By Dr Rashmi Saluja,
The Indian economy is witnessing a rebound and we expect the forthcoming Union Budget to focus on further strengthening this economic recovery and ensure that the growth momentum is both robust and sustainable. The budget could be a continuation of the Rs 20 lakh crore Atmanirbhar Bharat package that the government announced in 2020, to combat COVID. Given that the budget will also need to make sizeable fund provisions under various schemes to support growth, the government is likely to amend the FRBM Act to make room for a higher fiscal deficit. At the same time, the budget should explore ways to monetize its non-core assets to shore its finances.
Adequate flow of low-cost credit is crucial at the current juncture as businesses reinvigorate and get back on their feet. This is particularly needed for MSMEs and start-ups as they are among key growth drivers in the economy. The budget should look to significantly improve the enabling environment for businesses by ensuring easy availability of working capital, new incentives to boost revenues, hiring and digitization, a quicker refund of GST, and easier tax compliance. The Production Linked Incentive (PLI) scheme has received an encouraging response and it should be extended to more sectors. All these measures will not only provide a fillip to local manufacturing but will also boost India’s Ease of Doing Business ranking.
(The author is an Executive Chairperson, Religare Enterprises Ltd)