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On July 5, the new government will present the first Union Budget of its second term. The budget will set the tone for the next five years and offer insights into its thinking and critical focus areas. This union budget is significant as it will be the first statement of intent of the government on a host of critical issues, such as the stress in the financial sector affecting banks and non-banks alike, farm prices, employment creation, trade wars, protectionism etc. The Finance minister will, as always, have to walk a tight rope between fiscal prudence and spending on social welfare.
In this context, we at Manappuram Finance would request the FM to address some valid concerns affecting our industry, as listed below.
1. Alignment of the Income Tax Act with RBI’s regulations: While the Reserve Bank of India is looking to harmonise regulations for Banks and NBFCs, the Income Tax Act continues to differentiate.