BUDGET 2021-2022: DETAILED ANALYIS

Whilst delivering the first budget in the new decade and that too in a digital format, the country’s financial minister started the budget with Rabindra Nath Tagore’s quote: ‘Faith is the bird that feels the light and sings when the dawn is still dark.’ Notably, the budget has faced contractions only three times in the past and this time, it is owing to the pandemic. The union budget is expected to provide opportunities and capture the pace. In this regard the minister mentioned that this is the year of India’s Britt’s presidency, the Haridwar Maha kumbh and the launch of Chandrayaan 3. The budget has been termed as a vision of the Aatmanirbhar Bharat and that, it is not new. The ancient India was self-reliant and also a business epicenter.

The budget has been categorized into 6 pillars or parts and a detailed analysis of each of these parts is provided below.

1. Health and Well-being

• The launch of Mission Poshan has been proposed as a strategy to improve the nutritional outreach of the people. For this, 112 districts have been focused for improvement. There will also be a merging of Poshan mission and the supplementary nutrition program.
• A total of 35,000 crore rupees has been decided for COVID-19 vaccine for the year 2021-2022. Further funds can also be allocated if the need arises. Made-in-India Pneumococcal Vaccine is to be made available throughout the country to prevent the annual child deaths reaching 50,000.
• A universal coverage of water supply is to be put in place, as also stresses by WHO. There will be household tap connections (2.86 crore) and liquid waste management (500 AMRUT cities). These will be aimed by the launch of Jal Jeevan Mission (Urban) for which 2,87,000 crore rupees have been allocated.
• PM AatmaNirbhar Swasth Bharat Yojana, a centrally sponsored scheme to be launched has been given Rs. 64,180 crore for 6 years work- National Institution for one health, regional research platform for WHO South-East Asia region, Bio-Safety Level III labs(9), expansion of integrated health information portal to all the states/ UTs, 17 new public heath units as well as strengthening of 33 existing units, 2 mobile hospitals and 15 heath emergency operation centers, 17,788 rural and 11,024 urban wellness heath centers, 4 regional national institutes of virology, integrated public health labs in all districts and 3382 block public health units in 11 states, critical care hospital blocks to be set up in 602 districts and 12 central institutions and strengthening of the National Centre for Disease Control (NCDC), its 5 regional branches and 20 metropolitan health surveillance units
• For the swachch bharat, swasth bharat mission 2.0, Rs. 1,41,678 crores have been allocated where the focus will be majorly on reducing the plastic usage, managing waste from construction sites, complete faecal management and waste water management, source segregation of garbage and bio-remediation of the dump sites.
• For 42 urban centers having a population above a million, Rs, 2,217 crore have been allocated for air pollution control.
• Scraping policy has been put into place where voluntary vehicle scrapping will take place. The old and unfit vehicles will be phased out following fitness tests in automated fitness centers. The tests are to take place in every 20 years for personal vehicles and 15 years for commercial vehicles. This is majorly aimed at controlling the air pollution.
• Thus, a total increase has been 137% in the Heath and Well-being area as the current allocation of funds is Rs. 94,452 crore as compared to Rs. 2,23,846 crore in the year 2020-21.

