FM to Present Most Critical Budget for Indian Economy
Finance minister Nirmala Sitharaman is all set to present her next budget in the Lok Sabha today. She has assured a budget “like never before”. There is expectation that the budget could be transformational in its measures for health care, on job creation and for the Micro Small and Medium Enterprises (MSMEs). India Inc., which even before the pandemic upended plans and projects, was already coping with a slowdown in the economy, has its hopes hinged onto the budget for its measures to boost growth, bring in industry-specific investment enablers and a rationalised regulatory compliance mechanism. Some of the questions most experts will be looking to for answers in the budget include: What new ideas will be budget come up with to help the economy rebound and regain the lost ground? How well will the budget be at being innovative in addressing the challenges without getting adventurous? What will be the direction of the capital expenditure? What can the budget do on infrastructure and through that generate the ripple effect on job creation and attracting new investments? What share in this will go towards building the agriculture supply chain? Will the budget take a break from the past for the businesses and for the common man and present a predictable, consistent and stable tax regime, avoid flip flops and present a budget that will not necessitate multiple stimulus packages or outside- the-budget exercises in this crucial year when the economy confronts its first ever de-growth and is technically in a recession with the last two successive quarters showing a contraction in the Gross Domestic Product (GDP). The current year is expected to end with a net contraction in GDP by about 7 per cent. Finally, despite the expected increase in spending, will the finance minister be able to come up with a concrete plan on fiscal consolidation and reduce the fiscal deficit by at least 2 per cent given measures that aid growth will also lead to higher revenues apart from expected resources from the government’s disinvestment programme. The Economic Survey 2020, presented by FM Nirmala Sitharaman on Friday pegged the GDP growth at 11 per cent in FY22.
Tags : News/Views budget GDP Nirmala Sitharaman Indian economy