Finance Minister Nirmala Sitharaman commenced the presentation of her seventh consecutive Union Budget today, surpassing former Prime Minister Morarji Desai’s record. The 2024-25 Budget, the first comprehensive financial plan under the third term of Prime Minister Narendra Modi’s National Democratic Alliance (NDA) government, outlines ambitious initiatives across various sectors, with a significant focus on employment, skilling, MSMEs, and manufacturing support.
The Union Budget is the central government’s annual financial statement, which details proposed expenditures and revenues for the upcoming fiscal year (FY25), which will span April 1, 2024, to March 31, 2025. It highlights the government’s achievements from the past year and sets forth objectives and allocations for the year ahead, addressing policy needs and financial planning.
Highlights from the Union Budget 2024-25:
- Employment and Skilling:
➤ Five schemes targeting 4.1 crore youth over five years with a central outlay of ₹2 lakh crore.
➤ Comprehensive internship scheme for one crore youth in top companies over five years.
➤ Employment-linked incentives, including one month’s wage support for first-time employees.
➤ Women-specific skilling programs to increase workforce participation. - MSME and Manufacturing Support:
➤ Special focus on MSMEs and the manufacturing sector.
➤ Introduction of a credit guarantee scheme and term loans for machinery purchase.
➤ Technology support package for MSMEs.
➤ SIDBI will open 24 new branches to serve MSME clusters. - Financial Initiatives:
➤ The Mudra loan limit increased from ₹10 lakh to ₹20 lakh for previous borrowers.
➤ Financial support for higher education loans up to ₹10 lakhs in domestic institutions.
➤ Developing an integrated technology system for the Insolvency and Bankruptcy Code (IBC). - Agriculture and Rural Development:
➤ ₹2.66 lakh crore provision for rural development.
➤ Transformation of agricultural research focusing on productivity and climate-resilient crop varieties.
➤ Initiative to introduce one crore farmers to natural farming over two years. - Infrastructure and Regional Development:
➤ Rental housing in PPP mode for industrial workers.
➤ Special financial support of ₹15,000 crore for Andhra Pradesh.
➤ New airports, medical facilities, and sports infrastructure for Bihar. - Economic Outlook:
➤ Inflation is moving towards the 4% target.
➤ India’s economic growth is described as a “shining exception.”
➤ Focus on job creation and boosting consumption, potentially benefiting consumer goods, real estate, and auto sectors. - Nine Priority Areas:
➤ Agriculture, Employment, Inclusive Development, Manufacturing and Services, Urban Development, Energy, Infrastructure, Innovation and R&D, and Next Generation Reforms. - Women-Led Development:
➤ Over ₹3 lakh crore was allocated for schemes benefiting women and girls. - Social Welfare:
➤ The PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana) has been extended for five years, benefiting over 80 crore people. - Digital and Technological Advancements:
➤ Development of Digital Public Infrastructure (DPI) applications for credit, e-commerce, law and justice, and corporate governance.
Finance Minister Nirmala Sitharaman concluded her speech by presenting a robust financial roadmap that aims to strengthen India’s economic fabric through inclusive development, technological advancement, and targeted support across crucial sectors. The Budget Session will resume on July 24 at 11 a.m.
See what industry leaders say post-budget:
P R Seshadri, MD & CEO, South Indian Bank, mentioned that, “The Finance Minister has announced many impactful measures in the Union Budget. The proposal to rationalise both direct taxes and GST are heartening and may potentially lead to a truly progressive tax structure. The push for housing and employment are commendable. Similarly, the measures announced for improving credit delivery to MSMEs – enhancement of MUDRA loan limits and introduction of credit guarantee scheme, will incentivise financial entities to lend to India’s small entrepreneurs. Besides, the Budget has made provisions to improve the rural economy, including increasing outlay under PMAY, and for agricultural research and rural development. The Union Budget has enough incentives to spur India’s youth, farmers and business class to seek fulfilment of their aspirations. It will allow the economy to move ahead on its growth trajectory.”
Pralay Mondal, MD & CEO, CSB Bank, said, “Government continues on the path of Viksit Bharat with the Budget 24-25. The 9 priorities set out in the budget fully capture all the segments of economy. The special focus on employment, skilling, MSME and middle class with innovative incentives for new employees, increase in Mudra loan and setting up of credit guarantee scheme will boost the sectors. The adherence to fiscal prudence with fiscal deficit moving down to 4.9% and projected to move to 4.5% next year holds the nation in good stead for attracting investment and improving the rating in due course. Rationalisation of capital gains tax and STT will help curb any speculation in the equities market.”
