New Delhi [India], As part of the preparations for the Union Budget, Finance Minister Nirmala Sitharaman chaired the second pre-budget consultation here today with leading experts from the financial and capital markets sector.
The discussions covered topics ranging from the NBFC sector, GST rules and improving the capital market.
Raman Aggarwal, co-chairman of the FIDC, said that in the meeting they conveyed that the credit-to-GDP ratio of NBFCs was 12.6 per cent in March 2023 and there are reasons to look at financing.
He said they need direct management from the government and there could be allocation of funds to SIDBI or NABARD to refinance NBFCs.
The NBFC sector has grown to become 18.7 per cent of banking sector assets by March 2023, compared to 13 per cent ten years ago.
She said the regulatory framework for their NBFCs has been harmonized for banks and will remain incomplete if they are not provided with recovery tools like SARFAESI (Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002).
She said there is a problem of TDS deduction for loan borrowers.
Aggarwal said there is a demand for GST based on core loans and more clarity is needed. She said if there is an element of service it should be specifically mentioned.
She said there was also discussion about GIFT City to ensure that capital is retained in the country and does not leave.
George Alexander, MD, Muthoot Finance, said there were some suggestions from mutual funds. "We also gave suggestions such as improving the capital market and improving financing of the retail sector."
On June 19, a group of economists met with the Minister of Finance to present their recommendations for the next budget. Sources said the suggestions included increasing capital expenditure and reducing the fiscal deficit.
Sitharaman will present the Union Budget for 2024-25 in the third week of July.
Sitharman had presented an interim budget on February 1 ahead of the Lok Sabha elections. He has so far presented six budgets in a row and will create a record when he presents the full budget for the new term of the BJP-led National Democratic Alliance government.
The discussions covered topics ranging from the NBFC sector, GST rules and improving the capital market.
Raman Aggarwal, co-chairman of the FIDC, said that in the meeting they conveyed that the credit-to-GDP ratio of NBFCs was 12.6 per cent in March 2023 and there are reasons to look at financing.
He said they need direct management from the government and there could be allocation of funds to SIDBI or NABARD to refinance NBFCs.
The NBFC sector has grown to become 18.7 per cent of banking sector assets by March 2023, compared to 13 per cent ten years ago.
She said the regulatory framework for their NBFCs has been harmonized for banks and will remain incomplete if they are not provided with recovery tools like SARFAESI (Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002).
She said there is a problem of TDS deduction for loan borrowers.
Aggarwal said there is a demand for GST based on core loans and more clarity is needed. She said if there is an element of service it should be specifically mentioned.
She said there was also discussion about GIFT City to ensure that capital is retained in the country and does not leave.
George Alexander, MD, Muthoot Finance, said there were some suggestions from mutual funds. "We also gave suggestions such as improving the capital market and improving financing of the retail sector."
On June 19, a group of economists met with the Minister of Finance to present their recommendations for the next budget. Sources said the suggestions included increasing capital expenditure and reducing the fiscal deficit.
Sitharaman will present the Union Budget for 2024-25 in the third week of July.
Sitharman had presented an interim budget on February 1 ahead of the Lok Sabha elections. He has so far presented six budgets in a row and will create a record when he presents the full budget for the new term of the BJP-led National Democratic Alliance government.
