The government (Govt) cannot invest in banks every year. They have to stand on their feet, or they will have to earn and become profitable.
India’s first budget presented after the outbreak of Kovid-19 pandemic is prudent, transparent and future based. Clearly, the purpose of this budget is to make the country self-sufficient. This is to say that Minister of State for Finance Anurag Thakur. Anurag Thakur told IANS about the impact on the economy due to the epidemic, “India has emerged strong due to this epidemic. We are looking at the status of countries which have not been locked down. People have lost their lives on a large scale in those countries. While India was the country with the lowest death rate. We did a systematic lockdown to save lives. We used to have nominal PPE kits here and now we are a big exporter of it. We are also exporting vaccines. ”
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He said, “To increase manufacturing capacity, we supported the MSME sector and economy through additional funding. To repay the loan, he gave a period of meritorium. Apart from this, partial credit guarantee scheme, loan was given to get additional working capital. With all these steps, we were able to save business and jobs.
Many major improvements were made
What was the worst thing in the economic shock caused by the epidemic? To this, Thakur said, “If we look at the estimates, according to the International Monetary Fund (IMF), India’s GDP growth will be more than 11 percent in FY 2022, while the RBI estimate puts it around 10.5 percent. India is the only major economy in the world where estimates of GDP growth are in double digits. All this has been possible due to the structural reforms undertaken by Prime Minister Narendra Modi. These reforms were also major reforms in the 1990s. His visionary and prudent thinking turned the crisis into opportunity and accelerated the recovery. ”
Work on these schemes
Are we moving away from fiscal consolidation to deal with the crisis caused by the epidemic? On this question, he said, “During the Congress-led UPA government, we were counted among 5 weak economies. Whereas after 2014, the Narendra Modi government gave growth rate of more than 7.5 percent every year. We are now included in the 6 largest economies of the world. The financial year of 2021 was the year of Kovid-19. It was necessary for us to borrow. The Government of India has borrowed more than 12.5 lakh crore rupees to give food, money and subsidy to the people. In 8 months, more than 80 crore people were given food grains, pulses. The government has given Rs 31,000 to 30 crore women in their Jan Dhan accounts. Rs 3,000 crore was given to 3 crore Divyang, widows and old people and Rs 1.10 lakh crore to farmers. It is evident,
Economy needs investment
Regarding the creation of a $ 5 trillion economy, Anurag Thakur said, “The economy needs investment, only then will the growth rate accelerate and employment opportunities will be created.” In 5 years we became the sixth largest economy in the world. Our efforts to increase economic growth still continue, but we lost a year due to the Kovid-19 epidemic. Any economy has taken time to recover from the acute recession. We have presented a good budget, the effect of which is clearly visible in market sentiments. ”
Important steps taken for banks
Privatization of 2 public sector banks and 1 general insurance entity has also been announced. Bank unions have already given strong reactions to these announcements. In this case, he said, “The way the UPA government gave funds to banks and then distributed loans, it had put banks in trouble. We reviewed the asset quality of banks, recapitalized over Rs 5.5 lakh crore for public sector banks. Consumers or bank people need more facilities. That is why we merged banks, strengthened them. But the government cannot invest in banks every year. They have to stand on their feet, or they will have to earn and become profitable. If the current management is unable to do this then the new management can do so. Looking at past experiences, the profits of many companies have increased manifold, their employees are also very happy. The government will also take all necessary steps for healthy disinvestment. ” During this, weak banks will also be given attention, to this question, he said that we will have to think from the perspective of buyers as well. We have to make some offers to buyers, which attract investment,
Benefits of investing in PF
In this budget, tax has been imposed on tax-free interest on different savings in provident fund (PF) and ULIPs. Will it not harm the salaried people? In this case, the Minister of State for Finance says, “Many people have taken advantage of investing in PF who give tax-free returns. But these benefits are also being taken by High Net-Worth Individuals (HNIs), some of whom have invested more than Rs 2 crore in their PF accounts. This raises the question whether this savings is for employees, or for those who have large assets. They are depositing Rs 50 crore a year in their PF accounts and taking 8 percent tax-free returns. So there is no change for the common man due to the cap. “
