Budget to put economy on path of sustainable, strong growth: Finance ministry Report

New Delhi: Measures announced in the Union budget 2021-22 along with the Atmanirbhar Bharat package would bring the Indian economy back on a strong and sustainable growth path, the finance ministry’s monthly economic review for January has said.

Further, the V-shaped recovery which continued in January “is supported by the initiation of a mega vaccination drive with hopes of a robust recovery in the services sector”, said the report released on Tuesday. “With the expanded borrowing programme mostly meant for funding the enhanced capital outlay, the budget has set in place the multiplier impact on growth to support the prescribed fiscal glide path tapering to 4.5% of GDP in 2026,” it said.

It pointed out that the Reserve Bank of India’s monetary policy committee (MPC) had kept the already low policy repo rates unchanged and maintained its accommodative stance on growth.