According to the first advance estimates, India's economy is projected to contract by 7.7 per cent in 2020-21. India's economy slipped into a technical recession after it posted two successive quarters of decline. But the contraction slowed down significantly in the second quarter of FY21 led by pent-up demand and a festive push.
Experts have predicted the economy to rebound sharply in the next fiscal on the back of low base effect and continued recovery. The Budget could be a key driver of growth.
What to expect?
The FM has said that the deficit concerns won't hold her back from pump priming the economy by easing the purse strings.
Any further tax sops could be difficult as the government is already grappling with a difficult revenue situation. The Budget could focus on generating more non-tax revenue and a large-scale asset sale programme could be on the cards.
A paperless Budget
Reports suggest that the finance ministry has done away with the Halwa ceremony and Budget 2021 will be paperless. Soft copies of the Budget could be circulated among Parliamentarians. These changes have been necessitated by the Covid-19 pandemic.
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1 Comment on this Story
Srinivas M46 days ago
Tonnes of papers saved and environmental friendly budget