Economy determines the status of a country on the international map of developed, developing and under developed countries. For a developing country to establish itself in the global picture among the already developed economy, a definite budget plan and financial aim are the two most important keys. India being a developing country and world’s largest democracy with a dense population of 1.39 billion and the cultural diversity, it is necessary for the government to keep a track on its budget plans for satisfying all sort of needs and requirements for the country to run ideally.
The current budget plan that has been taken care of by the Central Government has been drafted keeping the current global scenario in mind. The government has planned on achieving an economy of 5 trillion dollars after drafting the rest of the plans for the current financial year, 2021. Even though it seems pretty difficult in the worldwide pandemic situation, the steps taken by the government are quite convenient. It is clearly visible that this decision has been taken with a strong futuristic vision and has been done under professional consultations.
Can India Achieve The Goal of 5 Trillion Dollar Economy?
After the budget presented by the Finance Minister Nirmala Sitharaman in February 2021, it was clearly stated that the government of India and Prime Minister Narendra Modi has decided to stick to the decision of giving a push to the idea of building a USD 5 trillion economy for India by 2024-2025. Economy Affairs Secretary Tarun Bajaj has revealed, after the drafting of the budget for the financial year of 2021-22 a major hike has been introduced in the revenues of infrastructure spending and asset monetization. The healthcare sector and agriculture sectors have also been kept under strong negotiations while the draft for the budget of the ongoing financial year was made.
Prime Minister Narendra Modi and the Central Government have strictly decided to stick to the idea of making India one of the developed countries by achieving the USD 5 trillion economy. This would place India on the 3rd position in the Global Economic Map of developed countries keeping China in the 2nd.
After declaring the new budget for 2021-22 in February, the expenditure on infrastructure has gone up from Rs. 4.12 lakh crores to Rs. 5.54 lakh crores, while the health sector revenues has been notched up to Rs. 2.23 lakhs from Rs. 94,000 crores. The International Monetary Fund has estimated 11.5 percent of growth in GDP for India in 2021-22 session, while it was approximately 7.7 percent during the last financial session. This marvellous rate of growth in economy during a global pandemic situation is noteworthy.
After the Pandemic hit the world, developing countries like India had to suffer a major loss in different major economical sectors. The rapid decline of important industries was becoming a major threat to the financial status of the country. Keeping everything in mind and considering the relative growth of all the important sectors in the current financial year, the government has decided to borrow , since the surplus liquidity in the market has reduced the revenues for borrowing for the government. The private sectors are welcomed equally, as declared by Bajaj.
As per the new estimation, the total amount borrowed for the current financial year was notched up by Rs. 12.8 lakh crore in- spite of the estimated budget of Rs. 7.8 lakh crore, that gives a calculation of almost 64 percent of hike.
“The gross borrowing from the market for the next year would be around 12.8 lakh crores. We plan to continue with our path of fiscal consolidation and with an intention to reach a fiscal deficit level below 4.5 percent of GDP by 2025-2026 with a steady decline over the period.” Sitharaman stated this when the fresh budget for the new financial year was being declared in Loksabha in February, as reported by the Economic Times.
The overall budget plan and the status of the current financial year seems way too focused for building a stable economic status in India. Although, keeping the present worldwide pandemic situation in mind , it is still a long way to go. If and only if the plans get executed effectively, it will be a massive achievement for India indeed.
Article Proofread and Edited by Shreedatri Banerjee