union budget 2021 Expectations: For the massive year immediately after the pandemic, the frequent man would undoubtedly appear up to the Modi government and FM Nirmala Sitharaman for several incentives, tax cuts, subsidies, a lot easier credit access and other rewards to cope up with the Covid-19 pandemic.
The frequent man has been struggling with disruptions in earnings and money flow, because the time of lockdown due to Covid-19, mainly because of which they have been hunting to the banking sector for access to credit.
Shilpa Mankar Ahluwalia, Partner, Shardul Amarchand Mangaldas and Co, says, “Loans at affordable rates and a continued moratorium on loan payments (to the extent the stresses of COVD-19 are continuing) are big expectations.”
He additional adds,
“However, the banking and financial sector is under severe stress itself, and the costs of deferring interest and principal payments under moratoriums schemes cannot be absorbed by lenders long term. To the extent subsidies and additional relief is needed, these will need to come from the budget.”
To market digital payments and enhance credit accessibility, the market is hoping that the government will continue its agenda to enhance world wide web infrastructure and connectivity in Tier II and Tier III cities to assistance digital payments across these geographies.
Experts say digital literacy and economic literacy are essential to pushing the subsequent wave of digital payments. Ahluwalia says,
“The government should consider offering tax breaks and incentives to platforms that invest in customer awareness, digital literacy and financial literacy initiatives.”
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To decrease the price of client acquisition and support enhance economic and credit access, market professionals say the government ought to push to operationalize the centralized KYC database.