The 2020-21 budget union will not drag the Indian economy out of the worst slowdown, economists say.

ndia's new budget is unlikely to pull Asia's third-largest economy from its worst slowdown in more than a decade, as the government has only proposed moderate increases in spending and slightly reduced personal taxes.

They said there is a risk that the government may miss the fiscal deficit target in 2020-2021 due to having to rely on nearly $ 30 billion in funding from the sale of shares in state-run companies and financial institutions to meet revenue targets. ambitious

In a budget for the year that began in April, revealed on Saturday, the government has relaxed its fiscal deficit targets to be able to spend almost $ 15 billion on the majority of infrastructure and agriculture at the same time. Drive privatization

Economists and industry leaders say the budget proposal will support long-term growth. But it's not enough to provide immediate support

India's economy is expected to grow by 5% this year, which will end in March, the weakest period in 11 years, causing pressure on Prime Minister Narendra Modi, who is currently facing the law of citizenship.

"We see that the budget is very neutral for growth and inflation," said Nomura's economist Sonal Varma, adding that the financial sector's problems may slow the recovery. The government has proposed increased spending to stimulate consumer demand and investment. But was not able to go far enough due to the slowdown in revenue from hand ties

Moody's Investor Service rating agency said that the budget focuses on fiscal challenges from real and slight growth that may continue for longer than the government has predicted.

Nomura said that the annual growth of gross domestic product (GDP) tends to decrease by 4.3% in the last three months of 2019, after falling 4.5% in the previous quarter, the slowest in more than six years.

Economists say India is at risk of missing the GDP deficit target of 3.5% of the GDP in 2020-2021, because nearly 10% of government revenue growth targets depend on an increase of nearly 2.1 trillion holes. Year (30 billion dollars) from privatization

Investors and consumers are also disappointed with the budget because there is no new incentive for the financial sector and the housing market while it is unclear whether each tax change will result in net profits.

Amit Maheshwari, partner of Ashok Maheshwary & Associates LLP, said tax cuts would not benefit much for taxpayers, a tax consultant partner added that they can reduce savings and help drive interest rates in the market. up