NEW DELHI – The Indian government has proposed increase spending on health care to the $ 477 billion budget for 2021-22 which promises more help to deal with the coronavirus epidemic.
India has been at the lowest economic level in a decade. The budget proposal tabled in parliament by Finance Minister Nirmala Sitharaman on Monday also focuses on developing financial institutions and mobilizing infrastructure to bring the pregnant nation back to life as the world’s fastest growing economy.
“India is well prepared to be a land of promise and hope,” he said, explaining the budget for the financial year beginning April 1.
Contrary to expectations, the proposed budget did not promise additional support for the country’s farmers who had been protesting for more than two months against new agricultural laws that they said would benefit large agricultural enterprises and companies.
Those protests have created a major political challenge for Modi since he took office in 2014, in part because farmers are the most influential voting party in the country.
Sitharaman said the government plans to spend $ 30.20 billion on health care over the next six years to improve the health-care system that has fallen under the additional burden of the epidemic, which has killed more than 154,000 Indians so far.
India currently spends about 1% of its gross domestic product on health, which is much lower than in the big economy.
Sitharaman has also announced $ 4.81 billion for more COVID-19 anti-retroviral drugs.
India offers two vaccines: AstraZeneca shot made locally by the Serum Institute of India and another produced by Bharat Biotech.
The government’s budget sets out a series of plans. Promotes caps on foreign investment in its insurance market; provides for the restructuring of state-owned banks linked to bad loans and proposes the release of seniors from filing income tax returns.
Under the plan, this year’s deficit will increase to 9.5% of gross domestic product, Sitharaman said. He has set the budget deficit at 6.8% of GDP for fiscal 2021-22. The government hopes to achieve that below 4.5% over the next three years, he said.
The budget will definitely be suspended. But opposition groups in India criticized the budget for failing to address key issues of unemployment and job losses.
Affected by coronavirus, India’s economy has shrunk by 7.7% in the 2020-21 financial year, the deadliest pledge in 40 years, according to a report released last week. It is estimated that the Indian economy – formerly one of the fastest growing economies – will return to a “V” recovery rate and grow by 11% in the financial year but will reach and exceed pre-epidemic levels only after at least two years.
Independent economists, however, paint a grim picture. Many say that the Indian economy has taken over the deal beyond what Prime Minister Narendra Modi’s government has said in part because its bosses lack a reliable way to measure the growth of the informal sector. The backbone of India’s economy has been cut short by a long-running epidemic.
Recent changes in India’s statistics systems have heightened this fear, with economists questioning data quality.
A few years ago, India’s fast-growing economy seemed to lift millions out of poverty. But the demonic creation of the unexpected in 2016 and the rapid release of excise duty on goods and services in 2017 were a major blow to production, which is a major contributor to the Indian economy.
Immediate planned coronavirus closure announced in March last year continued to halt business activities and increased inequality. The retrenchment created huge unemployment rates for small and medium-sized businesses and left many Indian migrant workers in dire straits.
As a result, India’s economy was experiencing an annual rate of 7.5% in the July and September quarters following a record decline of about 24% in the past three months that drew the country into the economy.
The government has provided a $ 266 billion pandemic relief package in May and a $ 35.1 billion package in November to prevent outbreaks and outbreaks.