Key Highlights Of Union Budget 2021- 2022
Introduction Of Union Budget
Budget is the Nation’s annual financial statement which is presented by Finance Minister every year in February. It gives us a detailed account of government expenditures and Incomes. All the Government ministries, bodies, union territories, states put their plans together for the year including their expenses and their incomes and presented them to the finance minister. The Finance Minister meets various financial bodies – businessmen, stakeholders, including economists on who’s the advice the budget is prepared for the year.
Budget Proposals For 2021- 2022 Rest On 6 Pillars
- Health and Wellbeing
- Physical and Financial capital, and Infrastructure
- Inclusive Development for Aspirational India
- Reinvigorating Human Capital
- Innovation and R&D
- Minimum Government and Maximum Governance
1. Health And Wellbeing
There is a substantial increase in investment in health infrastructure and the budget outlay for health and wellbeing is Rs 2,23,846 crore in BE 2021-2022 as against this year’s BE Of R,s 94,452 crores an increase of 137 percent.
To strengthen nutritional content, delivery, outreach, and outcomes. The government will merge the supplementary Nutrition Programme and the Poshan Abhiyan and launch Mission 2.0. The government will adopt an intensified strategy to improve Nutritional outcomes across 112 Aspirational Districts.
2. Physical and Financial Capital and Infrastructure
To achieve all the above, PLI Scheme to create manufacturing global champions for an AatmaNirbhar Bharat has been announced for 13 Sectors.
For this, the government has committed nearly Rs 1.97 lakh crore in the next 5 years starting FY 2021-2022.
The National Infrastructure Pipeline(NIP) which the Finance Minister announced in December 2019 is the first – of – its- kind, the whole government exercise ever undertaken.
Infrastructure Financing- Development Financial Institution (DFI)
Dwelling on the infrastructure sector, Smt Sitharaman said that infrastructure needs long term debt financing.
A professionally managed development financial institution is necessary to act as a provider, enabler, and catalyst for infrastructure financing.
Monetizing operating public infrastructure assets is very important financing for new infrastructure construction. A national Monetization pipeline’ of potential Brownfield infrastructure assets will be launched.
Roads and Highway Infrastructure
Finance Minister announced that more than 13,000 km length of roads at a cost of Rs 3.3 lakh crore, has already been awarded under the Rs 5.35 lakh crore Bharatmala Pariyojana project of which 3,800 km have been constructed by March 2022.
Indian Railways have prepared a national rail plan for India- 2030. The plan is to create a ‘Future-ready’ Railway system by 2030.
It is expected that the western dedicated freight corridor(DFC) and eastern DFC will be Commissioned by June 2022.
Increasing FDI in Insurance Sector
She also proposed to amend the Insurance Act,1938 to increase the permissible FDI limit from 49% to 74% and allow foreign ownership and control with safeguards.
3. Inclusive Development For Aspirational India
The MSP regime has undergone a sea change to assure price that is at least 1.5 times the cost of production across all commodities.
Early this year, Honourable Prime Minister had launched SWAMITVA SCHEME. Under this, a record of rights is being given property owners in villages.
To provide adequate credit to our farmers, the Government has enhanced the agricultural credit target to Rs. 16.5 lakh crore in FY22.
Similarly, the allocation to the rural infrastructure development fund increased from Rs. 30,000 crore to Rs. 40,000. The Micro-irrigation fund, with a corpus of Rs,5,000 crores has been created under NABARD will be doubled.
In an Important announcement to boost value addition in agriculture and allied products and their exports, the scope of ‘Operation Green Scheme’ this is presently applicable to tomatoes, onions, and potatoes will be enlarged to include 22 perishable products.
Around 1.68 crore farmers are registered and Rs.1.14 lakh crore of trade value has been carried out through e- NAM’s.
The agriculture infrastructural funds would be made available to APMC’s for augmenting their infrastructure facilities.
4. Reinvigorating Human Capital
The Finance Minister said that the National Education Policy (NEP) announced recently has had good reception while adding that more than 15,000 schools will be qualitatively strengthened to include all components of the National Education Policy.
She also proposed to set up a Higher Education Commission of India, as an umbrella body having 4 separate vehicles for standard-setting accreditation, regulation and funding.
An Initiative is underway, in partnership with the United Arab Emirates (UAE), to benchmark skill qualifications, assessment, and certification, accompanied by the deployment of certified workforce.
The Government also has a collaborative training Inter Training Programme (TITP) between India and Japan to facilitate the transfer of Japanese industrial and vocational skills, technique and knowledge and the same would be taken forward with many more countries.
5. Innovation and R&D
The First Unnamed launched is stated for Dec 2021.
As part of the Gaganyan mission activities, four Indian astronauts are being trained on Generic space flight aspects in Russia.
National Research Foundation with an outlay of Rs50,000 crore to strengthen the overall research ecosystem of the country.
To launch a Deep Ocean Mission of more than Rs40,000 crore to cover deep ocean survey exploration and conserve deep-sea bio of diversity.
New space India Limited(NSPL), a PSU under the development of space to launch PLV_CS51, carrying the Amazonia Satellite from brazil. along with a few smaller Indian satellites.
6. Minimum Government, Maximum Governance
As a result ( pandemic’s impact), against an original BE expenditure of Rs 30.42 lakh crore for 2020-21, RE estimates are Rs 34.50 lakh crore and quality of expenditure were maintained.
- The Capital Expenditure estimated in RE is Rs 4.39 lakh crore in 2021-21 as against Rs 4.12 lakh crore in BE 2020-21.
- The Finance Minister said the fiscal deficit in RE 2020-21 is pegged at 9.5% of GDP and it has been funded through Government borrowing, multinational borrowings, small saving funds and short term borrowings.
- The fiscal deficit in BE 2021-22 is estimated to be 6.8% of GDP. The gross borrowing from the market for the next year would be around 12 lakh core.
- The FRBM Act mandates fiscal deficit of 3% of GDP to be achieved by March 2020-21.