FM Nirmala Sitharaman will deliver her third Union budget to Parliament today at 11 a.m. The budget speech would be closely pursued by domestic and international investors, different interest groups such as growers, worried middle class and business bodies, as well as parliamentarians.
As the Covid-19 pandemic struck India last year, the government witnessed increasing investment and declining taxes, even as economic development came to a standstill as a result of the pandemic-induced lockdown. However, the economy is currently in a mode of growth.
In the meantime, the finance minister has pledged a ‘Budget like never before.’ At the start of the joint session of the Parliament on Friday, PM Modi said that the FM had already proposed three or four mini budgets and that the 2021-22 budget should be seen as an extension of the same initiative.
Although the country is waiting for FM Sitharaman’s budget presentation, there are some core concerns that we need to bear in mind that the economic growth is still weak and fiscal measures are needed and there are constraints on the government’s capacity to deliver.