Budget 2021 | Early Lockdown Saved Many Lives, Helped Speedy Recovery, Reveals Economic Survey 2021
Budget Economic Survey 2021 HIGHLIGHTS: Ahead of the crucial Economic Survey which was tabled by Finance Minister Nirmala Sitharaman in Lok Sabha, Parliament kicked-started the Budget session with President Ram Nath Kovind's joint address to both the Houses. During his speech, President strongly defended the three contentious agri laws and slammed as "very unfortunate" the violence during the farmers' tractor parade on Republic Day. Soon after arriving at the Parliament, PM Modi spoke to reporters and said the first session of this decade is very important for the bright future of India. Meanwhile, President's address was boycotted by over 20 opposition parties in support of the demand of protesting farmers that the three laws be repealed. Keep refreshing this page to get all LIVE UPDATES from Budget Session of the Parliament:
"Learning from this experience, India implemented an early and stringent lockdown from late March to May to curb the pace of spread of Covid-19. With the economy brought to a standstill for two complete months, the inevitable effect was a 23.9 per cent contraction in GDP as compared to previous year's quarter," CEA said while explaining Economic Survey.
"After an estimated 7.7 per cent pandemic-driven contraction in 2020-21, India's real GDP is projected to record a growth of 11.0 percent in 2021-22 and nominal GDP by 15.4 per cent. These conservative estimates reflect upside potential that can manifest due to the continued normalisation in economic activities as the rollout of COVID-19 vaccines gathers traction," the Economic Survey revealed.
1. GDP estimated to contract 7.7 pc in current fiscal year ending March 31.
2. Farm sector growth remains silver lining; services, manufacturing, construction hit hardest.
3. India expected to witness current account surplus during the current financial year after a gap of 17 years.
4. India's lockdown strategy prevented 37 lakh COVID-19 cases, 1 lakh deaths.
5. India's real GDP is projected to record a growth of 11.0 percent in 2021-22 and nominal GDP by 15.4 per cent.
Economic Survey 2021 team has done an analysis of what could have been vs. what happened. Both on Covid-19 cases and deaths, India has done really well, informs CEA. Intensity and stringency of initial lockdown correlates well with both cases and deaths, both across countries and across states within India: CEA
Economic Survey 2021 team has done an analysis of what could have been vs. what happened. Both on Covid-19 cases and deaths, India has done really well, informs CEA. Intensity and stringency of initial lockdown correlates well with both cases and deaths, both across countries and across states within India: CEA
Chapter 1 of the Economic Survey is about India's policy response to COVID-19, Saving Lives And Livelihoods, amidst a once-in-a-lifetime crisis: Chief Economic Advisor KV Subramanian
"During high uncertainty, policy should minimize large losses. India's policy response to Covid-19 was guided by the realization that GDP growth will come back, but not lost human lives. Early intense lockdown saved lives, helped faster recovery," Chief Economic Advisor said during a press conference. Earlier FM Nirmala Sitharaman had tabled Economic Survey 2021 in both the Houses of Parliament.
Chief Economic Advisor KV Subramanian launches the Economic Survey 2020-21 which has been tabled in Parliament today. He will address a press conference on the same shortly.
Finance Minister Nirmala Sitharaman presented a copy of Economic Survey 2020-21 in Rajya Sabha on Friday afternoon after it was table in Lok Sabha earlier in the day. As per reports, Rajya Sabha adjourned till February 1, 2021.
The document which was tabled by Finance Minister Nirmala Sitharaman in the Lok Sabha in its debt simulations for worst-case debt analysis assumed the contraction at (-) 7.7 per cent. According to the survey, the real growth rate for FY22 was assumed at 11.5 per cent based on IMF estimates.
The survey also revealed that inflation is taken as 5 per cent, i.e. mid-point of the range of 4 per cent - 6 per cent.
