The Union Budget 2022 is aimed at near term boost to consumption, as well as creating the necessary physical and social infrastructure to support the country’s long-term growth ambitions, said Siddhartha Sanyal, Chief Economist and Head of Research, Bandhan Bank.
“The Budget attempted to balance the needs of large and small industries and various segments of the population. While the details of the plans related to government borrowing needs to be scrutinised closely, the Finance Minister was mindful of not allowing the deficit to balloon,” he said.
The focus to support MSMEs by the extension of the ECLGS scheme till March 2023, with a larger corpus of fund is a welcome step. The CGTMSE scheme to support small and micro enterprises should also provide much needed support for this segment. Extending support for the affordable housing sector is heartening, given the strong forward and backward linkages of this sector and its potential to generate employment at various levels.
The focus on some of the long term priorities such as skill development, financial inclusion, social security, and clean energy in the budget remains noteworthy.