Two Key Numbers to Look Out for in the Upcoming Budget 2021
The most important concern is that of increasing public spending.
FILE PHOTO: Finance Minister Nirmala Sitharaman holds budget papers as she leaves her office to present the federal budget in the parliament in New Delhi, India, Feb. 1, 2020. Photo: Reuters/Anushree Fadnavis/File photo
Macro31/Jan/2021
There are really only two numbers to look out for in the forthcoming budget: how much did the government claim to have spent in 2020-21, and how much does it intend to spend in 2021-22.
As it is, the Indian governmentâs response to COVID-19 has been, in purely economic terms, one of the worst in the world. Not only did it impose a national lockdown without notice or consultation, at a time when it was not needed, it then proceeded to âunlockâ as cases mounted and infections spread more rapidly, thereby putting more people at risk.
Budget 2021: Rejigging Social Sector Spending Priorities in the Wake of COVID-19
Besides the health sector, which obviously needs to be strengthened, both NREGA and NRLM deserve an allocation boost.
A woman worker in the construction sector. Photo: Reuters/Adnan Abidi
Preparation for the presentation of Union Budget 2021-22 is underway.
Unlike in the past, it is expected that the priorities of this yearâs budget will be different. The pandemic-battered Indian economy is struggling to bring itself back on track due to its falling GDP growth rate, the rise in unemployment and the impact that COVID-19 has left on peopleâs health. While COVID-19, followed by the lockdown, has contracted Indiaâs GDP and revenue, demand for jobs, especially in the rural sector, and a shortage of health infrastructure need greater attention of the government.