Check Budget live updates here
Covid-19 spending: India has started the world's largest Covid inoculation programme from January 16 and is using two vaccines Covishield and Covaxin. The expenditure on vaccination this fiscal as well as in the next would be the most watched figures in the Budget.
The budgeted fiscal deficit, which is the difference between government expenditure and income, was 3.5 per cent for current fiscal "ending March 31.However, the revised number would over-shoot this by a large margin due to the fiscal stimulus given to support the economy following Covid-19 outbreak. The number for 2021-22 fiscal would be in focus.
The borrowing has already been hiked to Rs 12 lakh crore, from earlier budgeted Rs 7.8 lakh crore, to make good both tax and disinvestment
revenue shortfall. Next fiscal's borrowing, especially on the back of expected higher capital expenditures to boost growth, would have to be keenly watched out.
Check Budget latest news here
With an estimated 7.7 per cent economic contraction this fiscal, the 12 per cent growth projected in tax revenues at Rs 24.23 lakh crore for 2020-21 for current fiscal is difficult to meet.
Disinvestment receipts: The record Rs 2.10 lakh crore CPSE stake sale target would be missed by a wide margin this fiscal with just Rs 19,499 crore raised so far. However, the silver lining is that privatisation process of at least 7 CPSEs, including Bharat Petroleum (BPCL), Air India, BEML, Shipping Corporation of India (SCI) and Pawan Hans has already started.
Capital Expenditure: The government's planned capital expenditure for this fiscal was over Rs 4.12 lakh crore. With the Economic Survey calling for an "expansionary fiscal stance" to ensure a 'V'-shaped recovery and clock 11 per cent growth in 2021-22 fiscal, the expenditure number would hog the limelight.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.