Days after presenting the Budget for FY22, finance minister Nirmala Sitharaman on Thursday highlighted the government’s resolve to undertake “big-ticket expenditure” in infrastructure, health and agriculture.
The government is confident that revenue generation will improve in FY21, the minister said. Even excluding disinvestments, non-tax revenue mop-up through other avenues, including asset monetisation, will grow, she added.
The government has budgetted a 15.4% rise in non-tax revenue collection in FY22 from the revised estimate (RE) for this fiscal. Its gross tax revenue is budgetted to rise 16.7% from the RE of FY21. Given that the government has based the tax projection on a conservative estimate of nominal GDP growth, analysts feel the actual collection will likely exceed the budgetted target.
It also targets to raise its capital expenditure by an impressive 26.2% (from the revised estimate for FY21) to Rs 5.45 lakh crore in FY22, stepping up focus on infrastructure creation.
Addressing a virtual event of Ficci, the minister said the Budget marked a “directional change” for the Indian economy and proposed to raise resources without increasing the tax burden.
Sitharaman called on India Inc to awaken its animal spirit, stating that the government alone can’t just meet the demand of a growing and aspirational India, and industry, too, must pitch in.
“This Budget mark a clear directional change for the Indian economy and that directional change is not what the government has offered as a sudden response, but it was something that was preoccupying the Indian minds for over 30 years,” she said.
“I underline that we have not burdened any section of Indian society with any additional demand for even an additional rupee,” she added.
Commenting on the setting up of a development finance institutions (DFI), Sitharaman said that the government will enable one DFI and the “entire financing of long-term infrastructure will happen in a very market-driven way”. That itself will bring in efficiency, she added.
Finance secretary Ajay Bhushan Pandey, economic affairs secretary Tarun Bajaj and Dipam secretary Tuhin Kanta Pandey also spoke at the event.