Highlights: India unveils budget aimed at boosting pandemic-hit economy

NEW DELHI, Feb 1: Indian Finance Minister Nirmala Sitharaman on Monday unveiled the budget for fiscal 2021-22, that aims to shore up an economy badly-hit by the novel coronavirus pandemic.

The economy is projected to contract 7.7% in the current fiscal year, although the government forecasts growth of 11% for the coming fiscal year, after a massive COVID-19 vaccination drive and a rebound in consumer demand and investments.

These are the initial highlights from Sitharaman’s fiscal 2021-22 budget speech:

EXPENDITURE

* 2020/21 revised expenditure 4.36 trillion rupees ($59.74 billion)

* 2020/21 capital expenditure estimated at 5.43 trillion rupees ($74.40 billion)

* 2020/21 budget deficit said to be 9.5% of GDP - Bloomberg

* To provide more than 2 trillion rupees ($27.40 billion)for states and autonomous bodies

HEALTHCARE

* India to allocate 2.2 trillion rupees ($30.20 billion) for healthcare in 2021/22

* Sitharaman says expect two or more COVID-19 vaccines soon

* India to launch new federal health scheme with outlay of around 641 billion rupees ($8.80 billion) over the next six years

* To allocate 350 billion rupees ($4.81 billion) for COVID-19 vaccines, and allocate more funds if needed.

FINANCE

* India to introduce bill for development financial institution with capital of 200 billion rupees ($2.74 billion)

* To infuse 200 billion rupees ($2.74 billion) for recapitalization of state-run banks in FY2022

* India to consolidate certain SEBI regulations for Securities Market Code

* To relax FDI cap for insurance sector to 74% from 49%

* Set up asset reconstruction company to take over toxic assets

INFRASTRUCTURE

* To allocate 2.87 trillion rupees ($39.40 billion) for clean water supplies over the next five years

* To allocate 3 trillion rupees ($41.10 billion) for power sector for next five years

* To provide 10 billion rupees ($137.01 million)to Solar Energy Corporation of India

* Sitharaman says will move to end power distribution company monopolies

* To double ship recycling capacity by 2024

* India to monetise infrastructure assets

TRANSPORT

* Allocates 1.18 trillion rupees ($16.17 billion) for ministry of roads and highways

* Allocates 1.1 trillion rupees ($15.07 billion) for railways

* Railways to monetise freight corridors

* India to launch new vehicle scrapping policy