Budget “a balanced act”, says Magma Fincorp

Abhishek Law Kolkata | Updated on January 20, 2018 Published on February 29, 2016

The Union Budget 2016 is “a balanced act” in the backdrop of global uncertainty, maintained Sanjay Chamria, Vice Chairman and MD, Magma Fincorp Ltd.

Maintaining a fiscal deficit of 3.5% is a very credible step for the financial markets, robust outlays for infrastructure, agriculture, rural and socio-economic schemes are also welcome moves, he added.

According to the MD, one can argue that more could have been provided for recapitalization of banks which are currently facing issues of mounting NPAs.

The budget, he said, shows a lot of focus on rural areas and Infrastructure.

The focus on agriculture was awaited and will enhance expenditure on the rural and agriculture sectors. The crop insurance scheme and other allocations show the government’s tremendous thrust on improving farmers’ welfare.

The linking of rural roads, 100 per cent electrification by 2018 and a lift in farmers’ income are positive signs for growth of the rural economy.

“While there are a few hits and misses, budget addressed many concerns. One of the most important one (it addressed) was the focus on infrastructure and roads. Road orders may increase now and this will have a positive impact on commercial vehicle and construction equipment businesses,” Chamria said in a statement.

As for the financial sector, the recognition of gaps in the current insolvency and bankruptcy regime and the proposed introduction of the bankruptcy code is a step in the right direction. However, much will depend on the insolvency related eco-system that will need to evolve to make these measures a success, he added.

Published on February 29, 2016
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