The Budget’s Vision

The Indian Express     5th February 2021     Save    

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.
Conclusion: The measures undertaken in the budget will help to achieve the Sustainable Development Goals and building a better India through “Sabka Saath, Sabka Vishwas and Sabka Vikas”.