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India's $500 billion budget to spur growth leaves little for the poor


India’s $500 billion budget to spur growth leaves little for the poor
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Last Updated: Feb 06, 2021, 05:31 PM IST
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Synopsis
Sitharaman unveiled a budget that will cause the fiscal deficit to balloon to a much higher-than-expected 9.5% in the current year ending March on the added expenditures. Stock market investors cheered the plan, hoping for an economic resurgence and celebrating the absence of new taxes on the wealthy and corporations, while bonds tumbled on worries about the record deficit.
Union Budget 2021: FM Sitharaman raises agri credit target to Rs 16.5 lakh cr for FY22; MSP procurement to continue
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By Vrishti Beniwal and Archana Chaudhary ....

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Budget does not address inequities, bold for its fiscal stance: Economists


Economists hailed Finance Minister Nirmala Sitharaman for a bold budget focused on fiscal expansion but flagged concerns over the proposals for not addressing the problems of inequitable growth.
Concerns over the impact on the sovereign rating have been sidestepped in the budget by using a wider fiscal deficit for addressing the growth needs, they said.
The budget was widely expected to be a fiscally expansionary one, given the concerns on the growth front.
The budget does not adequately address concerns over inequitable growth which has been a worry across the globe due to the pandemic. There has been no specific support for sectors stressed due to the pandemic like the hospitality sector, HDFC Bank s chief economist Abheek Barua said. ....

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Nifty: Market Movers: Banks soar, infra stocks rally as FM delivers pro-growth Budget


MUMBAI: Benchmark equity indices soared over 5 per cent each as investors were relieved that Finance Minister Nirmala Sitharaman did not raise taxes in the Union Budget for 2021-22, and instead, chose to pump-prime the economy through higher capital expenditure and cleaning up of the banking sector books.
“This is not a populist Budget, there is no major attempt to redistribute incomes by increasing taxes on high income groups, as was the case earlier,” said Prabhat Awasthi, managing director and country head India, Nomura.
The Nifty 50 index ended 4.7 per cent or 646.6 points higher at 14,281.0, while the BSE Sensex closed at 48,600.61 points, up 5 per cent or 2,314.8 points. ....

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