A Budget after contraction

Past Budgets presented after a GDP decline had no exciting proposals

A contraction of 7.7 per cent is what the Indian economy is expected to experience during 2020-21, according to the National Statistical Office (NSO) of the Union government. For the Union Budget for 2021-22, to be presented on February 1, the implications are significant as it will have an impact on government finances.

According to the NSO’s estimate, the nominal size of India’s gross domestic product (GDP) in the current year would be Rs 195 trillion, about 4 per cent less than the Rs 203 trillion achieved in 2019-20. More importantly, the estimate of Rs 195 trillion for the current