India's 2020-21 Budget Boosts Rural Infrastructure, Inflation Surges
The Budget for 2020-21 has been presented, with a focus on boosting rural and social infrastructure. Consumer inflation has breached the RBI's 4 per cent threshold, while the fiscal deficit target has risen to 3.8 per cent of the GDP. The real GDP growth has slumped to 5 per cent, the lowest in 11 years.
The Budget recognises the need for a clear path to reduce the fiscal deficit to the targeted figure in the medium term. The deficit target has increased from 3.4 per cent in FY19 to 3.8 per cent in FY20. To ease land-related issues and promote commercially viable farming, the government is encouraging states to adopt model laws.
A range of measures to revive the economy were announced ahead of the Budget, including a significant cut in corporate tax rates. The government also plans to divest part of its stake in LIC and its balance shareholding in IDBI Bank. To improve digital connectivity, the Centre aims to provide Fibre-to-the-Home connections to 1,00,000 gram panchayats by the end of the year.
To ensure accessible healthcare facilities and create jobs, the Budget proposes viability gap funding for constructing Ayushman Bharat-empanelled hospitals in aspirational districts.
The Budget for 2020-21 aims to boost agriculture, rural, and social infrastructure, with a focus on improving digital connectivity and healthcare facilities. Despite the rise in the fiscal deficit target and breaching of the inflation threshold, the government is committed to a clear path towards fiscal consolidation in the medium term.
Read also:
- Overcoming Yielding Regulations Hurdles in Indian Export Sector for EU Markets
- Solar Supply Crunch Challenges Global Energy Transition as U.S. Senate Approves Clean Energy Infrastructure Bill
- Palisades Fire Threatens UCLA Neighborhoods, Resident Proposes Rezoning
- Maximizing Business Agility and Efficiency through Hybrid Cloud: Unveiling the Advantages
