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March 1, 2000
Books
Budget Special
Columnists
Indian Tax
Insurance
Interview
Mutual Funds
NRI Tax
Personal Finance
Personal Banking
Real Estate
Stocks
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Banking
Overall impact: Positive
Positive features
- Credit Information Bureau will be set up. This will help banks reduce their non-performing assets (NPAs) and improve capital adequacy.
- Five more Debt Recovery Tribunals are to be set up. This should also help banks improve the quality of their assets.
- Removal of Interest Tax of 2 per cent. This will help in easier dispensation of credit, and lead to higher growth rate.
- Income distributed by debt oriented mutual funds and UTI (except Unit Scheme 1964) will be taxed at 20 per cent instead of 10 per cent earlier. This may curtail dividend payouts from debt-oriented mutual fund schemes thus making bank deposits an attractive option.
Negative features
- The finance minister's decision to recapitalise weak banks will condone inefficiency in the banking sector.
- The decision to dilute the government's stake in public sector banks to 33 per cent without ceding management control will deny bank managements the freedom to operate independently.
ALSO SEE:
BUDGET IMPACT
The first cut
A matter of life and debt
On the MAT
How will your tax outgo change?
SECTOR IMPACT:
PRELUDE TO THE BUDGET
What will Yashwant Sinha do?
How will personal taxes change?
Fiscal report card
PRE-BUDGET SECTOR ANALYSIS:
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