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India’s Union Budget offers ‘a vision for next 25 years’

India’s Union Budget offers ‘a vision for next 25 years’

The Union Budget for 2022-23, which the government presented in February, will provide continuity with a tax predictable regime for the next 25 years, according to Union Finance Minister Nirmala Sitharaman.

She added that the Budget will make sure that the country is adequately positioned to celebrate when it attains 100 years of independence in 2047.

“This Budget stands more for continuity, to provide a tax predictable regime and also to make sure that we are planning for the next 20 to 25 years. It gives a vision and also some kind of roadmap through which we want to achieve fundamental infrastructure, which will help us to be proud of ourselves,” Sitharaman said during a Budget outreach event, where she asked industry and business people for their feedback and grievances.

Underlining that the country is only just emerging from the effects of Covid-19 pandemic, Sitharaman said the nation needed to have a support system in place, particularly for health services.

She also said that the Budget was about making sure that Indian states have a role in working with central Government, to ensure they have sufficient funding so they can actively engage in infrastructure projects.

Sitharaman said that Central Government was using the principle of PM Gati Shakti, which is a digital platform that aims to bring 16 Government ministries, including Railways and Roadways, together for integrated planning and coordinated implementation of infrastructure projects.

“The synergy of the various investments which are happening in different areas, whether they are ports or roads or bridges or trains will have to fall into each other’s domain and give us a collective strength [under the Gati Shakti project],” the Finance Minister said.


‘Financing for growth and aspirational economy’

Meanwhile, Prime Minister Narendra Modi has asked financial institutions to come up with “innovative and futuristic financing as well as risk management ideas” to fund the emerging needs of the economy.

Stating that implementation of green financing is the ‘need of the hour’ to meet net-zero carbon emissions target by 2070, Modi said financial help should be extended to environment-friendly projects.

“Our financing sector will have to look into new futuristic ideas, initiatives and think of innovative financing and sustainable risk management ideas,” the Prime Minister said in a post-Budget webinar on ‘Financing for growth and aspirational economy’.

He also stressed on the need to identify eight to 10 sectors in which India can be among the top three globally and asked the financial institutions to extend credit support to the country’s businesses.

He said the country is investing heavily in health infrastructure and asked banks to look into the possibility of prioritising credit to this sector.