Union Budget And Other Economic Policies

What's Inside

Union Budget 2021-22
Presentation on Atmanirbhar Bharat Package 3.0 that was made by the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman (dated 12th November 2020)
Garib Kalyan Rojgar Abhiyaan (launched on 20th June, 2020)
Details of Fifth Tranche announced by the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman (dated 17th May, 2020) under Aatmanirbhar Bharat Abhiyaan
Details of Government Reforms and Enablers across Seven Sectors under Aatma Nirbhar Bharat Abhiyaan that were announced by the Finance Minister Smt. Nirmala Sitharaman on 17th May, 2020
Details of Fourth Tranche announced by the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman (dated 16th May, 2020) under Aatmanirbhar Bharat Abhiyaan
Details of Third Tranche announced by the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman (dated 15th May, 2020) under Aatmanirbhar Bharat Abhiyaan
Announcements (related to Third Tranche) made by the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman on 15th May, 2020 to strengthen Agriculture Infrastructure Logistics, Capacity Building, Governance and Administrative Reforms for Agriculture, Fisheries and Food Processing Sectors
Details of Second Tranche announced by the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman (dated 14th May, 2020) under Aatmanirbhar Bharat Abhiyaan
Presentation made by the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman (dated 13th May, 2020) under Aatmanirbhar Bharat Abhiyaan

KEY TRENDS

If one goes by the expenditure of major items, then according to the Union Budget 2021-22 (please click here to access):

• Expenditure on Pension was decreased from Rs. 2,04,393 crore in 2020-21 (R.E.) to Rs. 1,89,328 crore in 2021-22 (B.E.). Budgetary allocation on Pension was Rs. 2,10,682 crore in 2020-21 (B.E.)

• Budgetary allocation on Pension as a proportion of total budgetary expenditure was 6.93 percent in 2020-21 (B.E.), which decreased to 5.4 percent in 2021-22 (B.E.)

• Expenditure on Fertilizer Subsidy was cut down from Rs. 1,33,947 crore in 2020-21 (R.E.) to Rs. 79,530 crore in 2021-22 (B.E.). Budgetary allocation on Fertilizer Subsidy was Rs. 71,309 crore in 2020-21 (B.E.). The large difference between B.E. and R.E. figures for Expenditure on Fertilizer Subsidy in 2020-21 occurred on account of change in accounting practice, and shifting from the 'off-budget financing' mode to a more transparent mode of showing expenditure.

• Expenditure on Food Subsidy was brought down from Rs. 4,22,618 crore in 2020-21 (R.E.) to Rs. 2,42,836 crore in 2021-22 (B.E.). Budgetary allocation on Food Subsidy was Rs. 1,15,570 crore in 2020-21 (B.E.). The huge difference between B.E. and R.E. figures for Expenditure on Food Subsidy in 2020-21 happened due to the change in accounting practice, and shifting from the 'extra-budget borrowing' mode to a more transparent mode of revealing expenditure.

• Budgetary allocation on Food Subsidy as a proportion of total budgetary expenditure was 3.8 percent in 2020-21 (B.E.), which jumped to almost 7 percent in 2021-22 (B.E.).

• Expenditure on Agriculture and Allied Activities was increased from Rs. 1,45,355 crore in 2020-21 (R.E.) to Rs. 1,48,301 crore in 2021-22 (B.E.). Budgetary allocation on Agriculture and Allied Activities was Rs. 1,54,775 crore in 2020-21 (B.E.)

• Budgetary allocation on Agriculture and Allied Activities as a proportion of total budgetary expenditure was 5.1 percent in 2020-21 (B.E.), which reduced to 4.3 percent in 2021-22 (B.E.)

• Expenditure on Rural Development was decreased from Rs. 2,16,342 crore in 2020-21 (R.E.) to Rs. 1,94,633 crore in 2021-22 (B.E.). Budgetary allocation on Rural Development was Rs. 1,44,817 crore in 2020-21 (B.E.)

• Budgetary allocation on Rural Development as a proportion of total budgetary expenditure was 4.8 percent in 2020-21 (B.E.), which increased to 5.6 percent in 2021-22 (B.E.)

