The COVID-19 pandemic has changed the very nature of our lives. It disrupted everything we did - from the way we worked to the way shopped, from the way we socialized to the way we procured our essentials. It moved every aspect of our day-to-day existence.
This was Sitharaman’s third budget under the National Democratic Alliance (NDA) government led by Prime Minister Narendra Modi. In a significant departure from the tradition, this year’s Budget was not printed and was only made available in a digital format.
In her speech, Finance minister announced that India’s fiscal deficit is set to jump to 9.5 percent of Gross Domestic Product in 2020-21 as per Revised Estimates. This is sharply higher than the 3.5 percent of GDP that was projected in the Budget Estimates. A slump in government revenues amid the Covid-19 pandemic has led to a sharp rise in deficit and market borrowing. In health care spending, Sitharaman announced a total spend of around Rs 2 lakh crore on healthcare with Rs 35,000 crore on Covid-19 vaccine development and inoculation.
The Budget for the fiscal year beginning April made no changes in personal or corporate tax rates but raised customs duties on certain auto parts, mobile phone components, and solar panels in order to provide impetus to domestic manufacturing.
During the time of unprecedented economic stress, the government’s responsibility was to spend enough to revive the economy or else face enormous human suffering. So, I think budget2021 takes it another step forward.
Kumar Saurabh Singh
MBA - Ist Sem
Jaipuria Institute of Management, Indirapuram, Ghaziabad
