Budget insights: Union Budget 2021-22

The FM has done a prudent job of prioritising spending to address immediate needs and mid to long term goals across critical areas. Privatisation, substantial increase in FDI in the insurance sector as well as other announcements around asset monetisation, INVITs/REITs are progressive measures that will definitely have a far-reaching positive impact on creating a conducive ecosystem for business and help address some legacy issues. The FM had an unenviable job of striking a balance on the fiscal deficit front without altering tax rates to fuel economic growth and must be complimented for having achieved it. The thrust on digital, affordable housing, inclusive growth, ease of doing business, innovation and R&D are steps towards making India future ready. However, operational detailing and seamless execution will be critical.

India’s first digital budget is symbolic of the government’s resolve towards a truly Digital India. Announcements around the digital census, creating an enabling eco-system to further a ‘Digital First Mindset’ in education, adding impetus to fintech, etc. are positive moves that can add momentum to the pace of digital adoption in a post pandemic world.