Budget 2021 Latest Updates: Even as Union Finance Minister Nirmala Sitharaman is all set to present Budget 2021 on February 1, the country is looking forward to recovering from the economic shock that it suffered due to the coronavirus pandemic. At this crucial time, the Budget 2021 plays a key role in bringing back the ailing economy to back on track. Starting from Aatmanirbhar Bharat to many other initiatives, the Centre has taken a number of steps to limit the economic impact of the pandemic. However, many challenges still remain as India gradually recovers after entering a recession, following GDP contraction in two consecutive quarters. More importantly, the Centre must address these challenges as the finance minister is going to present budget 2021.Also Read - Budget 2022-23 on 1st February in Paperless Form, No Halwa Ceremony This Year Due to COVID
Jobs: After going through a touch phase, the first challenge lies before the Centre is job creation. Creating employment opportunity is the biggest challenge for the Union Government at this time of pandemic. Despite growth in economy, there has not been any growth in employment in India. In fact, the unemployment level is again on the rise, according to the Centre for Monitoring Indian Economy (CMIE). Also Read - Budget 2022: What Can Real Estate Sector Expect From Upcoming Union Budget? Watch Video To Find Out
During the pre-budget sessions, experts have advised the government to spend for the recovery of job-oriented sectors like infrastructure, manufacturing and real estate. Also Read - Budget 2022: Here's What Retail Sector Expects From Government, What Are Steps To Boost It? Watch Video
Growth: Growth in terms of investment is another key challenge which needs to be addressed by the Centre. The area of focus should be to increase investments in key growth-centric sectors. In this regard, the experts are of the view that the government should maximise spending in public infrastructure projects, which will also ensure more job creation.
Raghuram Rajan has urged the Centre the government to increase spending on public infrastructure projects, which will later help in fixing the revenue cycle, job creation and private investments.
Healthcare: During the coronavirus pandemic time, the country’s healthcare system was put to a major test for the first time in this manner. The lack of affordable healthcare in India has been a long-time demand of medical representatives and experts from the Centre. However, the government must address this challenge this time when the Budget 2021 will be presented. Experts argue that India’s healthcare spending in past budgets has not really made the cut and that there is a need to increase it to 2.5 per cent of the GDP.
Fiscal deficit: Apart from all this, another two challenges that the Centre is expected to address in the Budget 2021 are fiscal deficit and divestments. Higher borrowing and spending during the pandemic have gone beyond the fiscal deficit, which is expected to be almost double of what was predicted in Budget 2020.