The Budget 2021-22 accords major emphasis to the healthcare sector which indeed is very important in the present context. The country does require a boost to the healthcare sector which the FM has recognized. The allocation to healthcare in this budget has been increased substantially. The areas of focus will be preventive and curative health care as well as well being, according to the FM.
- The allocation is likely to be around Rs 2,23,846 crore, a 137% percentage rise from the previous budget and of this Rs 35,000 cr has been budgeted for COVID-19 vaccination expenditure in FY22.
- To give a fillip to the infra sector with the aim to build the impetus for economic development in the medium to long term the Govt is set to introduce a Development Financial Institution (DFI). Rs 20,000 crore will be provided to capitalise the new DFI, with an aim to have a lending portfolio of Rs 5 lakh crore in 3 years.
- A National Monetisation Pipeline for brownfield projects will be launched with NHAI and PGCIL.
- For improving the transport sector infrastructure an allocation of Rs 1,10,055 crore to be made. Of this, Rs 1.07 lakh crore is for capital expenditure for FY22.
- The FM also announced plans for east coast corridor, east-west corridor, north-south corridors. 100% electrification of broad-gauge routes will be completed by December 2023, she said.
- By announcing that 1000 more agriculture product marketing committees (APMCs) or mandis will be linked to e-national agriculture market (e-NAM), the FM has tried to convey a message to farmers’ unions that the government has no intention of dismantling the APMC system.
- An important initiative for development of the textile sector will take place as India will set up seven textile parks over the next three years under the scheme of mega investment textile parks over 1,000 acres of land with world class infrastructure, and plug-and-play facilities.
- To address the issue of Gender Parity the FM announced that minimum wages will now apply to all categories of workers and women will be allowed to work in all categories with adequate protection.
- An important aspect of this year’s budget was that there is no significant change in the area of income tax.
- Two important issues need to be flagged. At first glance the Education sector has not received adequate attention. This is very glaring in the context of the New Education Policy. The FM has announced the intention to set up a Higher Education Commission but no mention has been made about monetary allocations.
- The other aspect is how effectively the plans would be implemented. This would need to be given intense attention at the highest levels.
