“Budget focuses on reviving the economy”
With its extensive focus on infrastructure and healthcare, the Budget FY21-22 clearly focuses on reviving the economy. The key pillars such as health and wellbeing, capital and infrastructure, inclusive development, enhancing human capital, innovation and R&D and minimum government and maximum governance rightly identifies the core areas for sustained growth and provides considerable thrust towards an Atmanirbhar Bharat. The emphasis on further expanding the National Infrastructure Pipeline by creating dedicated financial institution, monetizing operating assets, and raising the share of capital expenditure in central and state budgets is commendable.
The proposal to offer more choice to consumers by introducing competition in the power distribution space by kick-starting Rs 3 lakh crore reforms-based result-linked power distribution sector scheme for state power distribution companies is likely to address the long hanging Transmission & Distribution (T&D) issues and give relief to the power producers, thereby ensuring health for the entire value chain. It is also good to see the government government’s focus towards ensuring smart metering, which will help cut the commercial losses in power distribution.
Further, the proposal to double the MSME allocation with Rs 15,700 crore for medium and small enterprises in FY22 will give the necessary push to the sector.
Considering that India is well poised to play an important role in the global supply chain, the PLI scheme in 13 sectors to create manufacturing global champions for an Atmanirbhar Bharat is expected to play a crucial role. This will encourage growth in these sectors, apart from creating ample employment opportunities for the youth. Overall a growth oriented budget to support the Indian economy to bounce back in the post COVID world.