Subhash Chandra Garg who is the former finance secretary has said that the budget for the year 2020-2021 is not effective in the addressing of objectives which will kick-start growth in the economy and the building of momentum.
Garg has said inn his blog post that in the broader sense, the proposals of expenditure when it comes to Budget 2020-2021 present a lot more of consolidation when it comes to the fiscal and economic situation in India.
The objectives of starting growth off and also building the growth momentum is seemingly not addressed in an effective manner in this budget. The investments of infrastructure in railways, roads as well as metros are the major planks of the investment in infrastructure by government
The outlays of the programs haven’t seen the nominal growth in the year 2020-21 in the real terms, it is expected to even be lower by 8-10 % as per the former finance secretary.
As per him, in a similar manner, for the promotion of growth in industry and services, there hasn’t been enough change to character.
He has made an argument that all of the expenditures are not likely to be imparting any of the fresh stimulus growth to the economy of India.
He further referred to the budget proposals of government for providing the equity funding to MTNL and BSNL for paying the 4G license cost and said that there was no way that MTNL and BSNL were ever going to earn any money and there is no logic behind this as the money is going to go down the drain without ever coming back to the government in this super competitive field.