The Finance Minister Nirmala Sitharaman today presented her maiden Budget in the Parliament and has evoked mixed responses from the different sections.
Dr. Ravi Gupta, Editor-in-Chief, The Banking and Finance Post, a leading publication from Elets Technomedia, who has been at the forefront in promoting innovations and technological advancement in the banking and the finance sector has shared his views on the Budget announced today.
“We welcome the Union Budget and we are happy that the government has announced that it will make Pan Card and Aadhaar card interchangeable to file tax returns. In addition to that, those who do not have PAN can simply quote their Aadhaar number wherever PAN is mandatory to quote. This will help in reducing the fraud and cases of tax-evasion, leading to better tax collection by the government,” Dr. Gupta said.
The Sitharaman’s budget also proposed that public sector banks (PSBs) will be provided with a capital infusion of Rs 70,000 crore, giving a much-needed boost to the stressed banks who are under pressure owing to the rising Non-performing assets (NPAs’).
She also informed that there has been a record recovery of over 4 lakh crore of bad loans through IBC in the last 4 years.
“This move will help in strengthen the capital base of the state-owned banks and will make sure that the commercial or industrial enterprises do not suffer,” Dr. Gupta said.
Nirmala Sitharaman budget also will focus on bringing micro, small and medium enterprises (MSMEs) under the formal economy’s fold, for which a payment platform for the MSMEs will be set up.
“With the announcement of Rs 1 crore worth of loans proposed to Micro, Small, and Medium Enterprises (MSMEs) and setting up of a payment platform for MSMEs, we hope that this will help in the growth of the sector,” Dr. Gupta said.
Non-banking Financial Companies (NBFCs) have been taking rounds in the media for the liquidity crisis which had emerged because of IL&FS crisis and loan defaults by DHFL.
Finance minister Nirmala Sitharaman presented her maiden Budget at a time when the economy is showing signs of slowing down amid tepid tax collection.
“With the government giving more powers to Reserve Bank of India (RBI) to supervise NBFCs we hope that the situation will improve in the sector that is facing the heat post-IL&FS. NBFCs who have been facing liquidity issue will have a big relief after the government announcement of fundamentally sound NBFCs to continue to get funding from mutual funds and banks”, Dr. Gupta said.
Nirmala Sitharaman in her budget today announced that “For purchase of high-rated pooled assets of financial sound NBFCs amounting to a total of Rs 1 lakh crore during the current financial year, the government will provide a one-time six-month partial credit guarantee to the public sector banks for the first loss of up to 10%.”
“Government announced that startups and investors who file requisite declarations and provide information in their returns will not be subjected to any scrutiny on valuation, will give a major boost to the startups in the country,” Dr. Ravi said.
With so many initiatives are taken by the government to improve all small and big sectors of the society we look forward to new India, developed India, Dr. Gupta added.