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    Budget 2021: Will the government be able to get the country out of trouble?

    This year’s Union Budget will be presented on Monday at a time when India is officially going through a phase of economic recession for the first time.

    It is estimated that the end of FY 2020-21 will be completed with the economy shrinking to 7.7 percent.

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    Although the sixth-largest economy in the world is slowly returning to track and according to the International Monetary Fund, the growth rate is expected to exceed 11 percent in 2021-22, but observers have warned that if the government has a heavy budget in this budget If there is no amount of spending, it will be difficult to bring the economy back on the path of development.

    Preparations for the budget are in progress. A new idea is being discussed. Government sources have confirmed that the corona tax is being seriously considered and that it can be imposed for “a maximum of three years”. Sources say, “For the corporate sector, this tax may be higher than the tax paying public.”

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    Hardly any finance minister in independent India would have faced so many and such complex problems as Nirmala Sitharaman is facing.

    Take a look at their problems

    The latest budget is being prepared amidst the situation arising out of the Corona epidemic. The state of the country’s economy is disastrous. More than 1.5 lakh people have died due to corona and more than one crore people have been infected. The poor government health system has to be rebuilt in front of the government.

    Farmers have been protesting against the Agriculture Bill for two months on the border of the country’s capital. Tensions along the border with China have continued for months. And the most important thing is that there is no money in the government treasury.

    Budget 2021 country out of trouble
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    Nirmala Sitharaman has promised that this time the budget will be different, the best of this century. But it will be understandable on February 1 that there is a point in their claims.

    But there is general consensus among economists that budget is not a magic wand.

    What major challenges do they have to face for the budget?

    According to some economic experts, one of the biggest challenges is to create new employment opportunities. For the record, the unemployment rate in the country in 2012 was two percent. Today it is 9.1 percent. Of course this problem is worldwide but many countries have taken appropriate steps to tackle unemployment.

    Budget 2021 country out of trouble
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    Giving employment to the villagers in their villages or returning to their cities will be a major challenge of the government.

    Recovering from the damage caused by the pandemic and speeding up the growth rate is the second biggest challenge of the Finance Minister. Rating agency CRISIL estimates that India has lost four percent of its GDP due to lockdown and epidemic.

    Many economists believe that to reach where the economy was before the epidemic, it would require a sustained 8.5 percent growth for three years.

    Budget 2021 country out of trouble
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    Till now, the government has been financially conservative in fighting the effects of the Corona pandemic and has taken very careful steps. Most economic experts argue that the Modi government needs to spend extensively without caring too much about fiscal discipline.

    We can watch out for the upcoming budget, and see how things pan out.

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