2. Physical and Financial Capital and Infrastructure

• An introduction of Production linked incentive schemes (PLI) have been allocated Rs. 1.97 lakh crore for 13 sectors. The spotlight has been on being manufacturing global champions for Aatmanirbhar bharat. Global supply chains, core competence and advanced technology along with expansion in key sectors and providing jobs to the youth are major concerns.
• In textiles industry, Mega Investment textile parks (MITRA) scheme is to be brought under which 7 textile parks will be set up in 3 years. Global competition, large investments and employment generation were focal points of attention
• National Infrastructure Pipeline (NIP) has expanded to 7,400 projects from some 6,000 in the previous year. Almost 217 projects valuing at Rs. 1.10 lakh crore have been finished. The 3 ways of progress are specified to be-
  • Creating institutional structures
  • Enhancing the capital expenditure, and
  • Monetizing assets
• In the roads and highways infrastructure, the highest ever allocation has been made in the form of Rs. 1,18,101 lakh crore rupees to the Ministry of Road Transport. The construction of the national corridors have been evaluated. Flagship corridors/ expressways and economic corridors are to be constructed along with putting advanced traffic management system in place (inclusion of speed radars, variable message signboards and GPS enabled recovery vans). With regard to the Bharatmala pariyojana, 3,500 kms of roads are constructed while 8,500 is to be completed and additional 11,000 kms highways are to be constructed till March 2022.
• A generous allocation of Rs. 1,10,055 crore has been made for Railways where Rs. 1,07,100 is for capital expenditure. A National Rail Plan for India (2030) to create a future ready railway system , 100% electrification of Broad-gauge routes finishing by 2023 end and Freight corridors to start by 2022 to bring down the logistics cost. Vista Dome LHB coach for better travelling experience and high density network to eliminate train collisions due to human errors.
• Expansion of metro rail network and augmenting city bus service is highlighted along with Rs. 18000 crore for a scheme regarding public bus transport. New technologies called ‘metrolite’ and ‘metroneo’ to be integrated in the system for cost effectiveness. Funding done for various projects like Bengaluru metro railway project and Nagpur and Nashik metro. A better PPP model to run more than 20,000 buses.
• In case of power infrastructure, distribution companies are currently monopolies and there will now be alternatives for the consumers to choose the distributors. Rs. 3,05,984 crore foe 5 years plan of new power distribution sector scheme. National Hydrogen Energy Mission 2021-22 is also to be launched.
• For ports, shipping and waterways, subsidy support is to be given to the Indian shipping companies . An amount of Rs 1624 crore to be given over 5 years. New 7 projects are to be offered in PPP mode in the year 2021-22 worth Rs. 2,000 crore for operation of major ports. As per the Recycling of Ships Act, 2019, around 90 recycling ship yards received HKC compliance certificates. Capacity of 4.5 million will be doubled by 32024 and this will generate around 1.5 lakh jobs
• In petroleum and natural gas, the Ujjwala scheme will cover 1 crore more beneficiaries. For gas distribution, 100 more cities will be added and pipeline project will start in Jammu & Kashmir.
• In financial markets, 4 different acts (Provisions of SEBI Act, Depositories Act and 2 more) are to be consolidated in one single code, namely, Securities market code. development of a world class Fin-Tech hub at the GIFT-IFSC to instill the confidence of people in corporate bond market. Regulated Gold Exchanges to be set up where SEBI to be notified as a  regulator and Warehousing Development and Regulatory Authority to be strengthened. Capital infusion of Rs. 1,000 crore to Solar Energy Corporation of India and Rs. 1,500 crore to Indian Renewable Energy Development Agency. Amendment of the Insurance Act, 1938 is to be undertaken. Allowing foreign ownership with safeguards. Recapitalization of PSBs. Stresses asset resolution to be put in place. Amendments to be made to the DICGC Act, 1961 and minimum loan size eligible for debt recovery under (SARFAESI) Act, 2002 to be reduced to 20 lakhs from 50 lakhs with a minimum asset size of 100 crore.
• In terms of company matters, decriminalize the Limited Liability Partnership (LLP) Act, 2008 is proposed. Revision of the definition under Companies Act, 2013 by increasing their thresholds for Paid up capital from 50 lakhs to 2 crores and the turnover from 2 crore to 20 crore. Incentivizing the incorporation of One Person Companies (OPCs) thus supporting the start-ups and providing all possible assistance to them. Additional modules for compliance management added as the version updation took place from MCA 2.1 to MCA 3.0. Easier resolution of cases through e-courts, alternate methods of debt resolution and strengthening of NCLTs.
• For disinvestment and strategic sale, Rs. 1,75,000 crore estimated receipts received from disinvestment. Strategic disinvestment of companies like BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited etc to be finished by 2021-22. Except fro IDBI bank, 2 other public sector banks and one general insurance company to be privatized. Initial public offering of LIC will take place in 2021-22. New policy for Strategic Disinvestment has been approved and NITI Aayog is to work out on the next list of CPSEs to be taken up for strategic disinvestment. A mechanism to be formed to ensure timely closure of loss making CPSEs and Special purpose vehicles to be used to monetize idle lands. Central funds to be used for disinvestment of public sector companies.
• In the field of government reforms, treasury Single Account (TSA) for universal application and Separate Administrative Structure for ease of doing business, to be used respectively.

