It was overall a good budget considering the extraordinary Economic & Financial distress in the previous year resulted from the Pandemic. To have a quick assessment of the budget, one needs to look at the need of the hour vis-à-vis the financial rationality.
- The Government has offered various stimulus packages under “Atma Nirbhar Bharat” Scheme & budget has continued to support such initiatives.
- The Government has demonstrated a great amount of courage & fearlessness in keeping the state expenditure high and to support people welfare during the pandemic, and has kept the fiscal deficit @ 9.5% of the GDP. Also in the FY 2021-22 it is projected to be 6.8%, & the Government has taken a target of 2025-26 to bring it to 4.5% of GDP. It’s in a way the commitment of the Government to boost the Economic growth by public expenditure. It has also increased the capital expenditure by 34.5% (as compared to the FY 21 BE) which is a good initiative for building a strong Economy in future.
- Increase in the expenditure on healthcare by 137% is a welcoming act of the Government as it will prepare the country better to face any pandemic like situation in future. Monetization of Government assets and disinvestment of public sector organisations are also a welcoming initiative provided these targets are achieved.
- Some of the key areas which lacked the consideration in the budget include insignificant expenditure on the Education sector specially the primary education.
- The middle class also feel ignored as the Tax slabs have remained unchanged.
- Agriculture sector should have been given more budget allocation in addition to the current announcement for investment in agricultural infrastructure.
- Extension of Tax holiday to support the start ups, allocation of Rs. 15700 Crore to MSME & creating better environment for production for MSME is also a welcome step.