India Inc gives thumbs up to Budget

New Delhi [India], February 1 : The industry stakeholders gave thumbs up to the Union Budget presented by Finance Minister Nirmala Sitharaman on Monday, saying it gave a booster dose to the economy through six pillars of mega rise in capital expenditure on healthcare, physical infrastructure without putting much pressure on the taxpayers.
The euphoria was clearly evident as the equity indices in the country closed nearly 5 per cent higher on Monday.
Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII) welcomed the Union Budget presented Sitharaman and lauded the 34.5 per cent rise budgeted in the capital expenditure targeted towards major infrastructure expansion initiatives.
"It is encouraging to note that the Finance Minister favoured a major expansion in government spending with a focus on capital expenditure to give a fillip to demand generation and strengthening the recovery momentum. This was much warranted and is in line with what CII has been strongly advocating with the government," said Banerjee.
"The 34.5 per cent rise budgeted in the capital expenditure spending for FY22 mainly targeted towards major infrastructure expansion initiatives are laudable. This is likely to have a multiplier impact on the different sectors of the economy and develop confidence on growth beyond the current recovery," he added.
In her budget speech, Sitharaman mentioned that this year's budget focused on six pillars- Health and Wellbeing, Physical and Financial Capital, and Infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, Innovation and R&D and minimum government and maximum governance.
The Minister stated that India's fight against COVID-19 continues into 2021 and that this moment in history, when the political, economic, and strategic relations in the post-COVID world are changing, is the dawn of a new era - one in which India is well-poised to truly be the land of promise and hope.
"Today we saw an outstanding, clear-headed and growth-oriented budget that lays a strong foundation for an Atmanirbhar Bharat. The fact that government chose growth over fiscal consolidation is indeed heartening. There is a sharp focus on capital expenditure. The fact that no new taxes have been levied shows government's recognition of the stress different sections of society have been going through and the need to support them at this critical juncture. It's heartening the Finance Minister has taken concert steps to improve the Ease of Doing Business and encourage compliance," said Uday Shankar, President, Federation of Indian Chambers of Commerce and Industry (FICCI).
Vineet Agarwal, President, Associated Chamber of Commerce (ASSOCHAM) lauded 137 per cent increase in outlay for healthcare with specific Rs 35,000 crore for Covid-19 vaccine rollout.
Agarwal said despite an unprecedented pandemic exerting a huge pressure on government finances, the Finance Minister has been able to keep the path of fiscal consolidation with a fiscal deficit of 6.8 per cent of GDP for the next financial year.
"There is a big emphasis on capital expenditure on building key infrastructure both in the rural and urban parts of the city. There has also been big time focus on highways, better connectivity to ports through roads and rail and bringing down cost of logistics to make Indian manufacturing competitive in the world," the ASSOCHAM President said.
Appreciating the Budget, Sanjay Aggarwal, President, PHD Chamber of Commerce and Industry said the focus of budget on six pillars, including Health and Well-Being, Physical and Financial capital and infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, Innovation and Research & Development, and Minimum Government, and Maximum Governance is highly encouraging and would go a long way to build a new India.
The introduction of the Aatmanirbhar Health Yojana with an outlay of Rs 64,180 crore over six years and proposal to setup 15 Health Emergency Centres will go a long way to strengthen the National Centre for Disease Control in the country, he added.