Budget statement 2021

The Budget comes amidst unprecedented COVID-19 pandemic and also formed the prelude of the Budget Speech. This Global crisis and its aftershock has crippled many economies, whereas, India has not only been resilient but also playing the role of Pharmacy to the World. The cornerstone of the Budget was Atma Nirbhar Bharat: being largely self-reliant and a business epicenter of the World. The Budget rests on six pillars: Health and Wellbeing, Physical and Financial Capital, Infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, Innovation and R&D, Minimum Government and Maximum Governance. These would go towards further strengthening nation first, doubling farmer’s income, strong infrastructure, healthy India, good governance, opportunities for youth, education for all, women empowerment and inclusive development. The pandemic has made everyone realign themselves towards holistic health, and the Budget touched upon three key areas: Preventive, Curative and Wellbeing whilst providing for tackle the burgeoning problem of air pollution, Jal Jeevan Mission (Urban), Mission Poshan 2.0 amongst others. For attainment of the aspirational 5 trillion-dollar economy, emphasis was laid on the manufacturing sector for whichProduction Linked Incentive scheme has already been outlined. The same would help India become global champions in manufacturing and an integral part of Global supply chains based on core competence and cutting-edge technology. The Indian Government’s thrust on infrastructure would require substantial fund infusion for which the Government would create institutional structure in the form of Development Financial Institution coupled with enhancing the share of capital expenditure in central and state budgets. Further, the debt financing of InVITs and REITs by FPIs will be enabled to provide the addition funding support. In addition to the aforesaid steps, the Government would rely on Asset Monetization wherein monetizing operating public infrastructure assets was highlighted to be an important financing option for development of new infrastructure. Also, policy of strategic disinvestment would lay out a roadmap for disinvestment and strategic sale in nonstrategic and strategic sectors which would help provide the requisite resources to the Indian Government. The Government aims to achieve inclusive development for aspirational India which would assure welfare of farmers and rural India, migrant workers (One Nation One Ration Card scheme), labour and financial inclusion for all.