Saturday, September 18, 2021
Slider
Home South Asia Three features of India’s ‘pandemic budget’.

Three features of India’s ‘pandemic budget’.

India’s Finance Minister Nirmala Sitharaman presented much awaited union budget in parliament today Monday 1st February 2021.

India’s GDP had been shrunk due to Covid-19 that increased unemployment that badly effected India’s banking sector that was already in crisis.

The Finance Minister’s budget aims to spend big to push growth.

A big boost was given to healthcare and infrastructure in the Budget.

Currently India’s fiscal deficit (the gap between its revenue and expenditure) is set to rise to 9.5% for the current financial year this number is highest since India opened its markets to the world in 1991.

For the financial year 2021-22 6.8% deficit is being targeted

Here are the 3 main features from India’s ‘pandemic budget’

Health

In this budget the health spending is up by 137%, this is seen as a massive boost to long time under-funded health sector that received only 1.3% of India’s GDP.

According to the Finance Minister the government will increase the fund if required however it was not clear if Government has plans to pay for vaccinating everyone in the country.

Over $8.5bn has been earmarked has been earmarked to upgrade healthcare infrastructure at all levels over a period of 6 years.

The India’s government has already committed $4.8bn to country’s Covid-19 vaccination programme which is said to be the largest drive in the world which will extend to more than 1.3 billion people.

Infrastructure

A new Development Finance Institution (DFI) will be set up that will be having a starting capital of $2.7bn which will help to fund large-scale infrastructure projects.

Large scale expenditure on infrastructure will kick-start spending as well as give some relief to banks that is already suffering due to mountain of debt.

 National highway projects as well as infrastructure corridors have been cleared in in states like Kerala, Tamil Nadu, West Bengal and Assam. State elections will be held in these states very soon.

Infrastructure spending was Increased by 35%..

Disinvestment

Nirmala Sitharaman announced $23bn disinvestment target for the current year. As the government plans to sell off some of the public sector companies like Air India and debt-laden national carrier.

Two public sector banks as ell as an Insurance company will be privatised.

Foreign investment limits in insurance companies that will allow foreign ownership and control, with safeguards.

2 COMMENTS

  1. Sweet blog! I found it while browsing on Yahoo News.
    Do you have any tips on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there!
    Appreciate it

  2. It’s a shame you don’t have a donate button! I’d definitely donate to
    this excellent blog! I suppose for now i’ll settle for bookmarking and
    adding your RSS feed to my Google account. I look forward to new updates and will share this site with
    my Facebook group. Talk soon!

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

UN agency: More than 634,000 Afghans displaced in 2021

The UN Office for the Coordination of Humanitarian Affairs (OCHA) in the war-torn country said on Thursday that, more than 634,000 Afghans have been...

‘Bhoot Police’ Saif Ali Khan reveals what scares him

Bollywood actor Saif Ali Khan, whose latest release is a horror-comedy film ‘Bhoot Police', has talked about what scares him. Saif says he has...

‘Khuda Haafiz’ director says ‘Chapter 2’ will show a new Vidyut Jammwal

Film Director Faruk Kabir, who is at present shooting for 'Khuda Haafiz Chapter II: Agni Pariksha', says his upcoming movie will showcase a yet-undiscovered...

Top US general had opposed a full withdrawal from Afghanistan

The Ex commander of US troops in Afghanistan told senators on Tuesday that he opposed a full withdrawal from the country and advised Pentagon...

Recent Comments