Project Report
“Current Budget in Covid situation and Covid Vaccine distribution”
Submitted by- (Your Name)
Submitted to- (Teacher Name)
School- (School Name)
Subject- Economics
Class-
Section-
“I would like to express my special thanks of gratitude to my teacher (Teacher Name)as well as our principal (Principal Name)who gave me the golden opportunity to do this wonderful project on the topic ‘Current budget in Covid situation and Covid vaccine distribution’ which helped a lot in doing a lot of Research and I came to know so many things about things”.
Executive Summary
In this report, we will see about the budget that offered this year for the development of the country with respect to Covid 19 situation. We will also see about the vaccine distribution that is started this year by the government for the relief of Covid. From all over the country different governments are taking measures so that vaccine can be done to all people.
Page Break CONTENT
SR. NO | Index | Page No. |
01 | Introduction | 03 |
02 | Budget Highlights | 03 |
03 | Tax proposals in Finance Bill | 04 |
04 | Non-Tax proposals in the Finance Bill | 05 |
05 | Expenditure on Subsidies | 05 |
06 | Budget used in covid situation | 06 |
07 | Covid vaccine distribution | 08 |
08 | Conclusion | 11 |
Page Break
Introduction
In this report, we will discuss about the current budget of 2021-2022, about their important decisions taken for the development of country like taxes, subsidies etc. And also we will discuss about the covid vaccine distribution in the country.
Budget Highlights
In this budget highlights we will discuss about the main budgets that has more value from all others.
1. Expenditure: The government proposes to spend Rs 34,83,236 crore in 2021-22. As per the revised estimates, the government spent Rs 34,50,305 crore in 2020-21, 13% higher than the budget estimate.
2. Receipts: The receipts (other than borrowings) are expected to be Rs 19,76,424 crore in 2021-22, which is 23% higher than the revised estimates of 2020-21. In 2020-21, revised estimates for receipts were 29% lower than budget estimates. Given the impact due to COVID-19, it is useful to see the growth from 2019-20, an annual increase of 6%.
3. GDP growth: Nominal GDP is expected to grow at of 14.4% (i.e., real growth plus inflation) in 2021-22.
4. Deficits: Revenue deficit is targeted at 5.1% of GDP in 2021-22, which is lower than the revised estimate of 7.5% in 2020-21 (3.3% in 2019-20). Fiscal deficit is targeted at 6.8% of GDP in 2021-22, down from the revised estimate of 9.5% in 2020-21 (4.6% in 2019-20). The government aims to steadily reduce fiscal deficit to 4.5% of GDP by 2025-26.
5. Ministry allocations: Among the top 13 ministries with the highest allocations, the highest annual increase over 2019-20 is observed in the Ministry of Jal Shakti (64%), followed by the Ministry of Consumer Affairs, Food and Public Distribution (48%) and the Ministry of Communications (31%).
This overall shows us that this year the govt. has budget of Rs 34,83,236 crore for 2021-2022 that they has to spend on welfare of country.
Tax proposals in the Finance Bill
Here we will see about the implementations that has been done by the Union Budget over taxes.
No changes in income tax rates for individuals and corporations.
Limit on tax-free Income from provident funds: Tax exemption on the interest income on the employees’ contributions to provident funds will be limited up to Rs 2.5 lakh.
Extensions on tax incentives by a year upto the end of fiscal 2021-22. This includes tax deduction upto Rs 1.5 lakh on interest on housing loan, and tax holiday for affordable housing projects, profits of startups, and investing capital gains in start-ups.
Agriculture and Infrastructure Development Cess: The cess will be levied on some imported items including gold, silver, alcoholic beverages, coal, and cotton, and basic customs duty will be reduced by an equal amount. The cess will be levied on petrol and diesel at the rate of Rs 2.5 and Rs 4 per litre respectively, with equivalent cuts in excise duty. As the cess is not part of the divisible pool of revenue shared with states, their revenue receipts will be adversely affected.
Changes in customs duty: The duty has been increased on some items such as cotton, silk, some auto and mobile parts.
