Updated Jan 22, 2021 | 15:10 IST
The government has to make huge investments at a time when there is already pressure on revenue collection. So any relaxation on income tax front is unlikely. Representational image
New Delhi: Finance Minister Nirmala Sitharaman will present the Union Budget for financial year 2021-22 on February 1.The upcoming Budget is going to be the most difficult one for the FM Sitharaman as she needs to come out with plans to revive the pandemic-hit economy, which is expected to contract 7.7% in the current financial year.
While the governmenr is expected to increase allocation towards public spending and infrastructure it also needs to fund schemes like Atmanirbhar Bharat Abhiyan and Production-Linked Incentive (PLI), which were announced last year as part of its plan to boost the domestic manufacturing sector and reduce dependence on imports.