The Union Budget will be presented by Finance Minister Nirmala Sitharaman on 1 February.
Expert KE Ranganathan has expressed hope that there will be a special emphasis in the budget to bring the economy back on track with an 8-10 per cent increase in the fiscal year 2021-22.
- Last Updated:January 27, 2021 4:53 PM IS
Expect to be more focused on demand
Ranganathan said, “India is a large consumption-based economy. We hope that the government will focus more on the demand side to start growth engines. The good news is that the government’s foreign exchange reserves are at a high level of about $ 600 billion. The monsoon is fine for bringing agricultural production back on track. Indian currency is strong. ”
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“Increasing infra spending, cost-effective production for industries and keeping more money in the hands of large population through tax cuts can bring GDP back to the 8 percent growth track,” he said. This remedy can work like magic. There is an urgent need to eliminate government dues, vendor payments and cash flow to please government customers. This will promote spending and growth. ”
Ranganathan said that there is a big opportunity for the government to rationalize GST into just 2 categories. GST of 5% and 15% respectively in the Asian and Non-Asian categories respectively. In this way the end-consumer cost becomes cheaper and will certainly create more demand for development.
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Budget session will start from 29 January
Significantly, the budget session of Parliament will start from January 29. During the session, the general budget of the financial year 2021-22 will be presented in Parliament on 1 February. According to the statement of the Lok Sabha Secretariat, the budget session running in two parts will run till 8 April. The first phase of the budget session will run from 29 January to 15 February while the second phase will run from 8 March to 8 April.