New Delhi: While asserting that the new public sector policy unveiled by the government will open a host of opportunities for the private sector, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said that the new policy will pave the way for private sector entities to partake in India's growth story by buying the brownfield assets of PSUs. At an interaction with members of industry body CII, Pandey said, "The policy has also opened a host of opportunities for the private players who now partake in India's growth story by buying the brownfield assets of the PSEs at an attractive valuation."
The Secretary said that the new public sector policy views privatisation as a way of improving efficiency and achieving higher productivity and improved allocation of resources, which has been one of the guiding principles of Budget 2021.
The unveiling of the blueprint of a new privatisation policy in the Budget is akin to the landmark reforms carried out in 1991, said Pandey. The reforms juggernaut which has been rolled out in the Union Budget 2021-22 will be implemented in a timely manner presaging an active participation from the private sector.
Taking cognisance of the need to spur productive spending in the economy, the Budget has ramped up capital expenditure, so as to boost India's medium to long-term growth potential, said Tarun Bajaj, Secretary Economic Affairs, Ministry of Finance. The spelling out of the fiscal deficit glide path to bring down the deficit below 4.5 percent of GDP by FY2025-26 enunciates the intent of the government to rein in the expansionary stance in the years to come, he further added. Responding to a question on research and innovation, he said that the private sector should come forward and contribute proactively to the National Research Foundation (NSF) without anticipating any additional tax benefits as carrying out innovation is the key ingredient for being competitive.
Dr Krishnamurthy Subramanian, Chief Economic Adviser, highlighted that the reform measures delineated in the various phases of Atmanirbhar Bharat Abhiyan announced last year have culminated in the crescendo of the Union Budget. "It's a far-sighted budget which has laid the background for ushering in higher growth in the years to come. The government is assured on under-promising and over-delivering on the key challenges facing the country," Dr Subramanian said. The government is confident of achieving a much lower level of fiscal deficit in the next fiscal, Dr Subramanian said, as compared to what has been stated in the budget buttressed by improved tax buoyancy expected next year. The 137 percent increase in healthcare spending takes care of both the preventive and curative sides and is indeed an accurate representation.
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