• Expenditure on Health was decreased from Rs. 82,445 crore in 2020-21 (R.E.) to Rs. 74,602 crore in 2021-22 (B.E.). Budgetary allocation on Health was Rs. 67,484 crore in 2020-21 (B.E.)

• Budgetary allocation on Health as a proportion of total budgetary expenditure was 2.2 percent in 2020-21 (B.E.), which reduced marginally to 2.1 percent in 2021-22 (B.E.)

• Expenditure on Education was increased from Rs. 85,089 crore in 2020-21 (R.E.) to Rs. 93,224 crore in 2021-22 (B.E.). Budgetary allocation on Education was Rs. 99,312 crore in 2020-21 (B.E.)

• Budgetary allocation on Education as a proportion of total budgetary expenditure was 3.3 percent in 2020-21 (B.E.), which reduced marginally to 2.7 percent in 2021-22 (B.E.)

• Expenditure on Social Welfare was increased from Rs. 39,629 crore in 2020-21 (R.E.) to Rs. 48,460 crore in 2021-22 (B.E.). Expenditure on Social Welfare was Rs. 53,876 in 2020-21 (B.E.)

Please click here to access the Union Budget Speech 2021-22, which was delivered by Smt. Nirmala Sitharaman on 1st February, 2021.

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Allocations for various schemes under the Union Budget 2021-22 (please click here to access):

(A) Core of the Core Schemes

• National Social Assistance Progamme-NSAP (that includes old age pension, widow pension, pension for disabled, National Family Benefit Scheme & Annapurna) - Rs. 9,197 crore in 2020-21 (Budget Estimate) and Rs. 9,200 crore in 2021-22 (B.E.); Rs. 42,617 crore in 2020-21 (Revised Estimate)

• Mahatma Gandhi National Rural Employment Guarantee Act - Rs. 61,500 crore in 2020-21 (B.E.) and Rs. 73,000 crore in 2021-22 (B.E.); Rs. 1,11,500 crore in 2020-21 (R.E.)

• Umbrella Scheme for Development of Schedule Tribes - Rs. 4,191 crore in 2020-21 (B.E.) and Rs. 4,303 crore in 2021-22 (B.E.); Rs. 3,183 crore in 2020-21 (R.E.)

• Umbrella Programme for Development of Scheduled Castes - Rs. 6,242 crore in 2020-21 (B.E.) and Rs. 6,566 crore in 2021-22 (B.E.); Rs. 5,693 crore in 2020-21 (R.E.)

• Umbrella Programme for Development of Minorities - Rs. 1,820 crore in 2020-21 (B.E.) and Rs. 1,564 crore in 2021-22 (B.E.); Rs. 1,282 crore in 2020-21 (R.E.)

• Umbrella Programme for Development of Other Vulnerable Groups - Rs. 2,210 crore in 2020-21 (B.E.) and Rs. 2,140 crore in 2021-22 (B.E.); Rs. 1,675 crore in 2020-21 (R.E.)

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(B) Core Schemes

• Green Revolution - Rs. 13,320 crore in 2020-21 (B.E.) and Rs. 13,408 crore in 2021-22 (B.E.); Rs. 10,474 crore in 2020-21 (R.E.)

• White Revolution - Rs. 1,805 crore (B.E.) and Rs. 1,642 crore (R.E.) in 2020-21; the B.E. figure for 2021-22 is not provided

• Blue Revolution - Rs. 570 crore in 2020-21 (B.E.) and Rs. 1,015 crore in 2021-22 (B.E.); Rs. 710 crore in 2020-21 (R.E.)

• Pradhan Mantri Krishi Sinchai Yojana - Rs. 11,127 crore in 2020-21 (B.E.) and Rs. 11,588 crore in 2021-22 (B.E.); Rs. 7,954 crore in 2020-21 (R.E.)

• Pradhan Mantri Gram Sadak Yojana - Rs. 19,500 crore in 2020-21 (B.E.) and Rs. 15,000 in 2021-22 (B.E.); Rs. 13,706 crore in 2020-21 (R.E.)

• Pradhan Mantri Awas Yojana - Rs. 27,500 crore in 2020-21 (B.E.) and Rs. 27,500 crore in 2021-22 (B.E.); Rs. 40,500 crore in 2020-21 (R.E.)

