Next Budget will have 'vibrancy' for sustainable economic recovery: FM Nirmala Sitharaman at ASSOCHAM

Addressing the ASSOCHAM Foundation Week virtually, the Finance Minister said while she cannot share  clues about the Budget, ''the  forthcoming Budget will have the vibrancy required for revival of the economy."

"This emphasis that the public spending on infrastructure has to be kept up, has been fully recognised,'’ she said.

She said, ''Something which will certainly feature; we shall definitely sustain the momentum on public spending on infrastructure because that is the one way, we are sure, that multipliers will work and the economy's revival will be sustainable.. I will  do everything that it takes to make sure that the Budget has these ( momentum on public spending on infrastructure)."

Sitharaman said the Government has stepped up the market borrowing programme to ensure that adequate funds are provided for infrastructure development and other stimulus programmes. As of November 30, Rs 9.05 lakh crore has been borrowed from the market which is 68 per cent more than the funds so raised in the comparable period of the previous fiscal.

She said, the government along with the Reserve Bank of India has given away stimulus and bail-outs worth Rs 30 lakh crore to mitigate the impact of Covid-19 pandemic on the economy, especially the poor sections of the society; MSMEs and the sectors which were affected the most.

The Finance Minister said the disinvestment programme did suffer some delays because of the pandemic, but would gather momentum in the coming months. The disinvestment programmes which have been given the Cabinet approval would be taken up in all earnest, she said. She emphasised on corporatisation of not only the DRDO labs but also banks where ''I want them to run professionally... they should also be able to raise money from the market. Even that emphasis is being given''.

She said that  the National Infrastructure Investment Fund (NIIF) is doing its best to attract funds from abroad and there has been a good response to the sovereign fund which has been extended the tax concessions.

Dr. Niranjan Hiranandani, President, ASSOCHAM, said: “Indian economy has shown a greater resilience and expects a sharper growth trajectory in 2021. The positive GDP outlook forecasted is indicators of rebounding economy with fiscal measures that stimulated supply side of economics and pent-up demand from consumer beckoned demand impetus."

"The fundamental growth story of India remains optimistic with being one of the largest consumer markets of the world. The Government's mission of a $5 Trillion economy with Atmanirbhar Bharat objective continues to attract global investment in backdrop of measures taken to improve ease of doing business and innovative policy reforms.

"The Government spending is expected to increase voluminously as it will lead to employment generation and multiplier effect on allied industries to scale up. We also expect the government to further rationalize individual taxation which acts a breather for consumers and helps the economy recuperate quickly, he said.

Vineet Agarwal, Sr. Vice President, ASSSOCHAM, said: “The focus on strengthening the manufacturing sector along with supporting the MSME’s has to be the centrepiece of any course of action directed to make Atmanirbhar Bharat”,  

Sajjan Jindal, Past President, ASSOCHAM & Chairman, JSW Group, said: "The upcoming 2020-21 Union Budget has the potential of being a “game changer” for the Indian economy. Under the current economic circumstances, I believe that the measures and policies to be announced in this budget should focus on the revival of the stressed sectors that were left out in the announcements made by the Government earlier."