Budget 2020 – The Journey Continues

FM Nirmala Sitharaman has identified “Aspirational India”, “Economic Development” and “Caring Society” as the prominent themes of Budget 2020.  She says, these themes are like flowers in a bouquet held by a pair of hands - one hand is of good governance and the other is of the financial sector.  She highlights the importance of a clean, reliable and robust financial sector to the economy with its ambitious growth targets.  On policy front, the increase of government’s insurance coverage for bank deposits from Rupees one lac (since 1993) to Rupees five lacs provides much needed assurance to the larger public.  NBFCs have a shot in their arm with the proposed move to improve their debt recovery prospects under SARFAESI Act, 2002, through reduced limits of eligible asset size and loan size. There are multiple proposals to...