Rather than increased taxes, borrowing to fund Budget stimulus, says Nirmala Sitharaman

Finance Minister Nirmala Sitharaman said Friday the Budget FY22 provides for enhanced government capital expenditure, especially in infrastructure, health and agriculture sector. The Budget also seeks private sector participation in a big way and provides space to set up of private DFIs, she said at a post-Budget interaction with top CEOs held by the Confederation of Indian Industry (CII).

Though the government will provide some capital for the proposed Development Financial Institution (DFI), the body will also raise capital from the market. In addition, the DFI Bill will provide legislative space for private DFIs.

Similarly, the asset reconstruction company to manage non-performing assets will be floated as a holding company by the banks themselves, with support from the government, she said.

“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, as per a Finance Ministry statement. The spending push will focus on high multiplier areas like infrastructure which would facilitate private investments in power, roads, ports, airports, apart from healthcare and agriculture.

CII president Uday Kotak said the Budget focus on growth and transparency was on right track. Budget proposals also displayed the government approach of encouraging private enterprise and respecting the markets, he said.

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BJP presents suggestions for upcoming union budget to Nirmala Sitharaman

NEW DELHI: BJP presented suggestions compiled by party office-bearers and state representatives for the upcoming budget to Union Finance Minister Nirmala Sitharaman on Monday in a pre-budget meeting held at party headquarters.

As per an official release, suggestions compiled by delegates from various social organisations were also presented by means of PowerPoint presentations and written representations.

The party said that 17 representatives from different segments of society participated in the meeting along with their colleagues.

“Issue for the development of the respective states and different segments were presented to the Finance Minister. Farmer’s concern, expectations of labour force and trade and industries’ wish list including middle-income group’s concerns were extensively discussed in the meeting,” it stated.

It further said that the representative expressed their views on resource mobilization for the government, and how taxation and GST implementation can be eased for traders, industrialists, and common men.

“Representative of social organizations expressed their views on how they can better participate towards the outreach of the social welfare schemes of the government to all segments of the society. New provisions that can be brought in the next budget with regards to this outreach were also discussed,” it added.

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