News Analysis India

Tag: Budget 2021

  • Nothing for ‘Beti Bachao, Beti Padhao’ as budget for WCD Ministry reduced by over 18 per cent

    Express News Service
    NEW DELHI: The proposed budget for the Union Women Child Development Ministry was reduced by over 18 per cent as compared to the last fiscal. Also, there is no allocation earmarked for the Centre’s flagship Beti Bachao Beti Padhao scheme.

    The sum set aside for the ministry in 2021-22 is Rs 24,435 crore. It was Rs 30, 001 last year, which was later revised to Rs 21,008 crore.

    Of the total budget, the highest amount — Rs 20, 105 crore — has been allocated to the newly announced Saksham Anganwadi and Mission Poshan 2.0 scheme.

    Mission Poshan 2.0 in an umbrella scheme covering the Integrated Child Development Services (ICDS), Anganwadi services, Poshan Abhiyaan, scheme for adolescent girls and the national creche scheme.

    However, schemes like Beti Bachao Beti Padhao, one stop centres, Swadhar Greh, child protection, Pradhan Mantri Matru Vandana Yojana and Ujjawala have not been allocated anything in this budget.

    The budget of autonomous bodies such as Central Adoption Resource Agency have either remained the same or received marginal raise.

    “To strengthen nutritional content, delivery, outreach, and outcome, we will merge the Supplementary Nutrition Programme and the Poshan Abhiyan and launch Mission Poshan 2.0,” said Union Finance Minister Nirmala Sitharaman. 

    The total amount for the social services sector, which includes nutrition and social security and welfare, has been increased from Rs 2,411.80 crore in 2020-21 to Rs 3,575.96 crore.

  • Budget woes: Customs duty hike may make ACs costlier, says industry

    Express News Service
    NEW DELHI: Finance Minister Nirmala Sitharaman has proposed an increase in customs duty on items that included mobile phone parts and compressors.

    Industry body Consumer Electronics and Appliances Manufacturers Association (CEAMA) President Kamal Nandi said, “The customs duty revision for the compressors, used in refrigeration and air conditioning, from 12.5% to 15% will promote indigenous manufacturing… There have been increases in import duties on motors and PCBs as well.”

    He, however, added, “these are good for the medium and long term but will impact price adversely in short term due to insufficient output capacities.”

    All compressors used in domestic manufacturing of ACs and refrigerators are imported from overseas. Hence a customs duty hike may impact prices of finished goods.

    Manufacturers such as Panasonic, Blue Star and LG said that they would bear the impact instead of passing it on to the consumers.

    The Union Budget 2021 also announced a 2.5% customs duty on certain mobile phone parts and power banks for greater domestic value addition.

    Counterpoint Research Associate Director Tarun Pathak said there might be an increase in prices for short term or a modest increase. 

    Sitharaman also proposed to hike customs duty on specific auto parts like ignition wiring sets, safety glass, parts of signaling equipment, from 7.5-10% to 15%. The parts would also attract agri infrastructure and development cess at 5%.

  • Budget 2021: Freight corridors in focus as Sitharaman announces record Rs 1.10 lakh allocation for Railways

    By Express News Service
    NEW DELHI: Finance Minister Nirmala Sitharaman on Monday announced a record Rs 1.10 lakh crore allocation for the Indian Railways of which Rs 1.07 lakh crore would be for capital expenditure.

    “The plan is to create a future ready railway system by 2030 bringing down the logistic cost for industry is at the core of the strategy to enable Make In India,” she announced in Parliament.

    Noting that the eastern and western dedicated freight corridors would be completed by mid-2022, Sitharaman proposed a host of other initiatives.

    “The following additional initiatives are also proposed. The Sonenagar-Gomoh section of 263 km on EDFC will be taken up in PPP mode this year itself. Gomoh-Dankuni section of 274.3 km will also be taken up shortly in short succession,” she said.

    The Railways, Sitharaman said, will take up works for future dedicated freight corridor projects — East Coast Corridor from Kharagpur to Vijaywada, East-West Corridor from Bhusawal to Kharagpur to Dankuni and North-South Corridor from Itarsi to Vijaywada. Complete electrification of broad gauge route would be done by December 2023. 

    Stressing on the passenger convenience and safety, she said the Railways would introduce the aesthetically-designed vistadome Linke Hofmann Busch coaches on tourist routes for better travel experience to passengers.

