What is Union budget and how this impact life of each citizen in India need to be learned. How every citizens get benefited with government vision and policies rollout via Union Budget. The Parliament session of Union Budget FY 2021-22 started on Friday. Finance Minister Nirmala Sitharaman will present the budget in Parliament on 1st February for FY 2021-22. She will present the details of government policies, sources of revenue and how much government will spend in next financial year. This will be the first Budget after the corona pandemic and lockdown in India.
This year Union Budget considered as very special due to corona epidemic and its impact on citizens. The people expecting great relief from the government. They want government to offer real benefit to bring the common man life back on track. Let me tell you the some important points how budget affects the lives of ordinary people. How budget impact of jobs, business, industries and economy?
How Union budget affect the economy of our country?
A budget is a blueprint for government spending and revenue collection in a year. Its main objective is to reduce economic inequality by controlling prices through balanced development. The government target and make policies to benefit more people by making proper allocation of resources to all classes of citizens. Government identifies revenue sources for development and welfare activities via union budget. It provides direction and strategically help industries for countries development. You must know that when industries grow then they create more jobs and pay mote taxes for government to work of peoples welfare scheme.
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Why budget needed for government and common man in India?
Budget is an exercise of government to keep the economy on track for the country. The government plan the expenditure and allocate funds for the completion of various public welfare schemes. Government also rollout the countries development vision via Union Budget. Budget also needed for government to plan the revenue collection and taxes for welfare projects. It is true that everything need to work together for the countries economic growth and prosperity. Without proper budget planning no government in the world can achieve their target and offer welfare scheme for their citizens.
How Union Budget 2020-2021 lookalike for the growth of India?
Finance Minister Nirmala Sitharaman presented the Economic Survey of 2021-22 in Parliament on Friday. The countries GDP expected to decline by 7.7% this year due to Corona. However, a faster recovery expected after this negative GDP growth in this year. India can see the 11% positive growth in GDP in 2021-22 comparing last year. But country need two to three year for the economy to reach the level before the epidemic. It is also known that the global economy experiencing negative growth due to corona pandemic for most of the countries sin the world.
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Let me tell you that Indian GDP projected 23.9% negative during April to June 2020 quarter due to coronavirus lockdown. The situation improved after unlocking and September quarter economy reported at 7.5% negative. Similarly, the size of GDP has reduced by 15.7% in the first half of 2020-21. But the economy survey presented by Finance Minister estimated the decline of GDP by just 0.1% in the second half. Hope the countries GDP growth will be better than government expected growth this year.
Government will focus of its education policy in Union Budget 2021-22
The Education Ministry proposed Finance Ministry for special attention on educational policies in 2021-22. He insisted and requested government need to create more online platforms for schools and colleges. Education Minister want government intervention for free online education for the larger population of India. Education Ministry wants government to facilities and distribute free mobile, tablet, laptop, internet for larger reach of online eduction to the students. It is also expected that 20% of the total government expenditure spent by 2030 for the new education policy.
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The government can also rollout policies for higher education in India and students go for study on abroad. Many students also suggested the government to ease down the education load in this budget. They requested government and education minister on social media in this regard. They said that students face lots of difficulties in getting education loan. The finance minister should simplify the education loan rules for the benefit for Indian students. There is also a need to reduce interest rates on education loans.
Government will increase spending on healthcare in this Union Budget
The corona epidemic and fear has taught a lot to the governments across the world. They learned how the strong and developed countries struggled during the coronavirus peak. Many countries still struggling and and finding solution to fight this corona battle. The world learn that healthcare and medical infrastructure in the key for countries growth and citizens life after this epidemic.
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Considering this fact, it is expected that government will increase its spending on healthcare this and following years. Our annual healthcare spend of 2.5 to 3% from GDP may increase significantly starting this year. The government spending expected to increase in Internet connectivity and health infrastructure. Improvisation of existing healthcare infrastructure and building up new hospitals and PHC may be added in this years budget. The government also expected to formulate the telemedicine policy and promote this medical procedure in India.
Agricultural sector will continue to reports positive growth and get attention
Agriculture sector is the biggest support for the government and Indian economy this year. It is the only sector expected to grow with 3.4% in current FY 2020-21. The agriculture sector contribution is significant in Indian economy. Its contributed around 17.8% last year and expected to contribute at 19.9% this year. Indian agriculture sector has potential to grow continuously due to geographical structure as per experts. It has most variety of farming and income sources for 60% of Indian population.
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Let me tell you that agriculture sectors was the only sector which has helped India during the coronavirus pandemic. It was farmers who has struggled but feeded the nation with their produce during epidemic. They continue to provide the uninterrupted supply of food produce to the common man of India. This sector has reported the positive growth and saved Indian economy at the larger extend. This is definitely a key focus area for government in this budget.
Housing sector expected big relief in this Union Budget 2021-22
The government expected to increase the benefit for common man by deducting the interest and principal for the housing loan. The home loan is a large sector which block public spending on other sector. People keep the money for their home loan EMIs and don’t spend money on other sectors. Since the corona pandemic and uncertainty in job home loan segment is blocking most of the public spend. People are not spending due to fear and uncertainty.
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The government expected to reduce the interest on home loan and principal subsidy and empower people with more cash. They expected that people will spend the surplus money in other sector after saving from home loan. This sector expected to get special attention fro the government of India.
Struggling MSME sector can get relief package and additional cash for spend this year
The countries MSME sector is struggling with cash from a very long time. Now corona pandemic has created more problem for this sector. As per experts more than 5 lakh crore of cash stuck for this sector in the market. This has stopped the cash flow for MSME sector. The union budget 2021-22 expected to offer some relief for their sector and new policy framework to save the sector.
Let me tell you that MSME sector contribution in GDP is approx 30% and 40% in export economy. This sector is the largest employment generator in the country. Approx 14 Crore people work in this sectors and contribute in countries growth. This sector has completely broke down in recent years and destroyed in corona epidemic. Government will definitely help this sector to generate employment and reduce cash flow for problem from the economy
Similarly there are other sectors will also expected some relief from the government in this Union Budget 2021-22. It will be a special budget after the corona pandemic and people of India is eagerly waiting for something from the government. Hope government will not disappoint the citizens of India.
