This is a pragmatic Budget that focuses on core sectors like Health Care, Infrastructure, MSMEs Technology and financial inclusion, said Ranjit Barthakur, Chairman FICCI Northeast Advisory Council reacting to Union Budget proposals on Tuesday.
In his reaction, Dipankar Barua, Chairman, FICCI Assam State Council said this is a progressive budget.
Barthakur welcomed the increased outlay on capital expenditure in the budget. He said “With the increase of capital expenditure by 35.4%, the effective capital expenditure of the central government will go up to 10.68 Lakh crores, which translates to 4.1% of GDP. This will give a major boost to the sustainability of economic growth.”
“We particularly welcome the focus on infrastructure and social development projects through the PMs development Initiative for the Northeast. The initiative will help bridge critical infrastructure gaps in remote areas and provide livelihood options to people in the region. We hope the initial outlay of Rs. 1500 crores for the scheme will be suitably enhanced as per requirement”, Barthakur added.
Terming the focus on Energy Transition and Climate Change “a step in the right direction”, Barthakur said, “Northeast India is one of the most important Biodiversity Hotspots of the Country, and the region could benefit immensely from the decision to bring about legislative changes to promote agroforestry and private forestry. The old economic model of rapid growth is now recognized to be the fundamental cause behind the depletion of our natural resources. Since 2020, climate and biodiversity risks have topped the World Economic Forum’s Annual Risk Report analyzing the business perception of economic risk. Climate change has been costing the world over $150 billion annually since 2017.”
“The decision to provide financial support to farmers belonging to Scheduled Castes and Scheduled Tribes, for agro-forestry is also very welcome. We will be requesting the Government to allow the tea Industry also to take advantage of the proposed legislative changes and financial support.” He added.
Barthakur also welcomed the decision to enhance support to MSMEs by revamping the CGTMSE scheme. As in most other parts of the country, in the Northeast, too Micro Enterprises suffered the most as a result of the Pandemic and I am hopeful that, the additional credit of Rs. 2 lakh crores which will become available, will help in ensuring the continued financial sustainability of the MSMEs.
Another important budget announcement that could help the education sector in the region, particularly in remote hilly areas is the decision to expand the reach of PMevidya “One Class One TV Channel” from 12 channels to 200 Channels. This will help the state Governments in providing quality education to students in remote rural areas without depending on internet connectivity.
Dipankar Barua, Chairman, FICCI Assam State Council said “this is a progressive budget that balances competing demands of different sectors. The overall emphasis on trust-based governance and improving ease of doing business will give a boost to economic development.”
Welcoming the proposals for the tourism sector Barua said “the tourism and Hospitality sector in Assam is going through a very difficult time, and we wholeheartedly welcome the decision to extend the benefits under the ECLGS scheme up to March 2023 with a focus on the hospitality sector”.
Barua also welcomed the announcement of the National Ropeway Development Program ‘Parvatmala’.
“This program will help connect many remote locations in the Northeast and can be capitalized for tourism”, he asserted.
On the focus on Agriculture, Barua said “the overall focus on enhancing agricultural productivity and sustainability is very welcome, particularly the focus on food processing is welcome. We will look forward to the comprehensive package for farmers to adopt suitable varieties of fruits and vegetables, and to use appropriate production and harvesting techniques”.