“Mini-budget” announcements made earlier: The safe harbour threshold for real estate transactions above the circle rate increased from 10% to 20%. Encashment of leave travel concession will be exempt from tax if the amount is used for purchasing certain goods.
Reduction in time for income tax proceedings: Time limit for the re-opening of income tax assessment will be reduced from 6 years presently to 3 years.
Exemption from audit: Businesses which carry 95% of their transactions digitally and whose turnover is less than five crore rupees, are exempted from keeping audited accounts. The threshold will be increased to Rs 10 crore.
Non-Tax proposals in the Finance Bill
There are some items that may not meet the Money Bill definition. These are listed below.
LIC Act, 1956 amended to create a board of directors, issue shares, reduce government shareholding upto 51% of equity (minimum 75% in the first five years), cap voting rights at 5% to shareholders other than central government.
Securities Contracts (Regulations) Act, 1956 amended to allow pooled investment fund which collects money from investors. They may borrow money or issue debt securities. Consequential amendments made in the SARFAESI Act, 2002 and in the Recovery of Debts due to Banks and Financial Institutions Act, 1993.
SEBI Act, 1992 amended to require registration by Alternative Investment Trusts and Business Trusts.
Expenditure on Subsidies
In 2021-22, the total expenditure on subsidies is estimated to be Rs 3,69,899 crore, an annual increase of 19% over 2019-20. This is largely due to a higher allocation to food subsidy.
Food subsidy: Allocation to food subsidy is estimated at Rs 2,42,836 crore in 2021-22, a 49% annual increase as compared to 2019-20. In 2020-21 budget, Rs 1,15,570 crore was allocated to food subsidy. However, the revised estimate is 266% higher than the budgeted estimate at Rs 4,22,618 crore. According to the budget speech, additional allocation has been made in the 2021-22 budget to clear the pending food subsidy dues of the Food Corporation of India.
Fertiliser subsidy: Expenditure on fertiliser subsidy is estimated at Rs 79,530 crore in 2021-22, a 1% annual decrease as compared to 2019-20. In 2020-21, the revised allocation to fertiliser subsidy is 88% higher than the budgeted allocation.
Petroleum subsidy: Allocation to petroleum subsidy decreased at an annual rate of 40% from 2019-20 to 2021-22. The allocation in 2021-22 is 64% lower than the 2020-21 revised estimate at Rs 14,073 crore. Petroleum subsidy consists of subsidy on LPG and kerosene. In 2021-22, the LPG subsidy is estimated to decrease to Rs 14,073 crore (from Rs 36,072 crore in 2020-21) and no allocation has been made for the kerosene subsidy (as compared to Rs 2,982 crore in 2020-21).
Other subsidies: The government also provides certain other subsidies such as interest subsidies on loans given under various government schemes and subsidies for procurement of agricultural produce other than paddy and wheat. In 2021-22, the expenditure on these other subsidies is estimated to be Rs 33,460 crore, a 1% annual decrease over 2019-20.
Budget used in Covid situation
This year a large part of our economy is used in Covid 19 relief which had triggered our Indian economy mainly budget.
Page Break
Budget used in Covid relief
After lockdown in India 2020, A major step was initiated by the govt. of India that under Pradhan Mantri Garib Kalyan Yogana package of 2.45 lacs crore was started for poor peoples.
In between April to June 2020, GOI transferred 31,000 crores directly to poor peoples bank account.
In same time, GOI transferred 18,000 crores rupees in more than 9 crore farmers bank account.
Many labourers in villages were unemployed so in able to get them employment, govt. spends 50,000 crores rupees over the process.
Among schemes, the MGNREGS has the highest allocation in 2021-22 at Rs 73,000 crore. Allocation to the scheme has seen an annual increase of 1% over 2019-20. However, in 2020-21, allocation to the scheme has been increased by Rs 50,000 crore (81%) from the budgeted stage to the revised stage, following the announcement made under the Aatmanirbhar Bharat Economic Package in May 2020.
Allocation to the Jal Jeevan Mission (earlier known as the National Rural Drinking Water Mission) has increased by 355% over the revised estimate of 2020-21 to Rs 50,011 crore.
