- Union Budget: It is the yearly financial report which estimates income and expenditure to frame future policies for the government in order to achieve sustainable growth and development of the country.
- The total COVID-19 support measures amount to 13% of GDP. Also, total COVID-19 support measures by GOI and RBI amounts to Rs 27.1 lakh crore.
- The union budget proposals were based on 6 pillars: (1) Health and Wellbeing (2) Physical & Financial Capital, and Infrastructure (3) Inclusive Development for Aspirational India (4) Reinvigorating Human Capital (5) Innovation and R&D (6) Minimum Government and Maximum Governance
- (1) Health and Wellbeing: The budget outlay for this pillar is Rs 2,23,846 crore for 2021-22. The FM announced new centrally sponsored scheme named as PM Aatma Nirbhar Swasth Bharat Yojana, with an outlay of about Rs 64,180 crore over 6 years. This scheme is in addition to the National Health Mission and aims to develop the capacities of health care systems to detect and cure new and emerging diseases.
- For the COVID-19 vaccines, the FM announced the allotment of funds of Rs 35,000 crore. The Union Budget session also observed the launching of Mission Poshan 2.0 to strengthen the nutritional delivery content. The Mission Poshan 2.0 is formed by merging Supplementary Nutrition Programme and the Poshan Abhiyan.
- The Jal Jeevan Mission will be launched to provide water supply in all 4,378 Urban Local Bodies with 2.86 crore household tap connections and liquid waste management in 500 AMRUT cities. For this, Rs 2,87,000 crore are allotted for a period of 5 years. For Swachh Bharat Mission, the total financial allocation of Rs 1,41,678 crore over a period of 5 years was allotted by FM.
- The FM announced vehicle scrapping policy for the phased out old and unfit vehicles. Under this, Vehicles will have to undergo a fitness test, which is 20 years for passenger vehicles and 15 years for commercial vehicles. This Fitness testing policy will create employment opportunities and will provide a cleaner environment as the old and unfit vehicles which are one of the major sources of air pollution will be scrapped out. This will lead to an increase in demand for cleaner vehicles.
- (2) Physical & Financial Capital, and Infrastructure: To achieve the goal of USD 5 trillion economies by enhancing manufacturing sector, the FM announced the PLI (Production Linked Incentive) schemes for 13 sectors. In this regards, Rs.1.97 lakh crore is allotted.
- To boost the textile industry, a scheme of Mega Investment Textiles Parks (MITRA) will be launched in addition to the PLI Scheme. Total 7 Textile Parks will be launched over 3 years.
- FM also announced that the National Infrastructure Pipeline (NIP) is expanded to 7,400 projects which were earlier 6835 projects. Up till now, 217 projects of Rs 1.10 lakh crore are completed under NIP. Also, to fund new infrastructure projects, gov. will introduce a bill which will set up Development Financial Institution (DFI) with a sum of Rs 20,000 crore to capitalize on this institution. Rs 5 lakh crore will be lent by DFI for 3 years to fund the long term infra projects.
- The measures taken in a view of monetisation are: (a) NHAI and PGCIL each have sponsored one InvIT to attract the investors. Five operational roads of Rs 5,000 crore are being transferred to the NHAI InvIT. Similarly, transmission assets of a value of Rs 7,000 crore will be transferred to the PGCIL InvIT. (b) Railways will be monetized with Dedicated Freight Corridor assets for operations and maintenance, after commissioning. Other ore infrastructure assets like Oil and Gas Pipelines of GAIL, IOCL and HPCL, Other Railway Infrastructure Assets, AAI Airports in Tier II and III cities, CPSEs Warehousing Assets and Sports Stadium will be rolled out under the Asset Monetization Programme.
- The Ministry of Road Transport and Highways is provided with an enhanced outlay of Rs. 1,18,101 lakh crore. The GOI will provide Rs 1.03 lakh crore for National Highway Projects in Tamil Nadu; Rs 65,000 core for National Highway Projects in Kerala; Rs 25,000 crore for National Highway Projects in West Bengal.
- Rs 1.1 lakh crore for Indian Railways are allotted by Finance Ministry. The government will launch a new scheme with an outlay of Rs 18,000 crore to support augmentation of public bus transport services. Also, ‘MetroLite’ and ‘MetroNeo’ technologies will be used to offer metro rail facility at a cheaper cost to the passengers. Also, Rs 3,05,984 crore over 5 years are allotted for the power distribution sector scheme.
- The Ujjwala scheme will be extended to cover 1 crore more beneficiaries. The GOI will add-up 100 more cities for the next 3 years to the City Gas Distribution network. The UT of Jammu & Kashmir will be benefited with a gas pipeline project.
- (3) Inclusive Development for Aspirational India: With an aim to offer adequate credit to the farmers, the agricultural credit target of Rs. 16.5 lakh crore in FY22 is allotted.
- (4) Reinvigorating Human Capital: With respect to the National Education Policy, the GOI aims to add more than 15,000 schools to qualitatively strengthen under NEP. Also, 100 new Sainik Schools will be established in collaboration with NGOs. The FM stated to form the Higher Education Commission of India, which will be an apex body having 4 separate vehicles namely standard-setting, accreditation, regulation, and funding. Also, a Central University will be set up in Leh, Ladakh. Around 750 Eklavya model, residential schools in tribal areas will be set up with an increase in the unit cost of each such school from Rs. 20 crore to Rs. 38 crore, and for hilly areas to Rs. 48 crore.
- (5) Innovation and R&D: GOI will launch National Language Translation Mission (NTLM) which will help the wealth of governance-and-policy related knowledge on the Internet to be made available in major Indian languages. This will also help to promote regional languages and increase in usage of the internet and thus to fulfill the vision of Digital India.
- (6) Minimum Government and Maximum Governance: FM stated that the forthcoming Census could be India’s first digital Census, and thus has allotted Rs 3,768 crore for 2021. FM has stated an increase in customs duty on cotton to 10%, silk to 15% and auto parts to 15%. The Custom duty on solar lanterns is cut to 5%. The Custom duty on copper scrap cut to 2.5%.
- The NRI’s are allowed to operate One Person Companies (OPCs) in India with no paid-up capital and turnover restrictions, with a reduced registration timeline from 182 days to 120 days. The GOI will launch deep ocean mission with an outlay of more than Rs 4,000 crore over five years.
- A relief of measure to the senior citizens is given by removing the need to file income tax returns for those aged over 75 years. The tax audit limit is raised from Rs 5 crore to Rs 10 crore.
