Budget 2021 LIVE Updates: Govt may have to continue with an expansionary fiscal stance

The Economy Survey 2020-21 has fully backed the government's expansionary policies, suggesting that this is required even in the future in order to sustain the recovery in aggregate demand.

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08:33 AM

Food subsidy becoming unmanageable

Price of food issued from central stock not revised since 2013
Economic cost of wheat up from Rs 1,908/quintal in FY14 to Rs 2,684/quintal in FY21
Rice up from Rs 2,616/quintal in 2013-14 to Rs 3,724/quintal over this period
Survey suggests: Revision in issue price

08:15 AM

ECONOMY IN FY24

Following a strong 10-12% rebound in FY22, survey looks ahead assuming a 6.5% rise in FY23 and 7% GDP growth in FY24

08:14 AM

Economy will take two years to surpass pre-pandemic levels

07:57 AM

Healthcare needs a shot of funds

The Economic Survey 2020-21 batted for an increase in public spending on healthcare services from 1% to 2.5-3% of GDP, to reduce out of pocket expenditure (OOPE) from the current level of 65% to 35%.
It observed that India has one of the highest levels of OOPE in the world, contributing directly to the high incidence of catastrophic expenditures and poverty.

07:52 AM

Fiscal push or reforms: What should it be?

When it comes to choosing between fiscal consolidation and supporting growth, the Survey calls for a more active countercyclical fiscal policy as a centrepiece for supporting growth in the foreseeable future. This requires a re-writing of India’s fiscal rules, to make them more counter-cyclical. Without growth, India cannot attain debt sustainability. Growth is also necessary for alleviating poverty and reducing inequality – two challenges thrown up in the aftermath of the pandemic, saysSonal Varma, Chief India Economist, Nomura.

07:31 AM

Growth can bat away debt bouncers

07:14 AM

Ethical wealth creation is way forward

“Given India’s stage of development, India must continue to focus on economic growth to lift the poor out of poverty by expanding the overall pie,” the Economic Survey said. This, it said, will enable redistribution since economic growth and inequality converge in terms of their effects on socio-economic indicators in India.

07:02 AM

Here's a look at broad topics for Budget 2021:

Healthcare spending
Privatisation drive
Bad bank
Development of financial institution
Import duty

06:29 AM

Govt may announce farm loan waiver scheme in Budget

Experts say the government may consider announcing a loan waiver scheme to appease farmers across the country. The rationale behind this is that when the government announces a loan waiver, debt-burdened farmers get relief and farmers' confidence in the government increases.
Today, when the farmers' agitation against the new agricultural laws has created a sense of discontent among farmers, the loan waiver can be helpful in winning back their trust.

06:28 AM

Part one of Budget Session likely to conclude two days early on February 13

The Budget Session is scheduled to end on April 8.

06:28 AM

India forecasts 11% growth for 2021-22

The survey, released ahead of the government announcing its annual spending plans on Monday, said there would be a "V-shaped" recovery after the biggest economic decline in more than four decades.

06:28 AM

PM Modi to chair all-party meeting today, to put forth govt's legislative agenda for Budget Session

06:27 AM

Govt may have to continue with an expansionary fiscal stance

"The fiscal policy response of the government has been a combination of demand and supply side policies under the ambit of 'Aatmanirbhar Bharat' to cushion against the pandemic shock, and subsequently fuel the economic recovery. Going forward, in order to sustain the recovery in aggregate demand, it is expected that the government may have to continue with an expansionary fiscal stance," said the survey which was presented in the Parliament on Friday.