Nilesh Shah, Managing Director, Kotak Mahindra AMC, said, “This budget has achieved the trinity of impossible. Fiscal Prudence, Investment and Growth momentum.
Fiscal Prudence of 4.9 % for FY 25 will pave the way for Rating upgrade. Support to employment generation will boost growth. Infrastructure investment at 3.4 % of GDP is elevated yet not crowding out others.”
Sharad Mathur, Managing Director & Chief Executive Officer, Universal Sompo General Insurance Company, stated that, “The 2024 Union Budget reflects a strong commitment to driving economic growth and fostering financial security across the nation. The increased standard deduction and the proposed reduction in tax rates under the new tax regime will provide significant relief to individuals, particularly middle-income earners. This translates to increased disposable income, which can be channeled towards essential financial products like comprehensive insurance coverage. The revised tax regime simplifies compliance and offers notable tax savings, potentially encouraging a shift towards long-term financial planning that includes insurance.”
“The introduction of the NPS Vatsalya programme for parents to invest in their children’s future highlights the government’s dedication to promoting long-term financial security.
Overall, the budget’s focus on economic resilience, streamlined taxation, and enhanced financial security sets a promising path for growth, paving the way for innovative insurance products that can adapt to evolving market demands.”
Hardika Shah, Founder & CEO, Kinara Capital, says, “It is very encouraging to see a number of announcements aimed at bolstering the MSME sector in the Union Budget 2024-25. The Finance Minister’s introduction of a credit guarantee scheme specifically tailored for MSMEs in the manufacturing sector is a particularly promising move. This initiative, which facilitates access to term loans for MSMEs to purchase machinery and equipment without the need for collateral or third-party guarantees, will incentivize formal lending at the last mile by mitigating credit risk. The creation of a self-financing guarantee fund to provide guarantees of up to INR 100 crores is also a game-changer in terms of delivering formal credit to small businesses. Equally commendable is the enhancement of the Mudra Yojana loan limit from INR 10 lakhs to INR 20 lakhs for entrepreneurs The government has already extended 43 crore loans amounting to around INR 22.5 lakh crores, and this move will expand the ambit of the scheme, empowering many more MSMEs with the necessary financial support.”
“One of the most forward-thinking aspects presented in the Budget about MSMEs is the new assessment model for MSME credit. By enabling the development of capabilities to assess MSMEs for credit, rather than relying on external assessments, the government is paving the way for a more accurate and inclusive credit assessment process, a practice we at Kinara Capital have already adopted. Utilizing the digital footprints of MSMEs represents a significant improvement over traditional assessments based solely on assets or turnover, as the Finance Minister said, and it inclusively targets MSMEs without formal accounting systems, which is a huge step forward in driving financial inclusion at scale.”
“I am thrilled to see these initiatives, as they align perfectly with our larger vision of a more financially equal landscape by delivering access to formal credit to MSMEs. Our commitment to alternative credit assessment and last-mile facilitation resonates strongly with the government’s push towards financial inclusion for MSMEs through policy, tech, and financing support. We look forward to contributing to and benefiting from these progressive changes, driving growth and stability within the MSME sector.”
George Alexander Muthoot, MD, Muthoot Finance, mentioned, “The Union Budget 2024 focuses on the comprehensive development of the economy by adhering to fiscal prudence, boosting infrastructure growth, and through continued emphasis on four major pillars of society – the poor, women, youth and the farmers. The massive impetus on capex expenditure outlay of Rs 11.11 lakh crore is a testimony to the government’s focus on boosting investment activity and further strengthening the fiscal health of the economy. As India’s largest gold loan NBFC, we are particularly encouraged by the government’s proposals to prioritise MSMEs, women entrepreneurs and the agricultural sector. The credit guarantee scheme is going to enhance credit access for MSMEs significantly. This scheme aligns perfectly with our commitment to supporting small businesses and driving entrepreneurship, particularly among women. Further, the FM has also focused on boosting affordable housing under PM Awas Yojana, offering assistance of 2.2 lakh crore rupees in the next five years. This will help resolve various housing challenges for lower and middle-class families.”
