, a professional assessment panel will evaluate the nominees’ driving records, conduct, in-service training records, commended behaviour and passengers’ satisfaction levels.
Twenty nominees for the “Quality Taxi Drivers” award and two nominees for the “Good Driver, Good Service” award who obtain the highest combined scores from the public vote and professional assessment will win the accolade, while the driver with the highest score from the vote will be the “Most Popular Taxi Driver”.
Meanwhile, the assessment panel will evaluate taxi service management teams on taxi service quality, application of advanced technology in enhancing the efficiency and quality of the service, and social responsibility. The team with the highest score will be given the “Quality Taxi Service Management Team” award.
Source: United States Senator for Louisiana Bill Cassidy
WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), Thom Tillis (R-NC), Alex Padilla (D-CA), and Adam Schiff (D-CA) introduced the Disaster Mitigation and Tax Parity Act of 2025, legislation that allows Americans to exclude any qualified catastrophe mitigation payment made under a state-based catastrophe loss mitigation program from their income tax. The bill would provide needed relief to homeowners after a major flood or hurricane.
“Louisianans understand the impact of devastating storms, but with the help of state and local programs, we have tools to rebuild and return to wholeness,” said Dr. Cassidy. “If communities need tax relief, let’s give it to them!”
“This commonsense legislation takes a critical step toward empowering individuals and communities to better protect themselves from the devastating effects of natural disasters like Hurricane Helene,” said Senator Tillis. “By excluding qualified catastrophe mitigation payments from income tax, we are incentivizing property owners to make the necessary improvements that reduce damage and save lives. This proactive approach to disaster preparedness not only helps families rebuild faster but strengthens our resilience in the face of future disasters.”
“The devastating fires in Southern California underscored the urgent need to empower homeowners to take proactive steps to keep their families and homes safe,” said Senator Padilla. “As these disasters become more frequent and more extreme due to the climate crisis, we should incentivize — not penalize — taxpayers for protecting their homes. That’s why the Disaster Mitigation and Tax Parity Act would provide a tax exemption on payments from state-based programs for homeowner investments in critical disaster-related improvements.”
“We have seen how natural disasters have devastated communities around the country, and we must ensure we have the resources and programs in place to respond,” said Senator Schiff. “Homeowners should not face additional taxes for wanting to protect their homes and our bipartisan legislation will provide the needed tax relief to help affected Americans recover from these disasters.”
The bill defines a qualified catastrophe mitigation payment as any amount received for making improvements to an individual’s property for the sole purpose of reducing the damage that would be done to such property by a flood, windstorm, earthquake, or wildfire.
Cassidy, Tillis, Padilla, and Schiff were joined by U.S. Senators John Hickenlooper (D-CO), Katie Britt (R-AL), Michael Bennett (D-CO), Jeff Merkley (D-OR), Amy Klobuchar (D-MN), John Kennedy (R-LA), Roger Wicker (R-MS), and Ted Budd (R-NC) in cosponsoring the legislation.
Source: United States Senator for North Carolina Thom Tillis
WASHINGTON, D.C. – Senators Thom Tillis (R-NC), Alex Padilla (D-CA), Bill Cassidy (R-LA), and Adam Schiff (D-CA) introduced the Disaster Mitigation and Tax Parity Act of 2025, legislation that excludes from gross income, for income tax purposes, any qualified catastrophe mitigation payment made under a state-based catastrophe loss mitigation program.
“This commonsense legislation takes a critical step toward empowering individuals and communities to better protect themselves from the devastating effects of natural disasters like Hurricane Helene,” said Senator Tillis. “By excluding qualified catastrophe mitigation payments from income tax, we are incentivizing property owners to make the necessary improvements that reduce damage and save lives. This proactive approach to disaster preparedness not only helps families rebuild faster but strengthens our resilience in the face of future disasters.”
“The devastating fires in Southern California underscored the urgent need to empower homeowners to take proactive steps to keep their families and homes safe,” said Senator Padilla. “As these disasters become more frequent and more extreme due to the climate crisis, we should incentivize — not penalize — taxpayers for protecting their homes. That’s why the Disaster Mitigation and Tax Parity Act would provide a tax exemption on payments from state-based programs for homeowner investments in critical disaster-related improvements.”
“Louisianans understand the impact of devastating storms, but with the help of state and local programs, we have tools to rebuild and return to wholeness,” said Dr. Cassidy. “If communities need tax relief, let’s give it to them!”
“We have seen how natural disasters have devastated communities around the country, and we must ensure we have the resources and programs in place to respond,” said Senator Schiff. “Homeowners should not face additional taxes for wanting to protect their homes and our bipartisan legislation will provide the needed tax relief to help affected Americans recover from these disasters.”
Background:
The bill defines a “qualified catastrophe mitigation payment” as any amount received for making improvements to an individual’s property for the sole purpose of reducing the damage that would be done to such property by a windstorm, earthquake, flood, or wildfire.
The Disaster Mitigation and Tax Parity Act of 2025 is co-sponsored by Senators John Hickenlooper (D-CO), Michael Bennett (D-CO), Jeff Merkley (D-OR), Amy Klobuchar (D-MN), John Kennedy (R-LA), Roger Wicker (R-MS), and Ted Budd (R-NC).
The Disaster Mitigation and Tax Parity Act of 2025 is endorsed by North Carolina Insurance Commissioner Mike Causey and the North Carolina Insurance Association.
“Passing federal legislation that would ensure all state-funded, pre-disaster mitigation grants are tax-free would allow these grants to have the maximum impact,” said Mike Causey, Insurance Commissioner, State of North Carolina. “These mitigation grants protect homes and have a direct impact on insurers and the claims they pay for such disasters, which is critical for ensuring an insurance market that is stable and available and affordable for homeowners. Because North Carolina has been a leader in windstorm mitigation through our Strengthen Your Roof and Strengthen Your Coastal Roof grant programs, and because working to maintain a healthy market is one of my goals as Insurance Commissioner, I am in total support of this bill. I thank Senator Tillis for proposing it.”
“North Carolina Insurance Association (NCIUA) has made grants of more than $100 million so that our policyholders can invest in resilient construction and fortified roofs,” said Gina Hardy, CEO, North Carolina Insurance Association. “Given the possibility of more frequent catastrophic events, we believe all of the grant money we invest should be free of federal taxation and remain with our policyholders so they can continue to strengthen and improve their homes.”
Full text of the bill is available HERE.
Source: United States Senator for Virginia Tim Kaine
WASHINGTON, D.C. – U.S. Senators Tim Kaine (D-VA), and Chris Coons (D-DE), both members of the Senate Foreign Relations Committee, introduced the Stopping Tariffs on Allies and Bolstering Legislative Exercise of (STABLE) Trade Policy Act to rein in chaos that President Trump could create by unilaterally imposing tariffs on trading partners.
The STABLE Trade Policy Act would institute a requirement of Congressional approval before a president could impose new tariffs on U.S. allies and free trade agreement (FTA) partners. Currently, the president can impose tariffs on any nation using authorities that Congress created to combat national security risks and address international emergencies. The bill reinstates Congressional authority over trade policy and limits the president’s ability to unilaterally impose tariffs on our allies.
“Virginians want costs to go down, not up. But President Trump’s plans to impose broad-based tariffs would raise the price of everyday goods and hurt our economy,” said Kaine. “It’s time for Congress to make it clear that no president should abuse existing tariff authorities designed to protect America’s national security from threats posed by our adversaries to slap tariffs on our allies and closest trading partners. I’m proud to introduce this legislation with Senator Coons to take that step to protect Americans’ pocketbooks from sharp price hikes and safeguard our relationships with our allies.”
The introduction of STABLE Trade Policy Act comes shortly before President Trump’s across-the-board tariffs on Canada and Mexico are expected to be announced. On his first day in office, President Trump pledged to implement 25% tariffs on Mexico and Canada. The two nations, both members a trade agreement that President Trump negotiated, accounted for almost one-third of all U.S. goods imports last year. The tariffs set to go into effect soon are expected to raise the costs of gasoline, cars, groceries, and home goods.
Specifically, the STABLE Trade Policy Act would:
Require the president to explain to Congress any proposal to impose tariffs on allies and FTA partners.
The president must explain why challenges with allies cannot be better addressed through diplomacy or other mechanisms.
The president must assess of how tariffs will impact the U.S. economy and U.S. foreign policy interests.
Require Congressional approval for new or additional tariffs on imports from allies and FTA partners.
The bill constrains tariff authorities created by Congress to combat national security risks and address international economic emergencies.
The executive branch retains full authority to impose safeguard tariffs to combat unfair trade practices.
Kaine is committed to protecting Virginian families from price hikes imposed by tariffs. Last week, he introduced the Protecting Americans from Tax Hikes on Imported Goods Act to shield American families and businesses from increased costs by limiting the president’s authority to impose unlimited tariffs under the International Emergency Economic Powers Act (IEEPA).
The full bill text is available here.
