Budget 2021: What were the 4 mini-Budgets announced in 2020?
Presenting the Union Budget 2021, Finance Minister Nirmala Sitharaman emphasised efforts made to bolster the economy, explaining that the Aatmanirbhar Bharat packages and other post-Covid-19 economic relief packages were like “mini budgets" in themselves. She added this budget is now an extension to the same effort.
Last week, on Friday, Prime Minister Narendra Modi had also said the Budget for 2021-22 would be seen as part of the packages announced by Finance Minister Nirmala Sitharaman over the past 10 months. He told the media that it was perhaps for the first time in the history of India that a finance minister presented four-five mini-budgets in the form of separate packages in 2020.
During her Union Budget speech today, Nirmala Sitharaman said, "As a government, we kept a watch on the situation and were proactive in our responses. The government, led by the Prime Minister, stretched its resources to deliver for most vulnerable sections of our society – the poorest of the poor, the Dalits, Tribals, the elderly, the migrant workers, and our children."
FM Nirmala Sitharaman
"The Pradhan Mantri Garib Kalyan Anna Yojana (PMGKY), the three ANB (Aatmanirbhar Bharat) packages, and announcements made later were like mini-budgets in themselves."
Here are four of the mini-budgets explained:
Pradhan Mantri Garib Kalyan Anna Yojana (PMGKY)
To mitigate the economic impact of COVID-19 on the poor and the needy, the Narendra Modi-led government, on March 26, 2020, announced Rs 1.7 lakh crore Pradhan Mantri Garib Kalyan Yojana (PMGKY). PM Modi on June 30, 2020, extended the PMGKY scheme and said the expansion will cost the government Rs 90,000 crore.
Aatmanirbharat Bharat packages 1.0, 2.0 and 3.0
The Aatmanirbhar Bharat package was first mentioned by Nirmala Sitharaman on May 12, 2020, as the finance minister rolled out a slew of initiatives worth Rs 20 lakh crore. Two more Aatmanirbhar Bharat packages were announced on October 12 and November 12, 2020.
The total financial impact of all Atamanirbhar Bharat packages, including measures taken by the RBI, was estimated to be about Rs 27.1 lakh crore, which amounts to more than 13 percent of the GDP.
These three Aatmanirbhar Packages were aimed at accelerating the pace of India's structural reforms.
"Redefinition of MSMEs, commercialisation of the mineral sector, agriculture and labour reforms, privatisation of Public Sector Undertakings, One Nation One Ration Card, and Production Linked Incentive Schemes are some of the notable reforms carried out during this period," Sitharaman said during her speech.
Of the 15 schemes announced by the FM, six were for MSMEs. Three policies that stood out were the Rs 3 lakh crore collateral-free loan scheme, the Rs 20,000 crore subordinated debt for MSMEs, and the Rs 50,000 crore equity infusion through the Funds of Funds (FoF).
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