My Take for Budget 2021-22
Budget 2021-22 My take on the State of Economy, Finance and Fisc and Policy Measures and Reforms to rehabilitate Indian Economy Post- Covid-19 and put the Economy on the Path to High Growth and Effective Redistribution on the occasion of Budget 2020-21 SUBHASH CHANDRA GARG Economy, Finance and Fiscal Policy Strategist and Former Finance Secretary, Government of India I: REVIEW OF MAJOR ECONOMIC, FINANCIAL AND FISCAL DEVELOPMENTS Unprecedented Contraction in 2020-21 NSO estimates India’s GDP to contract by 7.7% in the FY2020-21. This is likely to turn out to be an underestimate when better numbers are available. The economy is likely to contract by 8-10% this year as NSO’s estimates are optimistic on at least three counts- first, H2 capital formation growth would be much lower than estimated -.5% only; second, government expenditure growth by 19% in H2 is unlikely to materialise and third, electricity sector expansion by 2.3% f...