Budget 2021 Review - A Big Push For Growth, Privatisation: Prabhudas Lilladher

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Prabhudas Lilladher Report

Budget 2022 has made bold moves towards growth in an year marred by Covid-19.

The only disappointment has been 9.5% fiscal deficit for FY21 and 6.8% for FY22, however increase in Budgetary allocation of capex by 26%, 17% increase in tax revenues, 14.4% nominal gross domestic product growth are positives.

We believe Government of India has preferred growth over slightly higher fiscal deficit with big push coming in water, urban Infra and roads.

Public sector undertakings divestment of two PSU Banks and one general Insurance company and sale/closure of non strategic state owned enterprises is a step in right direction. spending on social schemes like Rs 350 billion for vaccination, healthcare infra, PM Awas Yojana, Agri Infra are positive for creating long term growth drivers.

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