Finance minister Nirmala Sitharaman's made her first pit-stop in Mumbai as part of her 3 cities outreach programme, after presenting the 2nd Budget of Modi 2.0.
While meeting the stake holders, including a group of economists and academicians, the finance minister reiterated the government's intent to simplify the tax structure and said that lowering of the tax slabs will leave more money in the hands of the people.
"The middle class will have more money in their hand to spend post the new proposed rules in the Finance Bill," she said.
Ms Sitharaman said Budget 2020 provides discreet and considered stimulus and there was never a trust deficit in the banking system.
"No trust deficit with banks, for banks, a hesitation subject to vigilance," she added.
In a bid to allay the fears of investors, Ms Sitharaman said that LIC IPO will benefit retail investors and bring in more transparency.
She also welcomed the liquidity measures announced by the RBI for retail customers in general at the sixth monetary policy review on Thursday. The RBI made it easier for banks to lend credit to MSMEs and realty, and auto players in particular.
Friday's meeting was just first out of the three scheduled consultations. Through these meetings, the government is trying to send out a signal that government is willing to do more in terms of necessary measures to prop up the economy.
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