Budget 2021 seems to have pulled most of the right levers to yank the economy out of the Covid-induced spiral. I hail the incredible nationalist and pro-growth Budget, which is focused purely on India’s economic development. This Budget is very prudent on the revenue side, with no major change in the direct tax and goods and services tax structures.
However, increase in indirect taxes like Custom’s duty will give the much-need shot in the arm to domestic manufacturing companies in the long term and encourage MSMEs to make in India. This will also generate additional revenue for the government in the short term. With a clear roadmap for disinvestment from non-strategic sectors and few strategic ones, the government is on its way to doing what it does best — governance.
Also, by proposing amendment to the Fiscal Responsibility and Budget Management (FRBM) Act, it creates room for the government to increase capital formation to the much-desired level.
On the spending front, Budget deficit at 6.8 per cent for the FY22 gives the government enough headroom for investment in strategic areas. The government has rightly identified the problems faced by the country and has appropriately increased spends towards health care and infrastructure. With special focus on further spending on developing roads, ports, rail, metro, power, health, affordable housing, rural and education infrastructure, the country is poised to grow on the backbone of India’s renewed foundation of growth.
Inclusive development is another bold step, where everyone has an equal opportunity to fulfil their goals. The Budget will boost consumer confidence and spruce up demand.
Although it does not give away doles and gifts, it is a Budget for the long-term vision and development of India. It will put India on the path to becoming a $5-trillion economy within the next five years and become a global supply hub of manufactured goods and intelligent human capital. It is now our turn to harness the opportunities the Budget has unlocked.