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This was probably the most awaited Budget in recent times, given the fact that it came not just in the backdrop of the Covid pandemic but also at a time when there’s unprecedented economic stress all around. Despite the tough situation, Finance Minister Nirmala Sitharaman has delivered a highly progressive and growth-oriented Budget that has all the right ingredients to kickstart the manufacturing engine.
With this Budget, also the first Digital Budget, the Finance Minister has deftly juggled fiscal deficit with the prospects of economic growth, and it clearly displays the Government’s resolve to drive back economic growth.
The biggest takeaway in this year’s Budget is the government's bold move towards higher borrowings to focus on long-term growth. The government has decided to focus on economic growth, healthcare, infrastructure development and privatisation, besides supporting employment generation.
It’s also heartening to see the government’s continued focus on Bharat, or rural India, with an increase in allocation for credit flow through NABARD, and the introduction of Agriculture Infrastructure Development Cess through restructuring, without consumers having to pay more.
The FMCG industry has been witnessing rural demand growing ahead of urban India for several quarters now, and the announcements in this year’s Budget are expected to further fuel this growth.
There are also several decisive steps forward on the reforms front in the form of raising the FDI limit in insurance, privatisation of two public sector banks, besides offering relief to non-resident investors on dividend income.
Another big positive in this year’s Budget is the absence of any negatives. In the run up to the Budget, there was growing buzz about an increase in taxes and also imposition of a Covid cess. The fact that there were no changes in taxes signals policy stability in the tax regime.
In a nutshell, this is truly a progressive Budget which focusses on creating an enabling framework that would promote economic growth.
The writer is Chairman, Dabur India Ltd
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