Finance Minister Nirmala Sitharaman presented the Union Budget 2021 today with sky-high expectations from the citizens of the country.
The panel discussion moderated by Siddharth Zarabi comprised Arvind Virmani, Karan Bhasin, Dhiraj Nayyar and senior journalist Yatish Rajawat.
Asked to rate the budget, Virmani said: “It’s one of the outstanding budgets. I look for one big idea and a number of supporting reforms. The big idea in this Budget is framework for strategic sale.”
Another big highlight of the Budget 2021 is the announcement of Asset Management Company, a big step towards addressing non-performing assets of banks.
“We have been unable to get a grip on the issue of public sector banks and how to proceed forward. We were struck with the name adjustment. The government has announced the bull by the bank. For public sector bank, there are layers of scrutiny. The big problem in taking decisions is that someone is always ready to pounce on decision makers to allege corruption. The basic problem had to be solved. What ARC does is to put an intermediary in between, which will then make it easier from the anti-corruption perspective,” said Virmani.
When asked about the sharp correction in the fiscal deficit, being revised from 9.5 to 6.8%, he said: “Survive, revive and regrowth. We have already survived. Most of the economy is revived, except for contact services. For the rest of the economy, we have to move to the regrowth phase. I see it as a right balance.”
While India’s economic growth revival has been stunning, unemployment rate also surged simultaneous. While the economy is slowly limping to recovery post the pandemic, unemployment concerns have still not been addressed.
Speaking about whether the announcements will support private capital formation, Virmani said: “I have carefully analysed unemployment data. My economic evaluation says there is a temporary jump in unemployment. I had made 2 suggestions to the FM. One focus on infrastructure. The government has done well in this part. The second is, to address concerns of the contact services which are mostly done indoors. Vaccine will take another 12 months to cover the population. So I would still hope some incentive for this sector. If these two are done, the short term unemployment will be addressed.”