As More Americans Seek Home Energy Upgrades, New DOE Resources Will Enable Easier Access to the Historic Money Saving Incentives Provided by the Biden-Harris Administration’s Investing in America Agenda
WASHINGTON, D.C.— In support of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of Energy (DOE) today released new resources to help American households and home energy efficiency contractors understand how to qualify for thousands of dollars in federal tax credits, made available by the Inflation Reduction Act, for home upgrades. The resources include a Tax Credit Product Lookup Tool to help determine if new equipment is eligible for tax credits; information that walks contractors through key elements of home insulation products that can lower utility bills and qualify for tax credits; and a training module on how contractors can leverage a range of home energy efficiency incentives. By making it easier for households and contractors to know if they qualify for these tax credits, this tool will enable more Americans to access them and to lower their utility bills.
These resources will help drive access to the Energy Efficient Home Improvement Credit, which more than 2.3 million families have already claimed, saving over $2 billion total—an average tax cut of $880 per household—according to the U.S. Department of the Treasury. The Energy Efficient Home Improvement Credit, which is available through 2032, allows households to receive up to $3,200 in tax credits annually for a variety of energy-efficient home improvements. Improving home energy efficiency and upgrading equipment will save homeowners money on utility bills and improve home resilience, and is key to the Biden-Harris Administration’s national clean energy goals.
“Across the board, the Biden-Harris Administration is making it easier for more American households to save energy and save money on home improvement upgrades that will keep money in their pockets for years to come,” said U.S. Secretary of Energy Jennifer M. Granholm. “Contractors are the go-to resource for homeowners looking to upgrade insulation, wiring and appliances, which is why we are providing new tools that get contractors the information to ensure their customers can unlock Investing in America savings.”
New Resources
The Tax Credit Product Lookup Tool can help determine if new heating, air-conditioning, or water-heating equipment may be eligible for the Energy Efficient Home Improvement Credit. Contractors—or even homeowners—can enter information about a particular product to determine if it meets tax credit eligibility criteria and receive a single page report that the homeowner can print or save for their records.
The home insulation explainer walks contractors and homeowners through the key elements of home insulation and air-sealing products that can lower utility bills and qualify for tax credits.
The new contractor training module provides detailed introductory information on how contractors can leverage residential energy efficiency incentives, including those available from federal, state, local, and utility-run programs. The 30-minute video is available for free on the Building Science Education Solution Center. The training is complementary to DOE’s Energy Skilled recognition program, which contractors can use to find training and certification programs that develop the skills and knowledge needed for clean energy jobs.
These new resources build on existing DOE tools to help Americans explore energy-saving technologies for their homes, including heat pump water heater and cold climate heat pump tools to guide contractors and homeowners through the decision-making process for selecting equipment.
Homeowners can also go to the ENERGY STAR website to find information on the many federal tax credits offered for energy-efficient home heat pump technology, home improvements, and clean energy equipment upgrades. The website also offers detailed instructions for claiming tax credits as well as strategies for maximizing federal tax savings.
Many energy-efficient tax credits can be used together with DOE Home Energy Rebate programs and other state, local, and utility energy efficiency incentives, helping consumers save even more on purchase and installation costs. Collectively, the product lookup and decision tools, along with contractor training, will help Americans improve their homes’ energy efficiency while ensuring they get the right equipment for their comfort needs, qualify for incentives, and lower their energy bills.
Fourth quarter results include EPS of $0.69, deposit growth, commercial loan growth, a gain on the sale of its insurance agency, and strong contributions from new and established Pathfinder Bank teams across Central New York
OSWEGO, N.Y., Jan. 31, 2025 (GLOBE NEWSWIRE) — Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the fourth quarter and year ended December 31, 2024.
The holding company for Pathfinder Bank (“the Bank”) earned net income attributable to common shareholders of $4.3 million or $0.69 per share in the fourth quarter of 2024, including a benefit of approximately $1.4 million from a gain on the previously announced sale of its insurance agency, net of taxes and transaction-related expenses.
The Company reported a net loss of $4.6 million or $0.75 per share in the third quarter of 2024, reflecting $9.0 million in provision expense that primarily resulted from a comprehensive loan portfolio review the Bank elected to undertake as part of its ongoing commitment to continuously improve its credit risk management approach, and net income of $2.5 million or $0.41 per share in the fourth quarter of 2023. For the full year, the Company earned net income of $3.8 million or $0.60 per share in 2024 and $9.3 million or $1.51 per share in 2023.
Fourth Quarter and Full Year 2024 Highlights and Key Developments
Provision expense was $988,000 in the fourth quarter of 2024, compared to $9.0 million in the linked quarter and $265,000 in the fourth quarter of 2023, while the allowance for credit losses (“ACL) increased to 1.88% of loans from 1.87% on September 30, 2024 and 1.78% on December 31, 2023.
Net interest income was $10.8 million, compared to the $11.7 million in the linked quarter that benefited from a $887,000 catch-up interest payment, and $9.2 million in the fourth quarter of 2023. Full-year net interest income was $41.4 million in 2024 and $38.9 million in 2023.
Net interest margin (“NIM”) was 3.15% in the fourth quarter of 2024, compared to the 3.34% in the third quarter that benefited by 25 basis points from the catch-up interest payment, and 2.74% in the year-ago period.
Non-interest income was $4.9 million, including a gross, pre-tax gain of $3.2 million on the October 2024 sale of the Company’s insurance agency, compared to $1.7 million in the linked quarter and $1.3 million in the year-ago period. Full-year non-interest income was $9.6 million in 2024 and $5.2 million in 2023.
Non-interest expense was $8.5 million with $155,000 in October 2024 insurance agency transaction-related costs, $10.3 million in the linked quarter with $1.6 million in July 2024 branch acquisition-related costs, and $7.0 million in the year-ago period. Full-year non-interest expense was $34.4 million in 2024 and $29.4 million in 2023.
Pre-tax, pre-provision (“PTPP”) net income grew to $3.8 million, compared to $3.4 million in the linked and year-ago periods. PTPP net income, which is not a financial metric under generally accepted accounting principles (“GAAP”), is a measure that the Company believes is helpful to understanding profitability without giving effect to income taxes and provision for credit losses. Full-year PTPP net income was $13.5 million in 2024 and $14.7 million in 2023.
Total deposits were $1.20 billion at period end, growing by $8.1 million or 2.7% annualized from September 30, 2024 and $84.3 million or 7.5% from December 31, 2023. The Bank’s loan-to-deposit ratio was 76.3% on December 31, 2024.
Total loans were $919.0 million at period end, compared to $921.7 million on September 30, 2024 and $897.2 million on December 31, 2023. Commercial loans were $539.7 million at period end, $534.5 million on September 30, 2024 and $524.2 million on December 31, 2023.
“Pathfinder’s core net interest income growth and net interest margin expansion were key contributors to fourth quarter earnings, and are a product of disciplined asset and liability pricing, the Bank’s valuable core deposit franchise, and our relationship-based commercial and retail lending in Central New York,” said President and Chief Executive Officer James A. Dowd. “In addition, we continue to invest in talent to serve middle market businesses throughout the Syracuse area, building on our foundation in this community. The East Syracuse branch acquired last summer, and our operations throughout the area, made important contributions to Pathfinder’s performance in the fourth quarter, and we look forward to further enhancing the breadth and depth of our commercial and other customer relationships in this important growth market.”
Dowd added, “We also intend to maintain a sharp focus on managing operating expenses, along with our ongoing efforts to continuously enhance the Company’s proactive credit risk management approach. While there may be short-term variability in measures of operating efficiency and asset quality, our leadership team is fully committed to taking the steps necessary to make sustainable improvements over the long term and continue building franchise value for the benefit of our shareholders.”
Net Interest Income and Net Interest Margin Fourth quarter 2024 net interest income was $10.8 million, a decrease of 7.8% from the third quarter of 2024, or a decrease of 0.2% when excluding an $887,000 third quarter catch-up interest payment associated with purchased loan pool positions. A decrease in interest and dividend income of $1.7 million was primarily attributed to average yield decreases of 44 basis points on loans including 39 basis points from the catch-up interest payment, 108 basis points on tax-exempt investment securities, and 28 basis points on taxable investment securities. The corresponding decreases in income from loan interest, tax-exempt investment securities, and taxable investment securities were $902,000, $24,000, and $337,000, respectively. A decrease in interest expense of $761,000 was attributed to intentional reductions in the cost of time deposits and other interest-bearing deposits, as well as reductions in borrowings expense.
Net interest margin was 3.15% in the fourth quarter of 2024, compared to 3.34% in the linked quarter. The decrease was due to the 25 basis points of linked quarter NIM attributed to the third quarter 2024 catch-up interest payment.
Fourth quarter 2024 net interest income was $10.8 million, an increase of 18.1% from the fourth quarter of 2023. An increase in interest and dividend income of $1.2 million was primarily attributed to average yield increases of 33 basis points on loans, 4 basis points on taxable investment securities, and 404 basis points on fed funds sold and interest-earning deposits. The corresponding increase in loan interest income, taxable investment securities, and federal funds sold and interest-earning deposits was $1.1 million, $152,000, and $13,000, respectively. A decrease in interest expense of $463,000 was attributed to changes in the Bank’s deposit mix, repricing of deposits in a lower rate environment, and reductions in borrowings expense.
Net interest margin was 3.15% in the fourth quarter of 2024 compared to 2.74% in the same period the year prior. The increase of 41 basis points was driven by reductions in borrowing and funding costs.