The central government has allocated Rs 35,000 crore to the Ministry of Finance for COVID-19 vaccination in 2021-22. This allocation has been made for providing financial assistance to states to meet their expenditure on COVID-19 vaccination.
This overall report shows that more than 3 lac crore rupees has been spend particularly for the Covid 19 relief in India.
Page Break
Covid Vaccine distribution in India
Covid-19 vaccine has been the most anticipated product launch ever, As billions of people eagerly await vaccination over the coming months and years, it will arguably be the most complex large-scale logistical exercise the world has ever witnessed.
India, as the largest global supplier of drugs and producer of 60 per cent of the world’s vaccines, is known as the “pharmacy of the world”.Serum Institute of India (SII) alone is a producer of more than 1.5 billion vaccine doses every year and is expected to produce 1 billion doses of the Novavax vaccine by 2021.
Temperature-controlled storage
Covid vaccines will need to be distributed via temperature-controlled cold chain, as they are highly sensitive and require constant quality checks.
According to a report by the International Air Transport Association’s Centre of Excellence for Independent Validators in Pharmaceutical Logistics, 25 per cent of the vaccines are degraded by the time they arrive at their destination and temperature errors cause losses of around $34.1 billion annually.
Some of the vaccines being developed might need to be stored at up to -70 degree Celsius. While India has a 28,000-unit cold storage network that is used for the government’s universal immunisation programme, experts and logistics firms highlight that no company had the capability or capacity to transport vaccines at colder than -25 degrees Celsius.
India’s vaccine distribution network is operated through four government medical store depots (GMSDs) in Karnal, Mumbai, Chennai and Kolkata, which procure vaccines from the manufacturers. About 53 state vaccine stores get their supplies either from these GMSDs or directly from manufacturers.
India has about
27,000 cold chain points.
76,000 cold chain equipment.
700 reefer vans.
55,000 cold chain handlers.
2.5 million health workers.
India’s vaccine management has improved over the years thanks to a real-time supply chain management system known as the electronic vaccine intelligence network (eVIN). 26% of eVIN cold chain points reported instances of stock out during the period of assessment. More than a fifth of facilities reported wastage of vaccines.
India ranked within the 51-75 percentile range among 89 countries, Its performance was relatively poor when it came to following the required vaccine arrival procedures and using the MIS system for estimating demand of vaccine, syringe, etc.
For instance, roughly 4 cold chain points serve 100,000 population in Gujarat, whereas there is just one cold chain for the same number of people in Jharkhand. Jharkhand, Uttar Pradesh, and Bihar are among the least served states when it comes to cold chain infrastructure.
A senior health ministry official from Jharkhand said that the state has identified 30 new cold chain points for expanding its distribution network. It also expects to receive 148 ice-lined refrigerators and 57 deep freezers from the central government later.
Uttar Pradesh, another state with cold chain limitations, is planning to increase storage capacity by 2.5 times, according to Rakesh Dubey, director general of the state’s family welfare department.
Two main key points for vaccination
Vaccine uptake requires confidence in the vaccines and the delivery system, and we seem to sway from vaccines being the ultimate solution (which they may not be) to vaccines being developed so rapidly and with many short-cuts so they must necessarily be unsafe and untested (which is not true).
Also, documentation of vaccination and the tracking and investigation of vaccine safety events are essential components of monitoring which have traditionally not been done well. So thinking through the external monitoring or support mechanisms would be helpful.
So, this report was over vaccine distribution system in India in which we are able to see how govt. has created different points for vaccination, reefer vans etc. and also shows that how they have divided the states for vaccination.
Page Break
Conclusion
This report helps us to know that “What is our Budget 2021-2022”, ”What types of relief has been given to us”, ”How much govt. will spend on welfare of country”. We are able to know our subsidies which are implemented to Businessman, farmers etc. that on what basis we are serve. By this, also we came to know earlier year report that on what main subjects our country has spend the most.
Covid vaccine report helps us to show the no. vaccines that are produced everyday, no. of people engage in this work, no. of states helping their public to get vaccinated and no. of people who are aware for the imporatnce of Covid vaccine.
0 Comments