The finance minister of India,
Nirmala Sitharaman is all set to propose the budget 2021. All eyes are set on
the budget 2021 as the economy slowly gains momentum amidst the Covid-19
pandemic. The budget is to be presented on 1st February, 2021. The
Budget is being presented for the economy at a difficult juncture. As the Modi
government seeks to give the Indian economy a further boost, Finance Minister
has pledged a never-before-like Union budget.
India''s economy is expected to
contract by 7.7 percent in 2020-21, according to the first advance projections.
After reporting two consecutive quarters of contraction, India''s economy
plunged into a technical recession. But in the second quarter of FY21, the
contraction slowed down sharply, driven by pent-up demand and a festive drive.
What to expect?
The budget is expected to be the key
driver of growth. Experts expect that, on the basis of the low base effect and a
steady recovery, the economy would rebound sharply in the next fiscal period as
almost every sector has started its operation to its fullest. It has been made
clear by the government that it would not shy away from spending to accelerate
economic growth. A multiplier impact on the economy would be the drive for
The citizens and Industry leaders are
having great expectations from the union budget which is expected to eventually
lift the economic slowdown induced due to the pandemic and accelerate
As the government is still dealing
with a challenging revenue situation, any more tax sops may be difficult. The
Budget could concentrate on raising more non-tax revenue which could be on the
agenda with a large-scale asset sales program.
Reports indicate that the Finance
minister has properly dealt with the Halwa ceremony and that the 2021 Budget
will be paperless. It is possible to distribute soft copies of the budget among
Parliamentarians. The Covid-19 pandemic has made such adjustments inevitable.