Union Budget 2021
“The Union Budget 2021 lays the foundation for a strong economic revival with an aim to achieve progressive growth. With a well-defined focus on key areas such as Health & Medication, Infrastructure, Banking & finance along with a vision of Atmanirbharta, our honourable FM has given us a decisive budget that will help steer the economy towards the targeted $5 trillion.
Provisions made for capital investments and capital expenditure are commendable steps and could not come at a better time as we look ahead to the post Covid era. A focus on strategic divestment will go a long way in improving efficiency, bringing down fiscal deficit and freeing substantial government resources”. -Sunil Duggal, Group CEO and Chief Safety Officer, Vedanta
Mr. Gopichand. P. Hinduja, Co-Chairman, Hinduja Group –
“The finance minister, Mrs. Nirmala Sitharaman, must be congratulated for presenting a pathbreaking, inclusive budget in these unprecedented times. The high fiscal deficit would be a worry for many, however, these uncertain times call for high government spending. The proposed capital expenditure of Rs. 5.54 lakh crores, 34.5% higher than the current year augurs well for the infrastructure, manufacturing industry and job creation.
She has ensured capital allocation towards social welfare schemes, health sector, aspirational India and good governance.
The bold BFSI reforms announced of creating pathway for transferring NPAs from PSB balance sheets will spur the lending activity.
The government’s decision to increase FDI in the insurance sector, monetization of government assets will boost global investors sentiments and should greatly contribute to the advancement of India in Ease of Doing Business Index. Disinvestment target set by the government is encouraging however, it should be completed in the stated timeframe.
The budget also encourages an entrepreneurial eco system in the country through one-person company. The long-awaited voluntary vehicle scrappage scheme to phase out old vehicles to curb environmental pollution and oil imports will give an impetus to the automotive industry. The extension of tax holiday for start-ups and increased allocation for research and development will encourage innovation. Tax relief provided to Non Resident Investors is a welcome move but a lot more could have been done for encouraging investments through NRIs.
The decision to set up a Development Finance Institution is very encouraging and I hope we learn from our past and this time create a world class institution.”
Quote by Mr. Dinesh Kumar Khara, Chairman, SBI:
“The Union Budget has unveiled a set of well-crafted and robust policies that encompasses the vision of an Atmanirbhar Bharat. The Budget has rightly envisaged a substantial jump in capital expenditure that has a strong multiplier impact on the economy. The decision to open up the insurance sector, setting up a DFI and an ARC, privatizing a couple of public sector banks are all positive steps for the financial sector. Social sectors have received large attention in the budget with a thrust on developing a health and education infrastructure on a mission mode. This will augment human capital, an essential prerequisite for inclusive growth. The Budget has unveiled a flurry of steps covering all infrastructure sectors that are force multipliers and generates employment. One of the cornerstones of this budget is fiscal numbers that are transparent and has the potential to surprise us on the upside. In principle, the budget has rationalized the off-balance-sheet borrowings and headline fiscal deficit numbers, which will overtly please markets and even rating agencies. The fact that the expenditure announcements in the budget have been matched with the status quo on taxes will please everyone and bolster market sentiments.”