Budget 2021-22: ‘Please do not levy COVID cess'

 

Don’t expect government to give tax relief; it is not in position to do so’

The main task of the government during the budget 2021 will be to move from the 8% fiscal deficit to say 3%, says Madan Sabnavis, chief economist of Care Ratings. He added fiscal deficit will be the focus this year. He further explains everyone is expecting tax reduction, but the government is not in the position to do so. In this budget corporates will be looking at reduction of corporate tax further, he added. He stated that bank recapitalisation is absolutely required especially public sector banks that are owned by the government. In addition, the flexibility given to banks will hit them and NPAs ought to rise. “We still are talking about a double digit rise in NPA,” he stressed. He added there is a pressing need for the government to recapitalise banks.

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