WEBINAR ON DEMAND:

Webinar Overview

Pandemic-struck FY2021 has been a difficult year for India, which was the second-worst affected nation by COVID-19 globally. On the one hand, increasing public expenditure was instrumental in reviving the economy, but on the other, the widening fiscal deficit has led to increased borrowing. While the government of India had been successful in reducing the deficit from 5.9% in FY2012 to 3.4% in FY2019, the COVID-19 crisis has eliminated the chance to meet the fiscal deficit target of 3% in FY2021, as set by the FRBM Act 2003. The historic decline in GDP, coupled with lower tax revenues, has tasked the Indian government to strike a fine balance between finances and economic growth.

ISI India Research Economist, Rohini Sanyal, details the contents of the Budget for FY2021-2022, and the resultant expectations for the economy in the new financial year.