Finance Minister Nirmala Sitharaman on Monday will present the Union Budget for 2021-’22. While speaking at a virtual event of the Confeder...
Finance Minister Nirmala Sitharaman on Monday will present the Union Budget for 2021-’22. While speaking at a virtual event of the Confederation of Indian Industry last month, Sitharaman had asked for inputs to formulate a Budget “like never before”. This was significant as it came in the year of the coronavirus pandemic and an unprecedented lockdown, as well as when the economy plunged to brand-new lows.
The pandemic added to existing woes as India’s economy was already slowing down before it struck. The year has left Sitharaman with the task of having to increase government spending in order to boost the economy, but with little scope for higher revenue collection or borrowing from the market.
As things stand
The Economic Survey for the financial year 2020-’21 tabled in the Parliament on Friday predicted that India’s Gross Domestic Product growth rate will contract by 7.7% in this fiscal (2020-’21). It projected an 11% growth in 2021-’22, in what the Survey called a “V-shaped recovery”.
If the actual GDP figures for this year indeed come at -7.7%, it will mark the sharpest annual decline in the country’s economy since Independence. Growth rate projections, however, saw positive revisions in the second half of the fiscal.
On the other hand, if the next financial year indeed witnesses an 11% growth,...
