New Delhi [India], Feb 1 : ICICI Bank MD and CEO Chanda Kochhar on Wednesday said that the Union Budget 2017-18 was a comprehensive budget for the economy with a huge amount of multiplier effect, which will positively impact the whole lending push towards housing.
"This budget has achieved an excellent balance between the much required focus on investments and structural reforms required for ease of doing business and simplifications," Kochhar told reporters here today.
She further said that focus on investments in the Union Budget has been very well rounded as the Finance Minister Arun Jaitley addressed requirements of various sectors including infrastructure, rural economy, farmers in agri sector, under privileged, youth, and the financial services sector and others remarkably.
"The budgets' focus on investments through public spending is in such a form that it will create a multiplier impact on the economy," Kochhar added.
"The focus in affordable housing, parts of railways, defence and so on create a multiplier impact in the economy and will be beneficial for growth in medium and long term," she added.
Highlighting her view point over the banking and financial services, Kochhar said that the budget's focus on the digital payments will formalize the economy in times to come.
"In line with the fiscal prudence, the budget was not carried away towards high market borrowings. Capital gains have been shifted from three to two years, which means that the people will buy and sell homes at more frequent levels," she said while talking from markets point of view.
She said that in terms of balancing, there has been lot simplification in ease of doing business and tax reforms, which will benefit the economy needs.
Talking on tax exemption, Kochar said that that it is a good step, which may not substantially impact the profit of the banks, but is directionally a good step.