Budget with a long-term view

Govt can approach the Budget 2021 with an aim to rebuild the economy to attain the long-term objective of sustained higher growth

Union Finance Minister Nirmala Sitharaman will present perhaps the most significant Budget in recent history on Monday. There are at least two ways to approach the Budget. One, the government can focus mostly on the next financial year. The economy is recovering from the pandemic-induced contraction, and growth is set to rebound sharply. The International Monetary Fund now expects India to grow at 11.5 per cent next year. Revenue collection will also recover with the improvement in economic activity. The government can choose to increase expenditure and push growth during the financial year, as being suggested by many commentators.

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