Skip to content
Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

Primary Menu Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

Hindi News, हिंदी समाचार, Samachar, Breaking News, Latest Khabar – Pratirodh

  • Home
  • Newswires
  • Politics & Society
  • The New Feudals
  • World View
  • Arts And Aesthetics
  • For The Record
  • About Us
  • Featured

Budget Likely To Increase Spending To Spur Growth

Feb 1, 2020 | Pratirodh Bureau

Finance Minister Nirmala Sitharaman is flanked by junior Finance Minister Anurag Thakur as she arrives to present the budget in Parliament in New Delhi on February 1, 2020

Prime Minister Narendra Modi’s government is likely to increase state spending on infrastructure and offer some tax incentives in its 2020/2021 budget on Saturday, aiming to get growth back up from its lowest in a decade.

In its annual economic report, released on Friday, the government predicted that economic growth would pick up to 6.0% to 6.5% in the fiscal year beginning April 1, but warned that it may have exceeded its deficit target to revive growth.

India is facing its worst economic slowdown in a decade. The government estimates economic growth this year, which ends on March 31, will slip to 5%, the weakest pace since the global financial crisis of 2008-09.

Finance Minister Nirmala Sitharaman, who will present her second full-year annual budget to parliament, could defer the earlier target of cutting the deficit to 3% of gross domestic product in 2020/21 by at least two years, government sources told Reuters.

This will be on top of roughly $28 billion of spending from off-budget borrowings, as the government seeks to keep the deficit in check.

Economists in a Reuters poll predicted the government would set a deficit target of 3.6% of GDP for 2020/21, up from 3.3% targeted for the current year.

Sitharaman is expected to announce plans to spend over 102 trillion rupees (1.09 trillion pounds) on roads, ports, airports, irrigation and other infrastructure over the next five years.

The government may also announce an income tax amnesty, after collecting over 350 billion rupees ($4.92 billion) from an amnesty this year to settle tax disputes on service and factory gate duties, the sources said.

Some experts said global trade tensions and the outbreak of coronavirus in China, which has killed more than 200 people so far, pose a new risk to economic recovery by hitting cross-border commerce and supply chains.

“The economic recovery is likely to be slow and shallow despite the recent measures to boost investments,” said Anagha Deodhar, an economist at ICICI Securities.

Last month, the statistics office said investment growth was expected to fall to just 1% in the current financial year from 10% the previous year. Private consumption growth might slip to 5.8% from 8.1%.

Krishnamurthy Subramanian, chief economic adviser to the finance ministry, said the government could push economic reforms to boost growth.

The government should rationalise food subsidies to create additional fiscal space, push exports and adopt “counter-cyclical fiscal policy” to boost the sluggish demand and consumer sentiments, he said.

The government is expected to earmark around 1.90 trillion rupees for food subsidies in the next financial year, though the food ministry has sought more than 2 trillion rupees to run the world’s biggest food welfare programme.

Tags: “counter-cyclical fiscal policy”, annual economic report, biggest food welfare programme, chief economic adviser, coronavirus, economic slowdown, Finance Minister Nirmala Sitharaman, food subsidies, global financial crisis, global trade tensions, income tax amnesty, infrastructure, investment growth, Krishnamurthy Subramanian, Pratirodh, prime minister narendra modi, Private consumption growth, tax incentives

Continue Reading

Previous Nirbhaya Case: Court Defers Execution Of Death Warrants
Next Coronavirus: India Bans Export Of Masks, Clothing

More Stories

  • Featured

Zelenskyy Opens Cannes Film Festival, Links War And Cinema

4 hours ago Pratirodh Bureau
  • Featured

The Rocky Road To Social Media Independence

5 hours ago Pratirodh Bureau
  • Featured

Pollution: Over 23.5 Lakh Premature Deaths In India In 2019

19 hours ago Pratirodh Bureau

Recent Posts

  • Zelenskyy Opens Cannes Film Festival, Links War And Cinema
  • The Rocky Road To Social Media Independence
  • Pollution: Over 23.5 Lakh Premature Deaths In India In 2019
  • Rajiv Gandhi Assassination: SC Orders Release Of Convict
  • Not Allowed To Enter Chandigarh, Farmers Sit On Protest Near border
  • ‘Who Are You?’: SC Questions Locus Of Hindu NGO Office Bearer
  • Borne Becomes France’s Second Woman PM
  • India Rejects Pak’s ‘Farcical’ Resolution On J&K
  • ‘Ban On Wheat Exports Anti-Farmer Move’
  • Shivling Claim An Attempt To Create Communal Disharmony: AIMPLB
  • Farmers Turn To Millets To Fight Water Stress, Climate Change
  • BJP Works To Create Divide, Two Indias: Rahul
  • ‘Cryptos Can Lead To Dollarisation Of Economy’
  • Delhi Turns Into Hot Cauldron At 49 Degrees C
  • Ukraine Opens 1st War Crimes Trial Of Captured Russian Soldier
  • Nuking Pakistan Better Than Giving Power To Thieves: Imran Khan
  • Slain Kashmiri Pandit Cremated Amid Protests Against BJP
  • Climate Change Is Making Floods Worse Too
  • Lessons For Ukraine From The Rohingya Crisis
  • ‘Our Mountains Are Gone’: Grief As Sacred New Mexico Forests Burn

Search

Main Links

  • Home
  • Newswires
  • Politics & Society
  • The New Feudals
  • World View
  • Arts And Aesthetics
  • For The Record
  • About Us

Related Stroy

  • Featured

Zelenskyy Opens Cannes Film Festival, Links War And Cinema

4 hours ago Pratirodh Bureau
  • Featured

The Rocky Road To Social Media Independence

5 hours ago Pratirodh Bureau
  • Featured

Pollution: Over 23.5 Lakh Premature Deaths In India In 2019

19 hours ago Pratirodh Bureau
  • Featured

Rajiv Gandhi Assassination: SC Orders Release Of Convict

20 hours ago Pratirodh Bureau
  • Featured

Not Allowed To Enter Chandigarh, Farmers Sit On Protest Near border

1 day ago Pratirodh Bureau

Recent Posts

  • Zelenskyy Opens Cannes Film Festival, Links War And Cinema
  • The Rocky Road To Social Media Independence
  • Pollution: Over 23.5 Lakh Premature Deaths In India In 2019
  • Rajiv Gandhi Assassination: SC Orders Release Of Convict
  • Not Allowed To Enter Chandigarh, Farmers Sit On Protest Near border
Copyright © All rights reserved. | CoverNews by AF themes.