TLI Staff
New Delhi: Secrecy around Budget always keeps people guessing but PM Modi’s remark that the upcoming Budget should be seen in continuation with past stimulus packages after Finance Minister Nirmala Sitharaman’s promise of ‘never before’ budget has left many industry veterans perplexed.
“We have our wish list for the Budget but after PM’s statement that upcoming Budget should be seen as continuation of previous economic packages we can’t really expect much,” said an industrialist.
While Nirmala Sitharaman set the excitement level high by saying it will be never-seen before budget, Narendra Modi’s statement has rationalised the euphoria.
“…….Perhaps, for the first time in the history of India it has happened that our Finance Minister had to present four-five mini budgets as separate packages in 2020. That is, the series of mini budgets continued in a way in 2020. And I am confident that this budget will also be seen as a part of the series of those four-five budgets,” Prime Minister Narendra Modi said at the start of the budget session on Friday.
Earlier while seeking inputs from the industry, Finance Minister Sitharaman had said that their suggestions would help make a never before Budget.
“Send me your inputs so that we can see a Budget which is a Budget like never before, in a way. 100 years of India wouldn’t have seen a Budget being made post pandemic like this,” she had said while addressing an industry event last month.
Even as finances of the central government have come under strain due to a shortfall in tax collection there are wide expectations that Finance Minister would go for more public spending to boost demand and investment. Most economists and industry captains have recommended higher spending on infrastructure and social sectors to revive the economy.
“We need a Keynesian type of demand stimulation and the budget must inject a heavy dose of fiscal stimulus to prop up both consumption and investment,” said Uday Shankar, President of industry chamber Ficci.
As coronavirus infection counts have fallen drastically and vaccination drive is on in full swing, economy watchers have predicted V-shaped recovery and economy registering double-digit growth in FY22.
“After an estimated 7.7% pandemic-driven contraction in 2020-21, India’s real GDP is projected to record a growth of 11.0% in 2021-22 and nominal GDP by 15.4%,” said Economic Survey 2021 tabled in Parliament.
Image courtesy: PIB