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Story of Budget 2021, in 9 charts -howindialives.com

-Livemint.com

The Union government has finally stepped on the gas when it comes to spending. But after a temporary splurge in the rest of this fiscal year, the finance ministry will tighten its purse strings to bring down debt levels, the budget numbers suggest

Even as countries across the world raised spending aggressively to counter the economic impact of the covid-19 pandemic, India had remained an outlier. Throughout the pandemic, the finance ministry has argued for small doses of incremental spending to sustain the economic recovery rather than a big-bang boost. The Union budget on Monday marked a shift in fiscal stance for the first time, but only a partial one.

After budgeting for a heavy ramp-up in spending for the remaining months of the fiscal year, the finance ministry expects to tighten spending in the year ahead. Overall government expenditure is estimated to shoot up 28% in fiscal 2021 and fall drastically to 1% in fiscal 2022. The cuts are being borne largely by the social sector. The share of Union spending on health, education, and rural development ministries will be lower in the upcoming fiscal year than in the fiscal 2015-2021 period.

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