ICICI Securities Strategy after Budget 2021 II Counter-cyclical fiscal policy with focus on reviving investments
As per the need of the hour, Union Budget FY22 delivered by being expansionary and provided a counter-cyclical fiscal policy with focus on reviving growth while ensuring adequate resources for tackling the pandemic by expanding the fiscal deficit to a higher than expected level of 9.5% for FY21 and 6.8% for FY22.
Key steps include mooting of a bad bank or ARC and AMC for taking over stressed assets, increase in FDI in the insurance sector to 74% and Development Financial Institution (DFI) for financing infrastructure projects, amongst others: Reuters