{"id":79965,"date":"2021-02-03T10:03:11","date_gmt":"2021-02-03T04:33:11","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=79965"},"modified":"2021-02-03T10:52:31","modified_gmt":"2021-02-03T05:22:31","slug":"evaluation-of-budget-2021","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/evaluation-of-budget-2021\/","title":{"rendered":"Evaluation of Budget 2021"},"content":{"rendered":"<p><strong>Source: <a href=\"https:\/\/www.thehindu.com\/opinion\/op-ed\/the-finance-minister-has-delivered-but-the-road-ahead-is-long\/article33721241.ece\">The Hindu<\/a><\/strong><\/p>\n<p><strong>Gs2: Parliament and State Legislatures- Budgeting<\/strong><\/p>\n<p><strong>Synopsis: The evaluation of <\/strong>Budget 2021 is done on three parameters. First, on the credibility of the Budget. Second, it&#8217;s potential to deliver adequate domestic output and jobs. Third, on how the Budget raises resources.<\/p>\n<p><strong>What is the Credibility of the Budget 2021?<\/strong><\/p>\n<ul>\n<li>Budget 2021 scores high on credibility. Because, unlike previous budgets, Budget 2021 has taken into account the real estimates of <strong>revenue receipts. Moreover, it<\/strong>\u00a0has recognised the \u2018<strong>off-balance sheet\u2019 expenditures<\/strong>.<\/li>\n<li>This has resulted in arriving at <strong>real fiscal deficit numbers<\/strong> that are much higher than expected. It is 9.5% of the GDP for FY21 and 6.8% of the GDP for FY22. But disclosing real fiscal deficit has the following Significance\n<ol>\n<li>One, realistic revenue budgets will reduce the pressure on tax authorities to engage in tax terrorism.<\/li>\n<li>Two, it will allow governments to release its payments and refunds on time.<\/li>\n<li>Three, focus on the \u2018real\u2019 numbers will help in informed decision-making and planning to improve our fiscal balance.<\/li>\n<\/ol>\n<\/li>\n<\/ul>\n<p><strong>Steps taken to provide adequate domestic output and jobs<\/strong><\/p>\n<ol>\n<li>Budget 2021 signals a shift away from the <strong>revenue expenditure towards Capital Expenditure<\/strong>. <strong>Capital expenditure<\/strong> in FY22 is budgeted to increase by 26% over FY21 due to increased focus on areas such as infrastructure, roads, and textile parks.<\/li>\n<li>The budget also promises to improve health, education, nutrition and urban infrastructure.<\/li>\n<li>Along with this, efforts are being made to increase domestic jobs. It includes <strong>reform of labour laws<\/strong>, <strong>corporate tax rate cuts, and production-linked incentive<\/strong>s.<\/li>\n<\/ol>\n<p><strong>What steps were taken to raise resources and improve investment?<\/strong><\/p>\n<ul>\n<li>The Budget focuses to raise resources through <strong>disinvestment and asset sales<\/strong>, rather than via additional taxes. It reduces the tax burden on people.<\/li>\n<li>The Finance Minister also announced the creation of <strong>a new Development Financial Institution<\/strong> to facilitate and fund infrastructure investments.<\/li>\n<li>There were also efforts to revive our stressed financial services ecosystem. The Finance Minister announced the creation of a <strong>government Asset Reconstruction Company, or \u2018bad bank\u2019<\/strong>, to reduce the non-performing assets that are spread throughout the industry.<\/li>\n<\/ul>\n<p><strong>Way forward:<\/strong><\/p>\n<ul>\n<li>The government should also help to revive other sectors who are suffering from <strong>chronic stress<\/strong>. Examples are financial services, power, real estate, telecom, airlines and shipping, contact-based services and micro, small and medium enterprises.<\/li>\n<li>Also, taking lessons from the <strong>global financial crisis in 2008<\/strong>, the government should not assume that a revival in consumption and government spending would automatically result in durable growth. Hence, the Government needs to make efforts to ensure adequate growth in domestic output and jobs.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Source: The Hindu Gs2: Parliament and State Legislatures- Budgeting Synopsis: The evaluation of Budget 2021 is done on three parameters. First, on the credibility of the Budget. Second, it&#8217;s potential to deliver adequate domestic output and jobs. Third, on how the Budget raises resources. What is the Credibility of the Budget 2021? Budget 2021 scores&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/evaluation-of-budget-2021\/\">Continue reading <span class=\"screen-reader-text\">Evaluation of Budget 2021<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[1646,1308,1303],"class_list":["post-79965","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-budget_21","tag-eco_0","tag-eco_8","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704813745},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/79965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=79965"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/79965\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=79965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=79965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=79965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}