Promises an 'honest leakage-free implementation' of proposals
On Friday, Finance Minister Nirmala Sitharaman said transparency and tax stability were the key guiding principle of Budget 2021-22.
Contrary to the expectations of a COVID-19 tax, the government has chosen to fund the budget stimulus through higher borrowing rather than increased taxes, she said. The FM was addressing members of industry chamber, Confederation of Indian Industries.
While the Union Budget 2021-22 provides for enhanced capital expenditure by the government, it also envisages private sector participation in a big way, the finance ministry said in a statement quoting the minister.
On the Budget announcement of setting up a Development Finance Institution (DFI), Sitharaman said the government will provide some capital and raise funds from the market.
Besides, the Development Financial Institution (DFI) Bill will provide legislative space for private DFIs.
The government proposes setting up a Rs 20,000 crore DFI to mobilise Rs 111 lakh crore required for funding of the ambitious National Infrastructure Pipeline (NIP).
NIP, a first-of-its-kind initiative to provide world-class infrastructure across the country and improve the quality of life for all citizens will be crucial for attaining the target of becoming a USD 5 trillion economy by FY 2025.
Similarly, the Asset Reconstruction Company (ARC) for managing non-performing assets (NPAs) will be floated as a holding company by the banks themselves, with government support.
Elaborating on the thrust areas, the finance minister said that the focus has been on segments with high multipliers. These were infrastructure sectors like power, roads, ports, and airports, facilitating the private sector. Healthcare and agriculture have been the other priorities.
The finance minister also promised an 'honest leakage-free implementation' of the Budget proposals.