Budget 2021-22: How Additional Increase In Expenditure Is Being Financed Via Innovative Means
The Economic Survey 2020-21 highlighted the importance of fiscal policy, and in particular, capital expenditures, to boost the economy, owing to the large fiscal multipliers that accrue from public investments. The Survey also pointed out that these multipliers have a greater effect when an economy is going through a slowdown or crisis.
However, it is worth noting that this additional increase in expenditure is being financed through innovative means. The focus on raising non-tax revenues through asset monetisation is a major step. By creating an asset monetisation pipeline and a dashboard to monitor progress, a major impetus has been given to raising funds through asset monetisation. This is a prudent move, considering the impact of COVID on tax revenues.
Roads with an enterprise value of Rs 5,000 crores are being transferred to the NHAI (National Highways Authority of India) InvIT…