India's budget to focus on growth amid key state elections and third Covid-19 wave: Economists

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NEW DELHI - India's Finance Minister Nirmala Sitharaman, who is due to present the budget on Tuesday , will balance growth with fiscal consolidation, according to economists.

NEW DELHI - India's Finance Minister Nirmala Sitharaman, who is due to present the budget on Tuesday , will balance growth with fiscal consolidation, according to economists.and looming elections in a number of key states.

"Thanks to strong revenue growth and faster-than-budgeted nominal growth numbers, this fiscal year's deficit is likely to be met, followed by a modest consolidation for the next fiscal year," she added.

It is looking to raise 1.75 trillion Indian rupees by divesting stakes in state-run firms. So far, the government has raised less than 100 billion Indian rupees. A major move is expected to be the public listing of insurance firm Life Insurance Corporation. The budget also carries expectations of tax reliefs for India's middle class to reduce inflationary pressure. Additionally, a demand for a rich tax has also been doing the rounds.

Four other states - Punjab, Goa, Manipur and Uttarakhand - are also going to the polls beginning next month.

 

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