Budget 2022: Under Omicron shadow
ET BureauLast Updated: Jan 10, 2022, 07:12 AM IST
Fiscal deficit is already elevated and can’t be cranked up further – the high inflation and current account deficit make it undesirable as well. How will FM meet the challenge when she presents the budget next month?iStockRepresentative ImageFinance minister Nirmala Sitharaman’s fourth budget may have become a tad more challenging as the country confronts the severe third wave of the Covid-19 pandemic. Economic recovery is expected to face headwinds while there is very little in the government’s arsenal to provide stimulus.
Fiscal deficit is already elevated and cannot be cranked up further – the high inflation and current account deficit make it undesirable as well. How will FM meet the challenge when she presents the budget next month?
A look at the challenges and the options:
How can funds be raised without fiscal profligacy?
Pursue aggressive privatisation: There is a good pipeline, a concerted push needed.
Asset monetisation can support capex without burdening budget: Clear tax policies to allow for asset monetisation.
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