budget 2021: Budget focused on multiplier effect: FM Nirmala SitharamanFebruary 5, 2021
Healthcare and Agriculture have been the other priorities for the budget, she said.
She said while the Budget provided for enhanced capital expenditure by the government, it also envisaged private sector participation in a big way.
Interacting with CEOs at a post-budget session organised by CII, the finance minister promised an ‘honest leakage free implementation’ of the budget proposals.
Sitharaman said though the government will provide some capital for the proposed Development Finance Institution, it will also raise capital from the market.
The minister said the proposed bill will also provide legislative space for private DFIs.
The government is likely to introduce the DFI bill in the budget session itself.
Similarly, the Asset Reconstruction Company for the management of non-performing assets (NPAs) will be floated as a holding company by the banks themselves, with support from the government.
The proposal for setting up of what is popularly called the bad bank was mooted by the Indian Banks Association and will be jointly floated with public sector banks as well as other scheduled commercial banks.
She had announced an Asset Reconstruction Company and an Asset Management Company in her budget speech.
Uday Kotak, president, CII said that the budget was an example of an outstanding policy document which addresses the needs of the economy. He appreciated the boldness of the announcements, and the focus on growth and transparency.