This budget focuses on fundamentally important elements like affordable housing (additional tax incentives, as well as 1.95 cr rural houses under PM Awas Yojana leading to “housing for all” by 2022), disinvestment (Rs.1.05 tn target for FY20), environment (promoting manufacturing and purchase of electric vehicles), rural development (“Har Ghar Jal”), and social security (pension benefits extended to 3 cr shop owners). There is also a credible effort to aid fundamentally sound NBFCs with partial credit guarantee for PSBs investing in their securitized assets.
Some areas could have done with more attention. For example, while the above-expectation Rs.700 bn PSB recap plan is welcome, one would have expected concrete steps for governance reforms in banks. One would have also expected specific measures to induce growth in long-term financial savings of households, which are critical for long-term investments. Overall, the government has stuck to the path of fiscal prudence with the reduction of the deficit to 3.3%.”