Minimum Support Price (MSP) is the guaranteed price of notified crops as declared by the Government of India for public procurement purposes. ... Read more
Why is Budget significant?
1. The annual budget of any country is an indicator of economic management by the government.
2. Union budget 2021-2022 is meticulous, inclusive, transparent, and growth-oriented, reflecting the government's commitment towards various transformations of Indian economy.
3. The budget is fundamentally strong and focusses on self-reliance.
What are the features of this Budget?
1. Significant outlay on health and well-being sectors in the budget is a huge positive.
2. The launch of Aatmanirbhar Swasth Bharat Yojana will strengthen primary, secondary and tertiary healthcare infrastructure and will also create new institutions, addressing huge gaps in healthcare facilities in the country.
3. Initiatives towards cleaner environment includes Urban Swachh Bharat 2.0 Mission, Jal Jeevan Urban Mission and Mission Poshan 2.0
4. Funding support for Covid-19 vaccine will give a fillip to the on-going immunisation program which is important for protecting lives and ensuring quick economic recovery.
5. Equal emphasis is given on immediate recovery as well as medium-term growth.
6. A huge thrust has been laid on capital expenditure, with both physical and social infrastructure seeing a big push.
7. Higher public investment in infrastructure projects is expected to crowd-in private investments and will also create jobs.
8. 7 Mega Investment Textiles Parks have been announced to encourage greater exports and create more jobs in the sector.
9. Steps have been taken to enhance productivity, bring efficiency in agri-supply chain and to augment farmers’ income.
10. To strengthen the farm ecosystem, 1000 more mandis have been linked with e-NAM.
11. Also, Agriculture Investment Fund has been made available for augmenting infrastructure facilities of APMC.
12. To promote the idea of ‘more crop per drop’, micro irrigation corpus has been doubled. This will ensure efficient water usage.
13. The introduction of 22 additional perishable crops under ‘Operation Green’ will help in increasing productivity and quality standards which will enable greater exports of perishables.
14. Decision has been taken to privatise two public sector banks and one public sector insurance company.
15. The government has announced to set up an additional Asset Reconstruction and Asset Management Company.
16. Additional Rs 20,000 crore for recapitalisation of Public Sector Banks will lend support to meet the credit requirements in the near term.
17. The increase in FDI limit in insurance will bring in more capital in the system.
18. The budget aims at making capital markets and financial sector to be the catalyst for growth.
19. The budget proposals have given a renewed thrust on ‘minimum government, maximum governance’, improving the ease of doing business and ease of living in the country.
Union budget 2021-22 has brought in a new sense of optimism, triggering hopes of better economic prospects in the country.