With RS 1 Lakh crores given to taxpayers in the form of an increase in the tax exemption limit and a reduction in tax rates, the financial sector should benefit from a planned increase in bank deposits, which will support more loan activity.
“We are likely to obtain a bump of Rs 40,000 Rs 45,000 crores in deposits, which will help the banks to lend,” said Nagaraju Maddirala, secretary, DFS. This increase in deposits is crucial to supporting credit growth, which feeds the expansion of businesses and economic momentum.
Rather than promoting specific savings instruments, the government believes that individuals should be allowed to make their own choices. “Let people decide whatever their priority and does not cause any particular savings mode,” said Ajay Seth, secretary, Department of Economic Affairs (DEA). This underlines a change of policy towards financial independence and the discretion of investors, allowing market dynamics to guide savings preferences.
In disinvestment, the government adopts a composite disinvestment strategy, ensuring that the value of public assets is optimized and shared with the people. “What we have adopted and that we would continue in the future is a composite strategy. A composite strategy means that we optimize the value of public assets and share them with minority shareholders, which is the Indian people,” explains Arunish Chawla, Secretary, Dipam and DPE. This approach is aligned with the broader objective of balanced budgetary discipline with public benefit.
Despite the global economic disturbances, India has maintained a solid budgetary place. Ajay Seth highlights the importance of specific decision -making in the country during crises: “Even during a crisis, each country makes decisions in its own assessment, which is best for this country and for citizens of this country. “”
A key achievement of recent years has been reducing the debt / GDP ratio of India. “Something that the government of India had done between 2014-2019 is that it lowered the debt / GDP ratio,” said Seth.
On the TPS front, rationalization of rates continues to be priority. “Over a period of time, the items have been moved to lower rates and now the average weighted TPS rate is only 11%”, Sanjay Kumar Agarwal – President of CBIC. He also adds that there is a need for rationalization of rates for food.
