'New Tax Regime Has Left More Money In People's Hands': Finance Minister Nirmala Sitharaman

Nirmala Sitharaman has said the new income tax regime left more money in the hands of the people as she addressed the press after a customary post-Budget meeting with RBI's central board of directors.

Finance Minister Nirmala Sitharaman on Saturday said that the new income tax regime has left more money in the hands of the people and it's up to them to decide what to do with the money -- to save or spend. Addressing the press after a customary post-Budget meeting with RBI's central board of directors, Sitharaman also said that direct taxation will be simplified and rates would be reduced so that it does not become a burden on the middle class. 

Finance Minister Nirmala Sitharaman attended the customary RBI's central board of directors meeting with two ministers of state for finance and Secretaries of the finance ministry. She addressed the Central Board of Directors of the RBI along with Shaktikanta Das. 

After the meeting, Finance Minister Nirmala Sitharaman along with RBI Governor Shaktikanta Das held a press conference. Sitharaman said, "The new income tax regime has effectively left more money in the hands of the people. So it is up to the person to decide what to do with their money, to save or spend. Why should the government induce anything or discourage anything?"

"We will simplify direct taxation, reduce rates so that it does not become a burden on middle class," Sitharaman added. 

On the issue of cryptocurrency not being addressed in this Budget, the Finance Minister said, "There was nothing on crypto in the Budget. But our discussions in G-20 are ongoing and we are talking to all countries about whether a standard operating procedure can be created. Just one country can't regulate crypto on its own."

RBI Governor Shaktikanta Das responded to questions on the recent hike in interest rates, Das said, "Real interest rates have just come into positive territory. The persistence of negative real rates can create risks that must be avoided. The RBI's rate hikes are part of maintaining price stability. It is up to banks to decided their rates."

"We have assumed $95 per barrel as the crude oil price for our inflation forecast. The forward market is giving a benign picture, but we have been conservative. So things could work in our favor in terms of lower inflation," Das said. 

He also added the global economic outlook doesn't look as grim as it was six months ago. Talk is now of a softer recession or just a slowdown. 

"India's balance of payments situation is manageable. The merchandise export target of $400 billion for this year is achievable," said the RBI governor.