High on infrastructure development, healthcare, Union Budget for 2021-22 unable to address J&K’s needs
Union Finance Minister Nirmala Sitharaman presented the central budget for the financial year at the beginning of this week in Parliament. The Union Budget 2021-22 presented after COVID19 pandemic caused havoc across the world and shattered the economies, including that of India. It has focussed on measures which shall bring back the country on the growth path again.
The financial year 2020-21 witnessed the economy of the country to contract by about 24% in the first quarter. While the GDP for the current fiscal year is estimated to witness a negative growth of about 7.7% in real terms.
Keeping in consideration the recession, the finance minister has taken the challenge, to bring back the economy, head-on. The budget she presented has focussed on boosting infrastructure and spending on healthcare particularly. She has increased the capital expenditure by 34% to Rs 5.4 lakh crore. Similarly, Aatmanirbhar or Make in India has remained the key focus, with a slew of policy measures like enhancing customs duties and targeting local production.
Not only the package was missing, but the allocation for J&K – which would earlier come as the state share of taxes and special grants – in the budget too didn’t see any increase as compared to what was provided in the last budget.
The finance minister has laid six pillars for the budget: the health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D, and the minimum government, maximum governance. These pillars will make a strong foundation for the Indian economy.
While the fiscal deficit target is high, she has taken some bold steps to generate the resource. Disinvestment of two PSU banks and a major state-owned insurance company will provide much-needed capital for the various projects and schemes. Similarly, the hikes in customs duties will, on one hand, provide finance to the government while; on other hand, it will benefit make in India.
Similarly, the Agriculture Infrastructure and Development Cess will help to provide much-needed succour to the farming sector, as it will make the availability of estimated Rs 30,000 crore for building the basic infrastructure and logistic chain for the food products.
Though above all measures are also expected to generate employment but given the job losses across sectors due to pandemic, the FM should have paid special attention to job creation. That is missing in the budget. Also, the working class middle-income people needed some tax concessions, which would have put some more disposable income in the hands of people. Besides, it will have increased demand for goods and services.
Back home, there is not much reason for people to cheer. There was the expectation of a special package for Jammu and Kashmir in the Union Budget among the business community. J&K is facing an uncertain situation for a long time, which has hampered overall business and development in the now Union Territory, which needed special attention. Not only the package was missing, but the allocation for J&K – which would earlier come as the state share of taxes and special grants – in the budget too didn’t see any increase as compared to what was provided in the last budget.
The finance minister has, though, announced the revival of the gas pipeline project for the UT, which was first announced many years ago.
