Budget 2021 Decoded: Efforts to Boost Economy but Inflation Awaits
The Quint decodes Budget 2021 to understand what’s in store for the economy and consumers.
Video Producer: Hera Khan
Video Editor: Mohd Irshad Alam
Finance Minister Nirmala Sitharaman on Monday, 1 February, presented the Union Budget 2021-22.
The presentation of the Budget comes in the shadow of the coronavirus pandemic and its repercussion on the economy, which is facing its worst contraction since 1952. The Quint's Editorial Director Sanjay Pugalia analyses Sitharaman's budget to understand what's in store for the economy and consumers.
To our surprise, this budget is both mature and transparent as compared to the earlier ones. The share market has also rejoiced at the budget.
While the budget proposed no direct tax, custom duty was replaced by cess. The finance minister has claimed that this will not affect the consumers, but experts believe that this is expansionary budget and the indirect tax will be passed on to the consumers by the companies once the price of the commodities rise. Consequently, the country would see an increase in inflation.
Some of the main points analysed are:
- Government focused on urban-rural infrastructure
- Special focus on election-bound states
- Inflation will become a challenge for the government
- The efforts to create jobs is a 'gamble'
- The scrappage policy will give a boost to auto sector
- There is indirect intervention to deal with the issues of poverty, inequality, unemployment.
The FM has also shared plans of privatising two public sector banks (PSUs) and one general insurance company in the Financial Year 2022.
Watch the video above for more.
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