Budget 2019: Here's how the industry reacted to Modi 2.0's first budget

Deccan Chronicle.

Nation, Current Affairs

Banking high on infrastructure, the government aimed to collect more revenue to increase growth.

Finance Minister Nirmala Sitharaman (Photo: ANI)

New Delhi: Finance Minister Nirmala Sitharaman on Friday presented the union budget for the financial year 2019-20 in the Parliament.

This was the first full budget of the Narendra Modi-led National Democratic Alliance government in its second term.

Finance Minister Nirmala Sitharaman, presenting the annual budget statement to parliament, said the government planned structural reforms to boost foreign and domestic investment.

The budget remained stuck to rural India and focused on “gaon, gareeb and kisan”. For the middle class, there has been no tax increase.

The home loan buyers purchasing property valued up to Rs 45 lakhs will get an additional deduction of up to ₹1.5 lakh for interest paid on a loan borrowed up to 31st March, 2020. This deduction will be over and above the deduction of ₹2 lakh allowed on a home loan interest payment.

Banking high on infrastructure, the government aimed to collect more revenue to increase growth. Reviewing the fuel prices after the crude prices have reduced, the FM proposed to increase Special Additional Excise duty and Road and Infrastructure Cess each by two rupees a litre on petrol and diesel.

Here is how the industry reacted:

“For rural development, there are some good announcements. There are some for business also. The growth set is seven per cent in this FY and eight per cent in the five-year period and both are achievable.” - Adi Godrej

“Rs 70,000 crore capital infusion for PSBs is on the top of Rs 1.55 lakh crore which was provided in the last two years through recapitalisation of bonds and budgetary support. This budgetary support is the highest in the last three years.  Banks are contemplating to raise another Rs 60,000 crore. This calculation is more or less aligned with the estimate and the capital requirement of the bank. For biggies like us, SBI won’t get anything out of this support and we don’t need as well. This will most certainly go to those banks which actually need support.”   - Rajnish Kumar, SBI Chairman