The%20budget-making%20exercise%20has%20never%20been%20easy%20but%20this%20year%2C%20it%20will%20be%20nearly%20impossible%20for%20Finance%20Minister%20Nirmala%20Sitharaman%20to%20please%20everyone.%20Each%20year%2C%20regardless%20of%20which%20government%20is%20at%20the%20Centre%2C%20the%20FM%20is%20expected%20to%20do%20all%20of%20this%3A%20stimulate%20economic%20growth%2C%20create%20more%20jobs%2C%20ensure%20welfare%20support%20for%20the%20poor%20and%20the%20underprivileged%20and%20also%20take%20the%20country%20closer%20to%20the%20five%20trillion%20economy%20goal%20through%20budget%20provisions.%20Besides%2C%20the%20salaried%20class%20expects%20its%20income%20tax%20burden%20to%20be%20lessened%2C%20companies%20want%20lower%20levies%20and%20easier%20compliance%2C%20homemakers%20look%20forward%20to%20lower%20inflation%20and%20there%20is%20all-round%20hope%20of%20price%20pressures%20easing.

This%20year%2C%20in%20addition%20to%20all%20of%20these%20expectations%2C%20the%20FM%20has%20the%20unenviable%20task%20of%20supporting%20some%20stricken%20sectors%20through%20fiscal%20stimuli.%20She%20must%20also%20expand%20spending%20on%20health%2C%20for%20example%2C%20despite%20the%20revenue%20kitty%20having%20shrunk%20considerably.%20A%20global%20pandemic%20and%20a%20historic%20economic%20contraction%20later%2C%20Sitharaman%20has%20to%20balance%20growth%20and%20expenditure%20with%20shrinking%20income%2C%20hope%20with%20reality.

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India%u2019s%20economy%20contracted%20by%20a%20record%2024%25%20or%20by%20nearly%20a%20fourth%20in%20the%20first%20quarter%20%28April-June%29%20this%20fiscal%20and%20though%20growth%20has%20returned%20in%20subsequent%20quarters%2C%20the%20government%u2019s%20own%20estimation%20is%20a%20negative%207.7%25%20GDP%20growth%20for%20the%20full%20fiscal%20year%20of%202020-21.%20Analysts%20point%20towards%20record%20decline%20in%20total%20revenue%20by%20over%20Rs%202.7%20lakh%20crore%20or%20by%20nearly%2014%25%20year%20on%20year.%20And%20the%20total%20expenditure%20is%20expected%20to%20rise%20by%20nearly%20Rs%203%20lakh%20crore.%20This%20will%20naturally%20push%20up%20the%20fiscal%20deficit%20and%20the%20number%20is%20widely%20expected%20to%20be%20about%207%25%20compared%20to%203.8%25%20of%20GDP%20last%20fiscal.%20In%20actual%20terms%2C%20the%20fiscal%20deficit%20is%20expected%20to%20nearly%20double%20from%20the%20target%20initially%20set%20for%20FY21.

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Here%u2019s%20what%20the%20FM%20should%20focus%20on%3A

1%29%20Job%20creation%3A%20The%20budget%20should%20boost%20spending%20in%20labour%20intensive%20sectors%20such%20as%20housing%2C%20construction%20and%20infrastructure%20%28rail%2C%20road%2C%20aviation%20and%20ports%29%20The%20National%20Infrastructure%20Pipeline%20%28NIP%29%20with%20an%20investment%20of%20over%20Rs%20100%20lakh%20crore%20already%20exists%20till%202025%2C%20under%20which%20the%20annual%20spend%20is%20nearly%20Rs%2020%20lakh%20crore%20on%20these%20sectors.%20The%20FM%20could%20announce%20measures%20to%20support%20and%20finance%20this%20spending.

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3%29%20Rural%20focus%3A%20The%20only%20sector%20which%20has%20escaped%20the%20Covid19%20doom%20is%20agriculture%2C%20with%20sowing%20acreage%20and%20output%20registering%20growth%20throughout.%20But%20the%20rural%20economy%20needs%20hand%20holding.%20For%20one%2C%20there%20has%20been%20widespread%20distress%20among%20migrants%20who%20lost%20their%20livelihoods%20due%20to%20the%20lockdown%20and%20took%20refuge%20in%20the%20rural%20jobs%20guarantee%20program%20MNREGA%20%28Mahatma%20Gandhi%20National%20Rural%20Employment%20Guarantee%20Scheme%29.%20The%20government%20had%20increased%20allocation%20to%20MNREGA%20after%20the%20lockdown%20but%20may%20have%20to%20continue%20expanding%20the%20budget%20for%20this%20jobs%20scheme%20to%20alleviate%20some%20rural%20distress.%20Then%2C%20the%20FM%20may%20decide%20to%20expand%20the%20scope%20of%20the%20income%20support%20scheme%20for%20farmers%2C%20PM-Kisan%20Samman%20Nidhi%2C%20to%20assuage%20belligerent%20farmers%20demanding%20a%20repeal%20of%20new%20farm%20laws.

4%29%20Banking%3A%20With%20bed%20debts%20expected%20to%20nearly%20double%20in%20the%20worst%20case%20scenario%2C%20the%20budget%20would%20have%20no%20choice%20but%20to%20focus%20on%20alleviating%20the%20stress%20build%20up%20in%20the%20banking%20and%20finance%20sector.%20Besides%20increased%20capital%20support%20to%20banks%2C%20the%20budget%20could%20propose%20the%20establishment%20of%20a%20development%20financial%20institution%20for%20infrastructure%20financing%2C%20a%20bad%20bank%20for%20taking%20over%20the%20stressed%20assets%20from%20state-owned%20banks%20and%20some%20measures%20to%20assist%20the%20micro%2C%20small%20and%20medium%20enterprises.

With%20so%20many%20claims%20on%20the%20FM%u2019s%20purse%2C%20it%20will%20be%20rather%20difficult%20for%20her%20to%20stick%20to%20the%20fiscal%20deficit%20roadmap%20even%20in%20FY22.%20Analysts%20widely%20expect%20the%20fiscal%20deficit%20in%202021-22%20to%20be%20close%20to%20the%205%25%20mark.

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