Union Budget 2019 has presented by Finance Minister Nirmala Sitharaman today. Detail analysis of Budget by experts clears the entire picture and upcoming impact on Indian Economy. Look what experts from XLRI – Xavier School of Management analyse this budget.
According to Fr. P. Christie, S.J., Director, XLRI- Xavier School of Management “A robust education system forms the bedrock of a strong and progressive nation. The Government’s initiative in bringing in the New National Education Policy in the near future is a welcome step. There is need for Better Governance framework within the education sector and the government’s announcements like bringing reforms in the Higher Education Regulatory Arms to promote greater autonomy and focus on better academic outcomes and the allotment of Rs.400-crore for “World Class Institutions” are steps in the right direction to build a robust education system; and we look forward to the legislation to set up Higher Education Commission of India (HECI). However, this right intent of the government can truly be attained if we also have long-term strategy and organisational structure in place.
The government’s move to strengthen research and innovation and emphasis on start-ups are positive steps. We welcome the government’s plan to have a DD TV channel for start-ups. The government’s vision of developing the National Research Foundation (NRF) will set the implementation process in motion and help not only in intellectual advancement of the youth but of the nation at large. The government’s decision to promote skill training and sports awareness would definitely help in holistic development of the youth.”
Dr. H. K.Pradhan, Professor of Finance and Economics at XLRI – Xavier School of Management says ” I expect lower internal borrowing, as the Government wishes to tap low cost long term external debt. With a sustainable debt-to-GDP ratio of 68 percent and USD 426 billion reserves, India enjoys an excellent external credit rating, which would enable us to tap long term loans and at lower interest rates. Already several government agencies are borrowing through off-budget route for their capital expenditure. These will release some liquidity in the domestic capital markets, which would soften the yields that have already fallen following three repo rate reduction of 25 basis points each.
Non banking finance companies (NBFC) got some breather as banks and mutual funds are encouraged to lend, at least to those having sound financial position, with the government providing kind od backstop facility in the form of one-time credit guarantee to the public sector banks for their first loss upto 10 percent, removing the creation of debenture redemption reserve (DRR), and strengthening the regulatory authority of RBI over NBFC.”