The Union Finance Minister Nirmala Sitharaman began presenting the Budget of India for fiscal year 2021-2022. This would be the first of this new decade presenting, as this time, the Union Budget 2021 would be a digital budget. In addition, the Central Government announced its resources for the benefit of the poorest of the poor.
Ms. Sitharaman started the budget session at 11:00 A.M., and announced several relief packages for the ongoing Novel Coronavirus or COVID-19 pandemic.
FM Nirmala Sitharaman announced Rs. 35,000 crores for the COVID-19 vaccines. From the 16th of January 2021, India began the nationwide COVID-19 vaccination drive. The two India made vaccines are, the Hyderabad based Bharat Biotech International Private Limited manufactured COVAXIN and the Serum Institute of India (SII) manufactured Covisheild.
Ms. Sitharaman said, the Central Government would provide Rs. 18,000 crores for public buses, Rs. 1.10 lakh crores outlay for railways, of which Rs. 1.7 lakh crores would be for capital expenditure.
Ms. Sitharaman said, “For 2022, I propose a sharp increase in capital expenditure at Rs. 5.54 lakh crores, from Rs. 4.39 lakh crores in 2021. More economic corridors being planned to boost road infrastructure.”
The Union Finance Ministry allocated Rs. 95,000 crore for roads development in West Bengal, as the state goes to polls in a few months.
In addition, FM Sitharaman announced seven textile parks to come up over three years.
A new scrappage policy was also introduced, to phase out old vehicles. Under the scrappage policy, vehicle owners need to scrap vehicles in 20 years for personal vehicles and 15 years in case of commercial vehicles. A fitness test of the vehicle would be conducted after 20 years and 15 years.
The policy was approved on January 25th this year and will come into effect on the 1st of April 2022.
In addition, to develop healthcare facilities, the Union Government allocated Rs. 2.23 lakh crores. This is an increase of 137% from last year.
Swachh Bharat 2.0 would be implemented with an outlay of Rs. 1,41,678 crores over 5 years.
The Government of India also announced Rs. 20,000 crores to set up first of its kind Development Financial Institution.
The Prime Minister’s Garib Kalyan Yojana, the three Atmanirbhar Bharat packages and subsequent announcements were like five mini-budgets in themselves. The FM announced Atmanirbhar Bharat package to sustain recovery from economic situation due to the pandemic.
In total, three Atmanirbhar packages and RBI measures amounted to over Rs. 27 lakh crore or 15% of GDP have been allocated.
The Budget Session 2021 still is underway.
Stay tuned for further updates.
