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LATEST NEWS UPDATES | The ailing economy needs much more than what Budget 2021 offers -Himanshu

The ailing economy needs much more than what Budget 2021 offers -Himanshu

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published Published on Feb 3, 2021   modified Modified on Feb 3, 2021

-The Indian Express

While the government has failed to deliver what was promised through the main budget and subsequent mini-budgets, estimates for next year also point to missed opportunities to use fiscal measures to revive the ailing economy.

Expectations from Budget 2021 were high. Unsurprisingly so, for an economy battered by two years of slowdown, with a pre-pandemic annual growth rate of 4 per cent being a decadal low and the subsequent collapse in economic activity due to the pandemic which is expected to reduce the GDP by 7.7 per cent. With all-round distress due to declining wages, job losses and decreasing economic activity, which has affected the majority of the informal working class, this budget was expected to go beyond the nitty-gritty of budget numbers and provide a robust path for recovery. Fiscal deficits mattered only as numbers. What mattered more were revenue mobilisation efforts and expenditure priorities of the government.

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The Indian Express, 3 February, 2021, https://indianexpress.com/article/opinion/columns/budget-2021-indian-economy-growth-covid-pandemic-7171946/


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