Budget FY22: Can FM rejuvenate the Indian economy? Here are some possibilities

Finance minister Nirmala Sitharaman presents her third budget today—one that she’s said will be unlike any other in a hundred years.

Will she be able to provide the spark that can turn the recovering economy into an engine of growth? ET looks at the possibilities:

1. STEPS TO BOOST GROWTH

• Loosen purse strings to push capital expenditure
• Tax incentives to boost consumption
• Capital injection, bad bank to address NPAs
• Attention to sectors still under stress to avoid K-shaped recovery

2. NEW FISCAL ROADMAP

• Unveil a countercyclical roadmap to give room for fiscal boost
• Continue fiscal relaxation

3. BOLDER FUND-RAISING

• Big-ticket privatisation; a bold PSE policy
• A firm plan for monetisation of govt assets
• No new taxes If needed, monetisation of government deficit

4. MEASURES TO BOOST CONSUMPTION

• Higher exemption limit for all taxpayers, rationalisation of income tax slabs
• Incentives for housing
• Cash vouchers, scheme similar to LTC plan to encourage purchases

5. NEW PLAN FOR BANKING SECTOR

• Create a framework to deal with NPAs
• Create bad bank or asset mgmt co to tackle NPAs
• Dilute govt shareholding in PSBs
• Provide capital; reduce number of PSBs

6. RURAL UPLIFT

• Increase rural spending; more money for key schemes
• More for farm sector; steps for farm to fork
• Lower interest rates for farmers
• DBT for fertiliser

7. MEGA PLAN FOR INFRASTRUCTURE

• Higher infra spending
• Announce large projects
• Infrastructure bonds
• Development finance institution to address funding gap
• New scheme to address discom woes

8. BOOST FOR STRESSED SECTORS

• Relief measures for services sectors

9. HEALTH COVER

• New fund to address health exigencies
• Vaccine distribution plan for all
• Plan to upgrade countrywide health infra