Highlights: India unveils budget aimed at boosting pandemic-hit economy

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NEW DELHI (Reuters) – Indian Finance Minister Nirmala Sitharaman on Monday unveiled the budget for fiscal 2021-22, that aims to shore up an economy badly-hit by the novel coronavirus pandemic.

India’s Finance Minister Nirmala Sitharaman (C) stands next to Minister of State for Finance and Corporate Affairs Anurag Thakur (3rd L) as she leaves her office to present the federal budget in the parliament in New Delhi, India, February 1, 2021. REUTERS/Anushree Fadnavis

The economy is projected to contract 7.7% in the current fiscal year, although the government forecasts growth of 11% for the coming fiscal year, after a massive COVID-19 vaccination drive and a rebound in consumer demand and investments.

These are the initial highlights from Sitharaman’s fiscal 2021-22 budget speech:

HEALTHCARE

* India to allocate 2.2 trillion rupees ($30.20 billion) for healthcare in 2021/22

* Sitharaman says expect two or more COVID-19 vaccines soon

* India to launch new federal health scheme with outlay of around 641 billion rupees ($8.80 billion) over the next six years

* To allocate 350 billion rupees ($4.81 billion) for COVID-19 vaccines, and allocate more funds if needed.

POLICY

* India to launch new vehicle scrapping policy

* India to monetise infrastructure assets

* To allocate 2.87 trillion rupees ($39.40 billion) for clean water supplies over the next five years

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