The Budget’s Vision

Context: The Union Budget is focussed on post-Covid growth, building back lives and livelihoods.

Features of the Budget: helping in the revival of the economy

• Displays the philosophy of “sharing is caring”: India believes in “sharing is caring” philosophy, which runs counter to the “me-first approach” (by ensuring vaccine delivery to various countries).
  • The focus on boosting health and nutrition is noticeable to the tune of Rs 2.2 lakh crores.
• Strengthened Atmanirbhar Bharat Mission: To expand the ambit of our actions in the global arena; cementing India’s role as the “factory of the world”, in addition to “the pharmacy of the world”.
• Employment generation: by –
  • Boosting infrastructure: through allocations in roads and highways construction, metros, gas distribution networks, dedicated freight corridors and future-ready railway system by 2030.
  • Improving Education and skill development: Formation of the higher education commission and realigning the national apprenticeship scheme to train engineering graduates.
• Momentum to manufacturing:
  • Production linked incentives Scheme in 13 sectors with an outlay of Rs 1.97 lakh crores.
  • Protection to Domestic industry:
    • Creation of a Mega Investment Textile Park will protect domestic manufactures.
    • Revised income duty: will protect the domestic industry.
  • Raising capital:
    • Through Asset Reconstruction and Managament Company and implementation of projects under the National infrastructure Pipeline.
    • Capital Expenditure has been increased to Rs 5.54 lakh crore (35% more)
• Facilitating Ease of doing business: through -
  • Decriminalization of the Limited Liability Partnership Act.
  • Removal of restrictions on one-person companies relating to paid-up capital and turnover.
  • The amendment in the definition of small companies.
• Reforming financial sector: By
  • Amending Deposit Insurance and Credit Guarantee Corporation (DICGC) Act 1961 and the Insurance Act 1938. (enabling easy and time-bound access to depositors)
  • Allowing Foreign Direct Investment to 74 % and foreign ownership and control with safeguard.
• Empowering farmers: with particular focus on doubling income.
  • Enhancing the agricultural credit target to Rs 16.5 lakh crore and focusing on credit flow to animal husbandry, dairy, and fisheries. 
  • Expanding the coverage of the Survey of Villages and Mapping with Improvised Technology in village areas (SVAMITVA) scheme to all states/UTs.
• Empowering weaker sections:
  • Reduced Margin Money required for Stand Up India.
  • Revamped post-matric scholarship for Scheduled Castes students.
  • Increased allocation for establishing 750 Eklavya Model Schools.