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HomeEconomyBudget 2021: Sitharaman announces 137% hike in health allocation

Budget 2021: Sitharaman announces 137% hike in health allocation

Digital India meets Aatmanirbhar Bharat as Nirmala Sitharaman is reading her Budget speech from a tab, made in India


Finance minister Nirmala Sitharaman presents a Budget like never before in Parliament, which happens to be the Modi government’s first Budget after Covid-19 pandemic hit India and the ninth one under the Modi government. For Nirmala Sitharaman, this is the third budget as she debuted in 2019, springing a change by replacing decades-old leather briefcase with ‘bahi-khata’. As this year’s Budget is paperless, Bahi Khata has been replaced with a Made-in-India tab.

Union Budget 2021 is unique in many regards, apart from being digital. The year 2020, as Modi said ahead of the joint session of on Friday, was a year of four to five mini budgets as the finance ministry announced several stimulus packages throughout the year to cushion the blow of the pandemic. Union Budget 2021 will be an extension of those, Modi said.

The Economic Survey 2020-21 has projected that India’s real GDP growth would be around 11% in 2021-22. while the nominal GDP growth has been estimated to be around 15.4%.

Finance minister Nirmala Sitharaman announced Rs 35,000 crore for Covid-19 vaccines.

Finance minister Nirmala Sitharaman announced Rs 2,83,846 lakh crore for health and wellness sector which includes Rs 35,000 crore for Covid-19 vaccines.

Sitharaman announced a voluntary vehicle scrapping policy where vehicles will undergo fit test.

Finance Minister announced Rs 20,000 crore for PSB recapitalisation and Rs 5 lakh crore for as deposit insurance.

Nirmala Sitharaman proposes change in laws to permit FDI in insurance sector from 49% to 74 %

Ujjwala scheme will be extended to 1 crore additional families, Sitharaman said. About eight crore are already covered under this scheme.

Sitharaman announces Rs 1.10 lakh crore outlay for railways. Out of this, Rs 1.7 lakh crore is for expenditure.

India Budget 2021: Six pillars of Budget

Health and wellbeing


Inclusive development

Development of human

Research and development

Minimum government, maximum governance

Sitharaman said that in the history of Independent India, only three times, Budget followed contraction. This time, the contraction is due to contraction in the global economy, she added. Government is fully ready to support the revival of economic growth, she said.

Sensex jumps 950 points to 47,238.55, Nifty nears 13,900 as Sitharaman makes key budget announcements.

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