• Jal Jeevan Mission (JJM)/ National Rural Drinking Water Mission - Rs. 11,500 crore in 2020-21 (B.E.) and Rs. 50,011 crore in 2021-22 (B.E.); Rs. 11,000 crore in 2020-21 (R.E.)

• Swachh Bharat Mission-Urban (SBM-Urban) - Rs. 2,300 crore in 2020-21 (B.E.) and Rs. 2,300 crore in 2021-22 (B.E.); Rs. 1,000 crore in 2020-21 (R.E.)

• Swachh Bharat Mission-Gramin (SBM-Rural) - Rs. 9,994 crore in 2020-21 (B.E.) and Rs. 9,994 crore in 2021-22 (B.E.); Rs. 6,000 crore in 2020-21 (R.E.)

• National Health Mission (NHM) - Rs. 34,115 crore in 2020-21 (B.E.) and Rs. 37,130 crore in 2021-22 (B.E.); Rs. 35,554 crore in 2020-21 (R.E.)

• National Education Mission - Rs. 39,161 crore in 2020-21 (B.E.) and Rs. 34,300 crore in 2021-22 (B.E.); Rs. 28,244 crore in 2020-21 (R.E.)

• National Programme of Mid Day Meal in Schools - Rs. 11,000 crore in 2020-21 (B.E.) and Rs. 11,500 crore in 2021-22 (B.E.); Rs. 12,900 crore in 2020-21 (R.E.)

• Umbrella Integrated Child Development Services (ICDS) - Rs. 28,557 crore (B.E.) and Rs. 20,038 crore (R.E.) in 2020-21

• Saksham Anganwadi and Poshan 2.0 (Umbrella ICDS-Anganwadi Services, Poshan Abhiyan, Scheme for Adolescent Girls, National Creche Scheme) - Rs. 20,105 crore (B.E.) in 2021-22

• Mission for Protection and Empowerment for Women - Rs. 1,163 crore in 2020-21 (B.E.) and Rs. 48 crore in 2021-22 (B.E.); Rs. 726 crore in 2020-21 (R.E.)

• National Livelihood Mission - Ajeevika - Rs. 10,005 crore in 2020-21 (B.E.) and Rs. 14,473 crore in 2021-22 (B.E.); Rs. 10,005 crore in 2020-21 (R.E.)

• Jobs and Skill Development - Rs. 5,372 crore in 2020-21 (B.E.) and Rs. 3,482 crore in 2021-22 (B.E.); Rs. 3,885 crore in 2020-21 (R.E.)

• Environment, Forestry and Wildlife - Rs. 926 crore in 2020-21 (B.E.) and Rs. 766 crore in 2021-22 (B.E.); Rs. 556 crore in 2020-21 (R.E.)

• Urban Rejuvenation Mission : AMRUT - Atal Mission for Rejuvenation and Urban Transformation & Smart Cities Mission - Rs. 13,750 crore in 2020-21 (B.E.) and Rs. 13,750 crore in 2021-22 (B.E.); Rs. 9,850 crore in 2020-21 (R.E.)

• Modernisation of Police Forces - Rs. 3,162 crore in 2020-21 (B.E.) and Rs. 2,803 crore in 2021-22 (B.E.); Rs. 1,864 crore in 2020-21 (R.E.)

• Infrastructure Facilities for Judiciary - Rs. 762 crore in 2020-21 (B.E.) and Rs. 784 crore in 2021-22 (B.E.); Rs. 599 crore in 2020-21 (R.E.)

• Border Area Development Programme - Rs. 784 crore in 2020-21 (B.E.) and Rs. 566 crore in 2021-22 (B.E.); Rs. 50 crore in 2020-21 (R.E.)

• Shyama Prasad Mukherjee Rurban Mission - Rs. 600 crore in 2020-21 (B.E.) and Rs. 600 crore in 2021-22 (B.E.); Rs. 372 crore in 2020-21 (R.E.)

• Rashtriya Gram Swaraj Abhiyan (RGSA) - Rs. 858 crore in 2020-21 (B.E.) and Rs. 661 crore in 2021-22 (B.E.); Rs. 565 crore in 2020-21 (R.E.)

• Rashtriya Swasthya Bima Yojna - Rs. 6,429 crore in 2020-21 (B.E.) and Rs. 6,401 crore in 2021-22 (B.E.); Rs. 3,129 crore in 2020-21 (R.E.)

