New Delhi [India], February 1 (ANI): The Confederation of Indian Industry (CII) Director-General, Chandrajit Banerjee on Monday welcomed the Union Budget presented by Union Finance Minister Nirmala Sitharaman and said it favoured a major expansion in government spending with a focus on capital expenditure to give a fillip to demand generation and strengthening the recovery momentum.
"This was much warranted and is in line with what CII has been strongly advocating with the Government. The 34.5 per cent rise budgeted in the capital expenditure spending for FY-22 mainly targeted towards major infrastructure expansion initiatives is laudable. This is likely to have a multiplier impact on the different sectors of the economy and develop confidence in growth beyond the current recovery," Banerjee told ANI.
While presenting the Union Budget 2021 in the Parliament today, Sitharaman proposed a sharp 34.5 per cent hike in capital expenditure for the FY2021-22 to Rs 5.54 lakh crores to push growth.
Chandrajit Banerjee further told ANI, "The Union Budget 2021-22 was truly a transformative one as it pulled out all levers within its ambit to mark yet another successful attempt by the government to rejuvenate a pandemic ravaged economy. The bold measures which encompassed almost all critical sectors of the economy are expected to galvanize the recovery process which has been set into motion."
"Many of the CII recommendations such as setting up of Mega Investment Textile Parks, Development Financial Institution (DFI), National Asset Monetisation Pipeline, Asset Reconstruction and Management Company on the lines of a Bad Bank found a place in the budget. In addition, we also welcome the announcement of a large 137 per cent increase in spending on health and wellbeing for FY-22, which was much warranted in the current circumstances," Banerjee informed.
Union Finance Minister informed that the budget outlay for health increased to Rs 2,23,846 crores in 2021-22, an increase of 137 per cent in comparison to the previous year's budget.
She also said the central government has provided Rs 35,000 crores for the COVID-19 vaccine in 2021-22. (ANI)