A decent Budget but big challenges remain

Budget assures double-digit growth in FY22, but does little for unemployment, inflation, foreign trade and medium-term growth

Budget 2021 has been framed against a backdrop of the most extraordinary challenges confronting the economy since Independence. Because of Covid and the lockdown, economic output (GDP) crashed by an unprecedented 16 per cent in the first half of fiscal year 2020-21 (FY21), before recovering smartly post-lockdown, according to official projections, to near FY20 levels in the second half. The initial, officially projected full FY21 fall in GDP was a record 7.7 per cent. The associated employment loss was huge and the recovery has been much weaker, with many millions still suffering from continued loss of jobs and earnings. Inflation,