As the impact of the pandemic recedes, Budget FY22 has its task cut out: Get growth back on track while laying out a roadmap to address a dire fiscal situation. It’s a fine balance that the government needs to get right. While at the very least it would set the course for the next 12 months, industry would also be looking to the Budget for clues for medium term policymaking for, say, the next five years.
As things stand, a sharp decline in revenue has prompted the government to meet the deficit through borrowings. In the financial year ending March 2022, the fiscal deficit for the central government is expected to touch 7 percent of GDP as compared to a planned 3.5 percent when Budget 2021 was presented. Add an additional 5 percent for the states as well as off balance sheet borrowing and the number gets to 13 percent of GDP.
According to economists, the key to reviving growth is government spending on capital assets that would have a multiplier effect on business economy. Roads, railways, ports and irrigation systems would boost output and get economic activity going. “You cannot consolidate on the basis of expenditure reduction. Instead spend more and use the multiplier effect of that to get higher tax collections,” says Abheek Baru, chief economist at HDFC Bank.
NEEDED: AGGRESSIVE DISINVESTMENT
Denne historien er fra January 29, 2021-utgaven av Forbes India.
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Denne historien er fra January 29, 2021-utgaven av Forbes India.
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Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
Paytm 3.0 - Reaching Near Breakeven In Two Years
As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Industry 4.0: Climate Revolution?
Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent
EV Dream Still Miles Away
Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure
Living Waters
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
