CII hails rise in public capex, asserts 'budget will rejuvenate pandemic ravaged economy'

Welcoming the Union Budget 2021, Confederation of Indian Industry (CII) Director-General, Chandrajit Banerjee stated that the budget was much warranted and in line with what the body had been advocating to the Government adding that the hike in the public CAPEX was 'laudable.'

"This was much warranted and is in line with what CII has been strongly advocating with the Government. The 34.5 per cent rise budgeted in the capital expenditure spending for FY-22 mainly targeted towards major infrastructure expansion initiatives is laudable. This is likely to have a multiplier impact on the different sectors of the economy and develop confidence in growth beyond the current recovery," Banerjee told news ANI. 

The Finance Minister has proposed a sharp rise in capital expenditure for the next fiscal from Rs 4.39 lakh crore to Rs 5.54 lakh crore. Over and above this expenditure, the government would also be providing more than Rs 2 lakh crore to states and autonomous bodies for their capital expenditure. 

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'CII's key recommendations included'

The CII DG also opined that the budget had managed to pull out all levers within its ambit to 'rejuvenate a pandemic ravaged economy'. "The bold measures which encompassed almost all critical sectors of the economy are expected to galvanize the recovery process which has been set into motion," he said. 

"Many of the CII recommendations such as setting up of Mega Investment Textile Parks, Development Financial Institution (DFI), National Asset Monetisation Pipeline, Asset Reconstruction and Management Company on the lines of a Bad Bank found a place in the budget. In addition, we also welcome the announcement of a large 137 per cent increase in spending on health and wellbeing for FY-22, which was much warranted in the current circumstances," Banerjee informed.

Union Budget 2021

In the first post-COVID budget, FM Sitharaman allocated a whopping 2.83 lakh crores - a 137% hike for the Health sector, introducing a Centre-sponsored Health system - PM Aatmanirbhar Swasth Yojana with an outlay of Rs 64,180 crores over 6 years in addition to the National Health Mission. Other major points of focus in this year's budget are the 'National Monetization Pipeline' which covered key state assets to be monetized, strategic disinvestment of several PSUs, increased FDI limit from 49% to 74%, disinvestment, infrastructure, agriculture, fiscal deficit, and direct taxes.

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(With Agency Inputs)