{"id":1308,"date":"2021-07-05T01:15:36","date_gmt":"2021-07-05T01:15:36","guid":{"rendered":"https:\/\/developmentdebate.in\/2021\/02\/06\/union-budget-2021-22-privatisation-is\/"},"modified":"2025-07-15T08:21:59","modified_gmt":"2025-07-15T08:21:59","slug":"union-budget-2021-22-privatisation-is","status":"publish","type":"post","link":"https:\/\/developmentdebate.in\/?p=1308","title":{"rendered":"Union Budget 2021-22: Privatisation is Main Theme"},"content":{"rendered":"

Nesar Ahmad<\/span><\/p>\n

We all expected the focus of the union budget 2021-21 was
\ngoing to be employment and measures to income generation. But MGNREGA, the
\nemployment guarantee scheme for the rural India, could not find mention in the
\nFinance Minister\u2019s budget speech.\u00a0 There
\nis no particular emphasis on employment generation in rural and urban India.<\/span><\/p>\n

\n

Privatization: The big focus<\/span><\/b><\/p>\n

If anything gets a real push in this budget, it is
\nprivatization. The budget made it clear that the government is going to
\nprivatize all the Central Public Sector Enterprises (CPSEs) except bare minimum
\nCPSEs in four sectors. Even the state governments will be incentivized to
\nprivatize their SPSEs. Not only this, the government also plans to monetize its
\nidle assets including land for which a special purpose vehicle will be created.
\nMost of these lands must have been acquired on meager compensation amount from
\nfarmers. <\/span><\/p>\n

Corona crisis has created shortage of resources which the
\ngovernment wants to cover by disinvestment of PSUs and monetization of the land,
\nbeside loans.\u00a0 Or we can also say that
\nthe Corona has become an opportunity for the government to push its
\nprivatization agenda. <\/span><\/p>\n

Infrastructure, not in rural areas! <\/span><\/b><\/p>\n

The second item which got priority in the budget is
\ninfrastructure; mainly the mega road and highway projects have been announced
\nin the states which are going to have state elections this very year. But as
\nfar as agriculture and rural infrastructure is concerned, the budget for
\nagriculture ministry has been slashed; even the budget for the PM-Kisaan, the
\ndirect cash transfer scheme for the farmers has also been reduced compared to
\ncurrent financial year. There is a nominal increase in the\u00a0 budget for rural development ministry. Budget
\nfor MGNREGA and Aajiveeka (self-employment promotion scheme) has increased
\ncompared to this year\u2019s budget estimates but MGNREGA budget for 2021-22 has
\nactually declined compared to this year\u2019s revised estimates. Other schemes
\npromoting rural infrastructure like Pradhan Mantri Krishi Sinchayi yojana
\n(irrigation), Pradham Mantri Awas Yojana (housing), PM Gram Sadak Yojana (rural
\nroads) have not got increased allocations in 2021-22.<\/span><\/p>\n

Health Budget increased: really!<\/span><\/b><\/p>\n

Finance Minister in her budget speech claimed to have
\nincreased the health budget by hopping 137%, which sounded really good. But the
\na closer look suggests that for the first time the water and sanitation budget
\nhas been added into the health sector budget to make it look really big. The
\nbudget for the health and family welfare department has increased by just Rs.
\n9000 crores from 62 thousands crores to Rs. 71 thousands crores. In addition to
\nthis Rs. 35 thousands crores have been provided for the Covid-19 vaccines. The
\nFM, however, has added Rs. 60 thousands crores for the water and sanitation,
\nbeside the the small budget for nutrition, budget for health research in the
\nhealth sector budget. The Finance Commissions grants for health and family
\nwelfare and water and sanitation have also been added to make the health budget
\nlook a hopping Rs. 2.23 lakh crores. Budget for NHM increased by just Rs. 3000
\ncrores and there is no budget item mentioned in the detailed budget for the
\nmuch hyped PM Atmnirbhar Swasth Bharat Yojana for which FM said in her budget
\nspeech to have provided Rs. 64,180 crores for six years. <\/span><\/p>\n

No focus on other social sectors: <\/b>Budget for
\neducation ministry saw a decline of Rs. 4000 crores. In Major schemes National
\nEducation Mission (SSA)\u2019s budget slashed by Rs. 5000 crores. Budget for
\nNational Social Security Scheme, Swachh Bharat Yojana, Rurban Mission,
\nRashtriya Gram Swaraj Yojana, Rashtriya Swasthya Bima Yojana, Integrated Child
\nDevelopment Scheme (ICDS), MDM, either got slashed or remained same as the
\ncurrent year. If anyone scheme got real boost in the budget it is Jal Jivan
\nMission which is a rural drinking water scheme.
\nGood thing is also that there is no effort to reduce the food subsidy expenditure
\nin the budget. Considering that the PDS has really saved millions from starving
\nduring the Covid lockdown, there is a need to further strengthen the public
\nfood distribution system.\u00a0 <\/span><\/p>\n

Budget for the schemes for the weaker sections \u2013 dalits and
\ntribals \u2013 have also not increased much. There is also a decline in the budget
\nfor ministry of minority welfare. <\/span><\/p>\n

Gender budget:<\/b> If we look at the budget from the
\ngender lens, the share of gender budget in the total budget is just 4.45%, 0.3%
\nless than the current year. It was slightly more than 5% in the year 2017-18.
\nWhat is important here is that the gender budget ratio has been hovering around
\n5% point since the year it started and there does not seem to be any conscious
\nefforts to increase it. Budget for women and child development ministry has
\nalso declined by more than Rs. 5000 corers so have the budgets for the schemes
\nof the ministry like PMMVY and ICDS.<\/span><\/p>\n

Chart: Share of gender budget in Union\u00a0 Budget\u00a0<\/b>
\n<\/span><\/p>\n

<\/a><\/div>\n
<\/div>\n

Disappointed Middle Class: <\/b>This budget has also disappointed the great Indian middle
\nclasses by not changing the slabs of income tax and levying cess on the petrol
\nand diesel, which the FM said will not affect the prices much. There is also a
\nhuge cut in petroleum subsidy which may affect the LPG prices. <\/span><\/p>\n

Increased deficit: <\/span><\/b><\/p>\n

This year there is going to be a huge fiscal deficit of Rs.
\n18.48 lakhs crore which will be 9.5% of the GDP. It has been projected to come
\ndown to 6.8% of the GDP by end of the year 2021-22. The rise is deficit is a
\nresult of declining revenue receipt and increasing expenditure thanks to
\nCorona.\u00a0 The government has said that
\nnext year (2021-22) there is going to be increase in expenditure which will
\nboost the economy. There is increase in the expenditure budget for the year
\n2021-22 but most of the increase in revenue expenditure will go towards the
\ndebt servicing (interest payment). <\/span><\/p>\n

 <\/p>\n

The major increase in expenditure will be in
\nform of capital expenditure and major part of it will be on reads and highways
\nin the election bound states. The government is hoping that boost to the
\ninfrastructure will promote the economy and create employment. The road
\nconstruction, however, is mechanized and one will have to wait to see how much
\nit helps in employment growth. For employment growth many were also expecting
\nthat government will perhaps announce an urban employment guarantee programme
\nbut it did not happen.\u00a0<\/span><\/span><\/div>\n

 
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