With new innovations, introducing the paperless budget the Finance Minister of India introduce the budget of decade in the parliament. The budget of decade is quite promising keeping into concern various sector of economy and being the first budget after pandemic, expectation from budget is very high. After the slowdown in the economy due to pandemic, concern was also as to how to revive the economy from slow down. The budget focuses on health and well being, capital and infrastructure, inclusive development, reinvigorating human capital, innovation and research and development, minimum government and maximum governance.
The fiscal deficit is set to jump to 9.5% of GDP in 2020 -2021. This is sharply higher than 3.5% of GDP that was projected in budget estimate. This budget has avoided giving any income tax relief. No increase in standard deduction, neither there is increase in tax slab. National face less income tax appellate tribunals centers will be set up which may help in resolving direct tax related issue.
FDI in insurance is to be hiked from 49% to 74%. Non performing assets are one of the major issues for our economy from long time. To resolve this, bad bank will be set up to consolidate and take over the existing stressed debt. Taking disinvestment target into consideration, two PSU’s and one insurance company with target of Rs.1,75,000 crores will be disinvested.
To generate employment, we will mostly depend on multiplier on infrastructure project. Seven mega investment parks will be set up. Two technologies-Metro light and Metro new will be deployed to provide metro rail systems in tier-2 cities and peripheral areas of tier-1cities. 100 new Sanik schools, 750 Eklavya schools in tribal areas will be set up.
Although the budget is fascinating but it has some loopholes. It does not take into consideration middle income, no extra effort for increasing employment no benefit to tax payers. All we can do is waiting and expect that budget helps in improving innovating and presenting a better economy.