Noninterest Income Noninterest income totaled $4.9 million in the fourth quarter of 2024, including the $3.2 million pre-tax gain on the insurance agency sale, which represents the gross amount that is required to be 100% consolidated within the Company’s financial statements, despite Pathfinder’s 51% interest in the business sold in October 2024. Noninterest income growth from the third quarter of 2024 was $3.2 million, or $30,000 when excluding the agency sale gain. Noninterest income growth from the fourth quarter of 2023 was $3.6 million, or $419,000 when excluding the agency sale gain.
The insurance agency sold in October contributed $49,000 in revenue to noninterest income in the fourth quarter of 2024, $367,000 in the third quarter of 2024 and $303,000 in the fourth quarter of 2023.
Compared to the linked quarter, fourth quarter 2024 noninterest income also included increases of $16,000 in loan servicing fees and $12,000 in service charges on deposit accounts, a decrease of $194,000 in earnings and gain on bank owned life insurance (“BOLI”) after recording a $175,000 third quarter net death benefit on BOLI, and a $36,000 decrease in debit card interchange fees. Noninterest income growth from the linked quarter also reflected an increase of $438,000 in net realized gains on sales and redemptions of investment securities and $104,000 in net realized gains on sales of marketable equity securities, as well as a decrease of $51,000 in gains on sales of loans and foreclosed real estate.
Compared to the year-ago period, fourth quarter 2024 noninterest income also included increases of $103,000 in interchange fees, $68,000 in service charges on deposit accounts, $26,000 in loan servicing fees, and $3,000 in earnings and gain on BOLI. Noninterest income growth from the year-ago quarter also reflected increases of $248,000 increase in net realized losses on sales and redemptions of investment securities, $213,000 in net realized gains on sales of marketable equity securities, and $41,000 in gains on sales of loans and foreclosed real estate.
Noninterest Expense Noninterest expense totaled $8.5 million in the fourth quarter of 2024, decreasing $1.7 million from the linked quarter and increasing $1.5 million from the year-ago period.
Fourth quarter 2024 noninterest expense included $456,000 associated with the Company’s insurance agency sale in October 2024, including $155,000 in transaction-related items. The insurance agency incurred $308,000 of noninterest expense in the third quarter of 2024 and $216,000 in the fourth quarter of 2023.
Third quarter 2024 noninterest expense included $1.6 million in transaction-related expenses for Pathfinder’s acquisition of the East Syracuse branch acquisition in July 2024.
Salaries and benefits were $4.1 million in the fourth quarter of 2024, decreasing $839,000 from the linked quarter and increasing $446,000 from the year-ago period. The decrease from the linked quarter reflected elevated non-exempt-employee hours for projects related to the successful third quarter closing and integration of the East Syracuse branch acquisition, as well as some personnel vacancies that were open in the fourth quarter. The increase from the fourth quarter of 2023 was primarily attributed to increased headcount and lower salary deferrals than in the prior year period.
Building and occupancy was $1.3 million in the fourth quarter of 2024, increasing $117,000 and $390,000 from the linked and year-ago quarters, respectively. These increases were due to ongoing facilities-related costs of approximately $322,000 associated with operating the branch acquired in July 2024.
Professional and other services expense was $608,000 in the fourth quarter of 2024, decreasing $1.2 million from the linked quarter and increasing $120,000 from the year-ago period. The decrease from the third quarter of 2024 was primarily attributed to one-time costs associated with the East Syracuse branch acquisition. The increase from the fourth quarter of 2023 was primarily attributed to a $136,000 increase in technology project implementation services and other outsourced consulting services.
Annualized noninterest expense, including transaction-related costs, represented 2.33% of average assets in the fourth quarter of 2024, compared to 2.75% and 2.01% in the linked and year-ago periods. The efficiency ratio, including transaction-related costs, was 69.42% in the fourth quarter of 2024, compared to 75.28% and 67.25% in the linked and year-ago periods. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.
Statement of Financial Condition As of December 31, 2024, the Company’s statement of financial condition reflects total assets of $1.47 billion, compared to $1.48 billion and $1.47 billion recorded on September 30, 2024 and December 31, 2023, respectively.
Loans totaled $919.0 million on December 31, 2024, decreasing 0.3% during the fourth quarter and increasing 2.4% from one year prior. Consumer and residential loans totaled $380.9 million, decreasing 2.0% during the fourth quarter and increasing 1.9% from one year prior. Commercial loans totaled $539.7 million, increasing 1.0% during the fourth quarter and 3.0% from one year prior.
With respect to liabilities, deposits totaled $1.20 billion on December 31, 2024, increasing 0.7% during the fourth quarter and 7.5% from one year prior. The Company also utilized its lower cost liquidity to reduce total borrowings, which were $88.1 million on December 31, 2024 as compared to $100.1 million on September 30, 2024 and $175.6 million on December 31, 2023.
Shareholders’ equity totaled $121.9 million on December 31, 2024, increasing $1.6 million or 1.3% in the fourth quarter and increasing $2.4 million or 2.0% from one year prior. The fourth quarter 2024 increase primarily reflects a $4.5 million increase in retained earnings, partially offset by a $2.4 million increase in accumulated other comprehensive loss (“AOCL”) and a $481,000 decrease in additional paid in capital. The full-year 2024 increase in shareholders’ equity primarily reflects a $2.1 increase in retained earnings and a $461,000 decrease in AOCL, partially offset by a $364,000 decrease in additional paid in capital. The noncontrolling interest included in equity on the Statements of Financial Condition was eliminated with the October 2024 sale of the 51% ownership interest in the Company’s insurance agency.
Asset Quality Pathfinder’s asset quality metrics reflect ongoing efforts the Bank is undertaking as part of its commitment to continuously improve its credit risk management approach.
Nonperforming loans were $22.1 million or 2.40% of total loans on December 31, 2024, $16.2 million or 1.75% of total loans on September 30, 2024 and $17.2 million or 1.92% of total loans on December 31, 2023.
Net charge offs (“NCOs”) after recoveries were $1.0 million or an annualized 0.44% of average loans in the fourth quarter of 2024, with gross charge offs for consumer loans, purchased loan pools, and one commercial loan offsetting recoveries in each of these categories. NCOs were $8.7 million or an annualized 3.82% of average loans in the linked quarter, following the loan portfolio review completed in September, and $108,000 or 0.05% in the prior year period.
Provision for credit loss expense was $988,000 in the fourth quarter of 2024, reflecting NCOs in the period and qualitative factors in the Company’s reserve model. Third quarter of 2024 provision was $9.0 million, primarily to replenish commercial loan reserves and adjust the lifetime loss estimate for solar purchased loan pool positions following the loan portfolio review completed in September. Fourth quarter 2023 provision was $265,000.
The Company believes it is sufficiently collateralized and reserved, with an Allowance for Credit Losses (“ACL”) of $17.2 million on December 31, 2024, compared to $17.3 million on September 30, 2024 and $16.0 million on December 31, 2023. As a percentage of total loans, ACL represented 1.88% on December 31, 2024, 1.87% on September 30, 2024, and 1.78% on December 31, 2023.
Liquidity The Company has diligently ensured a strong liquidity profile as of December 31, 2024 to meet its ongoing financial obligations. The Bank’s liquidity management, as evaluated by its cash reserves and operational cash flows from loan repayments and investment securities, remains robust and is effectively managed by the institution’s leadership.
The Bank’s analysis indicates that expected cash inflows from loans and investment securities are more than sufficient to meet all projected financial obligations. Total deposits were $1.20 billion on December 31, 2024, $1.20 billion on September 30, 2024, and $1.12 billion on December 31, 2023. Core deposits represented 76.87% of total deposits on December 31, 2024, 77.45% on September 30, 2024, and 69.83% on December 31, 2023. The Bank’s continues to implement strategic initiatives to enhance its core deposit franchise, including targeted marketing campaigns and customer engagement programs aimed at deepening banking relationships and enhancing deposit stability.
At the end of the current quarter, Pathfinder Bancorp had an available additional funding capacity of $113.8 million with the Federal Home Loan Bank of New York, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $43.3 million, which provide a buffer for additional funding needs. These facilities, including access to the Federal Reserve’s Discount Window, are part of a comprehensive liquidity strategy that ensures flexibility and readiness to respond to any funding requirements.
Cash Dividend Declared On December 23, 2024, Pathfinder’s Board of Directors declared a cash dividend of $0.10 per share for holders of both voting common and non-voting common stock.
In addition, this dividend also extends to the notional shares of the Company’s warrants. Shareholders registered by January 17, 2025 will be eligible for the dividend, which is scheduled for disbursement on February 7, 2025. This distribution aligns with Pathfinder Bancorp’s philosophy of consistent and reliable delivery of shareholder value.
Evaluating the Company’s market performance, the closing stock price as of December 31, 2024 stood at $17.50 per share. This positions the dividend yield at an attractive 2.29%.
About Pathfinder Bancorp, Inc.
Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is the commercial bank holding company for Pathfinder Bank, which serves Central New York customers throughout Oswego, Syracuse, and their neighboring communities. Strategically located branches averaging over $100 million in deposits per location, as well as diversified consumer, mortgage and commercial loan portfolios, reflect the state-chartered Bank’s commitment to in-market relationships and local customer service. The Company also offers investment services to individuals and businesses. At December 31, 2024, the Oswego-headquartered Company had assets of $1.47 billion, loans of $919.0 million, and deposits of $1.20 billion. More information is available at pathfinderbank.com and ir.pathfinderbank.com.
