India now has one of the lowest #COVID19 death rates of 112 per million population and one of the lowest active cases of about 130 per million. This has laid the foundation for the economic revival we see today. Only three times has the Budget followed a contraction in the economy. This time, unlike before, the situation is due to a global pandemic
#Budget2021 provides every opportunity for economy to capture pace and grow sustainably.
In Part A of #Budget2021, Finance Minister lays out a vision for #AatmanirbharBharat
To strengthen the vision of Nation First, doubling farmers’ income, strong infra, women’s empowerment, healthy India, good governance, education for all, inclusive development.
“When I presented Budget 20′-21′ we couldn’t have imagined that global economy would be pushed into an unprecedented contraction,” said Finance Minister
Within 48 hours of declaring lockdown PM Narendra Modi has announced #PMGKY valued at Rs 2.76 lakh Crores.
#Budget2021 proposals rest on six pillars
- Health and Well-Being
- Physical and Financial capital and infrastructure
- Inclusive Development for Aspirational India
- Reinvigorating Human Capital
- Innovation and R&D
- Minimum Govt., Maximum Governance
Investment on health infra in #Budget2021 has increased substantially. Three areas – Preventive health, curative health and well-being – to be strengthened
New Centrally Sponsored Scheme #PMAatmanirbharSwasthBharatYojana to be launched, outlay of Rs 64,180 crore over 6 years. To develop capacities of health care systems, develop institutions for detection & cure of new and emerging diseases
Main interventions under #PMAatmanirbharSwasthBharatYojana include:
- Support for Health and Wellness Centres
- Setting up Integrated Public Health labs in all districts
- Critical care hospital blocks
- Strengthening of NCDC
Supplementary Nutrition Programme & POSHAN Abhiyaan to be merged, Mission POSHAN 2.0 to be launched.
To strengthen nutritional content, delivery and outcome and Intensified strategy is being set up for improving nutritional outcomes in aspirational districts.
The Budget will be the first budget of this decade and will also be a digital budget. The Govt. is fully prepared to support and facilitate economy’s reset. This budget provided every opportunity for economy to capture the pace it needs for a sustainable growth.
#JalJeevanMission Urban to be launched, outlay Rs 2.87 lakh crore over 5 years. It is aimed at universal water supply in all 4,378 urban local bodies, with 2.86 crore household tap connections and liquid waste management in 500 AMRUT cities
Proposals in Part A will strengthen the Sankalp of NATION FIRST
- Doubling farmers’ income
- Strong Infrastructure
- Healthy India
- Good Governance
- Opportunities for Youth
- Education for All
- Women Empowerment, and
- Inclusive Development et. al.
Urban Swachh Bharat Mission 2.0 with outlay of Rs 1,41,678 crore over 5 years from 2021. Focused on complete fecal sludge management, waste water treatment, source segregation, management of waste from urban construction, bioremediation of legacy dump sites.
Rupees 2,217 crore for 42 urban centres with million plus population, to tackle burgeoning problem of air pollution
A new centrally sponsored scheme ‘PM Aatmanirbhar Swastha Bharat Yojana’ will be launched with an outlay of Rs 64,180 Crores over 6 years. This will develop capacity of primary, secondary and tertiary care, strengthen national institutions and create new ones.
Voluntary vehicle scrapping policy to phase out old and unfit vehicles. Vehicles to undergo fitness test in automated fitness centres after 20 years (personal vehicles) and 15 years (commercial vehicles)
The pneumococcal vaccine, limited to only 5 states at present, to be rolled out across the country will avert more than 50,000 child deaths annually.
Rupees 35,000 crore for #COVID19 Vaccine in this year 2021-’22. Govt. is committed to provide more funds, if required.
Outlay for health increased to Rs 2,23,846 crore, an increase of 137% relative to previous year’s budget
Urban #SwachhaBharatMission 2.0 will be implemented with a total allocation of Rs 1,41,678 crores over 5 years.
Today #India has 2 vaccines available and has begun safeguarding not just own citizens but also those of over 100 countries.
Rupees 1.97 lakh crore over 5 years starting this FY, for Production Linked Incentive Schemes to create manufacturing global champions for an #AatmaNirbharBharat .
Will nurture size and scale and create jobs for youth Scheme of Mega Investment Textile Parks to be launched, in addition to PLI scheme, to create world class infra in textile sector, with plug-and-play facilities, to create global export champions. Seven textile parks to be set up over 3 years
To give further thrust to National Infrastructure Pipeline, three concrete actions to be taken:
- Creating institutional structures
- Monetizing assets
- Increasing share of capital expenditure in central and state budgets
Professionally managed Development Financial Institution to be set up, to provide, enable & catalyze infra financing Rs 20,000 crore to capitalize this institution. Aim is to have lending portfolio of at least Rs 5 lakh crore in 3 years.
National Monetization Pipeline of potential brownfield infrastructure assets to be launched, for monetizing operating public infra assets.
Asset Monetization Dashboard to track progress and provide visibility to investors. Five operational roads being transferred to NHAI. Rupees 7,000 crore assets to be transferred to PGCIL
Railways to monetize dedicated freight corridor assets for O&M, after commissioning
Next lot of airports to be monetized for ops & mgmt. concessions
Sharp increase of 34.5% in capital expenditure as compared to previous budget estimates – resulting in allocation of Rs 5.54 lakh crore
Echoing the govt.’s effort to spend more on capital expenditure, despite resource crunch
Concrete steps to increase funding for National Infrastructure Pipeline:
- By creating institutional structures
- By monetising assets
- By enhancing share of capital expenditure in Central and State Budgets.