3. Inclusive Development for Aspirational India

• In agriculture, the MSP will be ensured at 1.5 times the cost of production for all commodities. Payments to the farmers (wheat, paddy & pulses) have also increased substantially. Swamitva Scheme to be extended to all States/UTs. Agricultural credit target enhanced to Rs. 16.5 lakh crore in 2022. Rural Infrastructure Development Fund to be enhanced to Rs. 40,000 crore from Rs. 30,000 crore. Micro Irrigation Fund to be doubled to Rs. 10,000 crore. Operation Green Scheme extended to 22 perishable good for value addition. 1.68 crore farmers registered, Rs. 1.14 lakh crore of trade value carried out and  1,000 more mandis to be integrated with e-NAM. Agriculture Infrastructure Funds to be given to APMCs fro augmentation of infrastructure facilities.
• In fisheries, Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat to be developed as hubs of economic activity and investments to be made to develop both inland and marine, modern fishing harbors and fish landing centres. Multipurpose Seaweed Park in Tamil Nadu is also to promote seaweed cultivation.
• For migrant workers and labourers, One Nation One Ration Card scheme has been introduced where they can claim the ration wherever they are staying and the left ration can be claimed by their families in their homes. 86% of beneficiaries across 32 States and UTs have been covered and in the coming months, rest 4 states will be integrated. Social security benefits are to be given to the gig and platform workers as well. Minimum wages and coverage under the Employees State Insurance Corporation will apply to all the workers. Women are allowed in all categories along with night shifts with adequate protection. With single registration and licensing, and online returns, compliance burden on employers has reduced. NABARD has been augmented with 5000 crore.
• In terms of financial inclusion, margin money requirement has reduced to 15% and loans are included for allied agricultural activities under Stand Up India Scheme for SCs, STs and women. There has been Rs. 15,700 crore budget allocations to MSME Sector, more than double of this year.

4. Reinvigorating human capital

• 15,000 schools to be strengthened by implementing all NEP components and 100 new sainik school are to be set up partnering with the NGOs and other private schools.
• In terms of higher education, Higher Education Commission of India is to be set up as an umbrella body with 4 separate vehicles for standard-setting, accreditation, regulation, and funding and a legislation is to be introduced this year. Central University is to be established 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 and a grant for implementation of this structure in 9 cities.
•  750 Eklavya model residential schools to be set up in tribal areas where unit cost of each school to be increased to 38 crores, in general and 48 fro difficult areas. Revamping of Post Matric Scholarship Scheme done for welfare of SCs. Rs. 35,219 crore enhanced Central Assistance to be provided for 6 years till 2026 which will benefit 4 crore SC students.
• In skilling, amendments are proposed to the Apprenticeship Act to enhance opportunities for youth. For realignment of existing National Apprenticeship Training Scheme (NATS) towards post-education apprenticeship, training of graduates and diploma holders in Engineering, Rs. 3,000 crore is given. Partnerships taken forward with countries like UAE for bettering the workforce and Japan for collaborative Training Inter Training Programme (TITP) to transfer of skills, technique and knowledge and such partnerships are to be expanded in the future with different other countries.

5. Innovation and R&D

• In respect of the modalities as announced in July 2019 regarding National Research Foundation, scheme for promoting the digital payments strengthened with Rs 1,500 crore and Rs. 50,000 crore outlay given for strengthening overall research ecosystem with focus on national-priority thrust areas over 5 years. National Language Translation Mission (NTLM) introduced to make governance-and-policy related knowledge and other data available in major Indian languages.
• In respect of the New Indian Space Limited activities regarding the launch of PSLV-CS51 and carrying of Brazil’s Amazonia Satellite and some Indian satellites, 4 Indian astronauts are being trained in Russia on Generic Space Flight aspects. The first unmanned launch is set to take place in December 2021, as a part of the Gaganyaan mission. For Deep Ocean Mission survey for exploration and conservation of deep sea biodiversity, Rs. 4,000 crore are to be provided over five years.

6. Minimum Government, Maximum Governance

• Measures to be undertaken for speedy justice through reforms in Tribunals.
• National Commission for Allied Healthcare Professionals is to maintain transparency and efficiency fro regulation of 56 allied healthcare professionals.
• National Nursing and Midwifery Commission Bill is introduced for transparency and efficiency in nursing.
• A Conciliation Mechanism with mandate for quick resolution of contractual disputes with CPSEs has been brought.
• The forthcoming consensus is going to be a monumental milestone and Rs. 3,768 crore is allocated for first digital census in the history of India.
• A grant of Rs 300 crore has been provided to the Government of Goa for the diamond jubilee celebrations of the state’s liberation from Portuguese rule.
• An amount equaling to Rs. 1,000 crore has been given for the welfare of Tea workers especially women and their children in Assam and West Bengal through a special scheme.

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