Budget 2021 addresses near-term challenges but is also far-sighted: Acuity’s Paul Alapat
Finance Minister Nirmala Sitharaman has hit the right spots in the Budget for 2021-22 as it strives to not only tackle the immediate problems facing the economy but also meet long-term challenges, according to Paul Alapat, Chief Product Officer at analytics firm Acuity Knowledge Partners.
Speaking to YourStory after Sitharaman’s speech in Parliament, Alapat said the Budget has stressed on job creation by focusing on infrastructure sectors such as ports, power, and railways.
The focus on infrastructure development will have a “multiplier effect” on boosting demand and employment, he said.
Alapat also praised the initiatives announced for the financial services sector, especially the setting up of a bad bank to clean up the books of public-sector lenders and the decision to privatise two state-run banks.
“A bad bank is a right way to address non-performing assets,” he said.
Talking about the fiscal deficit, Apalat said the government should not worry about the Budget gap but instead ramp up spending to revive demand in the economy. He specifically singled out the education and vocational training sectors where the government must increase spending.
Overall, the Budget exceeds expectations but could have been a little bolder, Apalat said. He also added a word of caution. “The Budget’s statement of intent is absolutely right,” he said. “The big challenge is execution.”
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For YourStory's multimedia coverage of Budget 2021, visit YourStory's Budget 2021 page or budget.yourstory.com.