Hello Readers!

The Budget Session For 2021-22 commenced today, on 29^th January 2021, and is likely to conclude, by April 8, with a recess of 20 days between February 15 and March 8. The Union Budget is scheduled to be announced on 1^st February 2021 by our honorable Finance Minister Nirmala Sitharaman.

Every individual in this country is aware of the fact that Parliament meets for three sessions in a year. The longest session is the Budget session that starts from the end of January and concludes by the end of April or the first week of May.

The Budget Session started with the address by honorable President, Sri Ramnath Kovind. After that Finance Minister Nirmala Sitharaman tabled the Economic Survey Report 2021 in the Parliament. 

The Economic Survey 2020-21, authored by a team led by Chief Economic Adviser Krishnamurthy Venkata Subramanian, details the state of different sectors of the economy as well as reforms that should be undertaken to accelerate growth.   

Here the Key Highlights of the report that every individual must look at. 

• The report states that the Indian Economy that suffered a threat due to Coronavirus, is expected to show a strong recovery in the 2021-22 fiscal year. The report estimated that the economy might see a contraction of 7.7 percent initially and then will show a v-shaped recovery. The GDP is expected to show an expansion of 11% 2021-22 fiscal (April 2021 to March 2022).
• The report stated that the government is likely to miss its fiscal deficit target of 3.5% of Gross Domestic Product this year. This clearly shows that government needs to facilitate more sustained measures for a fast recovery of the economy in the fiscal year 2021-22.
• The importance of good healthcare facilities was basically realized after the consequences of low healthcare facilities we suffered due to sudden pandemic breakdown. This has made the healthcare facilities stand on the center of the stage in the report. The report states that the measures that would be taken for the healthcare facility would entail a growth in real GDP by 2.4 percent over the absolute level of 2019-20. The further report added that going through this way, it will be taken around two years to reach the pre-pandemic level, thus the government has to actively structure the healthcare market for a quick recovery.
• The report stated that the people of India followed the lockdown very strictly, whose dividend they are receiving now. People actively understood that the strictly followed short-term lockdown pain will eventually give them a long relief in the coming future. It stated that besides India’s dense population and demographics, it restricted the COVID-19 spread to 37 lakh cases and saved around 1 lakh cases. The real graph of Corona in India was completely different from the predicted graph.
• The pandemic and the prolonged lockdown had their effects on almost every sector, including the residential property sector. The sale of residential properties was affected worse. However, the sales improved in the affordable homes segment from July onwards, reflecting the economic recovery in the real estate sector, as stated by the report. The Economic Survey highlighted that access to housing has improved in all states, with some exceptions, helped by schemes like the PMAY (Pradhan Mantri Awas Yojana).
  
• The report also had something to say over the most agitated subject in the country currently, New Farm Laws and Farm Bill. Economic Survey 2021 said that the legislation will empower farmers in their engagement with processors, wholesalers, aggregators, large retailers and provide a level-playing field. It will transfer the risk of market unpredictability from the farmer to the sponsor and enable access to modern technology. They said that under the new farm laws, around 10,000 farmer producer organizations will be formed throughout the country which will bring together small farmers. The new farm laws are designed and intended primarily to benefit small and marginal farmers who constitute 85% of total farmers. So basically, as per the report, the new farm laws will prove beneficial to the small and marginal farmers.

Stay tuned with us for more details and trending news on Budget 2021. 

For any kind of query you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).