A robust capex push of 5.44 lakh crores is combined with the enhanced spending on the infrastructure, health & financial sector is growth positive & will go a long way in supporting economic recovery. However, the actual revenue generation, both via tax and non-tax receipts during FY21-22 will be instrumental in the management of fiscal situation as fiscal deficit is pegged at 6.8%.
To address the concerns around asset quality, credit loss and liquidity stress, this budget has been proactive to infuse additional capital of 20000 crores to PSU banks for providing continued credit access to wholesale and retail borrowers, and therefore push growth agenda specially for MSME sector.
The allocation of sizeable amount of Rs15,700 crores for incentivising MSME sector has been more than doubled which will give stimulus to the ailing MSME sectors.Setting up of 7 new Textile Parks will promote exports & give impetus to this sector.
The new developments for start ups allowing them to form one person company without any restrictions on paid up capital & turnover will be instrumental in focussing on execution of their innovative ideas.This budget has given further push to faceless assessment & setting up of dispute resolution committee will reduce the litigations.