New Delhi: India is all set to launch its first budget after being hit by the pandemic. While the budget always holds great importance, this time it's highly anticipated as country aims to revive the economy and make up for job losses that the pandemic brought.
Ahead of the budget, there has been a lot of talk about employment sector, which the government would like to take seriously. That is why it is believed that the central government can make some big announcement in the budget in terms of employment. A report by India Ratings on the suggestions for the budget said that since the impact of the epidemic has started, supply-related problems are being resolved to boost the economy.
According to Sunil Kumar Sinha of India Ratings, if the demand side is not taken care of, then how good the supply side becomes due to the policies of the government and the RBI, the impact of the lack of sufficient demand for goods and services will be seen in no time.
There have been indications from some high frequency indicators that production levels had reached levels comparable to the time before Corona and that the economy was in a better position due to festive demand. However, factory output declined in November 2020 after showing positive growth for two consecutive months. Giving an example of this, Sinha said that it is very important to support the demand side.
Sinha also said that this is the right time to change its policies and the government should address the problems of supply as well as demand, even if it slows down the recovery process. According to Sinha, there is nothing wrong in trying to solve supply-related problems, as it was necessary to restore the supply chain that was disrupted. However, the recovery may be affected due to the decrease in demand.