Pune reacts to Union budget: FM aptly addresses governance issues faced by Indian banking sector

1) Extension of debt restructuring facility given to MSMEs for another year

1) Extension of debt restructuring facility given to MSMEs for another year

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2) Nominal growth of 10 per cent projected for next year

3) 25 per cent growth in agriculture credit

4) It is expected that the new Nirvik scheme which is going to replace MEIS (Merchandise Exports from India Scheme) will be exporter friendly and will be able to compensate for the current scheme

I would like to commend the finance minister for giving more importance to ease of living. This budget gives a nudge towards good governance which is also important for the country to move ahead. Though the FM mentioned the disinvestment of LIC in passing, there are other government assets which could have been considered for disinvestments.

Pradeep Bhargava, president, MCCIA (Mahratta Chamber of Commerce Industries and Agriculture)

The budget was neutral, it neither took a step backwards, nor did it have any big bang reforms. The corporate tax reductions were already done before this budget, and indirect tax reductions need to be taken up in the GST council. However, we expected more concrete steps towards non-tax revenue through privatisation. The nominal growth of 10 per cent projected for next year is better than that of the current financial year, so it shows some growth, but that growth is substantially lesser than what's required to achieve the aspiration of $5 trillion GDP by 2025. The 25 per cent growth in agriculture credit is also a good move. We welcome extension of debt restructuring facility given to MSMEs for another year. Various initiatives on credit facilitation are welcome. Increasing threshold to Rs 5 crore for audit requirements for MSMEs will promote ease of doing business.

Prashant Girbane, director general, MCCIA

Overall, it is a balanced budget. Two of the major expectations that is reduction in personal income tax rate and abolition of Dividend Distribution Tax have been met by the FM. However, the rider regarding non-availability of any exemptions for those opting for the new income tax rate is leaving hardly any savings in the hands of those in 30% tax bracket. The announcement regarding making each district as an export hub should hopefully result in improving infrastructure. Similarly, it is expected that the new Nirvik scheme which is going to replace MEIS (Merchandise Exports from India Scheme) will be exporter friendly and will be able to compensate for the current scheme.

HP Srivastava, vice-chairman, Deccan Chamber of Commerce Industries and Agriculture

This budget is neither for common man nor for the industry. Surprisingly, the government seems to move from social agenda to far right, but under the cover of overall good of common man. Basic tax exemption has increased on one hand, but on the other hand exemptions were withdrawn. There are no updates or furthering of previous 2019 social initiatives and even a mention of unemployment status.

Ruta Chitale, chairperson, Institute of Chartered Accountants of India (ICAI) Pune branch

Finance minister has aptly addressed the governance issues faced by the Indian banking sector. Kudos for enhancing the bank deposit insurance limit from Rs 1 lakh to Rs 5 lakh which was a long awaited measure to protect depositors’ interest. The proposed provision will enhance the certainty of merger of Rupee Bank as there will be substantial increase in contribution u/s 16 (2) of DICGC Act to the Acquiring Bank. Ultimately it will benefit the depositors of Rupee Bank.

CA Sudhir Pandit, chairman, admin board, Rupee Bank