Forward-Looking Statements Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the U.S. Government; inflation; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of the allowance for credit losses; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov.
This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the registrant; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided reconciliations within the release of the non-GAAP financial measures to the most directly comparable GAAP financial.
Investor/Media Contacts James A. Dowd, President, CEO Justin K. Bigham, Senior Vice President, CFO Telephone: (315) 343-0057
PATHFINDER BANCORP, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)
2024
2023
SELECTED BALANCE SHEET DATA:
December 31,
September 30,
June 30,
March 31,
December 31,
ASSETS:
Cash and due from banks
$
13,963
$
18,923
$
12,022
$
13,565
$
12,338
Interest-earning deposits
17,609
16,401
19,797
15,658
36,394
Total cash and cash equivalents
31,572
35,324
31,819
29,223
48,732
Available-for-sale securities, at fair value
269,331
271,977
274,977
279,012
258,716
Held-to-maturity securities, at amortized cost
158,683
161,385
166,271
172,648
179,286
Marketable equity securities, at fair value
4,076
3,872
3,793
3,342
3,206
Federal Home Loan Bank stock, at cost
4,590
5,401
8,702
7,031
8,748
Loans
918,986
921,660
888,263
891,531
897,207
Less: Allowance for credit losses
17,243
17,274
16,892
16,655
15,975
Loans receivable, net
901,743
904,386
871,371
874,876
881,232
Premises and equipment, net
19,009
18,989
18,878
18,332
18,441
Assets held-for-sale
–
–
3,042
3,042
3,042
Operating lease right-of-use assets
1,391
1,425
1,459
1,493
1,526
Finance lease right-of-use assets
16,676
16,873
4,004
4,038
4,073
Accrued interest receivable
6,881
6,806
7,076
7,170
7,286
Foreclosed real estate
–
–
60
82
151
Intangible assets, net
5,989
6,217
76
80
85
Goodwill
5,056
5,752
4,536
4,536
4,536
Bank owned life insurance
24,727
24,560
24,967
24,799
24,641
Other assets
25,150
20,159
25,180
23,968
22,097
Total assets
$
1,474,874
$
1,483,126
$
1,446,211
$
1,453,672
$
1,465,798
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Deposits:
Interest-bearing deposits
$
990,674
$
986,103
$
932,132
$
969,692
$
949,898
Noninterest-bearing deposits
213,719
210,110
169,145
176,421
170,169
Total deposits
1,204,393
1,196,213
1,101,277
1,146,113
1,120,067
Short-term borrowings
61,000
60,315
127,577
91,577
125,680
Long-term borrowings
27,068
39,769
45,869
45,869
49,919
Subordinated debt
30,107
30,057
30,008
29,961
29,914
Accrued interest payable
234
236
2,092
1,963
2,245
Operating lease liabilities
1,591
1,621
1,652
1,682
1,711
Finance lease liabilities
16,745
16,829
4,359
4,370
4,381
Other liabilities
11,876
16,986
9,203
9,505
11,625
Total liabilities
1,353,014
1,362,026
1,322,037
1,331,040
1,345,542
Shareholders’ equity:
Voting common stock shares issued and outstanding
4,742,841
4,719,788
4,719,788
4,719,788
4,719,288
Voting common stock
47
47
47
47
47
Non-Voting common stock
14
14
14
14
14
Additional paid in capital
52,750
53,231
53,182
53,151
53,114
Retained earnings
78,193
73,670
78,936
77,558
76,060
Accumulated other comprehensive loss
(9,144
)
(6,716
)
(8,786
)
(8,862
)
(9,605
)
Unearned ESOP shares
–
–
(45
)
(90
)
(135
)
Total Pathfinder Bancorp, Inc. shareholders’ equity
121,860
120,246
123,348
121,818
119,495
Noncontrolling interest
–
854
826
814
761
Total equity
121,860
121,100
124,174
122,632
120,256
Total liabilities and shareholders’ equity
$
1,474,874
$
1,483,126
$
1,446,211
$
1,453,672
$
1,465,798
The above information is preliminary and based on the Company’s data available at the time of presentation.
Years Ended December 31,
2024
2023
SELECTED INCOME STATEMENT DATA:
2024
2023
Q4
Q3
Q2
Q1
Q4
Interest and dividend income:
Loans, including fees
$
52,705
$
47,348
$
13,523
$
14,425
$
12,489
$
12,268
$
12,429
Debt securities:
Taxable
22,319
17,500
5,312
5,664
5,736
5,607
5,092
Tax-exempt
1,920
1,947
445
469
498
508
506
Dividends
620
573
164
149
178
129
232
Federal funds sold and interest-earning deposits
793
295
82
492
121
98
69
Total interest and dividend income
78,357
67,663
19,526
21,199
19,022
18,610
18,328
Interest expense:
Interest on deposits
30,050
23,265
7,380
7,633
7,626
7,411
7,380
Interest on short-term borrowings
4,176
2,688
700
1,136
1,226
1,114
1,064
Interest on long-term borrowings
733
850
136
202
201
194
231
Interest on subordinated debt
1,966
1,941
490
496
489
491
494
Total interest expense
36,925
28,744
8,706
9,467
9,542
9,210
9,169
Net interest income
41,432
38,919
10,820
11,732
9,480
9,400
9,159
Provision for (benefit from) credit losses:
Loans
11,106
2,991
988
9,104
304
710
316
Held-to-maturity securities
(94
)
(98
)
(4
)
(31
)
(74
)
15
(74
)
Unfunded commitments
(39
)
37
4
(104
)
60
1
23
Total provision for credit losses
10,973
2,930
988
8,969
290
726
265
Net interest income after provision for credit losses
30,459
35,989
9,832
2,763
9,190
8,674
8,894
Noninterest income:
Service charges on deposit accounts
1,436
1,249
405
392
330
309
336
Earnings and gain on bank owned life insurance
854
630
169
361
167
157
164
Loan servicing fees
375
307
96
79
112
88
69
Net realized (losses) gains on sales and redemptions of investment securities
(71
)
62
249
(188
)
16
(148
)
2
Gain on asset sale 1 & 2
3,169
–
3,169
–
–
–
–
Net realized gains (losses) on sales of marketable equity securities
197
(255
)
166
62
(139
)
108
(47
)
Gains on sales of loans and foreclosed real estate
187
181
39
90
40
18
(2
)
Loss on sale of premises and equipment
(13
)
–
–
(36
)
–
–
–
Debit card interchange fees
875
616
265
300
191
119
161
Insurance agency revenue 1
1,073
1,304
49
367
260
397
303
Other charges, commissions & fees
1,479
1,096
299
280
234
689
332
Total noninterest income
9,561
5,190
4,906
1,707
1,211
1,737
1,318
Noninterest expense:
Salaries and employee benefits
17,810
15,920
4,123
4,959
4,399
4,329
3,677
Building and occupancy
4,118
3,563
1,254
1,134
914
816
864
Data processing
2,471
2,018
721
672
550
528
499
Professional and other services
3,686
2,019
608
1,820
696
562
488
Advertising
604
671
218
165
116
105
155
FDIC assessments
916
885
231
228
228
229
222
Audits and exams
539
735
123
123
123
170
259
Insurance agency expense 1
1,281
1,033
456
308
232
285
216
Community service activities
130
200
19
20
39
52
49
Foreclosed real estate expenses
102
111
20
27
30
25
35
Other expenses
2,760
2,240
771
803
581
605
580
Total noninterest expense
34,417
29,395
8,544
10,259
7,908
7,706
7,044
Income (loss) before provision for income taxes
5,603
11,784
6,194
(5,789
)
2,493
2,705
3,168
Provision (benefit) for income taxes
398
2,362
558
(1,173
)
481
532
590
Net income (loss) attributable to noncontrolling interest and Pathfinder Bancorp, Inc.
5,205
9,422
5,636
(4,616
)
2,012
2,173
2,578
Net income attributable to noncontrolling interest 1
1,445
129
1,352
28
12
53
42
Net income (loss) attributable to Pathfinder Bancorp Inc.
$
3,760
$
9,293
$
4,284
$
(4,644
)
$
2,000
$
2,120
$
2,536
Voting Earnings per common share – basic and diluted
$
0.60
$
1.51
$
0.69
$
(0.75
)
$
0.32
$
0.34
$
0.41
Series A Non-Voting Earnings per common share- basic and diluted
$
0.60
$
1.51
$
0.69
$
(0.75
)
$
0.32
$
0.34
$
0.41
Dividends per common share (Voting and Series A Non-Voting)
$
0.40
$
0.36
$
0.10
$
0.10
$
0.10
$
0.10
$
0.09
1 Although the Company owned 51% of its membership interest in FitzGibbons Agency, LLC (“Agency”) the Company is required to consolidate 100% of the Agency within the consolidated financial statements. 2 The $3,169,000 consolidated gain on asset sale equals $1,616,000 associated with the Company’s 51% interest in the Agency plus $1,553,000 associated with the 49% noncontrolling interest.
The above information is preliminary and based on the Company’s data available at the time of presentation.
