Budget 2021 Expectations: Anil SInghvi says there should be measures that bring money in the hands of people, do not impose any new tax

Zee Business Managing Editor Anil Singhvi says the name given to this Budget is “Growth Ki Vaccine”. The Budget Announcements would be great and historic if Finance Minister focuses on Growth aspect of the economy. The key point is growth of the economy should be improved not only in 2021 but beyond this year as well. Sectors that are facing hurdles and struggling with growth should be revived and Government should infuse money in these sectors to revive them. People have lost jobs in several sectors, which in turn will impact consumption sector, loans segment and NPAs of the Banks worsens.

Initially, hospitality and aviation sector should be revived as they are still struggling. Demand will only increase when people will have more money in their hand to spend. Focus on increasing job opportunities in various sectors will help people earn their livelihood and spend on consumption and necessities. Introduction of any new tax or increasing the taxes based on the current tax structure should be strictly avoided.

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Government spending did get impacted due to Covid expenses, also the revenue of the Government was down as Businesses were shut and no revenue was generated during lockdown phase. Introduction new taxes or increase additional taxes to improve Government’s Income should be avoided. In fact, there should be some relief given to people that leaves some money in their hand to spend further.

Banks have lot of money but corporates are not willing to burrow and incur additional expenses on increasing capacities. Credit off take has been disappointing for Banks. Corporate should be given some boost to take benefit of Make in India campaign, Aatmanirbhar Bharat or Vocal for Local themes introduced by the Government.  Foreign companies are interested to come into India, this is a good opportunity for the Government of India to make India as Global Manufacturing Hub. Government should focus on those sectors that will bring big investments in India and generate good employment opportunities.

Government should have enough money to spend on the Infrastructure facilities and also Divestment of the Government companies should be done at the right time to garner good valuations. Maintaining the fiscal discipline is of utmost importance to the Government of India.