The Union government has made yet another successful attempt through the Budget to rejuvenate a pandemic-ravaged economy, the Confederation of Indian Industry, Kerala, has said. It termed the Union Budget transformative.
The bold measures for all the critical sectors of the economy are expected to galvanise the recovery process that has been set in motion, Thomas John Muthoot, Chairman, CII Kerala, has said.
The 65,000 crore allocated for the development of 1,100 km of National Highways in Kerala will be a huge boost to infrastructure. The ₹1,967 crore set aside for the second phase of the Kochi metro will ease traffic congestion in the business hub of Kerala. Export potential will get a boost with the plan to develop Cochin fishing harbour into a commercial hub. States will benefit from the 41% share of taxes as recommended by the 15th Finance Commission.
The announcement of a Development Financial Institution (DFI) which will play a critical role in channelising investments in infrastructure and other key sectors is in line with CII’s recommendations.
“The proposed National Asset Monetisation Pipeline is likely to not only boost sentiment but also generate additional resources. This is something CII has been strongly advocating,” he said.
The CII welcomed the proposal to consolidate provisions of SEBI Act, Depositories Act, Securities Contracts Regulation Act, Government Securities Act. It may further enhance the ease of doing business. The ₹20,000 crore allotted for public sector banks would boost the banking sector.
The CII said the Budget “ticked all the right boxes of lives, livelihood and growth which would propel the economy to an inclusive growth trajectory.”