Gratifying to note Rs 2.7 lakh crore saved through DBT: IBA chief

Chennai, Feb 1 Indian banks have played a key role in implementing the social schemes of the Central government and also in achieving a savings of Rs 2.7 lakh crore through Direct Bank Transfer (DBT) mode, said A.K. Goel, Chairman, Indian Banks' Association (IBA) and Managing Director & CEO, Punjab National Bank.

Reacting to the Interim Budget for 2024-25 presented by Finance Minister Nirmala Sitharaman in the Parliament on Thursday, Goel said: "It is gratifying to note that Direct Benefit Transfers of Rs 34 lakh crore facilitated through banks to the beneficiaries has led to the saving of Rs. 2.7 lakh crore."

"The budget has highlighted the achievements of the social schemes like PM SVANIDHI, PM KISAN SAMMAN, PMAY, PM Mudra Yojana etc which has helped to provide relief to the needy sectors. Banks have played a key role in implementing all these schemes of the government," he said.

According to Goel, the budget is aiming to provide more opportunities for the lower end of the pyramid, increased infrastructure spending for development, measures for reaching Net Zero by 2070 and focus on fiscal consolidation.

"The allocation for capital expenditure for FY 25 is at Rs 11.11 lakh crore which is 11.1 per cent higher than the capex for FY 24. This capex going to infrastructure would have cascading effect on employment and also aid several ancillary industries supporting infrastructure sector," Goel said.

The decision to waive disputed direct tax demands ranging from Rs 10,000 to Rs 25,000 until 2009-10 provides relief to taxpayers. Gross borrowing for FY 2025 is estimated to be Rs 14.13 trillion as against Rs 15.4 trillion for FY 2024, he added.

Reduced government borrowing programme will provide more space for banks to provide credit for growth. Sticking to the fiscal consolidation roadmap shows the resolve of the government to maintain discipline in finances, Goel said.