NEW DELHI: Economists want Finance Minister Nirmala Sitharaman to continue to extend support to the health sector in the upcoming budget, given the fresh rise of cases due to Omicron and also to keep on extending spending on social and welfare schemes.
“There were many suggestions but the general consensus was to keep the purse strings open for the healthcare sector and the social welfare schemes as the pandemic is far from over, with new cases going up globally and with forecast for the third wave,” a source from finance ministry told TNIE.
Health experts feel that the third wave of Covid-19 in India may peak by February, 2022, while the government is continuing with its vaccination drive, still a large chunk of population remains without vaccine, which may put further strain on the healthcare sector.
The economists suggested that apart from increasing infrastructure spending, government should keep enough provision for expenditure on social welfare schemes like food subsidy, MNREGA for at least this year.
“They supported the focus of the government on increased outlay for infrastructure sector as it will help economy to grow. But at the same time general consensus was that this will be too premature to remove support for the social sector including MNREGA and food subsidy,” the source said.
This week, the finance minister holds consultations with multiple stakeholders including business chambers, bankers, representatives from agriculture sector, and exporters among others.
"Infrastructure sector with a multiplier impact on rest of the economy requires interventions especially to improve and diversify sources of financing. In this context, it is suggested that government should consider developing the municipal bond market so that urban local bodies can raise funds for investing in infrastructure," CII president TV Narendran said.
FM holds pre-Budget consultation
Ahead of Budget, finance minister holds consultations with multiple stakeholders
Experts feel the 3rd wave of Covid may peak by February
A large chunk of population remains unvaccinated