In the set of the COVID-19 pandemic, Union Budget 2021-2022 showcased flexibility. The budget made a reckless effort to make sense of the lessons learned from the unremarkable global health crisis. Finance Ministry has confirmed that this is the first time in history to announce a paperless budget due to COVID-19. The government had first decided to cut down the paper printing of hard copies and go green in a budget of 2016-2017. This budget is a cumulative effort of the five mini budgets announced in past months. This budget must not be considered an isolated budget. In the year 2020 ending the fiscal, the deficit was 9.5 % and now it is setting a target of 6.8% for 2021-2022.
Majorly, the government announced budget for the six key players include infrastructure, inclusive development, human capital, innovation, health & well being, and R&D. These six pillars carry the government’s message of further excellence in the country’s growth journey through “reform, perform and transform”. The schemes ACE (appliances and consumer electronics) industry perspective and the PLI (production linked incentive) continues to strengthen the manufacturing industry aimed at Rs 1.97 lakh crore over the next five years.
There is a 137% increase in the health budget and expenditure of Rs. 2.2 lakh Cr. has been purposed. Rs. 60,030 crores budgeted for the department of drinking water and sanitation. The scheme ‘PM Atma Nirbhar Swasth Bharat Yojana’ is introduced for the development of primary, secondary and tertiary care appliances over the years at an estimated cost of RS. 64,180 crores. Additionally, Rs. 35,000 allocated for COVID-19 vaccines. The amount of Rs. 1.93 L crore for highway infrastructure development in Tamil Nadu, West Bengal, and Kerala. The Rs. 5.54 lakh crore set aside for capital expenditure to contend a 34.5% increase in outlays over the current year’s budget estimate. The budget has increased the FDI in insurance from 49% to 74% after amendments to the Insurance act, 1938, and that will allow foreign ownership and control with safeguards are major financial sector reforms. The government has extended its Rs. 111 lakh crore National infrastructure pipeline to cover more projects by 2025. The amount of Rs. 2.5 lakh crore paid to Kisan for wheat and rice.
Budget 2021, in my view, the government has initiated a better idea for making strong economic recovery after the major contradiction due to the pandemic. It is a balanced combination of reforms and regulations, which will boost the various sectors along with manufacturing, contributing positively to India’s growth.
