New Delhi: The stage is set. And all eyes will be on the Union Budget that will be presented by Finance Minister Nirmala Sitharaman on February 1. The Budget comes at the fag end of a health crisis born out of the COVID-19 pandemic and at a time when the economy of the country is already at a critical juncture. According to the first advance estimates, India's economy is projected to contract by 7.7 percent in 2020-21. The economy has slipped into a technical recession after posting two successive quarters of decline. But the contraction slowed down significantly in the second quarter of FY21 led by pent-up demand and a festive push. The Budget should be a key driver for the growth of the economy.
The COVID-19 pandemic and its spread have left a trail of destruction across the economic landscape. The lockdowns and the prolonged restrictions have forced many a company to shut or curtail operations, lowering the government's tax collections.
However, despite the mayhem, 2021 is being looked upon as the year of revival, a year of hope, good health and buoyancy in the economy. The stock market recently touched the miraculous 50,000 mark. While various economic packages and relief measures have been announced by the government, the common man is expecting more reprieve from the Budget 2021. And here's what can make them smile:
The government should incorporate these changes in the Budget to give some relief to the common so as to strengthen their situation post-pandemic.
The author is Managing Partner and CEO of an MNC advisory firm.
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