Finance Ministry seeks timelines from ministries for implementation of Budget announcements

The finance ministry has reached out to ministries and departments asking for timelines for implementation of key budget announcements, mindful that the feelgood factor can disappear quickly if execution is delayed.

Prime Minister Narendra Modi is keen that most decisions be implemented before April 1, a senior government official said.

“Execution will be the key and that will be the big focus,” said the official who did not wish to be identified.


Since extensive deliberations were held with all stakeholder ministries and departments prior to formulation of the budget, there should not be any issues in expediting implementation, the official said.

Aggressive asset monetisation and privatisation of state-run entities, setting up a development finance institution, and increasing the foreign investment limit for pensions and insurance to 74% are some of the measures that need some effort.

Modi has begun webinars that will focus on identifying issues coming in the way of implementing the budget announcements. He held one on Thursday with the power and renewable energy sector.

The budget presented on February 1 by finance minister Nirmala Sitharaman has topped up a strong fiscal stimulus with multiple reforms to give a leg-up to the economy coming out of the pandemic-caused slump.

Most experts have flagged the need for targeted execution of the budget announcements, especially the high capital spending plan and multiple reforms. The budget bumped up capital spending to Rs 5.54 lakh crore in FY22 from the revised estimate of Rs 4.39 lakh crore for the current year.

Key public service announcements that require sustained implementation include Jal Jeevan Mission (Urban) to provide 2.86 crore households tap water, urban Swacchh Bharat Mission, gas distribution in 100 more cities and the healthcare package.

Economic stimulus measures that need to be followed up are vehicle scrappage policy, setting up of seven textiles parks and the capital budget.

The reforms include a single code for the securities market, setting up of a new bad bank, company law reforms, strengthening of the National Company Law Tribunal framework, tax administration reforms, a new fiscal framework and wide-ranging changes in the power sector such as the dismantling of distribution monopolies.