Home India Corner The road ahead for the Indian economy as the Budget is presented

The road ahead for the Indian economy as the Budget is presented

Finance Minister Nirmala Sitharaman presented the Union Budget 2020-21 in Lok Sabha.
Finance Minister Nirmala Sitharaman presented the Union Budget 2020-21 in Lok Sabha.

All eyes were on the Finance Minister Nirmala Sitharaman and expectations were on the rise as the Union Budget for the fiscal year 2020-21 was presented in the Lok Sabha, on Saturday.

The budget comes with promises of an economic boost in terms of infrastructure and investment. The fiscal plan that proposed tax cuts somewhere fails to resolve the uncertainties surrounding the ways to tackle the deficit goals.

At the end of this fiscal year, economic growth is being predicted to hit at 6-6 per cent. The income tax cuts announced will bring in the much relief based on the RBI’s decision to cut interest rates.

Now, the strategies of RBI remain the recovery options for the Central Government that is already facing a struggling financial sector where situations of plummeting stocks are on the rise.

In the last fiscal year, the Reserve Bank of India had cut the interest rates five times. Thus, the RBI might not make changes to the interest rates since the inflation rate surged to 7.35 per cent in December.

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