The Union Budget 2021 was presented in the Parliament by Finance Minister Nirmala Sitharaman on February 1, 2021. The current year's fiscal budget has everyone’s eyes glued on it due to the major economic losses in 2020 because of the worldwide health crisis. The crisis forced many businesses to shut down and many people lost their source of livelihood. Thus, this year’s budget was a ray of hope as the Indian economy is on its recovery path.
Finance Minister Nirmala Sitharaman was asked for her reaction as many people reportedly called this year’s budget one of the great recent budgets. Addressing the same, she said, their priority was only to make sure that they come up with a budget that will help the stimulus.
Furthermore, she placed emphasis on how PMO, finance ministry, and each department for its concerned affairs has spent a lot of time looking at what can be a meaningful and impactful budget.
Ms. Sitharaman’s only focus was to make a difference to the economy. So, she didn’t give much of a thought in terms of whether it should be a budget like 19911 or like 1997.
Later, when the FM was asked about what made her go in the direction of infrastructure spending and not cash support in budget. Replying to the question, Nirmala Sitharaman said that if we spend on infrastructure, we create capital assets, whose effect will be on the economy for the next couple of decades.
She added that it gives us instant jobs, it also triggers demand for core industry products. All of it further triggers the virtuous cycle. This why she opted for the route of infrastructure spending rather than cash support in the budget.
According to Nirmala Sitharaman’s explanation, the rise in infrastructure will generate job opportunities which in return will push the economies of scale.