Expected Allocation for Banks & NBFC in Central Budget 2017

We anticipate the govt. to offer a hike to usage through greater apportion for rural deemed schemes. Few relief for middle-class through a slast in tax rates/more exemptions for tax savings can’t be driven out either provided this being the final budget before the GE 2019.

The concentration on infrastructure expenditure to revive the capex cycle must find maximum allocations for Roads, Railways, & Power programmes.

We too expect few relaxation of fiscal deficit areas as this is the debut year of transformational and disruptive reform such as GST. However, as a whole on the glide way for fiscal consolidation should remain in the medium term.

Some of the list of expectations from twelve sectors:

Banks in Budget 2018 – maximized incentives and budgetary allocation to motivate the flow of finance to MSMEs. The addition of a broder income scale under affordable housing schemes and extra incentives to promoters for the same. Incentives for long-term schemes aiding by banks with a concentration on roads & railways. Vast clarity over recapitalisation bonds for state-owned banks’. Decrease in the tenure for interest tax-free deposits from five years to three years. Digitization moves comprising an exceptional focus on developing UPI based remittances over a broader platform.

NBFCs in Budget 2018 – In order to provide a height to affordable housing, the indian government may release methods to have land acquisition simpler for affordable housing developers. PMAY allocation was increase from INR 150 billion in FY17 to INR 230 billion in FY18. One can anticipate higher allocation for the same. If there is any issue of greater import duty on gold, it could effect gold rates and in turn gold financing units. Exemption ceiling for interest deductible for housing schemes under section 24 for tax calculation cause might increase from the present level of INR 0.2 million. Infrastructure bonds might be relaunched for rising the allocation towards infra spending.

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