Question

The World Bank projected in its report in May 2020

The economy will contract by 3.2 percent in FY20/21, and rebound slowly in FY21/22. It further estimated that the COVID-19 outbreak is likely to have

significant fiscal implications. The fiscal deficit of the central government is likely to increase to 6.6 percent of GDP in FY20/21 and is expected to remain elevated at 5.5 percent in the following year

“While the Government of India, with the support of the Reserve Bank, is continuing to take action to limit the impact of the COVID-19 pandemic, there is a recognition of both the uncertainty of the nature of the economic revival globally and the emergence of opportunities opened by the current crisis,” said Junaid Ahmad, World Bank Country Director in India.



Study the above given report very carefully & comment on the likely nature of coming budgets in India. Also explain how a budget can help in fighting economic recession & widening disparities of income & wealth.​

Answer 1

Answer:

India's economy to contract by 3.2 per cent in fiscal year 2020-21: World Bank. The World Bank revised its January projection on India by a massive negative nine per cent for the year 2020 and minus three per cent for the year 2021

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