Khushi Bali, New Delhi
Every year the Finance Minister presents the Economic Survey. This year also Nirmala Sitharaman presented an Economic Review in Parliament on 29 January 2021. She laid a review in front of the Parliament. The annual survey analyses the trends in infrastructure, agricultural and industrial production, employment, prices, exports, imports, money supply etc. All these factors have an impact on the Indian economy and the budget.
Information was given by her
She has given detailed information about the state of the economy. The team headed by Chief Economic Advisor Krishnamurthy Venkat Subramaniam has prepared an economic review for 2020-21. She provided information about various sectors of the economy. The suggestions have been made for further reforms to speed up economic growth.
The effect of Covid 19 and their plans
According to the statistics ministry, India’s GDP might shrink 7.7% in the year ending March. The GDP will likely expand 11% next fiscal year, as estimated by the government.
To achieve this estimated value, Sitharaman said her budget would be unlike anything seen so far.
The pandemic ruined all disinvestment plans in the current year. She will seek to raise record amounts by selling state assets in the new financial year. Her efforts might get a boost from the annual dividend paid to the government by the Central Bank. The dividend is expected to also complement fiscal steps with more monetary stimulus when it meets later next week.
“A 4% tax on the nation’s 954 richest families could raise the equivalent of 1% of India’s GDP,” Oxfam said in a report released Monday. Various economists including Nomura Holdings Inc.’s Sonal Varma think a Covid levy is a bad idea. They said this because the economy is still normalizing after a strict and vast lockdown.