“We are also glad to witness the slew of initiatives undertaken by the FM to boost the job creation and employability for the young talent and women of India awaiting to offer valuable contributions in India Inc.’s growth. As one of the legacy employers in the NBFC space that strongly believes in youth capabilities, we align with the new internship programme and initiatives to boost women participation in the workforce. The budget also strikes the right balance between promoting growth and ensuring fiscal responsibility while targeting an inflation rate of 4%, which will create a stable economic environment for the financial services sector. We look forward to playing our part in India’s growth story by providing last-mile credit access to underbanked sectors of society.”
Sadaf Sayeed, CEO, Muthoot Microfin sharing his thoughts and insights on The Union Budget 2024–25, stated, “The Union Budget 2024–25 provides an impetus for rural development and growth. Furthermore, it underscores a continuous focus on supporting women and girls through schemes that aid inclusive growth and development. The Union Budget aims to maintain fiscal discipline with a targeted fiscal deficit of 4.9%, which is commendable. The allocation of Rs 2.66 lakh crore for rural development will significantly boost economic activity, create job opportunities, and improve rural living standards and incomes. Its emphasis on job creation and incentivizing skill development initiatives will effectively channel the demographic dividend, benefiting the overall economy.”
Krishnendu Chatterjee, VP and Business Head at TeamLease Services, stated, “BFSI – The Union Budget 2024’s measures for the BFSI sector are poised to significantly boost employment by enhancing digital infrastructure, which will create new roles in fintech and digital banking. Increased credit support for MSMEs and startups will drive demand for financial services, leading to more jobs in lending and advisory roles. Reforms in the insurance sector will expand market penetration, necessitating a larger workforce for sales, customer service, and regulatory compliance. Additionally, initiatives promoting green finance will open up opportunities in sustainable investment and project financing. Simplified tax processes will also reduce administrative burdens, allowing financial institutions to allocate more resources towards growth and hiring. Furthermore, the allocation of ₹10 lakh crore for constructing 1 crore houses for the urban poor and middle class will stimulate demand for housing finance, creating numerous jobs in mortgage lending, real estate financing, and related financial services.”
Shachindra Nath, Founder and Managing Director, UGRO Capital said,“Today’s Union Budget is a remarkable step forward for MSME credit. At UGRO Capital, we believe MSMEs play a vital role in our economy, particularly in addressing employment challenges in a country of our size. The budget’s focus on MSMEs addresses these issues head-on. Increasing the limit of MUDRA loans, the credit guarantee scheme for capital expenditure and machinery purchases, and the emphasis on public sector banks’ credit assessment and solving the problem of MSME which comes under distress are all groundbreaking measures. These announcements collectively signify a significant focus on MSMEs, empowering lending institutions in priority sector to provide more credit and continue building our nation. We are hopeful that the fine print will favor lending institutions dedicated to MSMEs, allowing us to continue our mission of national development.”
Dhawal Dalal, President & CIO-Fixed Income, Edelweiss MF, said, “The final Union Budget for FY25 continued on the ongoing theme of continuity while increasing focus on the employment, ease of doing business, tourism and rural infrastructure. While total capital expenditure for FY25 was kept unchanged at Rs. 11.1 trillion, the fiscal deficit for FY25 was reduced to 4.9% from earlier estimate of 5.1%. From the bond market’s perspective, gross borrowing & net borrowing through dated IGB in FY25 is marginally reduced by ~Rs. 12,000 crore to Rs. 14.01T and Rs. 11.63T respectively. This is marginally lower than market expectations. Further, taxation on fixed deposits, debt mutual funds, bonds and Market-linked bonds was kept unchanged. This was a bit damper for fixed income investors. That said, we don’t expect significant change in investor sentiment. Overall, it is a pragmatic Union Budget from the financial market’s perspective.”
Trideep Bhattacharya, President & CIO-Equities, Edelweiss MF, stated “A balanced budget with a consumer-centric flair: Capex plans echo the interim budget, boosting allocations for rural consumers and housing, maintaining fiscal balance, and introducing progressive capital market taxation changes for equitable growth.”
