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- Finance Minister is scheduled to address the post-budget meeting of the RBI’s central board.She will highlight the key points of the Budget including the fiscal consolidation roadmap.
- The government has lowered the fiscal deficit target for 2019-20 at 3.3% of GDP from 3.4% set in the Interim Budget presented on February 1, 2019.
- Fiscal deficit is the amount of money that the government needs to borrow in a given year because their expenses were more than their revenues.
- The Centre has also came out with a roadmap to reduce the fiscal deficit to 3% of the gross domestic product(GDP) by 2020-21 and eliminate the primary deficit.
- Primary deficit refers to the deficit left after subtracting interest payments from the fiscal deficit.
- She would also address about the announcements made in the Budget to spur growth by touching almost all sectors of the economy with the objective of achieving a $5 trillion economy by 2024-25.
- The Budget has also announced opening up of aviation, insurance and media sectors to foreign direct investment(FDI).
- It has also proposed measures to improve NBFCs access to funding by providing a limited backstop for the purchase of their assets.
- The government will provide a partial guarantee to state banks for the acquisition of up to ₹1 lakh crore of highly-rated assets from non-bank finance companies(NBFC).
- The Reserve Bank of India has been made regulator of housing finance firms as well replacing the National Housing Bank(NHB).Apart from this,the government has also budgeted a dividend from the Reserve Bank of India amounting to about ₹90,000 crore.
