STOCK MARKET BSE NSE

Higher spending on health, infrastructure and education a must: Assocham on Budget 2021

Assocham expects the finance minister to deliver on key demands of rationalisation of GST rates, higher spend on health, education and infrastructure, among others.

Published: 31st January 2021 12:36 AM  |   Last Updated: 31st January 2021 09:58 AM   |  A+A-

Tax, Fraud, Property Tax, Income tax

Image for representational purpose

Express News Service

NEW DELHI:  People from all walks of life would be keenly following  Nirmala Sitharaman’s words when she presents the ‘budget like never before’ on Monday.  

While increased public spending would be the focal point of all desires, the industry body Assocham expects the finance minister to deliver on key demands of rationalisation of GST rates, higher spend on health, education and infrastructure, among others.

“As we are coming out of a pandemic, it is clear that the kind of impetus that the government needs for growth will be extremely critical for the next few years – both from the aspect of spurring investment and ensuring social inclusion. The government must relax its fiscal policy for 1-2 years so that there is ample room for continued investments. Any kind of fiscal deficit should not be considered as expenditure, but as an investment for the future to revive growth,” the newly-appointed Assocham president Vineet Agarwal told TNIE. 

Sector-wise, the government must invest more on infrastructure such as roads and rural projects.

Similarly, public and private spending on healthcare and education should also increase as these would be investments for the future.

“As spending on infrastructure has three times the desired impact, the `111 lakh crore National Infrastructure Pipeline should be expedited,” he added. 

According to Agarwal, who is also the MD of Transport Corporation of India, the government must increase allocation on schemes such as PM Gram Sadak Yojana as it has a trickle-down effect in not only increasing rural employment, incomes but also in building better infrastructure for agri supply chain.

With the logistics sector at the forefront of India’s aim to improve exports and domestic consumption, Agarwal said the government must focus on projects that promote multimodal transport.

Currently, 60 per cent of freight is moved through roads but the costs can be reduced if it is moved via rail and water.

Secondly, India needs more hospitals, specialty care centres, and expenditure on R&D, so that the country is ready for pandemics in the future.

“Government should look at reducing taxes rather than imposing new ones. GST rationalisation will push consumption-related demand, which has been contracting for the last two quarters,” said Agarwal.

To be sure, much of India has moved on from a time when roti, kapda aur makaan were its prime worries. Today, it is more focused on, for instance, broadband, which has become a fundamental need.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

edexworks
flipboard facebook twitter whatsapp