V. P. Nandakumar, MD & CEO at Manappuram Finance, said “Union Budget 2024-25 takes forward the measures announced in the Interim Budget outlining a roadmap for ‘Viksit Bharat’. Nine priority areas identified in the Budget which include agriculture, education and MSME segments will facilitate skilling and employment generation while boosting manufacturing growth. Infrastructure push is reiterated with a Central govt capex outlay of 11.1 lakh crore and 1.5 lakh crore towards interest free capex grant for states. Special emphasis on rural roads augur well for rural incomes as hinterlands will be better connected to the mainland, helping farmers to effectively market their produce. This is good news for the transportation and logistics industry as well. Meanwhile, hike in Mudra loan limit and collateral free loans for small enterprises are big positives as this sector accounts for 45% of our exports. Rationalisation of customs duty on gold, silver, mobile phones and 23 critical minerals are beneficial to these industries. Abolition of angel tax will improve business climate. Personal income tax has seen some rationalisation although the expected changes did not kick in and disposable incomes will not be boosted to the expected levels.
Pramod Sharda, CEO of IceWarp India and the Middle East, shared, “The Union Budget 2024 reflects a visionary approach towards strengthening India’s position as a global leader in the IT industry. The government’s continued investment in digital infrastructure, particularly through initiatives aimed at enhancing cybersecurity and fostering innovation, is commendable. These measures will undoubtedly propel the Indian IT sector to new heights, encouraging technological advancements and creating a conducive environment for startups and established enterprises alike.
Moreover, the focus on skill development and research in emerging technologies such as AI, machine learning, and Blockchain will equip our workforce with the necessary tools to compete on a global scale. The allocation of funds for expanding internet connectivity in rural and remote areas is a significant step towards bridging the digital divide, ensuring inclusive growth and opportunities for all.
At IceWarp, we are excited about the prospects this budget brings. The emphasis on creating a robust digital ecosystem aligns perfectly with our mission to deliver comprehensive, secure, and innovative communication solutions. We look forward to leveraging these opportunities to contribute to India’s digital transformation journey and drive sustained growth in the IT sector.”
Thomas John Muthoot-Chairman, Muthoot Pappachan Group, stated, “The 2024-2025 Budget is a transformative step towards India’s economic future. It prioritizes employment, skilling, and MSME support, creating millions of new jobs and enhancing workforce participation. MSMEs will benefit from credit guarantees, expanded Mudra loans, and a new assessment model for MSME credit, boosting small business growth and resilience. Significant investments in rural development, including natural farming and high-yield crop varieties, will revitalize agriculture. The Budget also focuses on social justice with substantial allocations for women and tribal communities and robust infrastructure development in roads, irrigation, and urban planning. The nine priorities of the Budget, including agricultural productivity, employment, skilling, and infrastructure, ensure a comprehensive approach. Overall, it is a very welcome Budget that ensures inclusive and sustainable growth for India.”
Avinash Gupta, CEO, Dun & Bradstreet, stated, “The Union Budget for 2024-25 builds on the growth momentum established in the Interim Budget, emphasizing fiscal prudence, productivity enhancement, employment generation with a focus on skilling, digitalization, infrastructure, and climate change priorities. The Budget aims to push long-term growth prospects above 7%. The planned fiscal deficit reduction to 4.9% by FY25 suggests that with ongoing fiscal prudence and annual 50 basis point reductions, it could reach 3% by FY29, thereby supporting growth.”
“Increased technology adoption and digitalization will aid in formalising small businesses and improve access to finance and markets. The shift to digital footprints in credit decision-making and the abolition of the Angel Tax will create a better credit environment for MSMEs and startups. While the budget has many positives, such as its continued emphasis on infrastructure investment in collaboration with states, it is worth highlighting the tax rate reduction on foreign companies from 40% to 35%. This move will boost foreign investments amidst global challenges and strengthen India’s market potential.”
Jayesh Jain, Group CFO, Balancehero India, said, “The Union Budget 2024 is a transformative step toward strengthening India’s economic fabric, emphasizing employment, skilling, and MSMEs. The allocation of ₹2 lakh crore for job and skill development schemes over the next five years will empower the youth and foster a skilled workforce, essential for driving innovation in the fintech sector. The budget’s focus on social justice and inclusive human resource development ensures growth benefits reach every segment of society.
