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Impact of Union Budget 2021 on Indian Economy

By gkkedia Dt. March 3rd, 2021

Six pillars that will lay foundation stones for economic growth and Atmanirbhar Bharat:-

  • Health & Well-being
  • Financial & Capital Expenditure
  • Inclusive Development For Aspirational India
  • Reinvigorating Human Capital
  • Innovation And Research & Development
  • Minimum Government & Maximum
  • Governance

 

Health & well Being:-

The one sector everyone was expecting a big jump in this year was health, given how the last year has gone and the serious strain put on India’s health sector by the coronavirus pandemic. The allocated spending for healthcare, however, is not quite as substantial as the finance minister’s speech would have us believe. While she spoke of “Rs 64,180 crore”Finance Minister Nirmala Sitharaman announced an expanded focus on Health, allocating 2.83 lakh crores in this year’s Union Budget – a 137% in Health budget just for one single health scheme, this amount is to be spread out over “six years”.

For this year, the total amount allocated to the Union health ministry, and all the schemes that fall under it, is Rs 73,932 crore.

  • PM- Aatmanirbhar Swasth Yojana scheme will be launched
  • Jal Jeevan Mission Urban scheme will be launched
  • Urban Swachh Bharat Mission 2.0 will be launched
  • Voluntary vehicle scrapping policy to be launched for reducing pollution
  • Pneumococcal vaccine rollout will be done to prevent 50,000 child deaths annually
  • Mission POSHAN 2.0 to be launched.
  • Supplementary Nutrition Programme & POSHAN Abhiyaan to be merged

Health-well-Being
 

Financial Capital Expenditure:-

  • Government Expenditure Pegged at 15.6% of GDP in F.Y.2022.
  • Government expenditure for FY22 is pegged at Rs
    34.83 lakh crore, according to Budget 2021 documents, marginally higher than the revised estimate of Rs 34.5 lakh crore in FY21. The expenditure in FY21 rose by 13.4% over the budget estimates.
  • Revenue expenditure is pegged at Rs 29.29 lakh crore in FY22 compared with a revised estimate of Rs 30.11 lakh crore in FY21.
  • Expenditure on capital account is budgeted at Rs 5.54 lakh crore in FY22 compared with a revised Rs 4.39 lakh crore in FY21.

 

Focus to Increase Expenditure in These 3 Priority Sectors:

  • Infrastructure
  • Rural
  • Health

 

Inclusive Development for Aspirational India:-

FM Sitharaman began by saying – “Our Government is committed to the welfare of farmers”, amid ruckus by the Opposition. She said, “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.

  • SVAMITVA (Survey of Villages Abadi and Mapping with Improvised Technology in Village Areas) scheme to be extended during 2021-22 to cover all states and union territories
  • Agricultural credit target enhanced to 16.5 lakh crore, focus will be on ensuring increased credit flow to animal husbandry, dairy and fisheries sectors
  • Allocation for Rural Infrastructure Development Fund to be enhanced from 30,000 crore to 40,000 crore
  • 5,000 crore Micro Irrigation Fund to be augmented by another 5,000 crore
  • Scope of Operation Greens Scheme to be extended from tomatoes, onions and potatoes to 22 perishable crops
  • 1,000 more mandis will be integrated with e-NAM
  • Agriculture Infrastructure Fund would be made available to APMCs for augmenting their infrastructure facilities
  • Agriculture Infrastructure Fund would be made available to APMCs for augmenting their infrastructure facilities
  • 5 major fishing harbours – Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat – will be developed
  • Multipurpose Seaweed Park to be established in Tamil Nadu
  • 15,700 crores to MSME sector

Inclusive Development for Aspirational India
 

Reinvigorating Human Capital

  • Over 15000 schools will be qualitatively strengtehened.
  • 100 new Sainik Schools.
  • Legislation for umbrella body of higher education.
  • Central university in Leh for accessibility of higher education in ladakh.
  • Creation of formal umbrella structure to cover.

 

All Govt. colleges, Universities, Research institutions in a city for greater synergy:-

Schdule caste and schdule tribe welfare:

  • 750 Ekal model Residential schools in Tribal areas. Unit cost of each school to be increased to Rs 38 crore.
  • Focus on creation of robust infrastructure facilities for tribal students.

 

Skill Enhancement :

  • Proposed amendment to apprenticeship act to enchance opportunities for youth.
  • Rs 3000 crore for Realignment scheme of existing
  • National Apprenticeship Training scheme (NATS) towards post – education apprenticeship , Training of Graduates and Diploma Holders in Engineering.

 

Innovation and R&D:-

  • National Research Foundation 50,000 crores outlay for over 5 years
  • 1,500 crores for a proposed scheme that will provide financial incentive to promote digital modes of payment.
  • National Language Translation Mission (NTLM) to be launched
  • Gaganyaan mission activities: Four Indian astronauts are being trained on Generic Space Flight aspects, in Russia. The first unmanned launch is slated for December 2021.
  • 4,000 crores outlay for deep ocean survey spread across five years for conservation of deep ocean biodiversity.

Innovation and R&D
 

Minimum Govt.& Maximum Governance:-

  • National Nursing and Midwifery Commission Bill will be introduced by the government
  • Conciliation Mechanism to be set up for quick resolution of contractual disputes
  • 3,768 crores in the year 2021-2022 allocated for first ever digital census
  • 300 crores for Goa to celebrate its diamond jubilee of the state’s liberation from Portuguese rule
  • 1,000 crores for the welfare of Tea workers especially women and their children in Assam &WestBengal.

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