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(C) Some Important Central Sector Schemes (please click here to access)

• Crop Insurance Scheme - Rs. 15,695 crore in 2020-21 (B.E.) and Rs. 16,000 crore in 2021-22 (B.E.); Rs. 15,307 crore in 2020-21 (R.E.)

• Interest subsidy for short term credit to farmers - Rs. 21,175 crore in 2020-21 (B.E.) and Rs. 19,468 crore in 2021-22 (B.E.); Rs. 19,832 crore in 2020-21 (R.E.)

• Market Intervention Scheme and Price Support Scheme (MIS-PSS) - Rs. 2,000 crore in 2020-21 (B.E.) and Rs. 1,501 crore in 2021-22 (B.E.); Rs. 996 crore in 2020-21 (R.E.)

• Pradhan Mantri Kisan Samman Nidhi/ Income Support Scheme (PM-KISAN) - Rs. 75,000 crore in 2020-21 (B.E.) and Rs. 65,000 crore in 2021-22 (B.E.); Rs. 65,000 crore in 2020-21 (R.E.)

• Direct Benefit Transfer of LPG - Rs. 35,605 crore in 2020-21 (B.E.) and Rs. 12,480 crore in 2021-22 (B.E.); Rs. 25,521 crore in 2020-21 (R.E.)

• Price Stabilisation Fund - Rs. 2,000 crore in 2020-21 (B.E.) and Rs. 2,700 crore in 2021-22 (B.E.); Rs. 11,800 crore in 2020-21 (R.E.)

• Promotion of Agricultural Mechanization for in-situ Management of Crop Residue - Rs. 600 crore in 2020-21 (B.E.) and Rs. 700 crore in 2021-22 (B.E.); Rs. 600 crore in 2020-21 (R.E.)

• Pradhan Mantri Kisan Sampada Yojana - Rs. 1,081 crore in 2020-21 (B.E.) and Rs. 700 crore in 2021-22 (B.E.); Rs. 750 crore in 2020-21 (R.E.)

• Pradhan Mantri Swasthya Suraksha Yojana - Rs. 6,020 crore in 2020-21 (B.E.) and Rs. 7,000 crore in 2021-22 (B.E.); Rs. 7,517 crore in 2020-21 (R.E.)

• Police Infrastructure - Rs. 4,135 crore in 2020-21 (B.E.) and Rs. 3,612 crore in 2021-22 (B.E.); Rs. 1,816 crore in 2020-21 (R.E.)

• Prime Minister Employment Generation Programme (PMEGP) - Rs. 2,500 crore in 2020-21 (B.E.) and Rs. 2,000 crore in 2021-22 (B.E.); Rs. 1,650 crore in 2020-21 (R.E.)

• Deen Dayal Upadhyaya Gram Jyoti Yojna - Rs. 4,500 crore in 2020-21 (B.E.) and Rs. 3,600 crore in 2021-22 (B.E.); Rs. 2,000 crore in 2020-21 (R.E.)

• Amended Technology Upgradation Fund Scheme (ATUFS) - Rs. 762 crore in 2020-21 (B.E.) and Rs. 700 crore in 2021-22 (B.E.); Rs. 545 crore in 2020-21 (R.E.)

• Skill Development and Livelihoods - Rs. 602 crore in 2020-21 (B.E.) and Rs. 573 crore in 2021-22 (B.E.); Rs. 427 crore in 2020-21 (R.E.)

• Kisan Urja Suraksha evam Utthaan Mahabhiyan(KUSUM) - Rs. 700 crore in 2020-21 (B.E.) and Rs. 776 in 2021-22 (B.E.); Rs. 180 crore in 2020-21 (R.E.)

• Eklavya Model Residential School (EMRS) - Rs. 1,313 crore in 2020-21 (B.E.) and Rs. 1,418 crore in 2021-22 (B.E.); Rs. 1,200 crore in 2020-21 (R.E.)

• Pradhan Mantri Mudra Yojana (through NCGTC) - Rs. 500 crore in 2020-21 (B.E.) and Rs. 2,500 crore in 2021-22 (B.E.); Rs. 500 crore in 2020-21 (R.E.)