For the fintech industry, simplified tax exemption regimes and TDS adjustments will streamline operations, creating a more favourable business environment. Abolishing the angel tax for all classes of investors is a groundbreaking move to bolster the Indian start-up ecosystem, boost entrepreneurial spirit, and support innovation. Initiatives to develop cities as growth hubs and significant investments in urban housing and infrastructure will stimulate economic activities and provide a robust foundation for sustainable growth. Enhanced support for MSMEs, including the new credit guarantee scheme, will bolster the backbone of our economy, driving innovation and job creation. This budget sets a promising trajectory for inclusive growth, positioning India as a resilient and forward-looking economy.”
Rakesh Goyal, Managing Director, Probusinsurance, said, “For the insurance sector, there weren’t any big announcements as expected by the industry, like a reduction in the goods and services tax (GST) on premiums or an increasing net of Ayushman Bharat to the middle-class segment. However, the budget has proposed a reduction of 5 percent to 2 percent of tax deducted at source (TDS). This move will result in fewer TDS claim filings and higher payouts for policyholders as the policy matures. However, the middle class, in particular, had high expectations for today’s budget to provide some tax relief. However, the announcement of an increase in both short-term and long-term gains on specified financial assets served as a dampener.”
“The NPS proposals in Budget 2024 take significant steps towards the Government’s goal of making India a pensioned society by 2047.
The extra 4% contribution under the corporate NPS scheme offers salaried employees additional tax savings and boosts their retirement funds. This change also helps companies streamline their contributions exclusively towards NPS, simplifying management.
NPS Vatsalya is another notable innovation. It allows parents or guardians to contribute to a child’s pension from birth, ensuring a strong foundation for future retirement savings through compounded returns”, said Sriram Iyer – CEO, HDFC Pension.
Rakesh Kaul, CEO, Clix Capital, said, “Budget 2024 succeeds in building on the growth momentum generated in the past decade with the announcements aimed at bolstering growth in mass-employment creating sectors. MSMEs are the lifeblood of our economy, and the Honourable Union Finance Minister Nirmala Sitharaman should be commended for ensuring the sector is poised to embark on the next phase of growth. Growth-spurring measures like increasing of MUDRA loan limit from Rs 10 lakh to Rs 20 lakh, creation of e-commerce export hubs to boost MSME hubs, loans for MSMEs for the purchase of machinery and equipment without collateral will go a long way in ensuring the inclusive growth of Bharat.”
Avishek Gupta, MD and CEO, Caspian Debt, stated, “A long-standing demand for climate taxonomy has been committed in the budget speech. I hope it is released soon, making climate-related financing easier to channel. In addition to that, a number of announcements keeping in mind climate change and the need to improve resilience to climate change is refreshing. Strong and well-executed initiatives to address the issues and opportunities would lead us to a more climate-resilient country.
The mention of rental housing in urban locations is much needed. We have had a strong belief that the availability of good quality housing, especially for lower-income segments, including migrant workers, is much needed to improve the overall quality of life for everybody. “Removal of angel tax will hopefully improve the ability of startups to attract a wide variety of investors, including individual investors.”
Govind Rammurthy, CEO and Managing Director of eScan, mentioned that, “The Union Budget 2024-25 reflects the Government’s strong commitment to fostering economic growth, with a clear focus on infrastructure development, boosting consumption, and promoting domestic manufacturing.
Key initiatives include significant capital expenditure increases, incentives for skilling and employment, and enhanced support for MSMEs. The budget also emphasizes women’s empowerment, with new schemes for housing and entrepreneurship, and aims to drive technological advancements through R&D incentives for emerging technologies like AI and the Internet of Things (IoT).
These measures, along with efforts to promote ‘Made-in-India’ (MII) technologies in both the private sector and PSUs, are expected to significantly bolster the country’s economic trajectory and technological prowess, especially in the critical areas of Cybersecurity and Artificial Intelligence.”
Ketan Mehta, CFO, CredAble, shared his comments on the budget’s schemes for MSMEs, saying , ““We are delighted to see that the Union Budget 2024–25 has addressed many critical facets of the economy. This year, the budget has truly put the spotlight on key issues facing the MSME sector in securing timely credit and has ushered in a plethora of opportunities for young entrepreneurs.
The government has proposed a new scheme under the Credit Guarantee schemes for MSMEs in manufacturing, providing MSMEs with collateral-free term loans for buying machinery and equipment. To further strengthen the financial stability of MSMEs, the limit for Mudra loans has been increased from INR 10 lakh to INR 20 lakh. Additionally, E-commerce export hubs will be set up to boost international trade. The government’s strategic move to provide internships and new schemes for the country’s youth, with a central outlay of INR 2 lakh crore, sums up its futuristic outlook.
