Understanding the formulation of the Budget
The Hindu
How does the Budget affect economy and growth? In a pandemic year, is the fiscal policy tuned to addressing contemporary challenges of unemployment and low output growth rate?
: With the economy still hurting from the pandemic, the Budget on February 1 is likely to address concerns around growth, inflation and spending. The Budget, which will be tabled in Parliament by Finance Minister Nirmala Sitharaman, is the Government’s blueprint on expenditure, taxes it plans to levy, and other transactions which affect the economy and lives of citizens.
There are three major components—expenditure, receipts and deficit indicators. Depending on the manner in which they are defined, there can be many classifications and indicators of expenditure, receipts and deficits.