Budget 2021 | India to boost spending to aid economic recovery: Report
Union Finance Minister Nirmala Sitharaman said earlier in December that the upcoming budget would be unlike anything presented before.
December 30, 2020 / 01:50 PM IST
To aid economic recovery, India is planning a massive increase in spending during the Budget for 2021-22, which will be presented on February 1.
Budget 2021 will be increased from Rs 30 lakh crore ($407 billion) that is allotted at present, Bloomberg reported citing sources.
Moneycontrol could not independently verify the story.
The Indian economy has entered a technical recession, after the harsh economic impact of the COVID-19 outbreak and consequent restrictions.
The government and the Reserve Bank of India have announced several measures in 2020, totalling nearly Rs 30 lakh crore, or 15 percent of the country's gross domestic product (GDP). The measures were aimed at providing businesses and citizens relief during the pandemic.
Union Finance Minister Nirmala Sitharaman said earlier in December the upcoming budget would be unlike anything presented before.
Also read: Through her public statements, FM Nirmala Sitharaman is preparing markets, rating agencies for an unprecedented budget
"We shall definitely sustain the momentum of public spending in infrastructure. Because that is the one way we assure that the multipliers will work and the economy's revival will be sustainable," she said on December 15.
The budgeted capital expenditure for 2021-22
could easily cross Rs 6-7 lakh crore, Moneycontrol reported on December 8. The fiscal deficit for the financial year is estimated at 7.5-8 percent of the GDP, the report added.