Spending
When the Corona epidemic began to spread from the Chinese city of Wuhan in 2019, it was not anticipated at the time that the epidemic would not do much harm to China, although it would have a negative impact on most countries. While countries have struggled to boost domestic production, China's exports reached 3 3.36 trillion in 2021, as China has been largely safe from Corona, while the world's major economies such as India, the United States and Japan have not escaped. It has been found that economic activities here are not going as smoothly as they should have. In such a scenario, former Reserve Bank Governor Raghuram Rajan's point is worth noting that "there are some dark spots in the Indian economy with bright spots". Explaining his point, Rajan said, "When it comes to black spots, it includes unemployment, low purchasing power (especially in the lower middle class), and financial pressure from small and medium-sized companies." The former Governor of India is more concerned with the economy for the middle class, small and medium sector and children. Their concern is not incomprehensible. The National Commission for Enterprises in the Unorganized Sector reported that in 2005, India had 450.8 million people employed, of which 95%, or 430 million, were associated with the unorganized sector, contributing 50.6 per cent to GDP. The percentage was. This situation has not changed much in the last 16 years. Even today, more than 80% of the country's labor force is associated with the unorganized sector and its contribution to GDP is more than 50%. When conditions worsen due to a new variant of the Corona, such as last time due to Delta and this time worse due to Omicron, governments have to limit economic activity to prevent the spread of the epidemic. Yes or to some extent it has to be stopped, the effect is more on the people belonging to the unorganized sector, so the effort should be made to ensure that the economic growth rate of the country is excellent but it is not appropriate to ignore the situation. India is the largest exporter to the United States, followed by the European Union, both of which are severely affected by Corona. On the other hand, it is being said that the current wave of Corona will reach its peak by next month, Rajan's suggestion that the government should spend where it is needed is correct. He should spend carefully so that the fiscal deficit does not reach too high and as a result inflation does not become a problem for Indians.
By 2021, India's government debt was 86.597% of GDP. Obviously, if you have taken a loan, you have to pay, you have to pay interest on the loan and you have to pay it keeping in view the budget. In 2021, the revenue was 80 580 billion while the expenditure was 8 890 billion. The income and expenditure gap needs to be minimized to pay off debts and focus on new projects. On the positive side, India ranks third behind China and the United States in terms of equal purchasing power. In addition, it has significant foreign exchange. In terms of foreign exchange, it ranks fifth after China, Japan, Switzerland and Russia. Until January 14, 2022, there was not much difference between Russia and its foreign exchange. Russia had 63 638,200 million in foreign exchange while India had 63 634,965 million. It is India's strong economic position that the countries of the region are facing economic crisis and their leaders are looking at it with optimism. The recent example in this regard is Sri Lanka but to maintain this position the government has to focus on reducing the revenue and expenditure gap and increasing exports, trying not to have a negative impact on our country from the changing world conditions. However, its economy remained as secure as it was during the global economic crisis of 2007-2008
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