Union Budget 2021-22: Just What Was Needed.

“This moment in history, when the political, economic, and strategic relations in the post-COVID world are changing, is the dawn of a new era – one in which India is well-poised to truly be the land of promise and hope”. This opening remark by the Finance Minister (FM) clearly set the tone for the Budget of new India, presented on 1st of February. To set the context, there were growth concerns given the impact of pandemic during which the economy had contracted. There were signs of weak private consumption and measured government spending coupled with a slowdown in private investment. Further, there was a limited fiscal space with lower tax collections and increased health and social expenditure. The expectations thus were for a growth-oriented budget with higher spending and focus on infrastructure. The FM finally seems to have ticked all the boxed in this Budget. The Budget for FY 2021-22 had a bold, clear and decisive agenda and focused on boosting economic growth. It was simple and yet busted many things, right from being the first digital budget. It broke the shackles of fiscal prudence which was the undertone of many previous budgets. The fiscal deficit targets are left to fall as required. Next, there was no tinkering with taxed and no hidden additional taxes. Things were a lot transparent and the tax collections and other divestment targets were more realistic and achievable. Overall, the budget came as a positive surprise and a much-needed relief which has already boosted sentiments and has the promise of unleashing a growth wave. Here is an overview of the entire budget.

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Kaushal Bharat Mehta (ARN-81871)

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