India’s 2021-2022 budget is an exceptional budget plan as compared to previous budget strategies. The Indian Finance Minister Nirmala Sitaraman announced a budget that specifically focuses on infrastructure building and healthcare systems. Budget 2021-2022 is based on six pillars: health and wellbeing, physical and financial capital and infrastructure inclusive development for aspirational India, reinvigorating human capital, innovation and R&D and minimum government and maximum governance. To help you understand the nuances of the FY 2021-2022 year’s budget with a focus on long-term goals and achievement, here are a few key features of the budget 2021-2022 summarized.
In the financial year 2021-22, the Indian government hiked the expenditure budget by 34.46 percent in comparison to the previous year 2020-2021. Where in the previous year it was 4.12 lakh crore, in current year’s budget its value is 5.54 lakh crore.
When it comes to income tax relief for the common man, the government, says no increase in the standard deduction, no raise in the tax slabs which means no change in income tax rates for individuals and corporations.
Healthcare infrastructure was at the top of the budget list. In the year when the world was disrupted by the Covid-19, the finance minister gave attention to the healthcare structure. In comparison, the budget 2020-2021 this year proposed funds for healthcare jumped by 137% which means in 2020-2021 Rs 2,23,846 crore was for healthcare whereas in budget 2021-2022 Rs 94,452 crore was released. There was a special focus on the Covid-19 vaccination and for that Rs. 35,000 crores was marked. The finance minister promised to provide more funds if required.
Signalling a major reform, the has lined up disinvestment for two public-sector banks and one state-owned general insurance company. As a result, the FDI in insurance is deemed to be hiked to 74% from 49% now.
GDP growth is a major factor that contributes to the nation’s financial growth. In the budget 2021-2022, FM projected an estimated 14.4% of growth in GDP.
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