The budget proposals have put growth over fiscal and this move has shown that the government has firmly put itself behind the steering wheel. The necessary push to the growth in the economy can be seen in the various budget proposals. The best thing that has happened is that there were no new taxes introduced by the FM. That means, more money remains in the hands of the individual to invest and spend. The consumer sentiment will help in reviving the consumption sector leading to growth in almost every sector of the economy.
With infrastructure spending getting the right boost, job creation will be sooner or later begin big-time. Overall, spending on infrastructure, healthcare will bring the focus back on growth and will surely take the nation to greater heights. An increase in the FDI limit in the insurance sector will by itself bring in the required technology and funds into the sector.
Finally, those who have been putting more money into their PF account voluntarily, need to take stock of the new development. The interest earned on PF contributions above a certain limit is going to be taxed. They should now look at equity mutual funds for generating a better return over the long term.
(The author is Chairman & MD, Bajaj Capital)
Published 01 February 2021, 13:22 IST