Experts in finance termed the Budget 2021-22 as consistent so as to give a continued push to reforms while stating that it made no efforts to increase money in the hands of people who were hit by the pandemic. On the other hand, political parties termed the budget as one triggering inflation.
The underlying tone was giving a push to employment, jobs or entrepreneurship, said Vishwanathan Iyer, professor in accounting, economics and finance and Dean (Academics), T.A. Pai Management Institute, Manipal, in a statement. The large outlays for roads, ports, power and urban infrastructure results in economic revival.
The budget also stays inclusive with focus on human capital development and vulnerable populations through education and employability.
Aditya Mohan Jadhav, professor in accounting, economics and finance, TAPMI, said that an increase in health budget by 134 % was needed following the pandemic. National Asset Monetisation Pipeline, disinvestment target of ₹ 1.75 lakh crore and IPO of LIC was important given that the fiscal deficit is expected to be 6.8 %.
The key miss, Prof Jadhav said, is the lack of focus on households that have taken an income hit from the pandemic. While it might result in retail banking NPA surge, the budget did not take substantial initiative to increase money in the hands of people.
The focus on implementing NEP through 15,000 schools across the country as mentors is welcome, said Rajiv V. Shah, professor in accounting, economics and finance, TAPMI. Higher Education Commission for accreditation of colleges is much awaited as accreditation is currently being done by multiple agencies. The move to pre-fill income tax returns with data from sources other than employers is a subtle move towards the increased use of IT in governance.
Meera L.B. Aranha, professor and chairperson, banking and financial services, TAPMI, said that the proposal to enhance investor protection to financial investors and to amend the DICGC Act for streamlining protection to bank depositors is a clear positive. The amount kept for re-capitalisation of banks is inadequate indicating that the government is going ahead with privatisation of banks.
Increased burden
DYFI State president Muneer Katipalla said that the only achievement of the present budget is increased taxes. Insurance companies and the Railways will get privatised through PPP and increase in FDI. The budget is silent on employment generation. While there is a large outlay for States facing Assembly elections in April-May, Karnataka did not get enough outlay even during elections.
Communist Party of India district secretary V. Kukyan said that the budget is found to cause price rise of essential commodities.
