oppn parties Budget 2021: Kickstarting The Economy

Story Of The Day

Assessee Not Responsible For Ensuring TDS Is Paid To The Government: Delhi HC
OPINIONS : Strongly Expressed

December 21, 2024

People Are Talking About

Rohit Warns Sarfaraz, Police Use It To Warn Two-Wheeler Riders

News Snippets

  • The Indian envoy in Bangladesh was summoned by the country's government over the breach in the Bangladesh mission in Agartala
  • Bank account to soon have 4 nominees each
  • TMC and SP stayed away from the INDIA bloc protest over the Adani issue in the Lok Sabha
  • Delhi HC stops the police from arresting Nadeem Khan over a viral video which the police claimed promoted 'enmity'. Court says 'India's harmony not so fragile'
  • Trafiksol asked to refund IPO money by Sebi on account of alleged fraud
  • Re goes down to 84.76 against the USD but ends flat after RBI intervenes
  • Sin goods like tobacco, cigarettes and soft drinks likely to face 35% GST in the post-compensation cess era
  • Bank credit growth slows to 11% (20.6% last year) with retail oans also showing a slowdown
  • Stock markets continue their winning streak on Tuesday: Sensex jumps 597 points to 80845 and Nifty gains 181 points to 24457
  • Asian junior hockey: Defending champions India enter the finals by beating Malaysia 3-1, to play Pakistan for the title
  • Chess World title match: Ding Liren salvages a sraw in the 7th game which he almost lost
  • Experts speculate whether Ding Liren wants the world title match against D Gukesh to go into tie-break after he let off Gukesh easily in the 5th game
  • Tata Memorial Hospital and AIIMS have severely criticized former cricketer and Congress leader Navjot Singh Sidhu for claiming that his wife fought back cancer with home remedies like haldi, garlic and neem. The hospitals warned the public for not going for such unproven remedies and not delaying treatment as it could prove fatal
  • 3 persons died and scores of policemen wer injured when a survey of a mosque in Sambhal near Bareilly in UP turned violent
  • Bangladesh to review power pacts with Indian companies, including those of the Adani group
D Gukesh is the new chess world champion at 18, the first teen to wear the crown. Capitalizes on an error by Ding Liren to snatch the crown by winning the final game g
oppn parties
Budget 2021: Kickstarting The Economy

By Sunil Garodia
First publised on 2021-02-02 02:19:11

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.

For someone who has consistently criticized the government for not taking the initiative to invest to revive the economy, this correspondent finds that Budget 2021, with its "spend-spend" mantra, is an ideal Budget for these troubled times, provided the government manages to raise the resources and actually spends as proposed. 

Basically, one has to recognize that giving freebies in this age is not kosher. The need to put money in the hands of the people can be done in other ways too. Investment by the government to kick start the economy is one of the best ways. When the core sector starts getting orders production picks up and all sectors benefit. Jobs are generated and money starts flowing in the hands of people.

This Budget is going to do precisely that. By not imposing additional taxes (apart from cess on some sectors), the finance minister has ensured that money is not squeezed out of the people. By not imposing a "Covid tax" on the rich, the finance minister has ensured that wealth creation is not penalized. By holding the hands of startups for one more year, the finance minister has ensured that enterprise, innovation and entrepreneurial drive will be supported. By allocating Rs 20000 for bad loans of PSB and announcing the formation of a "bad" bank, the finance minister has signaled that the problem of bad loans will be addressed this year.

By investing in infrastructure, the finance minister has ensured that growth prospects are enhanced. By investing in healthcare, she has ensured that India takes care of its citizens better and becomes more capable of combating any future pandemics. By investing in defence, she has ensured that the country's security concerns are addressed, especially as China seems bent on acting aggressively. Finally, by investing heavily in agriculture, she has shown that this government is not unmindful of the problems faced by farmers. All these investments will have a direct and positive bearing in reviving the economy and creating jobs.

But the government will have to act fast on the divestment promises. Last year, not even a fraction of the divestment target was met. The ambitious figure set for the next year can be met only if the government does things in a better way. If divestment targets are not met, funds will become scarce and promises made in the Budget might not be kept in full. If the government is able to generate the funds and invest in full as proposed, the economy will revive faster than most people think. 

Other Stories You Make Like

Editorials

Turmoil In Mollywood

Turmoil In Mollywood

NDA 3.0: Coalition Dharma

NDA 3.0: Coalition Dharma

In Depth

Supreme Court Gets Strict On Child Pornography

Supreme Court Gets Strict On Child Pornography

Editor's Pick

Budapest Chess Olympiad: India Are World Team Champions

Budapest Chess Olympiad: India Are World Team Champions
© 2014 India Commentary. All rights reserved.