Years Ended December 31,
2024
2023
FINANCIAL HIGHLIGHTS:
2024
2023
Q4
Q3
Q2
Q1
Q4
Selected Ratios:
Return on average assets
0.26
%
0.67
%
1.17
%
-1.25
%
0.56
%
0.59
%
0.72
%
Return on average common equity
3.06
%
8.09
%
14.09
%
-14.79
%
6.49
%
7.01
%
8.72
%
Return on average equity
3.06
%
8.09
%
14.09
%
-14.79
%
6.49
%
7.01
%
8.72
%
Return on average tangible common equity 1
3.23
%
8.43
%
15.54
%
-15.28
%
6.78
%
7.32
%
9.01
%
Net interest margin
3.01
%
2.95
%
3.15
%
3.34
%
2.78
%
2.75
%
2.74
%
Loans / deposits
76.30
%
80.10
%
76.30
%
77.05
%
80.66
%
77.79
%
80.10
%
Core deposits/deposits 2
76.87
%
69.83
%
76.87
%
77.45
%
67.98
%
69.17
%
69.83
%
Annualized non-interest expense / average assets
3.17
%
2.11
%
2.33
%
2.75
%
2.19
%
2.16
%
2.01
%
Commercial real estate / risk-based capital 3
186.73
%
162.21
%
186.73
%
189.47
%
169.73
%
163.93
%
162.21
%
Efficiency ratio 1
71.86
%
66.74
%
69.42
%
75.28
%
74.08
%
68.29
%
67.25
%
Other Selected Data:
Average yield on loans
5.83
%
5.26
%
5.87
%
6.31
%
5.64
%
5.48
%
5.55
%
Average cost of interest bearing deposits
3.08
%
2.45
%
2.94
%
3.11
%
3.21
%
3.07
%
3.10
%
Average cost of total deposits, including non-interest bearing
2.59
%
2.07
%
2.44
%
2.59
%
2.72
%
2.61
%
2.63
%
Deposits/branch 4
$
100,366
$
101,824
$
100,366
$
99,684
$
100,116
$
104,192
$
101,824
Pre-tax, pre-provision net income 1
$
13,478
$
14,652
$
3,764
$
3,368
$
2,767
$
3,579
$
3,431
Total revenue 1
$
47,895
$
44,047
$
12,308
$
13,627
$
10,675
$
11,285
$
10,475
Share and Per Share Data:
Cash dividends per share
$
0.40
$
0.36
$
0.10
$
0.10
$
0.10
$
0.10
$
0.09
Book value per common share
$
19.90
$
19.59
$
19.90
$
19.71
$
20.22
$
19.97
$
19.59
Tangible book value per common share 1
$
18.10
$
18.83
$
18.10
$
17.75
$
19.46
$
19.21
$
18.83
Basic and diluted weighted average shares outstanding – Voting
4,714
4,653
4,732
4,714
4,708
4,701
4,693
Basic and diluted earnings per share – Voting 5
$
0.60
$
1.51
$
0.69
$
(0.75
)
$
0.32
$
0.34
$
0.41
Basic and diluted weighted average shares outstanding – Series A Non-Voting
1,380
1,380
1,380
1,380
1,380
1,380
1,380
Basic and diluted earnings per share – Series A Non-Voting 5
$
0.60
$
1.51
$
0.69
$
(0.75
)
$
0.32
$
0.34
$
0.41
Common shares outstanding at period end
6,123
6,100
6,123
6,100
6,100
6,100
6,100
Pathfinder Bancorp, Inc. Capital Ratios:
Company tangible common equity to tangible assets 1
7.57
%
7.86
%
7.57
%
7.36
%
8.24
%
8.09
%
7.86
%
Company Total Core Capital (to Risk-Weighted Assets)
15.70
%
16.17
%
15.70
%
15.55
%
16.19
%
16.23
%
16.17
%
Company Tier 1 Capital (to Risk-Weighted Assets)
12.04
%
12.30
%
12.04
%
11.84
%
12.31
%
12.33
%
12.30
%
Company Tier 1 Common Equity (to Risk-Weighted Assets)
11.55
%
11.81
%
11.55
%
11.33
%
11.83
%
11.85
%
11.81
%
Company Tier 1 Capital (to Assets)
8.69
%
9.35
%
8.69
%
8.29
%
9.16
%
9.16
%
9.35
%
Pathfinder Bank Capital Ratios:
Bank Total Core Capital (to Risk-Weighted Assets)
14.70
%
15.05
%
14.70
%
14.52
%
16.04
%
15.65
%
15.05
%
Bank Tier 1 Capital (to Risk-Weighted Assets)
13.44
%
13.80
%
13.44
%
13.26
%
14.79
%
14.39
%
13.80
%
Bank Tier 1 Common Equity (to Risk-Weighted Assets)
13.44
%
13.80
%
13.44
%
13.26
%
14.79
%
14.39
%
13.80
%
Bank Tier 1 Capital (to Assets)
9.69
%
10.11
%
9.69
%
9.13
%
10.30
%
10.13
%
10.11
%
1 Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures. 2 Non-brokered deposits excluding certificates of deposit of $250,000 or more. 3 Construction and development, multifamily, and non-owner occupied CRE loans as a percentage of Pathfinder Bank total capital. 4 Includes 11 full-service branches and one motor bank for December 31 and September 30, 2024, respectively. Includes 10 full-service branches and one motor bank for all periods prior. 5 Basic and diluted earnings per share are calculated based upon the two-class method. Weighted average shares outstanding do not include unallocated ESOP shares.
The above information is preliminary and based on the Company’s data available at the time of presentation.
Years Ended December 31,
2024
2023
ASSET QUALITY:
2024
2023
Q4
Q3
Q2
Q1
Q4
Total loan charge-offs
$
10,183
$
4,221
$
1,191
$
8,812
$
112
$
68
$
211
Total recoveries
345
355
171
90
46
38
103
Net loan charge-offs
9,838
3,866
1,020
8,722
66
30
108
Allowance for credit losses at period end
17,243
15,975
17,243
17,274
16,892
16,655
15,975
Nonperforming loans at period end
22,084
17,227
22,084
16,170
24,490
19,652
17,227
Nonperforming assets at period end
$
22,084
$
17,378
$
22,084
$
16,170
$
24,550
$
19,734
$
17,378
Annualized net loan charge-offs to average loans
1.09
%
0.43
%
0.44
%
3.82
%
0.03
%
0.01
%
0.05
%
Allowance for credit losses to period end loans
1.88
%
1.78
%
1.88
%
1.87
%
1.90
%
1.87
%
1.78
%
Allowance for credit losses to nonperforming loans
78.08
%
92.73
%
78.08
%
106.83
%
68.98
%
84.75
%
92.73
%
Nonperforming loans to period end loans
2.40
%
1.92
%
2.40
%
1.75
%
2.76
%
2.20
%
1.92
%
Nonperforming assets to period end assets
1.50
%
1.19
%
1.50
%
1.09
%
1.70
%
1.36
%
1.19
%
2024
2023
LOAN COMPOSITION:
December 31,
September 30,
June 30,
March 31,
December 31,
1-4 family first-lien residential mortgages
$
251,373
$
255,235
$
250,106
$
252,026
$
257,604
Residential construction
4,864
4,077
309
1,689
1,355
Commercial real estate
377,619
378,805
370,361
363,467
358,707
Commercial lines of credit
67,602
64,672
62,711
67,416
72,069
Other commercial and industrial
89,800
88,247
90,813
91,178
89,803
Paycheck protection program loans
113
125
136
147
158
Tax exempt commercial loans
4,544
2,658
3,228
3,374
3,430
Home equity and junior liens
51,948
52,709
35,821
35,723
34,858
Other consumer
72,710
76,703
75,195
77,106
79,797
Subtotal loans
920,573
923,231
888,680
892,126
897,781
Deferred loan fees
(1,587
)
(1,571
)
(417
)
(595
)
(574
)
Total loans
$
918,986
$
921,660
$
888,263
$
891,531
$
897,207
2024
2023
DEPOSIT COMPOSITION:
December 31,
September 30,
June 30,
March 31,
December 31,
Savings accounts
$
128,752
$
129,053
$
106,048
$
111,465
$
113,543
Time accounts
360,586
352,729
368,262
378,103
377,570
Time accounts in excess of $250,000
142,473
140,181
117,021
114,514
95,272
Money management accounts
11,583
11,520
12,154
11,676
12,364
MMDA accounts
239,016
250,007
193,915
215,101
224,707
Demand deposit interest-bearing
101,080
97,344
128,168
134,196
119,321
Demand deposit noninterest-bearing
213,719
210,110
169,145
176,434
170,169
Mortgage escrow funds
7,184
5,269
6,564
4,624
7,121
Total deposits
$
1,204,393
$
1,196,213
$
1,101,277
$
1,146,113
$
1,120,067
The above information is preliminary and based on the Company’s data available at the time of presentation.
