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Taxation and spending outlays usually become key focus areas of all government budgets as they directly impact both the taxpayers and non-taxpayers. But for the Union Budget for 2021-22, to be presented about a month from now, there will be an additional focus area. This pertains to the need for reviewing the legal framework for the government’s fiscal consolidation road map.
Remember that in its first term, the Narendra Modi government had introduced key amendments to the Fiscal Responsibility and Budget Management (FRBM) Act. The amendments, introduced in 2018 through the Finance Bill tabled along with the Budget, required the Union government to reduce its total debt to 40 per cent of gross domestic product (GDP) by 2024-25. They also mandated