Below are Quote On Union budget 2021 By Anagha Deodhar, Senior Economist - ICICI Securities

Union Budget FY22 was full of pleasant surprises. Although fiscal deficit has increased sharply and consolidation path has been prolonged, the quality of expenditure in FY22 and beyond is likely to improve. This is evident from the fact that the share of capex in total expenditure is budgeted to increase, expenditure on subsidies is set to fall, and lower share of fiscal deficit is budgeted to be spent on financing current consumption.

Also, by accounting for ‘below-the-line’ items such as loans to FCI, the government has taken an important step towards making its finances more transparent.

On the revenue front, direct and indirect taxes were left broadly untouched. This is likely to boost sentiment and aid consumption recovery. Overall, its assumptions on tax buoyancy, growth and asset sale look credible and achievable. Moreover, major announcements such as forming of a bad bank, privatization of two PSBs, thrust on privatization, LIC IPO, hike in FDI limit for insurance sector etc are big positives. The FM definitely lived up to her promise of delivering a ‘budget like never before’.

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