Budget 2021 | Feel-good factor that would nudge consumption is missing
The Budget does not have any big-bang announcements and the message that goes out is that one should be conservative in spending in the immediate future as well. Nissy Solomon
Representative image (PC- MoneyControl.Com)
Tabled in the backdrop of a crisis-struck economy, the Union Budget 2021-22 attempted to nurse the economy back to health. Faced with subdued consumer demand, less spending on infrastructure and a historic contraction in four decades, the Budget had massive challenges to address, many even pre-dating COVID-19.
The Economic Survey made a case for a massive fiscal push to enable counter-cyclical measures. Consistent with this, a slew of measures were announced by Finance Minister Nirmala Sitharaman. The Economic Survey advocated deficit financing as long as the growth of the economy was higher. Given the deficit growth and revenue receipts in the CO
Budget 2021 has its head and heart in the right place
Budget 2021 has the distinction of being largely an out and out infra-focussed budget, which is quite a departure in tone as compared to the oft-cited ‘consumption’ orientation Sachchidanand Shukla
Representative image (PC- MoneyControl.Com)
Budget 2021 has got its head and heart in the right place. Given the aftermath of the pandemic, it was imperative that the government does not shy away from borrowing and spending big, without getting bogged down by concerns from global rating agencies or markets overcrowding out of private investment.
The government has clearly focused on ‘buying’ growth, not just for now but also for the medium term with a laser focus on reviving investment demand. The fiscal deficit is budgeted to ease to 6.8 percent of GDP in FY22 from 9.8 percent in FY21, well above market expectations for both years. Besides, even though the spending to GDP rati
Sitharaman further said 1,000 more mandis will be integrated with the electronic national market and the agriculture infrastructure fund would be made available to APMCs to augment infrastructure facilities.
MC ExpertEye | What is that one big Budget announcement that startup founders are waiting for?
The coronavirus outbreak has ravaged businesses. While some have begun to emerge from the blow, many are still struggling. Can the Budget help? Read on
Representative image (PC- MoneyControl.Com)
Note to Readers:
MC ExpertEye is a weekly series of articles that will dive deep into an important topic by seeking answers from experts.
The year 2020 hit the economy hard following the pandemic. While some of the businesses started seeing corrections only towards the second half of the year, some are still struggling to come out of the pandemic blues. Given the extraordinary situation, we ask a bunch of entrepreneurs from across sectors what are the economic pain points of their businesses and their expectations from the budget this year.
Budget likely to focus on growth, structural reforms: Report
Bank of America Securities India expects the budget to peg fiscal deficit at a high 5 percent of GDP for FY22 and 7.2 percent for FY21, as it is likely to step up capex, recap public sector banks, push asset sales to break government monopolies, offer sops for real estate, tax cuts for lower income groups and creation of a bad bank . PTI
Representative image (PC- MoneyControl.Com)
The budget, to be presented on February 1, is likely to be less worried about fiscal deficit and will be focused more on nursing the fragile growth, according to a Wall Street brokerage report.