Tuesday, March 19, 2024
HomeOpinionDiary#Budget2019 for the benefit of all

#Budget2019 for the benefit of all

- Advertisement -

#Budget2019, Nirmala Sitharaman, Finance Minister, Budget India, New Budget India, Budget 2019, Afternoon Voice#Budget2019 is a very good financial blueprint. It is beneficial to every section of our society and it can boost the growth of the Indian economy. Kudos to our Prime Minister and Finance Minister! Great India Budget hopes to spur the economy. It’s really evolutionary the government found the backlogs and hope they really put effort and accomplish. We all hope that Nirmala Sitharaman is successful in building up India financially with people of all classes enjoying the fruits of their labour. We will have to wait and see.

One of the biggest announcements she made was of Rs 70,000 crore capital infusion in the public sector banks to be used as growth capital, now that the legacy issues plaguing the sector have been addressed. She also announced a slew of measures to ease the liquidity and regulatory problems affecting the Non-Banking Financial Company (NBFC) sector, a key pain point in India’s economy at the moment.

The budget incorporated a number of positive tax reforms such as lowering the corporate tax rate for companies with an annual turnover of less than Rs 400 crore and increasing the surcharge to be paid by high net-worth individuals earning more than Rs 2 crore a year. It also finally provided relief for start-ups from the undue pain of the ‘angel tax’.

In a move that spooked bond markets, Sitharaman announced that the government would be increasing its external borrowing programme since India’s external debt to the GDP was below 5 per cent and among the lowest globally. “Non-Banking Financial Companies (NBFCs) are playing an extremely important role in sustaining consumption demand as well as capital formation in the small and medium industrial segment,” Sitharaman said. NBFCs that are fundamentally sound should continue to get funding from banks and mutual funds without being unduly risk-averse.

Keeping this in mind, Sitharaman announced that the government would provide a one-time partial credit guarantee to public sector banks for their first loss of up to 10 per cent when they purchased the pooled assets of financially sound NBFCs.

She noted that the Reserve Bank of India has only limited regulatory authority over NBFCs, adding that steps will now be taken to strengthen the RBI in this regard. Housing finance companies will henceforth be regulated by the RBI. Apart from this, the Budget featured smaller steps that would help the NBFC sector such as doing away with the Debenture Redemption Reserve for public issues. Another provision in the Finance Bill says that if the RBI is satisfied that in the public interest or to prevent the affairs of an NBFC being conducted in a manner detrimental to the interest of depositors or creditors, it can supersede the board for up to five years. The FM is having a vision for the future.

In the earlier UPA set, the rich became richer and the poor remained poor. The Union Budget was just to steal Paul to pay Peter and that inequality is slowly diminishing.


(The views expressed by the author in the article are his/her own.)

Help Parallel Media, Support Journalism, Free Press, Afternoon Voice

- Advertisement -
- Advertisement -
- Advertisement -

Latest

Must Read

- Advertisement -

Related News