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Union Budget 2021-22 to Propel Growth and Employment

In Business
February 02, 2021

Commenting on the Union Budget 2021-22 Dr. M.I. Sahadulla, Co-Chair, FICCI Kerala State Council termed budget as “growth-oriented budget that lays a strong foundation for an Atmanirbhar Bharat. Government chose growth over fiscal consolidation is indeed heartening. with sharp focus on capital expenditure. It’s heartening the Finance Minister has taken concert steps to improve the Ease of Doing Business and encourage compliance.”

There has been a strong emphasis on infrastructure development be it social, physical, or financial infrastructure. Increased allocation to strengthen Health sector. Government has shown commitment to augment resources through several bold and strategic measures such as the disinvestment agenda plan to monetize the land banks Increased thrust on n attracting capital from abroad. The proposed simplification in REITS and InVITS alongside the announcement of InVITS by NHAI and PGCIL will help attract foreign investments in these areas. Setting up an Asset Reconstruction and Management Company and National Research Foundation are all welcome move.

Kerala has plenty to cheer about with Rs.65,000 Cr. allocation for development of National Highways which would a great boost to speed up the development on going pending National Highway development projects, Clearance of Phase II of Kochi metro and most important to include Kochi Fishing Harbour in the proposed 05 fishing harbour projects and the proposal to notify rules for removing the hardships of doble taxation for NRIs.

Tourism and hospitality sector which is under crises due to Covid has not received the necessary vital support in the budget.