In order to understand why the Union Budget 2021-22 is being termed as ‘transparent’, it has to be read simultaneously with the 15th Finance Commission Main Report for 2021-26. But first, let us discuss 'fertilizer subsidy'. The budget documents for Union Budget 2021-22 show that the spending on ‘fertilizer subsidy’ was slashed from Rs. 1,33,947 crore in 2020-21 (revised estimate) to Rs. 79,530 crore in 2021-22 (budget estimate). However, the budgetary...

-Livemint.com The government will have to ensure its spending improves economy-wide productivity, and its own revenue-generating capacity, to avoid a stagflationary trap After dithering on a fiscal stimulus package for nearly a year, India’s finance minister Nirmala Sitharaman has declared that she will not allow the fiscal deficit number to worry her too much as she pushes spending to revive growth in the upcoming budget. The government hopes that growth will generate higher...

-Civil Society News When the lockdown began to ease in June, migrant workers who had left Ahmedabad for their villages started returning to the city in the hope of finding some employment. It hasn’t been easy. Industrial areas haven’t opened up fully and employers are going slow on taking on workers. Sunk in debt with insecure work, hunger now stalks migrant workers. Entire families have been living out in the open on worksites....

-The Indian Express The Punjab government claims that if the earnings of these boards are stopped, the state will find it difficult to maintain over 31,000-km of rural link roads as well as farmers’ welfare schemes, including the debt relief scheme. Jalandhar: The implementation of Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, which removes restrictions on farmers selling agri-produce outside the notified Agriculture Produce Market Committee (APMC) yards, has not...

-Newsclick.in The significant fall in government expenditure during the lockdown is just the opposite of what the Modi government should have done. A striking aspect of the 24% decline in India’s GDP in the first quarter of 2020-21 compared with the first quarter of the last fiscal year is the decline by 10.3% in public administration, defence and other public services. This is a sector where the GDP (gross domestic product) is...