    Two new technologies — metro lite and metro neo — will also be adopted by the national transporter to provide metro services at much less cost with same experience, convenience in tier II and tier III cities and peripheral areas.

    For safety, trains on high-density network would be provided with indigenously developed automatic train protection system that eliminates train collision resulting out of human error.  

  • No big schemes, funding for Maharashtra in Union budget, says Uddhav govt

    By Express News Service
    MUMBAI: The Uddhav Thackeray-led Maha Vikas Aghadi government on Monday expressed displeasure over the Union budget saying that Maharashtra did not receive any major fund for its infrastructure projects as the focus of the budget was on election-bounds states.   

    Maharashtra Congress president Balasaheb Thorat alleged that the Union budget established a new practice of announcing projects only for the poll-bound states. 

    “The budget has been converted into an election manifesto. The budget speech of Finance Minister Nirmala Sitharaman makes us question whether this budget is an election manifesto or a sale plan for the government-owned assets. The Union budget neglected states like Maharashtra which provides the highest amount of revenue every year,” said Thorat calling it “step-motherly” treatment by the Centre.

    Maharashtra Housing minister and senior NCP leader Jitendra Awhad described the budget in four words — ‘India is on sale’. Awhad said, “Our forefathers in last 70 years developed a lot of infrastructures and profit-making PSUs. But the Modi government has put them on sale. The BJP-led central government is going to sell airports, highways, power distribution channels, parts of the railway goods transport, government warehouses, GAIL, pipeline of Indian Oil, stadiums, plus it will privatize seven ports. It has been selling the country’s assets and defence to private companies,” said the minister.

    Former CM Ashok Chavan, who is also a minister in the Maha Vikas Aghadi government, said that the budget has no sense. “This is the directionless budget. The budget rather than giving relief to the honest tax-payers middle class will exploit them further through high taxes. It has also failed to simplify the GST procedure and no vision for employment generations,” said Chavan. 

    Leader of Opposition and BJP MLA Devendra Fadnavis called it one of the best annual budget that has taken care of all sections of the society. “The budget has made the provision of Rs 5 lakh crore for the infrastructure development, besides there is no rise in taxes despite pandemic situations. It has also focused on the health and proposed a huge amount for the development of health infrastructure,” said the former CM.

  • 2021 Budget does not matter, only concerned about having farm laws repealed: Protesting farmers

    By PTI
    NEW DELHI: Farmers protesting at various sites on the border of Delhi on Monday unequivocally said they are only concerned about their common goal of having the three farm laws repealed, and what has been offered to the agriculture sector in the Union budget did not matter.

    At Singhu Border, most farmers were rather clueless about the Budget, saying they were “unable to access the internet” at the protest site, so couldn’t get to know the details. “Our demand was to increase the price of crops, not agriculture credit. This is a conspiracy to take away your land. Within 10-15 years, the corporate will take your land. The fight is for rate of crops, not for credit. They didn’t talk about MSP. There is nothing for farmers,” farmer leader Rakesh Tikait told PTI.

    “The administration has put barbed wires on three roads. They are stopping movement of vehicles towards Delhi, not us. We have been waiting to talk to the prime minister for the past seven years. PM Modi, give us your mobile number. We are ready to talk,” he added.

    ALSO READ| Farmers’ stir: Ghazipur turns fortress, nails cemented on roads leading to protest site

    Randhir Singh (48), from Kaithal district of Haryana, who has been camping there since December, said, “Our only goal right now is to see the three laws repealed. Union budget is not of immediate concern to us.”

    Pala Ram, also from the same village as Singh, echoed similar views. “Some people told me about the points made for the agriculture sector, but that is something, we are not worried about at the moment,” he said.

    Avtar Singh (65), from Punjab’s Patiala, said that the government should have offered ways to increase farmers’ income and not just credit target.

    ALSO READ| Farmers will not benefit from Union Budget 2021: Congress

    Ranjeet Raju, state president, Gramin Kisan Majdoor Samiti, Sri Ganga Nagar said, “If the government wants to help, they should take steps to increase farmers’ income, not by increasing agriculture credit target. This is like pushing farmers into the debt trap, which eventually leads to more farmer suicides. And micro-irrigation corpus, which I am told is doubled in this Budget, is something that goes to industries in the name of farmers.”

    “Farmers didn’t expect much from the present Budget. But were curious to know the funds marked for the agriculture sector.  were bereft of those details too this time,” said Jehangir (31), a farmer hailing from Bihar.

