Quotes on Budget Expectation 2021

Quote on Budget Expectation on behalf Religare Enterprises Ltd.

Mumbai, 28th January 2021 (GNI):

“The Indian economy is witnessing a rebound and we expect the forthcoming Union Budget to focus on further strengthening this economic recovery and ensure that the growth momentum is both robust and sustainable. The budget could be a continuation of the Rs 20 lakh crore Atmanirbhar Bharat package that the government announced in 2020, to combat COVID. Given that the budget will also need to make sizeable fund provision under various schemes to support growth, the government is likely to amend the FRBM Act to make room for higher fiscal deficit. At the same time, the budget should explore ways to monetize its non-core assets to shore its finances.

Adequate flow of low cost credit is crucial at current juncture as businesses reinvigorate and get back on their feet. This is particularly needed for MSMEs and start-ups as they are among key growth drivers in the economy. The budget should look to significantly improve the enabling environment for businesses by ensuring easy availability of working capital, new incentives to boost revenues, hiring and digitization, quicker refund of GST and easier tax compliance. The Production Linked Incentive (PLI) scheme has received an encouraging response and it should be extended to more sectors. All these measures will not only provide fillip to local manufacturing but will also boost India’s Ease of Doing Business ranking.”

-To be attributed to Dr. Rashmi Saluja, Executive Chairperson, Religare Enterprises Ltd.

Quote on Budget Expectation on behalf Religare Finvest Ltd.

The largest employer after the agriculture sector, are the Micro, Small and Medium Enterprises (MSMEs) and are amongst the worst hit by the Covid-induced lockdowns. While the Government did introduce a targeted stimulus package comprising collateral free loans, subordinate debt provision, equity infusion, a 45-day payment cycle and discontinuing global tenders in government procurement of up to Rs 200 crore to support the sector, few pain points still remain.

We expect that Government has looked into the challenges being faced by the sector with immediate focus on delayed payment and liquidity crunch. Startups and MSMEs continue to demand removal of GST under reverse charge for services procured from overseas. Further, there is an increased need to resolve the issue of lack of advanced technological support, tax burden and compliances which add to the stress to the sector being driven by 110 million people in India.

In addition to this, we also appeal to the government to extend the credit guarantee scheme for the industry at least for another year.  The government should also consider the demand of MSME sector to simplify GST and reduce the tax rate from 18% to 5% on professional services. Such steps would pave the way towards creating an enabling environment for entrepreneurs to thrive that will lead to large-scale employment generation in future.

-To be attributed to Mr. Pankaj Sharma, CEO, Religare Finvest Ltd.

Quote on Budget Expectation on behalf Religare Broking Ltd.

“The combination of better than expected recovery in corporate earnings and adequate liquidity has meant that stock markets have been on the rise in the last few months. From a low of 25,638 on March 24 last year, the bellwether Sensex has rallied over 90% in the last 10 months. Despite volatile market conditions, it is heartening to note that a large number of Demat and SIP accounts opened last year, which points to rising participation from retail investors in equity markets.

While there are lot of expectations that FY22 Union Budget will take number of measures to ensure that the post COVID rebound in Indian economy is robust and sustainable, there are also hopes for market focused announcements that will cheer the sentiment on the street.

Among the key expectations, the investors will look forward to the abolition of long term capital gains tax or redefining long term to two years and reducing the taxation to nil, while further allow indexation benefits to equity mutual funds and some relief on dividend distribution tax in hands of investors.”

-To be attributed to Mr. Nitin Aggarwal, CEO, Religare Broking Ltd.ends