Years Ended December 31,
2024
2023
SELECTED AVERAGE BALANCES:
2024
2023
Q4
Q3
Q4
Interest-earning assets:
Loans
$
903,941
$
899,605
$
920,855
$
914,467
$
896,439
Taxable investment securities
423,475
379,600
412,048
415,751
403,411
Tax-exempt investment securities
30,861
30,318
34,918
30,382
27,941
Fed funds sold and interest-earning deposits
16,379
11,730
5,115
42,897
11,630
Total interest-earning assets
1,374,656
1,321,253
1,372,936
1,403,497
1,339,421
Noninterest-earning assets:
Other assets
102,582
100,319
112,654
103,856
102,940
Allowance for credit losses
(16,670
)
(17,870
)
(17,145
)
(16,537
)
(17,359
)
Net unrealized losses on available-for-sale securities
(9,769
)
(13,600
)
(8,534
)
(9,161
)
(15,653
)
Total assets
$
1,450,799
$
1,390,102
$
1,459,911
$
1,481,655
$
1,409,349
Interest-bearing liabilities:
NOW accounts
$
101,336
$
92,223
$
102,862
$
102,868
$
87,210
Money management accounts
11,679
14,116
11,371
11,828
12,518
MMDA accounts
227,597
239,182
257,429
227,247
231,957
Savings and club accounts
118,965
124,617
128,169
127,262
115,984
Time deposits
517,352
480,867
504,008
514,049
505,554
Subordinated loans
30,002
29,815
30,076
30,025
29,883
Borrowings
114,471
105,471
68,391
122,129
124,780
Total interest-bearing liabilities
1,121,402
1,086,291
1,102,306
1,135,408
1,107,886
Noninterest-bearing liabilities:
Demand deposits
184,572
172,950
206,521
195,765
169,340
Other liabilities
21,923
16,037
29,491
24,856
15,858
Total liabilities
1,327,897
1,275,278
1,338,318
1,356,029
1,293,084
Shareholders’ equity
122,902
114,824
121,593
125,626
116,265
Total liabilities & shareholders’ equity
$
1,450,799
$
1,390,102
$
1,459,911
$
1,481,655
$
1,409,349
Years Ended December 31,
2024
2023
SELECTED AVERAGE YIELDS:
2024
2023
Q4
Q3
Q4
Interest-earning assets:
Loans
5.83
%
5.26
%
5.87
%
6.31
%
5.55
%
Taxable investment securities
5.42
%
4.76
%
5.32
%
5.59
%
5.28
%
Tax-exempt investment securities
6.22
%
6.42
%
5.10
%
6.17
%
7.24
%
Fed funds sold and interest-earning deposits
4.84
%
2.51
%
6.41
%
4.59
%
2.37
%
Total interest-earning assets
5.70
%
5.12
%
5.69
%
6.04
%
5.47
%
Interest-bearing liabilities:
NOW accounts
1.10
%
0.58
%
1.19
%
1.09
%
1.02
%
Money management accounts
0.11
%
0.11
%
0.11
%
0.10
%
0.10
%
MMDA accounts
3.52
%
2.80
%
3.23
%
3.54
%
3.72
%
Savings and club accounts
0.26
%
0.22
%
0.26
%
0.25
%
0.26
%
Time deposits
3.98
%
3.27
%
3.90
%
4.09
%
3.89
%
Subordinated loans
6.55
%
6.51
%
6.52
%
6.61
%
6.61
%
Borrowings
4.29
%
3.35
%
4.89
%
4.38
%
4.15
%
Total interest-bearing liabilities
3.29
%
2.65
%
3.16
%
3.34
%
3.31
%
Net interest rate spread
2.41
%
2.47
%
2.53
%
2.70
%
2.16
%
Net interest margin
3.01
%
2.95
%
3.15
%
3.34
%
2.74
%
Ratio of average interest-earning assets to average interest-bearing liabilities
122.58
%
121.63
%
124.55
%
123.61
%
120.90
%
The above information is preliminary and based on the Company’s data available at the time of presentation.
Years Ended December 31,
2024
2023
NON-GAAP RECONCILIATIONS:
2024
2023
Q4
Q3
Q2
Q1
Q4
Tangible book value per common share:
Total equity
$
121,860
$
120,246
$
123,348
$
121,818
$
119,495
Intangible assets
(11,045
)
(11,969
)
(4,612
)
(4,616
)
(4,621
)
Tangible common equity (non-GAAP)
110,815
108,277
118,736
117,202
114,874
Common shares outstanding
6,123
6,100
6,100
6,100
6,100
Tangible book value per common share (non-GAAP)
$
18.10
$
17.75
$
19.46
$
19.21
$
18.83
Tangible common equity to tangible assets:
Tangible common equity (non-GAAP)
$
110,815
$
108,277
$
118,736
$
117,202
$
114,874
Tangible assets
1,463,829
1,471,157
1,441,599
1,449,056
1,461,177
Tangible common equity to tangible assets ratio (non-GAAP)
7.57
%
7.36
%
8.24
%
8.09
%
7.86
%
Return on average tangible common equity:
Average shareholders’ equity
$
122,902
$
114,824
$
121,593
$
125,626
$
123,211
$
121,031
$
116,265
Average intangible assets
6,468
4,629
11,907
4,691
4,614
4,619
4,623
Average tangible equity (non-GAAP)
116,434
110,195
109,686
120,935
118,597
116,412
111,642
Net income (loss)
3,760
9,293
4,284
(4,644
)
2,000
2,120
2,536
Net income (loss), annualized
$
3,760
$
9,293
$
17,043
$
(18,475
)
$
8,044
$
8,527
$
10,061
Return on average tangible common equity (non-GAAP) 1
3.23
%
8.43
%
15.54
%
-15.28
%
6.78
%
7.32
%
9.01
%
Revenue, pre-tax, pre-provision net income, and efficiency ratio:
Net interest income
$
41,432
$
38,919
$
10,820
$
11,732
$
9,480
$
9,400
$
9,159
Total noninterest income
9,561
5,190
4,906
1,707
1,211
1,737
1,318
Net realized (gains) losses on sales and redemptions of investment securities
(71
)
62
249
(188
)
16
(148
)
2
Gain on asset sale
3,169
–
3,169
–
–
–
–
Revenue (non-GAAP) 2
47,895
44,047
12,308
13,627
10,675
11,285
10,475
Total non-interest expense
34,417
29,395
8,544
10,259
7,908
7,706
7,044
Pre-tax, pre-provision net income (non-GAAP) 3
$
13,478
$
14,652
$
3,764
$
3,368
$
2,767
$
3,579
$
3,431
Efficiency ratio (non-GAAP) 4
71.86
%
66.74
%
69.42
%
75.28
%
74.08
%
68.29
%
67.25
%
1 Return on average tangible common equity equals annualized net income (loss) divided by average tangible equity 2 Revenue equals net interest income plus total noninterest income less net realized gains or losses on sales and redemptions of investment securities and gain on sale of insurance agency 3 Pre-tax, pre-provision net income equals revenue less total non-interest expense 4 Efficiency ratio equals noninterest expense divided by revenue
The above information is preliminary and based on the Company’s data available at the time of presentation.
The Company’s tier one leverage and risk-based capital ratios were 11.68% and 28.96%, respectively, and the Company is considered to be “well-capitalized” at December 31, 2024.
Ratio of non-performing assets to total assets of 0.09% at December 31, 2024.
HONOLULU, Jan. 31, 2025 (GLOBE NEWSWIRE) — Territorial Bancorp Inc. (NASDAQ: TBNK) (the Company), headquartered in Honolulu, Hawaii, the holding company parent of Territorial Savings Bank, reported a net loss of $1.72 million, or $0.20 per diluted share, for the three months ended December 31, 2024. Results reflect $1.53 million of pre-tax merger-related expenses.
The Board of Directors approved a dividend of $0.01 per share. The dividend is expected to be paid on February 28, 2025, to stockholders of record as of February 14, 2025.
Hope Bancorp, Inc. Merger Agreement
As previously announced in a joint news release issued April 29, 2024, Hope Bancorp, Inc. (NASDAQ: HOPE) (Hope Bancorp) and the Company signed a definitive merger agreement. Under the terms of the merger agreement, Company stockholders will receive a fixed exchange ratio of 0.8048 share of Hope Bancorp common stock in exchange for each share of Company common stock they own, in a 100% stock-for-stock transaction valued at approximately $78.60 million, based on the closing price of Hope Bancorp’s common stock on April 26, 2024. The transaction is intended to qualify as a tax-free reorganization for Territorial stockholders.
Upon completion of the transaction, Hope Bancorp intends to maintain the Territorial franchise in Hawaii and preserve the 100-plus year legacy of the Territorial Savings Bank brand name, culture and commitment to the local communities. The branches will continue to do business under the Territorial Savings Bank brand, as a trade name of Bank of Hope.
The transaction is subject to regulatory approvals and the satisfaction of other customary closing conditions.
Interest Income
Net interest income decreased by $2.21 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. Total interest income was $17.91 million for the three months ended December 31, 2024, compared to $17.69 million for the three months ended December 31, 2023. The $217,000 increase in total interest income was primarily due to a $274,000 increase in interest earned on loans and a $245,000 increase in interest earned on other investments. The $274,000 increase in interest income on loans resulted from a 14 basis point increase in the average loan yield, partially offset by a $20.63 million decrease in the average loan balance. The increase in interest income on other investments is primarily due to a $28.86 million increase in the average cash balance with the Federal Reserve Bank of San Francisco (FRB), offset by a 45 basis point decrease in the average interest rate paid on cash balances. The increases in interest income on loans and other investments during the quarter were partially offset by a $302,000 decrease in interest on investment securities, which occurred because of a $40.21 million decrease in the average securities balances.
