NEW DELHI, Feb 1: Indian Finance Minister Nirmala Sitharaman on Monday unveiled the budget for fiscal 2021-22, that aims to shore up an economy badly-hit by the novel coronavirus pandemic.
The economy is projected to contract 7.7% in the current fiscal year, although the government forecasts growth of 11% for the coming fiscal year, after a massive COVID-19 vaccination drive and a rebound in consumer demand and investments.
These are the initial highlights from Sitharaman’s fiscal 2021-22 budget speech:
EXPENDITURE
* 2020/21 revised expenditure 4.36 trillion rupees ($59.74 billion)
* 2020/21 capital expenditure estimated at 5.43 trillion rupees ($74.40 billion)
* 2020/21 budget deficit said to be 9.5% of GDP - Bloomberg
* To provide more than 2 trillion rupees ($27.40 billion)for states and autonomous bodies
Highlights: India unveils budget aimed at boosting pandemic-hit...
HEALTHCARE
* India to allocate 2.2 trillion rupees ($30.20 billion) for healthcare in 2021/22
* Sitharaman says expect two or more COVID-19 vaccines soon
* India to launch new federal health scheme with outlay of around 641 billion rupees ($8.80 billion) over the next six years
* To allocate 350 billion rupees ($4.81 billion) for COVID-19 vaccines, and allocate more funds if needed.
FINANCE
* India to introduce bill for development financial institution with capital of 200 billion rupees ($2.74 billion)
* To infuse 200 billion rupees ($2.74 billion) for recapitalization of state-run banks in FY2022
* India to consolidate certain SEBI regulations for Securities Market Code
* To relax FDI cap for insurance sector to 74% from 49%
* Set up asset reconstruction company to take over toxic assets
INFRASTRUCTURE
* To allocate 2.87 trillion rupees ($39.40 billion) for clean water supplies over the next five years
* To allocate 3 trillion rupees ($41.10 billion) for power sector for next five years
* To provide 10 billion rupees ($137.01 million)to Solar Energy Corporation of India
* Sitharaman says will move to end power distribution company monopolies
* To double ship recycling capacity by 2024
* India to monetise infrastructure assets
TRANSPORT
* Allocates 1.18 trillion rupees ($16.17 billion) for ministry of roads and highways
* Allocates 1.1 trillion rupees ($15.07 billion) for railways
* Railways to monetise freight corridors
* India to launch new vehicle scrapping policy
