Union Budget 2021 - On the Right Track

As expected, Union Finance Minister Nirmala Sitharaman has decided to go on a spending spree to revive the Indian economy from the jolt it had suffered due to the Covid-19 pandemic and the following lockdown period. Presenting her third budget, Sitharaman increased the allocation in infrastructure, healthcare, education, high employment generating sectors and above all in agriculture substantially. In some cases like healthcare, the allocation is much higher than what economists had suggested. Surely, this was the only avenue open to our economy to regain its pre-Covid trajectory. The pandemic had hampered economic growth, affected livelihoods and virtually destroyed the demand and supply chain. It brought various industries such as tourism to the brink of collapse. Credit should be given to the Union Finance Minister that in such a hopeless situation she did not give up hope and always assured her countrymen that such a budget to prevent the downslide of the economy would be presented. It is quite commendable that Sitharaman has kept her words without being too flashy or indulgent in rhetoric. According to many, this year’s budget speech was not attractive enough; but definitely the budget is an effective one. The golden run of the stock market stands as testimony to this fact. Beyond a doubt, it’s a courageous effort to say the least. This year’s budget has rekindled the hope for a revival of the Indian economy.

For those who are not familiar with economic theories and their implementations, let us make an effort to make things simple, so they too can formulate their opinion on the budget. Increased expenditure at this juncture will give the much-needed boost to our economy. This will help to rebuild the broken lives and shattered balance-sheets. Availability of funds will restart business activities which in turn will bring back the lost shine of the Indian economy. To achieve the goal, Sitharaman has not withdrawn a single sop that was announced during the lockdown period. Without being perturbed over the fiscal deficit, the Union Finance Minister willingly agreed to carry a financial burden of INR 1,18,000 crore. Along with increased allocation in infrastructure, Ms. Sitharaman has also earmarked a huge fund for the healthcare sector too. Outbreak of the pandemic had proved that our healthcare system was ill-equipped to combat such a menace. Thanks to the Union Finance Minister for an astonishing increase of nearly 137 per cent in the healthcare sector. INR 2,23,840 crore has been earmarked for healthcare for the next fiscal. In the last budget, only INR 94,450 crore was allocated to the health sector. It is expected that with the record allocation, the country’s healthcare system will be upgraded to world class levels and be capable of facing any crisis situation in the future. At the same time, it will end over-dependence on private healthcare facilities as government hospitals will also be able to offer quality treatment. All in all, this year’s budget will definitely help the Indian economy to emerge stronger than ever before.