Interest Expense and Provision for Credit Losses
As a result of prolonged increases in short-term interest rates, total interest expense increased by $2.42 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. Interest expense on deposits increased by $2.51 million for the three months ended December 31, 2024, primarily due to an increase in interest expense on certificates of deposit (CD) and savings accounts. Interest expense on CDs rose by $1.61 million for the three months ended December 31, 2024, due to a 17 basis point increase in the average cost of CDs and a $132.90 million increase in the average CD balance. Interest expense on savings accounts rose by $892,000 for the three months ended December 31, 2024, due to a 58 basis point increase in the average cost of savings accounts which was partially offset by a $72.23 million decrease in the average balance. The increase in the average cost of CDs and savings accounts occurred as interest rates were raised in response to the increases in market interest rates over that period. The increase in the average balance of CDs and the decrease in the average balance of savings accounts occurred as customers transferred balances from lower rate savings accounts to higher rate CDs. Interest expense on Federal Home Loan Bank (FHLB) borrowings declined by $285,000 for the three months ended December 31, 2024, as the Company paid off $82.00 million in advances from the FHLB during 2024. Interest expense on Federal Reserve Bank (FRB) borrowings rose by $230,000 for the three months ended December 31, 2024, as the Company obtained a $50.00 million advance from the FRB in the fourth quarter of 2023 to enhance the Company’s liquidity and to fund deposit withdrawals. The FRB advances were paid off during the three months ended December 31, 2024.
The Company had a $51,000 provision for credit losses for the three months ending December 31, 2024, compared to a $144,000 provision for the three months ending December 31, 2023. The decrease in the provision for credit losses was due to a decrease in the mortgage loan portfolio, which was partially offset by an increase in provision related to growth in the consumer loan portfolio.
Noninterest Income
Noninterest income increased by $139,000 for the three months ended December 31, 2024 compared to the three months ended December 31, 2023, primarily due to a $129,000 decrease in pension expenses related to an increase in the return on the pension plan’s assets.
Noninterest Expense
Noninterest expense increased by $1.42 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, primarily due to a $1.34 million increase in general and administrative expenses. General and administrative expenses included $1.53 million of merger-related legal and consulting expenses. Federal Deposit Insurance Corporation (FDIC) premium expense rose by $141,000 for the quarter because of an increase in the FDIC insurance premium rates. The increase in other general and administrative expenses and FDIC premiums was offset by a $170,000 decrease in occupancy expense during the quarter. The decrease was due to a one-time reversal of a previously accrued charge.
Income Taxes
Income tax benefit for the three months ended December 31, 2024 was $1.28 million with an effective tax rate of (42.53)% compared to income tax expense of $61,000 with an effective tax rate of 15.44% for the three months ended December 31, 2023. The change from income tax expense to income tax benefit was primarily due to a $3.40 million change in net operating income during the quarter.
Balance Sheet
Total assets were $2.17 billion at December 31, 2024 and $2.24 billion at December 31, 2023. Investment securities, including available for sale securities, decreased by $41.74 million to $664.16 million at December 31, 2024 from $705.90 million at December 31, 2023. The decrease in investment securities occurred because of principal repayments on mortgage-backed securities. Loans receivable decreased by $21.89 million to $1.29 billion at December 31, 2024 from $1.31 billion at December 31, 2023. The decrease in loans receivable occurred as loan repayments and sales exceeded new loan originations. Cash and cash equivalents decreased by $3.14 million to $123.52 million at December 31, 2024 from $126.66 million at December 31, 2023 due to repayments of advances from the FHLB, FRB and repurchase agreements, which were offset by increases in deposits and principal repayments on mortgage-backed securities and on loans receivable.
Deposits increased by $81.06 million from $1.64 billion at December 31, 2023 to $1.72 billion at December 31, 2024. The increase in deposits is primarily due to deposits from state and local governments. The increase in deposits was used with principal repayments on mortgage-backed securities and loans receivable to pay off $82.00 million of maturing FHLB advances, $50.00 million of FRB advances and $10.00 million of repurchase agreements.
Asset Quality
Credit quality continues to be extremely important as the Company adheres to its strict underwriting standards. The Company had $1.22 million in delinquent mortgage loans 90 days or more past due at December 31, 2024, compared to $227,000 at December 31, 2023. Non-performing assets totaled $1.93 million at December 31, 2024, compared to $2.26 million at December 31, 2023. The ratio of non-performing assets to total assets was 0.09% at December 31, 2024, compared to 0.10% at December 31, 2023. The allowance for credit losses was $5.11 million at December 31, 2024, compared to $5.12 million at December 31, 2023, representing 0.40% of total loans at December 31, 2024, compared to 0.39% of total loans at December 31, 2023. The ratio of the allowance for credit losses to non-performing loans was 264.56% at December 31, 2024, compared to 226.59% at December 31, 2023.
About Us
Territorial Bancorp Inc., headquartered in Honolulu, Hawaii, is the stock holding company for Territorial Savings Bank. Territorial Savings Bank is a state-chartered savings bank which was originally chartered in 1921 by the Territory of Hawaii. Territorial Savings Bank conducts business from its headquarters in Honolulu, Hawaii and has 28 branch offices in the state of Hawaii. For additional information, please visit the Company’s website at: https://www.tsbhawaii.bank.
Forward-looking statements
This earnings release contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,” “will,” “may” and words of similar meaning. These forward-looking statements include, but are not limited to:
statements of our goals, intentions and expectations;
statements regarding our business plans, prospects, growth and operating strategies;
statements regarding the asset quality of our loan and investment portfolios; and
estimates of our risks and future costs and benefits.
These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this earnings release.
The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:
factors related to the proposed transaction with Hope Bancorp, including the receipt of regulatory approvals, and other customary closing conditions;
general economic conditions, either internationally, nationally or in our market areas, that are worse than expected;
competition among depository and other financial institutions;
inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments;
adverse changes in the securities markets;
changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements;
changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board;
our ability to enter new markets successfully and capitalize on growth opportunities;
our ability to successfully integrate acquired entities, if any;
changes in consumer demand, spending, borrowing and savings habits;
changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board;
changes in our organization, compensation and benefit plans;
the timing and amount of revenues that we may recognize;
the value and marketability of collateral underlying our loan portfolios;
our ability to retain key employees;
cyberattacks, computer viruses and other technological risks that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data or disable our systems;
technological change that may be more difficult or expensive than expected;
the ability of third-party providers to perform their obligations to us;
the ability of the U.S. Government to manage federal debt limits;
the quality and composition of our investment portfolio;
the effect of any pandemic disease, natural disaster, war, act of terrorism, accident or similar action or event;
changes in market and other conditions that would affect our ability to repurchase our common stock; and
changes in our financial condition or results of operations that reduce capital available to pay dividends.
Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.