The Union Budget has been extremely positive in recognising the role being played by MSMEs in India’s present and future. It’s also encouraging to see the government’s move to incentivise existing businesses and abolish the angel tax for all classes of investors, which will further aid the acceleration and globalisation of the startup ecosystem in the country.”
Manish Shah, MD & CEO at Godrej Capital said, “The 2024 budget strikes a perfect balance between short-term needs and long-term goals, laying the foundation for a resilient and thriving economy. With this budget, the government has demonstrated a strong commitment to bolstering the MSME sector, recognizing its pivotal role in the country’s economic advancement. The introduction of a new credit assessment model that utilizes digital footprints of MSMEs suggests a promising step towards improving financial access and fostering sectoral growth. Additionally, the decision to raise the Mudra loan limit and expand the TReDS platform also aims to ease financial burdens and enhance operational capabilities for MSMEs potentially.
Furthermore, the budget’s emphasis on urban housing through the PM Awas Yojana, coupled with substantial investments and interest subsidies, aims to simplify home ownership for many. These initiatives seem to reflect a thoughtful strategy aimed at enhancing financial inclusivity and bolstering infrastructure development, which are essential components for sustainable economic expansion.”
Prashant Kumar, MD & CEO, YES BANK said, “This Budget gets full marks for the choice of areas that the government would want to support in its effort to gradually move India towards its ultimate Viksit stage. This Amrit Kaal has come to India due to its strong demographic dividend and the large number of youths joining the employment force. This needed interventions on all aspects – not only to provide formal education to the youth, but also to encourage the perfect skill mapping. Of note is the support being provided in the budget to MSMEs to scale up and compete with the world by enabling funding to the segment. Doubling the limit for Mudra loans also need to be called out as this will enable small businesses to develop.”
Rajan Pental, Executive Director, YES BANK stated, “We welcome the significant measures introduced in the Union Budget, by the Honourable Finance Minister, to bolster MSMEs and the manufacturing sector, enhancing their growth prospects and global competitiveness. The launch of the Credit Guarantee Scheme, which provides term loans up to ₹100 crore without requiring collateral, will notably reduce risk for banks and expand their lending opportunities, facilitating greater investment in essential machinery and equipment.
he new credit assessment model, which leverages digital footprints, represents a transformative shift in evaluating MSME creditworthiness. This innovation will streamline the credit process and extend support to MSMEs that lack formal accounting systems, making credit access more inclusive and efficient. Additionally, the enhancement of Mudra loan limits to ₹20 lakh and the provision for continued credit support during periods of stress are designed to stabilize borrowers and reduce the likelihood of non-performing assets. These measures will help maintain operational continuity and foster growth.
The reduction of the TReDS onboarding threshold to ₹250 crore will significantly improve MSME liquidity by facilitating the conversion of trade receivables into cash. Meanwhile, SIDBI’s expansion to cover 168 major MSME clusters will broaden credit access and strengthen financial inclusion. Overall, these strategic measures are expected to drive substantial MSME growth, spur innovation, and fortify India’s economic resilience. For the banking sector, these changes present valuable opportunities for increased engagement with MSMEs, while mitigating risk and enhancing financial stability.”
Indranil Pan, Chief Economist, YES BANK, mentioned, “The Budget takes a leaf out of the strategic direction to sustainable growth that has been penned by the Economic Survey. Thus, even with one eye on the fiscal consolidation, the government announced structural measures to boost employment – not only in terms of numbers but also quality, addressed the need to scale up MSMEs through credit facilitation to the sector – even for MSMEs that do not strictly have a formal accounting system. To aid small business, the mudra loan limits have also been enhanced. We believe that this is a budget for the longer term while near term consumption boost comes through providing benefits to income taxpayers. The Budget also promises structural reforms in the factors of production and use market forces to boost the growth story. Equity market participants may not have been happy with the Budget as the STT, LTCG tax rates go up. However, this was government’s way of casting its tax net wider. We see a reduction in the market borrowing programme by Rs 120 bn while net T-bill issuance is lowered by Rs 1 tn over the interim Budget. The reduction in the net T-bill issuance may aid domestic liquidity and push down short-term rates while long tenor rates may remain sticky.”
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