By Sumant Sinha
This Budget came against the backdrop of testing instances. It had to kick-get started the development engine, spur customer demand, shore up investor sentiments and make jobs, whilst developing resilience against future pandemics. The FM managed to meet most of India Inc’s expectations.
A huge thrust on infrastructure should really have a positive multiplier impact on aggregate demand and jobs. The choice to set up a Development Finance Institution to fund execution of projects identified below the National Infrastructure Plan is effectively conceived. The choice to float zero coupon infrastructure debt funds will support attract FDI. The strategy to expand roads, highways and ports and a record allocation for railways will enhance connectivity and boost ease of performing company.
Healthcare was the winner, with a whopping 137% enhance in allocation. The choice to allocate Rs 35,000 crore for Covid-19 vaccination is reassuring whilst the Atmanirbhar Swasth Yojana will support ramp up healthcare infrastructure. Recognising the value of access to secure drinking water by way of the Jal Jeevan Mission is an additional positive.
Some major-ticket disinvestments have been promised for the present fiscal year like two PSU banks and one common insurance coverage provider, in addition to scheduling the LIC IPO. This can be a essential supply of income for the government if implementation targets are met.
Setting up an Asset Reconstruction Company to absorb accumulated poor debts will destress the banking sector. Coupled with fresh capitalisation of Rs 20,000 crore for PSU banks, this will augment lending capacity.
Rise in agri-credit, enhance in outlay for improvement of rural infrastructure and doubling of micro irrigation fund will support boost farmer earnings. Integrating 1,000 extra mandis with eNAM will boost transparency and competitiveness.
The PLI scheme for identified champion sectors will accelerate formation of a robust manufacturing ecosystem in the nation. Besides supporting self-reliance, this will have ancillary added benefits in the type of more jobs and position India as an alternate manufacturing hub for the rest of the globe.
For the prevalent Indian, whilst the Budget does not enlist any tax exemptions, it also does not levy any new surcharges. Citizens above 75 years with only pension earnings have been exempted from taxes. A one-year extension of the extra tax deduction on loans taken to acquire very affordable homes is an additional advantage.
The get started-up ecosystem has received numerous incentives such as easing norms for one-particular person organizations, extension of tax vacation and extension of exemption on capital gains for investing in get started-ups, each and every by one year.
The Rs 3.06 lakh crore package for revamping stressed energy discoms is an crucial step. The choice to progressively finish monopolies in the distribution sector is also commendable. Allocation of Rs 1,000 crore and Rs 1,500 crore for SECI and IREDA and the launch of National Hydrogen Mission will enhance the renewable sector. Policy for voluntary scrappage of old polluting automobiles and allowance for fighting air pollution impart a “green” touch.
(Writer is the CMD of ReNew Power)