NEW DELHI: Finance Minister Nirmala Sitharaman while unveiling the Budget 2021 said that the government announced Rs 30-lakh-crore plan in ‘mini-budgets’ in the last one year to beat Covid 19. Seen as a part of the four-five mini-budgets presented by the FM in 2020, the Budget looks to revive the animal spirits and help the economy revive from Covid 19, especially at a time when GST collections in January hit a new high of Rs 1.20 lakh crore. All eyes were on divestment and fiscal deficit targets, sops to revive capex and sectors hit hard by Covid 19, tax exemptions and increase in healthcare expenditure.
Here are the key highlights from her speech:
- Govt sees FY22 fiscal deficit at 6.8%, plans Rs 5.54 lakh cr capex for FY22 against Rs 4.39 lakh cr in FY21.
- Record Rs 1.18 lakh crore allocated to the road ministry, of which Rs 1.08 lakh crore is for capital investment.
- Govt to provide Rs 2 lakh crore to states for capital expenditure. This will be over and above the center’s outlay.
- Outlay on capital expenditure to be at Rs 5.54 lakh crore, up 34.5 per cent.
- Oil and gas pipeline of GAIL, IOC and HPCL to be monetised.
- Railways to monetise dedicated freight corridor network after operationalisation.
- Seven mega textile parks to be launched over next 3 years.
- Budget outlay on health in Budget 2021-22 at Rs 2.24 lakh crore, up 137%.
- Government to provide Rs 35,000 crore for Covid-19 vaccine; ready to provide more funds for Covid-19 vaccine rollout.
- Urban Swachh Bharat scheme with outlay of Rs 1.4 lakh crore over five years.
- Jal Jeevan Mission (Urban) announced for universal water coverage with outlay of Rs 2.8 lakh crore over five years.
- New health infrastructure scheme announced with outlay of over Rs 61,000 crore.
- Budget proposal rests on six pillars: Health and wellbeing, infrastructure, inclusive growth, human capital, R&D and minimum government and maximum governance.
- Govt announced package of Rs 27 lakh crore, which is 13% of GDP in Covid stimulus.
- PM Garib Kalyan Yojana, Atmanirbhar, other packages were equivalent to five mini budgets itself.
