The Budget proposals are progressive for the financial institutions engaged in small credit segment while providing comfort to the common man, according to Thomas John Muthoot, CMD, Muthoot Pappachan Group.
While bringing the affordable housing under the infrastructure status for easy availability of money, the budget also lowered the income tax rate to 5 per cent for those earning below ₹5 lakh. Overall, the budget focuses on the well-being of people in semi-urban and rural India.
The financial sector is enjoying a liquidity comfort following demonetisation and this would have helped many banks and institutions to lower lending rates. The budget also lowered the income tax rate for small companies with an annual turnover of less than ₹50 crore to 25 per cent from 30. Also, the micro, small and medium enterprises (MSMEs) will have better days ahead as the government is reducing the income tax rate to make them more viable.