The common man is disappointed as there is no change in the income tax structure but the government’s decision to raise capital expenditure will boost the economy in the long run. The trickle-down effect will give a major fillip to the economy in years to come. The Finance Minister Nirmala Sitharaman raised capital expenditure by 35.4% for the upcoming fiscal year which translates into Rs 7.5 lakh crore investment from the government’s side.
It has been noticed that whenever the government infused large investment especially in the development of roads, railways, ports and infrastructure as a whole, economic development happens in and around the places where infrastructure was developed.
India is poised to grow and the startup ecosystem is robust. Capital expenditure will bring the much needed push for private investments. The number of unicorns (companies with an evaluation equal to or greater than $1,000,000,000) in the year 2020 was 38 which rose to 81 in 2021. 43 new companies have unicorn status.
If India has to grow, capital expenditure is inevitable and this budget has done just that. The benefits we would reap in the coming years.
