Despite poll pressures, FM focussed on growth, boosting both investment and consumption
Despite the pressures of a forthcoming election, this year’s budget has done an excellent job of maintaining the emphasis on economic growth. Of the “Saptarishis” or seven priority areas that the FM emphasised, I focus on two key areas that will contribute significantly to growth: public capital expenditure (capex) and the financial sector.
Starting from Budget 2021-22, which started India’s policy response to Covid by focussing on public capex, this year’s budget has increased the outlay for public capex for the third consecutive year. The 33% increase brings the budget capex outlay to Rs 10 lakh crore or 3.3% of GDP. This amount is thrice what was allocated for public capex in 2019-20.
Starting from Budget 2021-22, which started India’s policy response to Covid by focussing on public capex, this year’s budget has increased the outlay for public capex for the third consecutive year. The 33% increase brings the budget capex outlay to Rs 10 lakh crore or 3.3% of GDP. This amount is thrice what was allocated for public capex in 2019-20.