InvestorQ : What do experts and industry players have to say about the Budget 2021?
Mary Joseph made post

What do experts and industry players have to say about the Budget 2021?

sara Kunju answered.
1 year ago

As far as I could understand, the consensus view is the Budget had the right aim of focusing on growth at the cost of a little fiscal indiscipline. It’s a pragmatic & forward-looking budget, at the same time. The revenue projections have been kept conservative and imply a risk to the upside as would be expected from an economy on the rebound. The key though, is implementation (especially formation of the DFI and ARC) but does not look like a challenge given the government has shown a clear intent to walk the talk. Experts feel that the estimated, gradual reduction in the fiscal deficit from 9.5% to under 4.5% by 2024-25 will help boost consumption in the economy. The government’s big bet on infrastructure is bound to pay off in the long-term & will also catapult desired growth for real estate & the economy. The NPA’s of PSU banks have seen an encouraging reduction from 8.96 to 6.8 trillion by end of Fiscal 2020. The setting up of ARC & AMC for banks troubled with bad loans and NPA’s alongside the further recapitalization of Rs20,000 crores will help improve the lending capacity of the banking & financial sector.

Continuing with their stated intent of simplifying the tax regime and adding predictability to it, the government has proposed a few more measures in this budget, the most important one being reducing the time frame for reopening of old cases from 6 years to 3 years and that too at the highest level of authority. There are no additional taxes being levied and the income tax payer will get pre-filled returns, which not only simplifies the tax filing for individuals but also indicates the progress the government has made in integrating data across various organizations such as the banks, depositories, etc. This will reduce litigation while simultaneously make it difficult to evade taxes.

Experts also viewed the government’s push for innovation and research development as a step in the right direction. Besides, a host of substantial announcements were made on the divestment front, including the introduction of IPO of Life Insurance Corporation in 2022. The government’s support to the start-up ecosystem in India continues even this year as the FM proposed one-person company without any restriction on paid up limits, which will benefit the start-ups and innovators.