ALLoCAtIon For sPECIFE MInIstrIEs

new business opportunities and employment.

₹10 lakh crore capital investment, a steep increase of 33% for third year in a row

GrEEn

GroWtH

To reduce the nation’s dependence on fossil fuel imports and reach the maximum potential of the sunrise sector, energy transition was deemed crucial. The budget set aside Rs.35,000 cr as priority capital to accelerate the transition by the Ministry of Petroleum and Natural Gas. Rs 3,500 crore was set aside to offer Viability Gap Funding (VGF) for Battery Energy Storage Systems (BESS) with a total capacity of 4,000 MWh. The FM highlighted renewable energy evacuation as crucial to overcoming a big hurdle in the lack of infrastructure for renewable energy development. The government set aside Rs.19,700 crore for the National Hydrogen Mission.

On the scrappage policy mentioned in the budget 202122, the FM made provisions for allocation and support for states. The replacement of old state vehicles and ambulances would be prioritised. Under the Gobardhan scheme, 500 new waste-to-wealth plants were announced. A sum of Rs.10,000 cr to set up 200 Compressed Biogas plants was also set aside to boost the green growth vision plan. GIFT city gained Rs.10000 crore per year city urban infra fund. An Rs.9000 corpus fund was set up for MSME credit. The Budget, to further support green mobility, called for the need to avoid cascading of taxes and exemption of excise duty. The FM gave the green signal to customs duty extension on the import of capital goods and lithium-ion battery packs. It further announced a customs duty reduction on the ethanol blending programme. On compounded rubber, it was announced that circumvention on duty would be curbed to bring it to part with natural rubber.

To further ease the compliance burden, under direct taxes, the FM committed to maintaining continuity and further simplification. She hailed the MSMEs as the growth engines of the nation. Micro enterprises with a turnover of two crores and up to 50 lakhs crores received an enhancement on limits up to three crores and 75 lakhs crore where cash receipts are no more than five per cent. Acknowledging the contribution of startups, the FM deemed entrepreneurship as vital to the third largest ecosystem, globally and a growing economy and extended a 10-year tax holiday. In her concluding statement, the FM informed the house that states would be allowed a fiscal deficit of 3.35 per cent of GSDP. The overall fiscal deficit was pegged at 5.9 per cent of GDP with the government claiming to spend in tune with the macroeconomic developments. It has set a target to reach below 4.5 per cent by 2025-26 on the path of fiscal consolidation.

Pranav Goel, CEo & CoFounder, Porter

The investment plan for 100 critical transport infra projects including the capital outlay for railways will enhance the multimodal logistics ecosystem, aiding the sector to be more streamlined. We are elated with the move to expand the scope of Digilocker. With this, the KYC process will be simplified and the move to use a Permanent Account Number (PAN) as a common identifier for all digital systems of specified government agencies will encourage an efficient maintenance system. The tax benefits for the startup community will play a pivotal role in shaping the high growth sector.”

stefano sanchini, Managing director, Bridgestone India

The Government’s proposal to increase the capital expenditure outlay by 33 per cent is a welcome move as this will directly impact the logistics and mobility sectors. These sectors would also grow as they expand to serve the enhanced demand for goods generated by new infrastructure projects. The Finance Minister’s statement on replacing old government vehicles will increase the demand for new vehicles and we are committed to supporting the OEMs to meet this demand.