Budget 2022:BJP representatives seek revival of worst-hit sectors

They put forward their views for the development of their respective regions

Ahead of the Budget, representatives from the ruling BJP and its state units sought support from finance minister Nirmala Sitharaman for the sectors that have been the worst affected by the pandemic. These include hospitality, leisure and tourism. They said the Centre should continue its spending thrust and not go for a steep fiscal consolidation.

BJP national leaders, including its vice-president Baijayant Panda, general secretary Arun Singh, spokesperson Gopal Krishna Agarwal and party representatives from 25 state units interacted virtually with the finance minister on Sunday, as part of pre-budget consultations.

Read more Updates on Budget 2022 here

“Small businesses and the informal sector need much more support, post-pandemic. Tourism and other touch services have also been badly affected. These points were raised in the interaction,” Agarwal said Business Standard.

Agarwal said there were also suggestions that the fiscal correction in 2022-23 should not be a big one as the government needs to continue to spend substantially on welfare schemes and infrastructure.

“The medium-term glide path needs to be made clear,” Agarwal added.

As reported earlier, the fiscal deficit target for FY23 could be in the range of 6.5-6.8% of nominal GDP. The target for FY22 is 6.8%, though there is a possibility that it could be exceeded.

While tax revenues have been healthy, expenditure commitments have also risen and there are concerns regarding whether divestment targets can be met or not. It is likely that the Emergency Credit Line Guarantee Scheme (ECLGS) for micro, small and medium enterprises (MSMEs) and sector-specific loan guarantee schemes could be extended.

Representatives of 25 states and UTs, including Mizoram, Tripura, Jharkhand, Chhattisgarh, Ladakh, Tamil Nadu, Kerala, Karnataka, Telangana, Maharashtra, Gujarat, Madhya Pradesh, Rajasthan, and Odisha attended the meeting. They put forward their views for the development of their respective regions.

Apart from state presidents, some prominent think tanks and presidents of the party’s various morchas (fronts) also gave their suggestions to the finance minister on the Budget. Agarwal said that many written suggestions have also been received from the state units and they will be handed over to Sitharaman.

The Budget session of Parliament is going to start from January 31 and the finance minister will present the Budget on February 1. Sitharaman has been holding pre-Budget consultations with all stakeholders and is also taking suggestions from them.

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