The Union Budget has prioritized growth with prudence and transparency.
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Feb 01, 2021
FY22 Union Budget - Tour de force
The Union Budget has presented a record high fiscal deficit of 9.5% of GDP (for FY21) and also a record correction in fiscal deficit by 2.7% (for FY22) to 6.8%. The budget makes an attempt to regain transparency and credibility while increasing its thrust on capex led growth and focus on institutional reforms. While INR could continue with its mild appreciation bias, elevated borrowing pressure could impart an upside to bond yields.