Emerging from a fiscal shock in FY21, the FY22 Budget must prioritize both - Fiscal consolidation and Fiscal credibility, while providing the right support to ""reconstruct"" the economy.

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Jan 25, 2021

FY22 Budget Preview - A budget to reconstruct

COVID has resulted in twin pressures on the government’s fiscal balance, both from cyclical and countercyclical sides, which is likely to result in FY21 fiscal deficit ratio rising to 7.5% of GDP. The FY22 Budget must prioritize both - Fiscal consolidation and Fiscal credibility, while providing the right support to "reconstruct" the economy.

FY22 themes

  • Favorable base led upswing in tax revenues
  • Asset Sales: The Eternal Hope
  • Expenditure Management: Bang for the Buck
  • Funding of FY22 fiscal deficit
  • Boost health spending: Now or Never