  • ‘A balanced budget’: Nitish hails decisions on renewable energy, Ujjwala schemes, tax relief for pensioners

    Express News Service
    PATNA: Bihar Chief Minister Nitish Kumar on Monday hailed the Union budget by terming it ‘balanced’ and lauded the decisions on schemes such as renewable sources of energy, the Ujjwala and the tax relief to pensioners above 75.

    In his response after the budget, Nitish Kumar said that despite the Covid pandemic and the consequent difficulties, the Union Government has presented a balanced budget. “The budget is worth welcome and I congratulate the central government for presenting a balanced budget of Rs 34.8 lakh crore for 2021-22, which is more than the projected budgetary expenditure of the previous year.

    Kumar also appreciated the recommendation of the 15th Finance Commission which has allocated 41% amount to the state governments. “A provision of Rs 2,230,00 crore made for the health sector along with the establishment of the National Institute of World Health is also a good move,” Kumar said.

    The CM also welcomed the Centre’s decision of giving LPG cylinders to 1 crore additional families under the Ujjwala scheme and connecting 100 cities to the gas pipeline.

    ALSO READ | Wisdom over poetic flourish: Sitharaman on the ball with India’s 100th budget

    Lauding the budgetary plans to start seven mega textile parks with world-class infrastructure in the next 3 years, Kumar said that such a move will generate employments to the people and encourage exports.

    “The decision to promote the solar and renewable energy is a good step towards protecting the country’s environment”, he said.

    On the other hand, leader of opposition Tejashwi Yadav termed the budget intended to sell the country. “This is a budget to sell the country. It was not a budget but a sale put up for selling government properties and establishments. The BJP is determined to sell banks, ports, airports, NHs, stadiums, oil pipelines after selling the railways and train stations, BSNL, the Red Fort and LIC,” Yadav alleged.

    The Centre has allocated no fund for new university, hospital, national highway, factory, industrial unit, rail line and other infrastructure for Bihar. “It was shameful that out 40, 39 NDA MPs were thumping the table while the Centre was selling the government establishments”, he taunted.

    RLSP chief Upendra Kushwaha and others in opposition also expressed their unhappiness on the budget and said it has nothing for the poor. Jitan Ram Manjhi of HAM, an ally of NDA in Bihar, described the budget as better for farmers and common people. 

  • Budget 2021: Finance Minister Nirmala Sitharaman hits back at Rahul Gandhi on crony capital comment

    By PTI
    NEW DELHI: Finance Minister Nirmala Sitharaman on Monday hit back at Rahul Gandhi’s claim that the Budget favours certain crony capitalists, saying Congress-ruled Kerala-government in the past had handed over a port in the state to the same businessman on invitation basis.

    Soon after the Budget presentation, Congress leader Gandhi alleged that the Narendra Modi government plans to hand over India’s assets to crony capitalists through stake sale in public sector companies and financial institutions, including two PSU banks and an insurance company, in the next fiscal.

    “Forget putting cash in the hands of people, Modi government plans to handover India’s assets to his crony capitalist friends,” he said after the presentation of the Union Budget. Responding to the comment of Gandhi, the Finance Minister said he repeats this particular question every 15 days.

    ALSO READ| Budget has vision of ‘self-reliance’; Villages and farmers at its heart: PM Modi

    “The party which even today does not know to explain if I take one example of Kerala under Congress giving away sea port development on invitation basis to one of the crony capitalists that he is talking about,” she questioned.

    She referred to Congress-led Kerala government inviting Adani Group, who Gandhi referred to as crony capitalist friends of Modi government, to Vizhinjam Port in the state.

    Adani Ports and Special Economic Zone Ltd, (APSEZ), India’s largest port developer and part of the Adani Group in December 2015 formally began development of international transhipment project in Vizhinjam, Kerala.

    CLICK HERE FOR HIGHLIGHTS OF BUDGET 2021

    “Can he (Gandhi) explain as to how for developing Vinizam port a crony capitalist, I would not call him that but he uses that word, was invited by the Congress party….if he cannot answer that I think Rahul Gandhi should understand either understand nothing what he is speaking about or he is being ill-advised,” she said.

    Unveiling the PSE policy in Budget 2021-22, the Finance Minister said barring four strategic areas, public sector companies in other sectors will be divested. The policy would give a clear roadmap for disinvestment in strategic and non-strategic sectors.

  • Three-fourth say prices have gone up after Modi became PM

    By IANS
    NEW DELHI: Almost three fourths feel that after Narendra Modi became Prime Minister, inflation has been unchecked and prices have gone up, as per the IANS-CVoter Budget Tracker.

