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BUDGET 2021-22 SUMMARY an Initiative by the Prayas India the Prayas IAS BUDGET 2021-22 SUMMARY An initiative by The Prayas India The Prayas IAS [email protected] www.theprayasindia.com/upsc The Prayas ePathshala www.theprayasindia.com/e-pathshala/ Budget Summary Contents Budget Summary .................................................................................................................................. 1 Summary of the Budget 2021-22 ....................................................................................................................... 2 PART-A ......................................................................................................................................................... 2 1. Health and Wellbeing ............................................................................................................................ 3 3. Inclusive Development for Aspirational India ..................................................................................... 11 4. Reinvigorating Human Capital ............................................................................................................ 13 5. Innovation and R&D ............................................................................................................................ 14 6. Minimum Government, Maximum Governance................................................................................. 15 PART-B ....................................................................................................................................................... 17 DIRECT TAX PROPOSALS .................................................................................................................. 17 INDIRECT TAX PROPOSALS .............................................................................................................. 19 Key Highlights of Union Budget 2021-22 ....................................................................................................... 21 6 pillars of the Union Budget 2021-22: ....................................................................................................... 21 Health and Wellbeing .......................................................................................................................... 21 Physical and Financial Capital and Infrastructure ............................................................................... 23 Inclusive Development for Aspirational India ..................................................................................... 29 Reinvigorating Human Capital ............................................................................................................ 30 Innovation and R&D ............................................................................................................................ 32 Minimum Government, Maximum Governance.................................................................................. 32 Fifteenth Finance Commission .................................................................................................................... 34 Achievements and Milestones during the COVID-19 pandemic ................................................................ 38 www.theprayasindia.com/e-pathshala [email protected] +91-7710013217 / 9892560176 The Prayas ePathshala www.theprayasindia.com/e-pathshala/ Summary of the Budget 2021-22 PART-A The Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman presented the Union Budget 2021-22 in Parliament today, which is the first budget of this new decade and also a digital one in the backdrop of unprecedented COVID-19 crisis. Laying a vision for AatmaNirbhar Bharat, she said this is an expression of 130 crore Indians who have full confidence in their capabilities and skills. She said that Budget proposals will further strengthen the Sankalp of Nation First, Doubling Farmer‟s Income, Strong Infrastructure, Healthy India, Good Governance, Opportunities for youth, Education for All, Women Empowerment, and Inclusive Development among others. Additionally, also on the path to fast- implementation are the 13 promises of Budget 2015-16-which were to materialize during the AmrutMahotsav of 2022, on the 75th year of our Independence. They too resonate with this vision of AatmaNirbharta, she added. The Budget proposals for 2021-22 rest on 6 pillars. 1. Health and Wellbeing 2. Physical & Financial Capital, and Infrastructure 3. Inclusive Development for Aspirational India 4. Reinvigorating Human Capital 5. Innovation and R&D www.theprayasindia.com/e-pathshala [email protected] +91-7710013217 / 9892560176 The Prayas ePathshala www.theprayasindia.com/e-pathshala/ 6. Minimum Government and Maximum Governance 1. Health and Wellbeing There is substantial increase in investment in Health Infrastructure and the Budget outlay for Health and Wellbeing is Rs 2,23,846 crore in BE 2021-22 as against this year‟s BE of Rs 94,452 crore, an increase of 137 percentage. The Finance Minister announced that a new centrally sponsored scheme, PM AatmaNirbhar Swasth Bharat Yojana, will be launched with an outlay of about Rs 64, 180 crore over 6 years. This will develop capacities of primary, secondary, and tertiary care Health Systems, strengthen existing national institutions, and create new institutions, to cater to detection and cure of new and emerging diseases. This will be in addition to the National Health Mission. The main interventions under the scheme are: o Support for 17,788 rural and 11,024 urban Health and Wellness Centers o Setting up integrated public health labs in all districts and 3382 block public health units in 11 states; o Establishing critical care hospital blocks in 602 districts and 12 central institutions; o Strengthening of the National Centre for Disease Control (NCDC), its 5 regional branches and 20 metropolitan health surveillance units; o Expansion of the Integrated Health Information Portal to all States/UTs to connect all public health labs; o Operationalisation of 17 new Public Health Units and strengthening of 33 existing Public Health Units at Points of Entry, that is at 32 Airports, 11 Seaports and 7 land crossings; o Setting up of 15 Health Emergency Operation Centers and 2 mobile hospitals; and o Setting up of a national institution for One Health, a Regional Research Platform for WHO www.theprayasindia.com/e-pathshala [email protected] +91-7710013217 / 9892560176 The Prayas ePathshala www.theprayasindia.com/e-pathshala/ South East Asia Region, 9 Bio-Safety Level III laboratories and 4 regional National Institutes for Virology. Vaccines o Provision of Rs 35,000 crore made for Covid-19 vaccine in BE 2021-22. o The Pneumococcal Vaccine, a Made in India product, presently limited to only 5 states, will be rolled out across the country aimed at averting 50,000 child deaths annually. Nutrition o To strengthen nutritional content, delivery, outreach, and outcome, Government will merge the Supplementary Nutrition Programme and the PoshanAbhiyan and launch the Mission Poshan 2.0. Government will adopt an intensified strategy to improve nutritional outcomes across 112 Aspirational Districts. Universal Coverage of Water Supply and Swachch Bharat Mission o The Finance Minister announced that the JalJeevan Mission (Urban), will be launched for universal water supply in all 4,378 Urban Local Bodies with 2.86 crore household tap connections, as well as liquid waste management in 500 AMRUT cities. It will be implemented over 5 years, with an outlay of Rs. 2,87,000 crore. Moreover, the Urban Swachh Bharat Mission will be implemented with a total financial allocation of Rs 1,41,678 crore over a period of 5 years from 2021-2026. o Also to tackle the burgeoning problem of air pollution, government proposed to provide an amount of Rs. 2,217 crore for 42 urban centres with a million-plus population in this budget. o A voluntary vehicle scrapping policy to phase out old and unfit vehicles was also announced. o Fitness tests have been proposed in automated fitness centres after 20 years in case of personal vehicles, and after 15 years in case of commercial vehicles 2. Physical and Financial Capital and Infrastructure Finance Minister said that for a USD 5 trillion economy, our manufacturing sector has to grow in double digits on a sustained basis. Our manufacturing companies need to become an integral part of global supply chains, possess core competence and cutting-edge technology. www.theprayasindia.com/e-pathshala [email protected] +91-7710013217 / 9892560176 The Prayas ePathshala www.theprayasindia.com/e-pathshala/ To achieve all of the above, PLI schemes to create manufacturing global champions for an AatmaNirbhar Bharat have been announced for 13 sectors. For this, the government has committed nearly Rs.1.97 lakh crore in the next 5 years starting FY 2021-22. This initiative will help bring scale and size in key sectors, create and nurture global champions and provide jobs to our youth. Textiles o Similarly, to enable the textile industry to become globally competitive, attract large investments and boost employment generation, a scheme of Mega Investment Textiles Parks (MITRA) will be launched in addition to the PLI scheme. o This will create world class infrastructure with plug and play facilities to enable create global champions in exports. 7 Textile Parks will be established over 3 years. Infrastructure o The National Infrastructure Pipeline (NIP) which the Finance Minister announced in December 2019 is the first-of-its-kind, whole-of-government
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