Increased tax collection and lower government borrowing in the current fiscal would help bring down lending rates in the near term, said Keki Mistry, Vice Chairman & CEO, HDFC Ltd.
The government will borrow Rs 3.5 lakh crore from the market in fiscal 2017-18, around Rs 75,000 crore lower than the the current fiscal, Finance Minister Arun Jaitley said in his Union Budget speech in Parliament on Wednesday.
However, gross borrowing has been pegged at Rs 5.8 lakh crore up for 2017-18, marginally higher from Budget estimate of Rs 6 lakh crore in the ongoing fiscal. Gross borrowing includes repayments of past loans and interests.
One of the important features of the budget is that the fiscal deficit target has not been breached any more than what was anticipated, added Mistry, chief of India's largest mortgage lender.
Also Read: Budget 2017: Banks Get Higher Tax Relief On Bad Loan Provisions
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