Budget 2023- Now only a few days are left for the budget to arrive. In such a situation, what are the expectations of the banking sector and auto sector from the budget? As far as the banking sector is concerned, the government had run many schemes during Covid-19. In such a situation, brokerages are having some expectations regarding the banking sector in the budget. So let’s take a look at them.
Budget expectations of banking sector
The market expects that the government may consider increasing the credit guarantee scheme for MSMEs in this budget. Also give a booster to green energy financing in the budget. Brokerages believe that the budget will see more clarity on the roadmap for disinvestment of public sector banks and IDBI Bank. Also, clarification may come on the government’s borrowing program.
Market experts say that reduction in borrowing in the market will reduce liquidity pressure. Increase in 80C limit will increase the demand for housing loans, which will benefit the banking sector. At the same time, NBFCs will get support in affordable housing. Tax exemption on home loan interest is expected to increase. Experts are hopeful of increasing the health insurance tax exemption under 80D. It is possible to increase the limit of 80D from Rs 25000 to Rs 1 lakh.
Budget expectations of auto sector
The market is hopeful that the FAME subsidy scheme for the auto sector may go ahead. Incentives are possible to increase charging infrastructure. The scope of the existing PLI scheme can be increased in the budget. GST rates on auto components may be reduced or uniform at 18%.