Union Finance Minister Nirmala Sitharaman tabled Economic Survey 2020-21 in Lok Sabha; Real growth rate for FY21 is taken as -7.7% (MoSPI) and real growth rate for FY22 is assumed as 11.5 % based on IMF estimates.
As per a Wall Street brokerage report, Union Budget 2021, to be presented on February 1, is likely to be less worried about fiscal deficit and will be focused more on nursing the fragile growth.
The report expects the budget to peg "fiscal deficit at a high 5 per cent of GDP for FY22 and 7.2 per cent for FY21, as it is likely to step up capex, recap public sector banks, push asset sales to break government monopolies, offer sops for real estate, tax cuts for lower income groups and creation of a bad bank".
As per reports Rajya Sabha will reconvene at 3 pm after which the Economic Survey will be tabled in the Upper House. Post this, Chief Economic Advisor K V Subramanian will address a press conference around 3.30 pm. Meanwhile, Sitharaman tabled the Survey in Lok Sabha amid massive uproad by Opposition. The Lower House has been adjourned till February 1 (Budget Da), 11 am.
JUST IN | Finance Minister Nirmala Sitharaman has tabled the Economic Survey 2021 in the Lok Sabha amid massive uproar by Opposition parties over Farm Laws.
According to reports, Rajya Sabha will reconvene at 3 pm after which the Economic Survey will be tabled by Finance Minister Nirmala Sitharaman. Post this, the Chief Economic Advisor K V Subramanian, who prepared the Survey, will address a press conference around 3.30 pm.
Boycotting President's Address doesn't mean insulting him. We are standing with farmers and demanding that farm laws be taken back. It's our biggest reason behind boycotting the Address. We will debate when there is a Motion of Thanks and debate: Adhir Ranjan Chowdhury, Congress MP
"Farm laws should be repealed. We protested against the President's address and raised slogans in support of farmers. We were not allowed inside the Central Hall, so we raised slogans at its gate. Farmers are being called traitors. So, we boycotted the address," says AAP MP Sanjay Singh.
"Aatmanirbhar Bharat isn't just confined to manufacturing in India but also a campaign aimed at elevating the standard of living of every Indian and boosting self-confidence of the country. Our goal of Aatmanirbhar Bharat will be further strengthened by self-reliance in agriculture," Vice President M Venkaiah Naidu during Budget session.
The rehabilitation of Bru refugees is being carried out peacefully. The historic Bodo peace agreement was also signed and successfully implemented. Bodoland Territorial Council election took place successfully after the agreement: President Ram Nath Kovind
If the Constitution gives us the right to freedom of expression, it also reaches us to take laws and rules seriously, he said in his address that was boycotted by over 20 opposition parties in support of the demand of protesting farmers that the three laws be repealed.
Congress MP Ravneet Singh Bittu raised slogans like 'Jai Jawan Jai Kisan' during his address and demanded repeal of the three laws. Some opposition MPs were heard raising slogans in the Central Hall's gallery.
Noting that the Supreme Court has put the implementation of the three laws on hold, Kovind said the government will respect whatever is the decision of the apex court.
20 jawans made the supreme sacrifice in Galwan valley in June 2020. Every citizen is grateful to these martyrs. My government is committed to the protection of the interests of the nation. Extra Forces have been deployed at LAC for protection of India's sovereignty: President Kovind
Extremism in the northeast is heading towards its end, the incidents of violence are declining. The youth that had gone astray is returning to the mainstream of development and nation-building. The rehabilitation of Bru refugees is being carried out peacefully. The historic Bodo peace agreement was also signed and successfully implemented. Bodoland Territorial Council election took place successfully after the agreement.
The nation is recovering from the damage that the economy suffered while saving the life of every Indian during the Corona period. Even in this difficult time, India has emerged as an attractive destination for global investors: President Ram Nath Kovind, in Parliament
Defending agri laws, President said, "My government would like to clarify that the rights and facilities that were available before the formation of the three farm laws have not been cut short, in fact with these new agricultural reforms the Govt has provided new facilities and rights to farmers.
