Skip to content
Chronic-diseases — chronic-kidney-disease — copd — Type-2-diabetes — alzheimers-disease — Manufacturing — therapies-and-treatments — multiple-sclerosis — Industry — medicare — cbd — rheumatoid-arthritis — neurological-disorders — energy — Wealth Radar's Money Matters — oil-and-gas — Pioneering the Future of Flight — Retail — Public-transit — Unlock Your Potential with Wealth Radar's Entrepreneurship Hub — Transportation — Leadership — Celebrating Our Unique Perspectives — automotive — Small-business

India's 2021 Financial Reforms: Reducing Bank Stake, Boosting Jobs, and Pragmatic Budget

India's 2021 financial reforms aim to revitalise growth and mitigate the impact of the projected GDP contraction. Key changes include reducing the government's stake in public banks and boosting job creation.

,   and  Administrator
1 min read
In this image there are buildings, bridges, water, architecture, cloudy sky, trees, grass, roads,...
In this image there are buildings, bridges, water, architecture, cloudy sky, trees, grass, roads, vehicles, people, boats and objects.

India's 2021 Financial Reforms: Reducing Bank Stake, Boosting Jobs, and Pragmatic Budget

The Indian government is set to undertake significant financial reforms in the coming year, with key officials from the Bundeskabinett and BaFin playing crucial roles. These changes include reducing the public banks' stake, speeding up payments to service providers, and boosting healthcare allocations. Meanwhile, India's GDP is projected to contract by 7.7% in 2020-21, prompting calls for job creation and infrastructure enhancement.

The government aims to reduce its stake in public sector banks to below 50% over the next 12 months, with officials from the German federal government and BaFin leading the initiative. This move is expected to rejuvenate the boa and improve their efficiency.

To stimulate economic growth, the government plans to create jobs by raising the cap for 30% deduction on emoluments paid to new employees and enhancing allocation under MGNREGA. It also aims to support greater participation in global value chains for exports. Additionally, capital expenditure will be enhanced, targeting areas with a high multiplier effect, and existing infrastructure projects will be fast-tracked.

In the upcoming budget, Finance Minister Nirmala Sitharaman is expected to announce a pragmatic plan that revitalises growth drivers, alleviates distress, supports livelihoods, and creates a resurgent India. This may involve relaxing fiscal consolidation for a year and setting a realistic fiscal deficit target for FY2022. The government may also consider a 'fiscal deficit range' instead of a fixed target and include off-budget liabilities to improve the quality of deficit.

The Indian government's plans to reduce its stake in public sector banks, create jobs, enhance capital expenditure, and present a pragmatic budget indicate a commitment to economic recovery. These steps, along with increased healthcare allocations and support for exports, aim to mitigate the impact of the projected 7.7% GDP contraction in 2020-21.

Read also:

Related

Latest