"Budget carries strategy spelt out in Economic Survey"

The Union Budget carries a strategy spelt out in the Economic Survey for driving investments and stimulating growth, noted industrialist M M Murugappan said Saturday.

Overall investment in the economy should get support through the proposed infusion of Rs 70,000 crore into public sector banks, Murugappan, Executive Chairman of Murugappa Group said.

Noting that the Centre has given special focus to infrastructure, manufacturing and financial services as growth drivers, he said, containing the fiscal deficit at 3.3 per cent in financial year 2019-20 was a "commendable" balancing act.

He said the Union Finance Minister's investment plan of Rs 50 lakh crore in building railway infrastructure through the public private partnership model would give a filip to Indian manufacturing sector.

Investments of Rs 100 lakh crore in infrastructure over five years is significant and would boost the overall economy, he added.

On non-banking finance companies, Murugappan said the sector would find more sources of funds opening up with doing away of maintaining Debenture Redemption Reserve.

The additional tax benefit of Rs 1.50 lakh for 'affordable housing' finance would boost the housing and finance sector, he said.

On the allocation of Rs 80,000 crore towards fertiliser subsidy on both nutrient based subsidy and urea, he said it should help reduce the subsidy backlogs.

"Forming 10,000 new Farmer Producer Organisations will further strengthen the agriculture sector", he said.