Fourty thousand crore for programmes, projects and departments which show good progress in capital expenditure and which may be in need of further funds
By March 2022, another 8,500 km of road projects to be awarded, additional 11,000 km of NH corridors to be completed, under Bharat Mala Pariyojna project
More than Rs 2 lakh crore for states and autonomous bodies for capex.
Enhanced outlay of Rs 1,18,101 crore for Ministry of Roads, Transport and Highways, out of which Rs 1.08 lakh crore is for capital, the highest ever provided.
Western Dedicated Freight Corridor and Eastern Dedicated Freight Corridor to be commissioned by June 2022. Various additional initiatives too being proposed.
A National Monetisation Pipeline of potential brown-field infrastructure assets will be launched;
An Asset Monetisation Dashboard will be created for tracking progress and provide visibility to investors.
Hundred percent electrification of rail broad gauge routes to be completed by December 2023
High density rail networks and highly utilized rail routes to be provided with indigenously developed automatic train protection system which will eliminate train collision due to human error.
Record sum of Rs 1,10,055 crore to be provided for Indian Railways, out of which Rs 1,07,100 is for capital expenditure only
New scheme at a cost of Rs 18,000 crore for augmentation of public bus transport services
Will facilitate deployment of innovative PPP models enabling private players to finance, acquire, operate and maintain over 20,000 buses
MetroLite and Metro New Technologies to be deployed to provide metro rail systems in tier 2 cities and peripheral areas of tier 1 cities, at much lesser cost, with same experience, convenience and safety
For 2021-22 I propose a sharp increase in capital expenditure and thus have provided Rs 5.54 lakh crores, 34.5% more than BE 2020-21.
Provide over Rs 2 lakh crores to states and autonomous bodies for their capital expenditure.
Framework to be put in place, to provide consumers alternatives to choose from, from among more than one power distribution company.
Revamped, reforms-based, result-linked Power Distribution Sector Scheme to be launched, with outlay of Rs 3,05,984 crore over 5 years
Will provide assistance to distribution companies for infrastructure creation.
Comprehensive National Hydrogen Energy Mission to be launched, as per PM Narendra Modi’s announcement at 3rd REINVEST conference in Nov 2020. Mission will help generate hydrogen from green power sources
Seven port projects worth more than Rs 2,000 crore to be offered by major ports in PPP Mode, in FY 2021-’22. To move to a model where private partner will manage operations of ports.
Scheme for promoting flagging of merchant ships in India to be launched, by providing subsidy support to Indian shipping companies in global tenders floated by Ministries and CPSEs. Rs 1,624 crore over 5 years for this.
Ship Recycling Capacities of around 4.5 million Light Displacement Tonnage to be doubled by 2024, expected to generate around 1.5 lakh jobs for our youth.
#Ujjwala scheme which has benefited 8 crore households, will be extended to cover 1 crore more beneficiaries.
Hundred more districts to be added in next 3 years, to City Gas Distribution Network
Independent Gas Transport System Operator to be set up, for facilitation and coordination of booking of common gas carrier capacity, in all natural gas pipelines, on non-discriminatory and open access basis.
A single and rationalized Securities Markets Code to be set up, by consolidating provisions of SEBI Act 1992, Depositories Act 1996, Securities Contracts Regulation 1956 and Govt. Securities Act 2007.
Permanent institutional framework to set up, to instill confidence in corporate bond market participants during times of stress and enhance secondary market liquidity.
To set up a system of regulated gold exchanges in the country, SEBI will be notified as regulator and Warehousing Dev. and Regulatory Authority will be strengthened.
Direct Taxes have not been touched.
Seven hundred and fifty eight residential schools to be set up in tribal areas. The unit cost of each school will be increased from Rs 20 cr to 38 cr & Rs 48 cr (in hilly & difficult areas).
Hundred new Sainik schools will be set up in partnership with NGOs, private schools, and states, will be introducing the legislation this year to implement the setting-up of Higher Education Commission of India. Govt proposes to reduce the time limit for reopening of tax assessments to 3 years from the present 6 years.
Late deposit of employee’s contribution to PF by employers will not be allowed as deduction to employer. For the 1st time globally – Social security benefits to be extended to gig & platform workers. Minimum wages to be applied to all categories of workers.
Portal to be launched that will collect info about gig workers, construction workers. It will help formulate health, housing, skill, insurance credit for all migrant workers
One nation, one ration card scheme is under implementation by 32 states & UTs reaching about 69 crore beneficiaries.
Fisheries: 5 major fishing hubs – Kochi, Vizag, Chennai, Paradeep, Petuaghat – to be developed as hubs of economic activities.
Micro-irrigation fund to be doubled by Rs 5000 cr … Scope of Operation Green Scheme (now, only for tomato, onions & potatoes) will be enlarged to include 22 perishable crops.
In serious tax evasion cases, only where there is evidence of concealment of income of Rs 50 lakh or more in a year, can reassessment be opened for 10 years.
In 2021-22, the IPO for LIC will be brought forth by Govt.