    At 72.1, this is the highest percentage in PM Modi’s tenure who feel this way compared to a low of 17.1 per cent in 2015.

    In 2020, only 10.8 per cent of the respondents said that prices have gone down while 12.8 per cent said nothing has changed.

    The sample size of the poll is 4,000 plus and the fieldwork for the survey was done in third-fourth week of January 2021. The theme of the survey is “Expectations from the Union Budget”.

    To a question in the survey, 72.1 per cent respondents said after Narendra Modi became Prime Minister, inflation has been unchecked and prices have gone up. This is the worst score for the Modi government on the inflation front since 2015.

    In 2015, the comparative figure was only 17.1 per cent, in 2016 it was 27.3 per cent, 36.8 per cent in 2017, 56.4 per cent in 2018 and 48.8 per cent in 2019.

    The survey reflects the growing worries on the economic front in a Covid hit year, on the eve of the Union Budget on Monday.

    The economy has contracted this year and unemployment and dwindling incomes have become a source of concern for policy makers.

  • Worry for government? Economic survey finds poor service in private hospitals

    Express News Service
    NEW DELHI:  Despite push from the government for promotion of privatisation in the health sector, the latest Economic Survey has underlined the poor quality of service in private hospitals and suggested setting up agencies to assess the quality of doctors and hospitals.

    As per the report tabled in Parliament on Friday, while the share of public institutions has increased both in hospital and outpatient care, the private sector dominates in total healthcare provision in India.

    Around 74 per cent of outpatient care and 65 per cent of hospitalisation care is provided through the private sector in urban India.

    Citing a research study, the report highlights that a large proportion of deaths in India manifests due to poor quality of healthcare than insufficient access.

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    To understand the difference in quality between the public and private sector providers, data from the Centre’s flagship Pradhan Mantri Jan Arogya Yojana has also been used.

    The data show that mortality rate for neonatal procedures is much higher in private hospitals than in public hospitals — 3.84 per cent and 0.61 per cent, respectively.

    Also, public sector patients get readmitted to the same hospital 64 per cent of the time versus 70 per cent for private hospitals.

    “So, a large proportion of deaths in India manifesting due to poor quality of healthcare is likely to reflect that the quality of treatment in the private sector may not be significantly better than that in the public sector in India,” says the report.

    ALSO READ | Services sector likely to contract by 8.8 per cent in FY21 despite record 34 per cent jump in FDI inflows: Survey

    The report also says the problem of asymmetric information in healthcare is reflected in the substantial variation in costs for treating the same disease between the public and private sector.

    As argued above, the quality of treatment in the private sector does not seem to be markedly better when compared to the public sector. 

  • Finance Minister gave four-five mini-budgets in 2020, upcoming budget will be seen as part of that series: PM

    By ANI
    NEW DELHI: Asserting that this decade is very important for the bright future of India and should be fully utilised, Prime Minister Narendra Modi on Friday said that a golden opportunity has come before the nation to fulfill the dreams seen by the freedom fighters for the country.

    While addressing media ahead of the commencement of the Budget Session of Parliament, PM Modi said that all MPs will make the Budget session very productive. He said that the Union Budget 2021 will be seen as a part of those 4-5 mini budgets announced by Finance Minister Nirmala Sitharaman in 2020.

    “Today commences the first session of this decade. This decade is very important for the bright future of India. A golden opportunity has come before the nation to fulfill the dreams seen by the freedom fighters. This decade should be fully utilised. Keeping this in mind, there should be discussions in this session focussing on the decade – this is expected by the nation. I believe that we will not lag behind in making our contribution for the fulfilment of people’s aspiration,” he added.

    ALSO READ | Budget to allocate 12 per cent more for spending as Centre struggle to maintain balance between growth and financial discipline

    “This is the Budget Session. For the first time in India’s history, in a way, the Finance Minister had to present 4-5 mini budgets in 2020 in the form of different packages. So this Budget will be seen as a part of those 4-5 mini budgets, I believe this,” he added.

    PM Modi further said that he believes that parliamentarians will not lag behind in their contribution towards the fulfilment of people’s aspirations by making full use of Parliament.

    The first part of the session will continue till February 15. The second part of the session will be held from March 8 to April 8.

    Rajya Sabha will function from 9 am to 2 pm and Lok Sabha from 4 pm to 9 pm with Zero Hour and Question Hour.