Budget 2021-22

Post lockdown, the way Indian economy has shown resilience with continued ‘V’ shaped recovery is very optimistic. It indicates that the India economy even after the pandemic shock is on a very strong footing. This optimism in the environment has also been echoed by the stock market. However, it is very important that this optimism in the economy gets strong fiscal support with proper policy response as well as anchoring from the government in the present budget for the fiscal year 2021-22.

The government has tried its level best to align the budget 2021-22 with the Atma Nirbhar Bharat Abhiyan which mainly focused on the supply side of the economy. This budget can be termed as a mixed budget as it has provided enough support to the industries to increase the economic activities but to some extent a few services sectors have been left out by this budget particularly the tourism and hospitality sector. There is no mention or provision for any support to the already struggling tourism and hospitality sector in the budget speech of this year. These sectors require proper attention of the government for the recovery. It is unknown why these two key sectors have been ignored although this budget makes provision for better train coaches for the tourist routes. It is expected that it will take longer than expected to revive the demand in the tourism and hospitality sector as there still persists coronavirus related restrictions in these sectors. Perhaps it may be the reason because of which the government might have not provided any provisions for these sectors.

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