Hopes tied with Union Budget 2021 and notable key points

COVID-19 had wrapped the economy in huge loss.But now new glimpses of relief can be seen. Finance Minister- Nirmala Sitharaman has given new hopes to everyone before presenting the 2021 Budget, on February 1.

COVID-19 had wrapped the economy in huge loss.But now new glimpses of relief can be seen. Finance Minister- Nirmala Sitharaman has given new hopes to everyone before presenting the 2021 Budget, on February 1.

 
Due to the great financial disturbance caused by the pandemic in people's life this time the Union Budget will be a matter of great significance for the common man. 2020 brought with it not only the pandemic of COVID-19 virus but also the pandemic of job scarcity.People spent the entire year being jobless and unemployed.This was not only the situation of India but of the entire world.
 
Still now there are being cuts in salary and loss in business which is affecting both the economic and emotional status of people.This is the reason why everyone is expecting some big news from the Finance Minister with a hope to lowering tax cuts along with reducing other pandemic burdens. 

To regain the pace of rising economy there are certain points to be noted -

1.Spending

We can not imagine an economy that is established without expenditure.Without spending there will be no funds for the institutions to function.So the government is likely to make special expenditure provision,in this budget, to handle the unprecedented financial situation.

An increase may be seen in the amount to be spent on infrastructures like the construction of new roads and ports, and provide incentives for manufacturers, to revive the economy.

Healthcare infrastructure as always will be the major part where spending will bw focused.But for the last two years these has been less expenditure in this field than the budgeted amount.

2.TOTAL RECEIPT

Every receipt of money that revenue or non- revenue sources give to the government is a receipt from tax to non-tax and capital, including borrowing and selling  government assets, which is taken as a total receipt.

In the last budget, the total receipt (other than net borrowings) was expected to increase by 16 per cent to Rs 22,45,893 crore - hoping for higher revenue from disinvestments. But as the wave of pandemic hit hard the economic boundaries all expectations were drowned under it.  However, a rise in tax collections, especially in GST, may provide some rest to the government in the upcoming months.

3.FISCAL DEFICIT

A fiscal deficit occurs when the government's total receipts (revenue + capital receipts) are less than its spending (revenue + capital expenditures), which is highly expected to widen this year. The government had budgeted a fiscal deficit of 3.5% of GDP or nearly Rs eight lakh crore for 2020-21 before the outbreak of Corona pandemic.

4. HEALTH

During this pandemic our country has realised the need of  more health care system.Patients were found outside the hospitals waiting for their turn.
Several previous budgets have ignored the need of better public health care system which should now be taken into great consideration.

The Finance Minister may allocate more money for health-related initiatives, especially on health infrastructure.

"The V-shaped economic recovery is supported by the initiation of a mega vaccination drive with hopes of a robust recovery in the services sector. Together, prospects for robust growth in consumption and investment have been rekindled with the estimated real GDP growth for FY 2021-22 at 11 per cent", an Economic survey three days before the budget said.