February 02, 2021 00:02 IST
Updated:
February 02, 2021 00:02 IST
Updated:
February 02, 2021 10:51 IST
In times that call for deft stewardship of the economy, this year’s Budget is a starting point
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In times that call for deft stewardship of the economy, this year’s Budget is a starting point
Finance Minister Nirmala Sitharaman made a brave effort to make good use of the lessons learnt from the unprecedented global health crisis and ensuing economic setback to put lives and livelihoods back on track. There is greater spending on health care and some fiscal push to undergird the struggling demand in the pandemic-hit economy. But this is no transformative budget that lives up to the heightened expectations of a weary population waiting for manna from the government. A lot more could have been done to address the chronic underinvestment in India’s public health infrastructure by appreciably raising expenditure.
NEW DELHI: Bank stocks on Monday were in the limelight, rising up to 15 per cent following a host of announcements in the Budget for the secor such as the proposed setting up of an asset reconstruction company and an asset management company (AMC) to clean up non-performing assets.
Shares of Indusind Bank zoomed 14.75 per cent, ICICI Bank gained 12.47 per cent, State Bank of India jumped 10.30 per cent, Axis Bank 7.05 per cent, Federal Bank 6.63 per cent, HDFC Bank 6.21 per cent, Kotak Mahindra Bank 5.13 per cent, Bandhan Bank 4.48 per cent on the BSE.
Among others, Bank of Baroda rallied 8.60 per cent, Bank of India 7.44 per cent and Punjab National Bank 6.89 per cent.
A promising Budget with a few disappointments
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Updated:
February 02, 2021 00:14 IST
While the Budget promises to revive the economy faster, it continues to emphasise the protectionist trend
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While the Budget promises to revive the economy faster, it continues to emphasise the protectionist trend
Besides impacting the disposable incomes of the people, the Union Budget is significant for three reasons. First, it delivers the balance sheet of the government and informs us about what happened in the past year and what is proposed to be done in the next year. Second, it shapes the macroeconomic environment of the country in terms of its proposed impact on macro economy due to decisions on raising resources and spending. Finally, it provides reform signals on which economic agents place their expectations.
Push for healthcare, infrastructure is welcome: Ajay Piramal
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In the context of the current economic environment, the Finance Minister has delivered a path-breaking Budget 2021-22. Of the various announcements made in the Budget, we would like to commend her for the decisive push towards strengthening healthcare and infrastructure.
Taking a holistic approach to health, the government has focussed on strengthening three areas - Preventive, Curative, and Wellbeing. The renewed impetus on improving the health infrastructure of the country through Atmanirbhar Swasth Bharat Yojana, nutrition schemes, clean water supply and air, and vaccines, has witnessed a significant rise in the Budget outlay from ₹94,452 crore last year to ₹2,23,846 crore this year. This will bolster the ongoing National Health Mission and enable the transformation of public healthcare, as we know it.
The Union budget for 2021-22 has delivered no surprises. The government has utilized fiscal policy as the last resort to stimulate economic recovery. As a result, the revised estimate for the current year’s fiscal deficit is 9.5 per cent of the gross domestic product and the budget estimate for 2021-22 is 6.8 per cent. These numbers are far away from the conservative target of 4.5 per cent. The finance minister, Nirmala Sitharaman, has not changed direct tax rates and tinkered with only a few customs duties. On this count though, Ms Sitharaman has kept open the possibility of introducing new customs duties in October 2021 when she finishes reviewing 400-old exemptions that are on the books. On the expenditure front, the finance minister has focused on the capital account, which has been raised from the revised estimate of Rs 4.39 lakh crore for the current year to Rs 5.54 lakh crore as the budget estimate for 2021-22. This will be financed, along with a revenue expenditure of Rs 2.