Sentiment booster: On govt response to slowdown

Sentiment booster: On govt response to slowdown


In rolling back some measures, the government shows it listens to feedback

For an economy that is downbeat(गिरावट) in growth(वृद्धि ) and in sentiment(विचार/भाव), the comprehensive(विस्तृत/व्यापक) package of measures(उपायों ) announced by Finance Minister Nirmala Sitharaman on Friday may just be the right boost(बढ़ावा). They address growth slowdown concerns(चिंताओं/मामला); free up funds for investment(निवेश ) and spending(खर्च) by banks, housing finance companies and MSMEs; and importantly, undo some controversial(विवादास्पद ) proposals(प्रस्ताव), in the budget and outside it, which were affecting(प्रभावित करने वाले) sentiment in the markets and the corporate(व्यासायिक ) sector(क्षेत्र). And, importantly, these have all been done without any significant(महत्वपूर्ण/सार्थक ) financial burden(बोझ) on the government. Some of the measures promote the ease of doing business and even the ease of living for ordinary citizens. The auto sector’s biggest demand — that of reduction(छूट/कमी) in GST rate — may not have been conceded(स्वीकार किया,), but Ms. Sitharaman has given the sector enough(पर्याप्त) to cheer(प्रोत्साहन) about. The accelerated(बढ़ा हुआ) depreciation(मूल्यह्रास/छूट). of 15% (in addition to the existing 15%) for all vehicles acquired till March 31, 2020 and the deferment of the proposed increase in registration fee for new vehicles to June 2020 are positive measures that will boost sentiment and, it is to be hoped, translate into demand. As the festive(त्योहारों ) season(मौसम) sets in, banks will have more space to increase their lending(उधार) consequent(फलस्वरूप ) to the upfront funding of ₹70,000 crore (announced in the budget) that they will get from the government towards(की ओर) recapitalisation(पुनर्पूंजीकरण ). This, together with the strong push for repo rate linked loan products, is likely to benefit consumers borrowing to buy new homes, vehicles and durables(टिकाऊ).

The roll-back of the capital gains tax imposed(लगाया) in the budget on foreign portfolio investors, the withdrawal of angel tax on start-ups and the promise that non-compliance with corporate social responsibility (CSR) norms will be decriminalised(वैधता/ show a government that is willing to listen to feedback from the ground. Much of the mayhem(हलचल) in the markets could have been avoided though if only the Finance Minister had acted earlier on the negative feedback to the FPI tax proposal. Some of the smaller steps can go a long way. Expediting( तेजी लाने के/जल्दी करना) delayed payments by government departments and public sector units is alone expected to release a massive ₹60,000 crore into the economy. The assurance(विश्वास/बीमा) that all pending GST refunds to MSMEs will be paid within 30 days and going forward such refunds(धन वापसियां) will be made within 60 days is a great relief for the sector. This will ease the cash flows of MSMEs who often work with stretched(बढ़ाया/ताना हुआ) finances. The most significant takeaway though from Ms. Sitharaman’s announcements is the fact that the government is no longer scared of the suit-boot ki sarkar jibe. She declared upfront that the government respects “wealth creators”(“धन सृजनकर्ता”) and the measures are aimed at helping them. Will these measures put GDP growth back on the rails? Will they restore the jobs lost in the last few months? The answers to these are in the hands of the wealth creators now. The government did what it could; it is now up to India Inc to take the ball and run.

 

Important Vocabulary

1. Accelerated(बढ़ा हुआ)
Synonyms: increased, quick

2. Assurance(विश्वास/बीमा)
Synonyms: affirmation, assertion, pledge, promise
Antonyms: break, denial, breach, confusion, distrust

3. Boost(बढ़ावा).
Synonyms: addition, advance, breakthrough, expansion, hike
Antonyms: decline, decrease, harm, lesseningloss

4. Cheer(प्रोत्साहन
Synonyms: delight, encouragement, glee, joy, optimism
Antonyms: discouragement, sadness, sorrow, , unhappiness, depression

5. Consequent(फलस्वरूप )
Synonyms: ensuing, indirect, subsequent, consistent, following
Antonyms: beginning, causal, commencing, originating, preparatory

6. Conceded(स्वीकार किया,)
Synonyms: accept, admit, allow, capitulate, cave in
Antonyms: defend, deny, disallow, disapprove, dispute

7. Downbeat(गिरावट)
Synonyms: defeatist, negative, cheerless, dejected, dispirited

8. Depreciation(मूल्यह्रास/छूट).
Synonyms: deflation, reduction, slump, fall, accounting allowance,
Antonyms: increase

9. Expediting( तेजी लाने के/जल्दी करना
Synonyms: accelerate, assist, facilitate, hastenpromote
Antonyms: delay, hinder, hurt, retard, slow

10. Growth(वृद्धि
Synonyms: advancement, expansion, gain, hike, improvement
Antonyms: decline decrease, , failure, halt, loss

11. Mayhem(हलचल)
Synonyms: anarchy, commotion, destruction, fracas, havoc
Antonyms: calm, peace, harmony

12. Stretched(बढ़ाया/ताना हुआ
Synonyms: cover, develop, draw, expand, fill, go
Antonyms: abbreviate, block, cease, close, compres

13. Significant(महत्वपूर्ण/सार्थक )
Synonyms: compelling, important, momentous, powerful
Antonyms: insignificant, trivial, unimportant, meaningless, minor


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