CEO of IBS Software welcomes Union Budget as a positive one

V K Mathews, Founder & Executive Chairman of IBS Software, welcomed the Union Budget 2021-22.
“I feel it was a positive budget under the circumstances and in the right direction. One of the key issues in these times is how to boost demand; and the budget provides the answer with a significant government capex spend on infrastructure.,” he said
“A more detailed thought seems to have been given on disinvestment this time. Not only is a SPV proposed, but states will also be incentivised if they take up disinvestment. Given the favourable capital market situation, the target set out has a much better chance of being achieved. Disinvestment not only brings in more money, but also makes the target company more efficient. Asset monetisation by handing over highways and ports to PPP mode is a step in the right direction. The nation gains little if assets lie locked up with little or no yields. The other positive aspects of the budget are agricultural reform, development of human capital and focus on innovation and R&D,” the business man said.
However, he felt that the budget does not spell out any tax reforms. More money in the hands of individuals would’ve pushed consumption. The budget is silent about tapping wealthy NRIs for more economic activity. They should be incentivised to spend their wealth in India. Some sectors like travel, tourism and hospitality have been struggling more than others. No sector-specific programmes have been laid to revive them. This could result in a ‘K’ shaped recovery rather than a ‘V’ shaped one.
Mr. Mathews said that the budget is good for Kerala. It has set apart Rs.65,000 crores for the development of 1,100 km of the state’s highways. It talks about the Madurai-Kollam Corridor, earmarks Rs.1,957cr for phase two of the 11.5 km stretch of the Kochi Metro. Moreover, Kochi has been named as a harbour hub, he said.