Government of India Union Budget 2021 is a convergence of pragmatic and prismatic perspectives reflecting the currents of development finance and contours of radical markets emanating from the reviving and resurgent Indian economy. The COVID pandemic has demonstrated the a direct dichotomy in the resilience of macro economy and the ruptures across the micro economy in India at large. This has highlighted the fact that while India has a very salient and fault tolerant communication ad financial infrastructure, our healthcare, agriculture and transportation infrastructure has a lot of limitations.
Despite having a scalable and secure digital identity infrastructure and communication network, we faced a lot of challenges in the labor movement across India during the pandemic time. We also faced a very uneven and fragmented response to the implementation of lockdown across the states.
All of us remember how Indian economy responded to the demonetisation drive from the Government in a swift and seamless manner. It had its own challenges such as the cacophony and confusions in the MSME sector. These issues in the realisation of demonetisation can also be traced back to the limitations in the auditability and accountability of the commercial infrastructure and the monolithic nature of the monetary markets. As a sequel to the demonetisation drive, now we are seeing the rise of a national asset monetisation drive in this budget.
In this context, the projections and perspectives of the union budget assumes paramount importance. Union Budget 2021-22 aims to bring down the excess deficit of 9.5% of GDP in FY21 to 4.5% by FY26 by means of concerted efforts at fiscal consolidation. This budget approaches fiscal consolidation through expenditure compression rather than increased tax buoyancy.
The focus on asset monetisation together with the continued efforts on divestment and foreign investment would be an interesting measure to support the fiscal fusion and convergent consolidation. Government institutions like Railways, Sea Ports and Air Ports, Power Plants etc. would be a prime point of focus in this factorisation program. The national asset monetisation drive could be a driver to unlock the real asset value through innovative business models, emerging technologies and digital disruptions.
The budget allocation for COIVD19 vaccination in conduction with the concerted efforts to install a nation wide network of primary, secondary and tertiary healthcare centres in quite an interesting approach. It could harmonise the existing and emergent healthcare services industry with the nascent and niche vaccination supplychain.
It is very interesting to see that the Government of India is quite conscious about the necessity of a governance, regulation and compliance framework to streamline and stabilise the economic engine in the post pandemic polity through the policy of ‘minimal government, maximum governance’.
It is very evident that the Government of India is not in favour of massive economic stimulus programs and ubiquitous and universal basic income programs, popularised by many mainstream economists and fiscal policy makers. Instead, we can see the prisms of a new pathway to revitalise the fundamental fabric of Indian Economy by empowering the radical markets for the agricultural workforces and enabling the seamless supplychain systems across the length and breadth of the country.
It is definitely a fresh approach to governments and governance ; a gargantuan democracy like India adopting a calibrated, and curated approach to vitalise the economy by connecting markets, land, labor, and capital through transparent and t