Published On: Sat, Jun 22nd, 2019

FM Sitharaman to focus on structural policy changes in maiden budget

Finance minister Nirmala Sitharaman is set to stage her maiden budget early next month and it is learned she may emphasize more on structural policy changes in sectors like capital, labor, land and entrepreneurship to pave ways for attracting better investment. Her budget will accommodate incentives to boost consumption and spending on social infrastructure for equitable growth.

Couple of popular decisions was announced earlier this year when the interim budget was presented in the parliament on February 1 and now it is believed to be time for consolidation. It is to be seen what a five-year policy road map of Nirmala Sitharam is to offer to address unemployment and boost economic growth.

It is learned next month’s budget could incentivize employment oriented investment in private sector and to prioritize skill development initiatives.

If believed to sources the Reserve Bank of India could bring down its lending rates to facilitate cheaper loans. Earlier this month, it reduced the repo rate to 5.75 percent. It was third cut in past six months.

Sitharaman, budget

According to EY India chief policy adviser Dr DK Srivastava, “An indirect boost to consumption will also come through interest rate reduction. The policy rate has already been reduced by 75 basis points this calendar year. About 40% of this has been passed on to the lending rates and the RBI may endeavour to increase monetary transmission further. One more reduction of 25 basis points in the repo rate may be considered later during the year.”

About the Author

- Paul Linus is an eminent online journalist who has been writing news, features and editorials on different websites from across the world for about a decade. He can be contacted at knowledgeherald@gmail.com

Composite Start -->
Loading...