The national flag and a holy day like Republic Day were insulted in the past few days. The Constitution that provides us Freedom of Expression, is the same Constitution that teaches us that law & rules have to be followed seriously: President Ram Nath Kovind, in Parliament
"Joint session of Parliament amid Corona pandemic is essential. It's a new yr & a new decade & we're also entering into the 75th yr of independence. Today all MPs are present here with message & trust that however tough be the challenge neither we nor India will stop," President Ram Nath Kovid in Parliament.
"This is the Budget Session. For the first time in India's history, in a way, the Finance Minister had to present 4-5 mini budgets in 2020 in the form of different packages. So this Budget will be seen as a part of those 4-5 mini budgets, I believe this," Prime Minister said.
As per reports, BJD will attend the president's address and raise all issues in both houses of Parliament, BJD Rajya Sabha MP and its chief whip Sasmit Patra told PTI. The regional party, which is headed by Odisha Chief Minister Naveen Patnaik, has 12 MPs in Lok Sabha and nine members in the Rajya Sabha.
President Ram Nath Kovind also arrived at the Parliament ahead of Budget session. He was greeted by Prime Minister Narendra Modi, Vice President Venkaiah Naidu and other leaders. President Ram Nath Kovind will address the joint sitting of the two Houses of Parliament shortly.
"It is important for us to fully utilise this new decade. With this in mind, there should be discussions in this session focussing on the decade - this is expected by the nation. I believe that we will not lag behind in making our contribution for the fulfilment of people's aspiration: PM Narendra Modi ahead of Budget Session," he said.
"As expected by the entire country, there should be discussions in this session focussing on the decade. I believe that none of us will lag behind in making our contributions for the fulfilment of people's dreams and aspirationsm," the Prime Minister added while speaking to reporters outside Parliament.
Prime Minister Narendra Modi, other leaders arrive at the Parliament ahead of Budget Session. Before start of the session, PM Modi spoke to reporters outside Parliament where he said that it is going to be the first session of the decade.
"Today commences the first Session of this decade. This decade is very important for the bright future of India. A golden opportunity has come before the nation to fulfill the dreams seen by the freedom fighters: Prime Minister Narendra Modi at the Parliament," PM Modi said.
"The Prime Minister and the BJP government remain arrogant, adamant and undemocratic in their response. Shocked by this insensitivity of the government, the opposition political parties, reaffirming the collective demand for the repeal of the anti-farmer laws and in solidarity with the Indian farmers, have decided to boycott the President's address to both the houses of Parliament...," a joint statement issued by 16 parties said.
A total of 19 Opposition parties including the Congress, the BSP, NCP, Shiv Sena, DMK, Trinamool Congress, CPI, CPI-M and RJD and some other parties have announced that they would boycott the President's address. There are over 20 opposition parties in Parliament. Parliamentary Affairs Minister Prahlad Joshi has appealed to all the parties to reconsider their decision to boycott, saying the President is above party politics.
To seek the cooperation of various parties for the smooth functioning of the Budget session, Lok Sabha Speaker Om Birla has convened a meeting of all political parties on Friday which is expected to be attended by Prime Minister Narendra Modi. The session will begin with the President's address followed by the presentation of the Economic Survey.
The Covid pandemic has underscored the importance of healthy living and maintaining our physical and mental health. To encourage individuals and families to proactively invest in preventive healthcare, wellness programmes for people suffering from lifestyle related ailments should be brought under health insurance coverage. This will also help reduce the burden on the curative healthcare infrastructure in the country, which would be better served to addressing communicable and life threatening disease and ailments.
Higher resource allocation for improving the Skill Development ecosystem in country would also be a welcome move. The fact is skilling / reskilling / upskilling of youth is a critical need given that over a third of the country’s population will be in the 10 to 34 age group in 2021 and as per some estimates over 300 million youth need to be given skills training for ensuring gainful employment for them.
