Budget 2021 is a Bold One: Kotak Mahindra CEO Uday Kotak

“By keeping the fiscal deficit higher, that itself is a stimulus to the economy” says Uday Kotak, on the Union Budget.

(Image: Debayan Dutta/The Quint)

Video Editor: Mohd Irshad Alam

Kotak Mahindra CEO and Confederation of Indian Industry (CII) President Uday Kotak opines that this year's budget was a bold one, that the finance minister will be betting on growth through capital and not revenue expenditure.

The government expects to raise Rs 1 lakh crore from disinvestment in public sector banks and financial institutions in FY22.

Speaking to The Quint, Uday Kotak said that the government’s bold decision “to spend money is right. Even if it means higher fiscal deficit,” adding that the spending has been very targeted on infrastructure, healthcare and financial services in different segments.

“By keeping the fiscal deficit higher, that itself is a stimulus to the economy,” says Uday Kotak.

The government announced a package for recapitalisation of PSBs. “To further consolidate the financial capacity of Public Sector Banks, further recapitalisation of Rs 20,000 crores is proposed in 2021-22,” the finance minister said.