In this special coverage of Union Budget 2021, CNBC-TV18’s Anshu Sharma caught up with NITI Aayog Vice Chairman Rajiv Kumar.
While giving his take on budget 2021 Rajiv Kumar said, “I am so pleased to see such a big thrust on non-tax resource mobilisation and a very specific implementation plan which includes the setting up of a dashboard for asset monetisation for closer monitoring and implementation. I think that this year we will achieve the targets and also we will see significant step forward in this respect of divestment, privatisation and asset monetisation.”
On GDP growth he said, “The real rate of growth has been estimated at 11 percent by both the budget and the economic survey. Now this is I think a conservative estimate because IMF has said 11.50 percent, but I am confident that with this landmark budget that has been announced with so many reforms, structural reforms which will improve the ease of doing business, and improve the investors sentiment, we will continue to grow at 7-8 percent in the subsequent years in real terms that means at least 12-13 percent nominal rate of growth going forward.”
On DFI Kumar said, “Establishment of the development finance institution (DFI) with the Rs 20,000 crore corpus is a very big step in making sure that our infrastructure pipeline is not starved of long terms funds as we go forward.”
In fiscal deficit he said, “Finance minister has laid down a new glide path which says 4.50 percent by fiscal 2026 and I think that is just to show that we are now in a kind of a different regime altogether than what was envisaged in the Fiscal Responsibility and Budget Management Act (FRBM Act) in the past. It shows that the economy can now handle higher fiscal deficit to finance growth and that it is the growth tax buoyancy, tax revenues virtuous cycle that we are entering into rather than trying to minimise the fiscal deficit by which we are constantly in some sense not letting the denominator grow.”
“My expectation however is that these tax revenues will be higher than what has been estimated in the budget and therefore you will get a better result and maybe we will come back to a zero revenue deficit by FY-2026.”
For entire discussion, watch the video
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