Budget 2021: Challenges Galore For Nirmala As Economy Needs Revival

New Delhi: Union Finance Minister Nirmala Sitharaman is going to present her first Paperless Budget today in the Parliament amidst challenges like reviving a pandemic hit economy and growing demand for rationalizing tax structures.

The 2021-22 Budget, Modi government’s ninth one and Sitharaman’s third one, is expected to give thrust on reviving demand in the economy and further reforming the financial sector. While the common people expect a tax cut, Sitharaman may go for no changes as she tries to mop up funds for developmental expenditure. She is also expected to add Covid 19 additional cess on tax payers. Health sector expenditure may get a sizeable increase and the defence sector can get the maximum hike amidst the Chinese aggressiveness. The record GST Collections are expected to come handy for the government amidst growing fiscal deficit. Reviving the economy with relief measures to pandemic affected sectors such as automobiles, real estate, tourism and aviation are a priority for the Finance Minister.

The Economic Survey was presented in the Parliament on Friday which projected that the Indian economy can contract by 7.7 per cent in the current fiscal year and the growth could be 11 per cent in the next financial year. The Budget for 2021-22 is expected to have a sight to make the growth projections fruitful.

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