India's Union Budget 2021 must promote a new social contract that commits to jobs, growth and sustainability along with a razor-sharp focus on tail risks, like pandemics and extreme climate events that can overturn years of progress in economic growth. The focus should be on investing in climate-resilient infrastructure and low-carbon technologies, revitailising MSMEs, ensuring food and water security, driving capital to accelerate India's energy and electric mobility transitions, and exploring innovative financing models for disruptive technological innovation. Each of these opportunities also creates additional jobs.
The resources for these interventions could come from a reform of energy and electricity subsidies, targeting those who need the support while increasing the competitiveness of industry. Similarly, decommissioning old and inefficient thermal power plants can be a huge source of savings to the public exchequer. Finally, developing a circular economy and strategic reserves for critical minerals can increase India's energy and industrial security for the industries of the future.
The crucial Budget session of Parliament is set for a stormy start with as many as 18 opposition parties announcing their decision to boycott the President's address to a joint sitting of both houses on Friday, in solidarity with the farmers agitating against the three contentious farm laws.
Alleging that the farm laws have been pushed by the BJP government without a national consensus, the opposition parties announced their decision on Thursday to boycott the President's address, a move termed as "most unfortunate" by Parliamentary Affairs Minister Prahlad Joshi.
Meanwhile, IMF's Chief Economist Gita Gopinath on Thursday said it would be damaging for India to start tightening policy support in the midst of the COVID-19 pandemic and also stressed on reducing wasteful expenditures in the upcoming Budget.
"It would be damaging (for India) to start tightening of policy support in the midst of the pandemic," the chief economist of the Washington-based global financial institution said. The Union Budget for 2021-22, the eighth Budget of the Prime Minister Narendra Modi-led government, is scheduled to be presented in Parliament on February 1, 2021.
Global cues, along with profit booking, pulled equities market lower on Thursday. Besides, the flight of foreign funds from the domestic market due to nervousness over the upcoming Budget FY21 and derivatives expiry led to the sharp correction.
The S&P BSE Sensex plunged by 535.57 points, or 1.13 per cent, to 46,874.36 points from its previous close of 47,409.93. The Nifty50 on the National Stock Exchange was trading at 13,817.55, lower by 149.95 points, or 1.07 per cent, from its previous close.
Background
Budget Economic Survey 2021 HIGHLIGHTS: With Parliament's Budget session all set to kickoff, Finance Minister Nirmala Sitharaman will table the Economic Survey 2020-21 on Friday amid massive uproar by the Opposition parties over host of issues including the ongoing farmers' protest, recession, job losses, government's handling of Covid-19 crisis and others.
Generally the Economic Survey is presented a day before Union Budget, but this year as the Budget will be presented on February 1 (Monday - following a weeked), the survey is being presented earlier than usual.
The Economic Survey is a detailed report of state of economy in the last financial year which is prepared by the Economic Division of the Department of Economic Affairs (DEA) under the guidance of the Chief Economic Adviser. The entire Budget session will be held in two parts - January 29 to February 15 and March 8 to April 8 and will have a total of 33 sittings.
Post President's address, the Economic Survey will be presented by Finance Minister Nirmala Sitharaman in the Parliament. As the Budget session has gone paperless this year, all the documents of Economic Survey will be made available soon the official copies are presented on the Table of the House. The copy of the Economic Survey can be downloaded from www.indiabudget.gov.in.
This is also the first time when the members of both the Houses will be seated in three different locations - chambers of both houses and the Central Hall. This session will be held as per COVID-19 protocols, with Rajya Sabha and Lok Sabha meeting in shifts of five hours each -- with the upper house meeting from 9 AM to 2 PM and the lower house in the evening from 3 PM to 8 PM.
- - - - - - - - - Advertisement - - - - - - - - -