The Union budget has some clear-cut plans to ensure the country’s long-term growth in the next 25 years, said economist Prof Sachin Chaturvedi. “The budget has a special focus on three fronts: infrastructure, protecting the environment and creating quality human resources,” Chaturvedi said, as he decoded the Union Budget at the 23rd edition of the Malayala Manorama annual budget lecture on February 4.
Creating world-class infrastructure and ensuring more connectivity between rural and urban areas will be crucial for inclusive growth, he said. “The budget has laid clear plans for developing digital and physical infrastructure,” he added. Chaturvedi added that the transition to a digital economy is significant for the country’s progress. “The Union government’s plan to introduce a digital currency, digital university and e-passport should be seen as moves in this direction,” he said. But Chaturvedi did not mince words on the lack of clarity about control measures on digital assets like cryptocurrencies.
He called the latest budget a “politically correct” one. “There are no new taxes on anybody,” he said. “We have a lot of taxes already. If the income or corporate tax is further increased, it may bring a negative impact as the citizens are already under financial stress because of Covid-19.” The economist observed that the budget is the one that hopes for and promotes more private investments in India. “The private investors should invest more in India understanding the favourable chance offered to them by the finance minister,” he said.
Chaturvedi said there are good measures on the budget to ensure a low carbon trajectory and India’s leadership on the climate change segment. He said the states will have to play a crucial role in the fruition of many plans laid in the budget. Chaturvedi also observed that many state governments have fallen into a debt crisis because of the pandemic. “The Union government should offer more support to cash-strapped state governments,” he said.
Chaturvedi pointed out that the budget offers ambitious plans to boost technological capacities and skill development. “It also aims to create quality human resources in the country,” he said.