Contact: Walter Ida (808) 946-1400
Territorial Bancorp Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
Interest income:
Loans
$
12,280
$
12,006
$
48,820
$
47,043
Investment securities
4,104
4,406
16,857
17,918
Other investments
1,524
1,279
6,628
4,127
Total interest income
17,908
17,691
72,305
69,088
Interest expense:
Deposits
8,731
6,223
31,389
19,484
Advances from the Federal Home Loan Bank
1,569
1,854
6,899
6,636
Advances from the Federal Reserve Bank
384
154
2,173
183
Securities sold under agreements to repurchase
15
46
152
154
Total interest expense
10,699
8,277
40,613
26,457
Net interest income
7,209
9,414
31,692
42,631
Provision (reversal of provision) for credit losses
51
144
73
(3
)
Net interest income after provision (reversal of provision) for credit losses
7,158
9,270
31,619
42,634
Noninterest income:
Service and other fees
285
305
1,170
1,327
Income on bank-owned life insurance
257
227
1,007
855
Net gain on sale of loans
—
—
19
10
Other
200
71
415
279
Total noninterest income
742
603
2,611
2,471
Noninterest expense:
Salaries and employee benefits
5,181
5,109
19,787
20,832
Occupancy
1,539
1,709
6,858
6,910
Equipment
1,320
1,278
5,307
5,156
Federal deposit insurance premiums
386
245
1,667
982
Other general and administrative expenses
2,474
1,137
7,325
4,388
Total noninterest expense
10,900
9,478
40,944
38,268
(Loss) Income before income taxes
(3,000
)
395
(6,714
)
6,837
Income tax (benefit) expense
(1,276
)
61
(2,415
)
1,810
Net (loss) income
$
(1,724
)
$
334
$
(4,299
)
$
5,027
Basic (loss) earnings per share
$
(0.20
)
$
0.04
$
(0.50
)
$
0.58
Diluted (loss) earnings per share
$
(0.20
)
$
0.04
$
(0.50
)
$
0.57
Cash dividends declared per common share
$
0.01
$
0.05
$
0.08
$
0.74
Basic weighted-average shares outstanding
8,630,432
8,575,902
8,610,706
8,636,495
Diluted weighted-average shares outstanding
8,630,432
8,603,843
8,610,706
8,684,092
Territorial Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
December 31,
December 31,
2024
2023
ASSETS
Cash and cash equivalents
$
123,523
$
126,659
Investment securities available for sale, at fair value
18,492
20,171
Investment securities held to maturity, at amortized cost (fair value of $513,499 and $568,128 at December 31,2024 and 2023, respectively)
645,669
685,728
Loans receivable
1,286,662
1,308,552
Allowance for credit losses
(5,114
)
(5,121
)
Loans receivable, net of allowance for credit losses
1,281,548
1,303,431
Federal Home Loan Bank stock, at cost
8,542
12,192
Federal Reserve Bank stock, at cost
3,189
3,180
Accrued interest receivable
5,800
6,105
Premises and equipment, net
7,278
7,185
Right-of-use asset, net
12,523
12,371
Bank-owned life insurance
49,645
48,638
Income taxes receivable
2,082
344
Deferred income tax assets, net
1,877
2,457
Prepaid expenses and other assets
9,547
8,211
Total assets
$
2,169,715
$
2,236,672
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits
$
1,717,663
$
1,636,604
Advances from the Federal Home Loan Bank
160,000
242,000
Advances from the Federal Reserve Bank
—
50,000
Securities sold under agreements to repurchase
—
10,000
Accounts payable and accrued expenses
19,403
23,334
Lease liability
17,967
17,297
Advance payments by borrowers for taxes and insurance
6,331
6,351
Total liabilities
1,921,364
1,985,586
Stockholders’ Equity:
Preferred stock, $0.01 par value; authorized 50,000,000 shares, no shares issued or outstanding
—
—
Common stock, $0.01 par value; authorized 100,000,000 shares; issued and outstanding
8,832,210 and 8,826,613 shares at December 31, 2024 and 2023, respectively
88
88
Additional paid-in capital
48,367
48,022
Unearned ESOP shares
(1,957
)
(2,447
)
Retained earnings
206,693
211,644
Accumulated other comprehensive loss
(4,840
)
(6,221
)
Total stockholders’ equity
248,351
251,086
Total liabilities and stockholders’ equity
$
2,169,715
$
2,236,672
Territorial Bancorp Inc. and Subsidiaries
Selected Financial Data (Unaudited)
Three Months Ended
December 31,
2024
2023
Performance Ratios (annualized):
Return on average assets
-0.32
%
0.06
%
Return on average equity
-2.75
%
0.53
%
Net interest margin on average interest earning assets
1.39
%
1.78
%
Efficiency ratio (1)
137.09
%
94.62
%
At
At
December
December
31, 2024
31, 2023
Selected Balance Sheet Data:
Book value per share (2)
$
28.12
$
28.45
Stockholders’ equity to total assets
11.45
%
11.23
%
Asset Quality
(Dollars in thousands):
Delinquent loans 90 days past due and not accruing
$
1,219
$
227
Non-performing assets (3)
$
1,933
$
2,260
Allowance for credit losses
$
5,114
$
5,121
Non-performing assets to total assets
0.09
%
0.10
%
Allowance for credit losses to total loans
0.40
%
0.39
%
Allowance for credit losses to non-performing assets
264.56
%
226.59
%
Note:
(1) Efficiency ratio is equal to noninterest expense divided by the sum of net interest income and noninterest income
(2) Book value per share is equal to stockholders’ equity divided by number of shares issued and outstanding
(3) Non-performing assets consist of non-accrual loans and real estate owned. Amounts are net of charge-offs
DALLAS, Jan. 31, 2025 (GLOBE NEWSWIRE) — Capital Southwest Corporation (“Capital Southwest” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today the U.S. federal income tax treatment of its 2024 dividends.
U.S. Federal Income Tax Treatment of 2024 Dividends
Capital Southwest paid dividends totaling $2.53 per share that are attributable to the tax year ended December 31, 2024, with 100.00% of those dividends comprised of ordinary income, including net short-term capital gains. The Company has posted information regarding the U.S. federal income tax characteristics of its dividends that are attributable to 2024 on its website (http://www.capitalsouthwest.com/tax-information).
The amounts shown in the table below represent the final classification of the Company’s 2024 dividends. This information supersedes any estimated information you may have received during the year. Calendar-year 2024 dividends are classified as follows:
Form 1099-DIV Reporting
Box 1a
Box 1a and Box 1b
Box 2a
Non-U.S. Shareholder
Non-U.S. Shareholder
Record Date
Payment Date
Distribution per Share
Ordinary Dividend Per Share (i)
Qualified Dividends Per Share (i), (ii)
Long-Term Capital Gain Per Share (iii)
% of Interest-Related and Short-Term Capital Gain (iv)
% of Distributions Exempt from U.S. Withholding Tax (v)
03/15/24
03/29/24
$
0.6300
$
0.6300
$
–
$
–
92.89
%
92.89
%
06/14/24
03/28/24
$
0.6300
$
0.6300
$
–
$
–
92.89
%
92.89
%
09/13/24
09/30/24
$
0.6400
$
0.6400
$
–
$
–
92.89
%
92.89
%
12/13/24
12/31/24
$
0.6300
$
0.6300
$
–
$
–
92.89
%
92.89
%
$
2.5300
$
2.5300
$
–
$
–
% of Total Dividend
Paid Per Share
100.00
%
100.00
%
0.00
%
0.00
%
92.89
%
92.89
%
(i) Form 1099-DIV Box 1a includes the combined amounts of the columns “Ordinary Dividend Per Share” and “Qualified Dividends Per Share,” contained within table above.
(ii) The portion of the dividend reported in Box 1a treated as Qualified Dividend is reported on Form 1099-DIV in Box 1b.
(iii) Net Capital Gain Dividend is reported on Form 1099-DIV in Box 2a.
(iv) The Company designates the above percentages of each of the total dividends by payment date as Interest-Related Dividend and Short-Term Capital Gain Dividend in accordance with Sections 871(k) and 881(e) under the Internal Revenue Code (the “Code”).
(v) The percentages designate the portion of Capital Southwest’s dividends received by Non-U.S. Residents and Foreign Corporation Shareholders that constitute Interest-Related Dividends, Short-Term Capital Gains Dividends, and Net Capital Gain Dividends to total amount of the dividends derived which generally are exempt from U.S. withholding tax for these periods for Non-U.S. Residents and Foreign Corporation Shareholders.
Non-U.S. residents and foreign corporation shareholders (“Non-U.S. Shareholders”) in a regulated investment company (“RIC”), such as Capital Southwest, are exempt from U.S. withholding tax on both “interest-related” dividends and short-term capital gains in accordance with Sections 871(k) and 881(e) of the Code. In addition, Non-U.S. Shareholders in a RIC are also exempt from U.S. withholding tax on long-term capital gains. Approximately 92.89% of Capital Southwest’s 2024 dividends relate to interest and short-term capital gains. See the “Tax Treatment of 2024 Dividends for Non-U.S. Shareholders” posted on the Company’s website for more details (http://www.capitalsouthwest.com/tax-information).
Dividends distributed to Non-U.S. Shareholders may have been withheld to pay U.S. federal income tax. Non-U.S. Shareholders should contact their tax advisor with any questions regarding this information, and its application to any claim for refund of taxes paid to the U.S. Internal Revenue Service.
About Capital Southwest
Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.5 billion in investments at fair value as of September 30, 2024. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien, and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.
Investor Relations Contact:
Michael S. Sarner, Chief Financial Officer 214-884-3829
Source: United States Senator for Maine Angus King
WASHINGTON, D.C.—U.S. Senator Angus King (I-ME) is joining bipartisan legislation to lower child care costs and address the nationwide shortage of affordable child care. The Child Care Workforce and Facilities Act would provide competitive grants for states to train child care workers and build or renovate child care facilities.
Families across the country are struggling to access available child care, with rural communities increasingly becoming “child care deserts” due to the noticeable decline in the number of child care providers. According to the Governor’s office, Maine has seen a 39% drop in the number of family childcare providers since 2013, significantly affecting the most rural communities.
“Affordable and accessible child care is one of the most pressing needs for working families in Maine and across the nation,” said Senator King. “The bipartisan Child Care Workforce and Facilities Act would provide important grant funding to states like Maine to train additional child care workers and build or renovate new child care facilities. When families have access to care, they are able to succeed both at home and in their professional careers. Child care is more than a household priority; child care means business!”
The Child Care Workforce and Facilities Act would:
Address the shortage of affordable child care and qualified child care professionals, particularly in rural areas;
Provide competitive grants to states to support the education, training, or retention of the child care workforce;
Provide competitive grants to states to build, renovate, and expand child care facilities in areas experiencing shortages;
Require grant applicants to demonstrate how their projects would increase the availability and affordability of quality child care, and help child care workers continue advance their careers; and
Enhance retention and compensation of quality child care professionals.
The legislation is cosponsored by Senators Kirsten Gillibrand (D-NY), Amy Klobuchar (D-MN), Dan Sullivan (R-AK), Jeff Merkley (D-OR), Jeanne Shaheen (D-NH), and Whitehouse (D-RI).
Senator King has long worked to expand access to child care. He secured millions to improve child care services in the 2022 and 2023 omnibus appropriations bills, and worked to authorize the planning and development of a new child development center at Portsmouth Naval Shipyard. He is also the cosponsor of the Child and Dependent Care Tax Credit Enhancement Act, which would permanently expand the Child and Dependent Care Tax Credit that helps households offset their child care costs.