India’s annual budget on Monday will be Prime Minister Narendra Modi’s chance to spur demand and investments in an economy cratered by the world’s second-biggest coronavirus outbreak.
His government’s growth-centric plans will be outlined by Finance Minister Nirmala Sitharaman when she delivers the budget speech starting at 11 a.m. in New Delhi. She’s expected to set aside more money for health care and infrastructure development and partly pay for them by raising record amounts by selling stakes in state-run companies.
While the success of the budget depends on how effectively India is able to contain rising infections through vaccine drives in the nation of more than 1.3 billion people, here are five key numbers to watch out for in the spending plan:
File photo of Union Finance Minister Nirmala Sitharaman at Parliament. | PTI
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.
Updated Feb 01, 2021 · 10:38 pm Finance Minister Nirmala Sitharaman addressing the media after presenting the Union Budget on February 1, 2021. | PTI
Finance Minister Nirmala Sitharaman on Monday announced a slew of measures in her third Budget speech to revive the pandemic-hit Indian economy. She proposed doubling healthcare spending to Rs 2,23,846 crore, increasing Foreign Direct Investment in the insurance sector from 49% to 74%, and warned that the fiscal deficit for the financial year of 2021-’22 will be wider than expected.
While the income tax slabs were not changed, the finance minister said that pensioners who are above 75 years will no longer be required to file tax returns. The government also announced infrastructure projects in West Bengal, Kerala, Tamil Nadu and Assam – four states which will go to the polls in the next couple of months.
Loading the player.
Union Budget 2021: Share market expectation on Budget Day; key factors that will guide D-Street
The budget announcements made by the FM will set the tone of the stock market on February 1 and thereafter. According to market analysts, the share market is expected to remain volatile in this eventful week as the Union Budget, macro data and RBI policy would be eagerly watched by investors. Besides, ongoing corporate earnings season would also impact stock market trading.
RBI to retain key rates, maintain accommodative stance in Feb policy meet
The Reserve Bank of India (RBI) Governor Shaktikanta Das-led monetary policy committee (MPC) is expected to keep key rates unchanged in its last monetary policy meeting of the current financial year. As per market experts, the central bank is expected to maintain status quo and keep the monetary stance accommodative at the policy review though it will take guidance from the Union Budget 2021