Finance Minister Nirmala Sitharaman, in her post-Budget press conference, stressed on the government's decision to spend on infrastructure and attending to the healthcare sector. Both infra and health were among the "six pillars" of Union Budget 2021, rolled out on February 1.
Sitharaman claimed that the government has decided to give a "greater impetus" to the economy through the Budget.
She highlighted "two important features" of the Budget - the first was the proposed expenditure on infrastructure and the second being the planned strengthening of healthcare sector.
"We chose to spend big on infrastructure which spans across roads, power generation, bridges, ports and so on," Sitharaman said.
"As a second feature, I tend to the need of the healthcare sector and even there, capacities for better health management had to be brought in in light of what we had gone through last year," she added.
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During the pandemic, the government focussed on addressing the concern of citizens rather than tightening the fiscal deficit gap, the Finance Minister said.
"We have spent, we have spent, we have spent," Sitharaman said thrice, as she pointed towards the widening of fiscal deficit to 9.5 percent of GDP after starting at 3.5 percent in February 2020.
On divestment and FDI, the Finance Minister noted that the government will continue to adopt a "progressive" approach.
While two more PSBs and a general insurance company would be privatised in 2021-22, the permissible FDI limit in insurance sector was proposed to be raised from 49 to 74 percent.
Sitharaman, on responding to a query on reversing job losses, said the government will continue to bear the EPF contribution of re-hired employees - laid out during the pandemic - till June next year.
The Finance Minister also claimed that the government aims to boost consumption, as it has reduced customs duty and and levied a disproportionate cess "to not put the burden on the consumer".
The Defence sector has also been adequately addressed, the government said, pointing out towards a 20 percent increase in capital budget for the sector.
"Defence Budget consists of three components - revenue, pension and capital component. The Budget allocation (for the capital component) in 2020-21 was Rs 1,13,734 crores. It has gone to Rs 1,35,060 crores which is an increase of 20 percent," explained TV Somanathan, Secretary, Expenditure.
Sitharaman also addressed the apprehensions of protesting farmers during her press conference, claiming that the government is still open for clause-by-clause discussion over the reform laws.
The government is committed to the strengthening of agriculture sector, and this was reflected by financing facility of Rs 1 lakh crore under Agriculture Infrastructure Fund, Sitharaman said.
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