Union Budget 2021: Key highlights of Budget 2021-22 presented by finance minister Nirmala Sitharaman

Health, agriculture, fisheries, renewable energy, infrastructure, mobility, pollution control — who got how much.

Gaon Connection
| Updated: February 1st, 2021

The finance minister Nirmala Sitharaman has concluded presenting the Union Budget 2021-22 in the Parliament on February 1, 2021. This was the first paperless budget as the finance minister switched from bahi-khata to tablet.

In her speech, the finance minister mentioned that this year’s budget was based on six pillars — health and well-being; physical, financial capital and infrastructure; inclusive development for aspirational India; reinvigorating human capital; innovation and R&D; and minimum government and maximum governance.

She informed that the budget has increased 2021-22 capital expenditure by 34.5 per cent to Rs 5.54 lakh crore. The finance minister said that during the lockdown last year, prime minister Narendra Modi announced the Pradhan Mantri Gareeb Kalyan Yojna worth Rs 2.76 lakh crore for the poor and the needy. The Atmanirbhar packages introduced by the government were like five mini budgets themselves, she added.

What were some of the major announcements and allocations under Budget 2021-22? Gaon Connection lists the down:


The total budget outlay for healthcare and wellness is Rs 2.23 lakh crore. This is an increase of 137 per cent from last year, informed Sitharaman. She also announced Rs 35,000 crore for COVID-19 vaccines. Vaccines will be rolled out across the country. This will prevent over 50,000 child deaths annually.

New Centrally Sponsored Scheme PM Aatmanirbhar Swasth Bharat Yojana to be launched, outlay of Rs 64,180 crore over 6 years. This scheme will help develop capacities of health care systems, develop institutions for detection and cure of new and emerging diseases.


Government is committed to welfare of farmers, said minister Sitharaman amid loud protests from opposition members. 

Over Rs 75,000 crore paid to wheat farmers in 2020-21, 43.36 lakh benefited from this. Total amount paid to paddy farmers surged to Rs 1.72 lakh crore in 2020-21.

Finance minister proposes increase in agriculture credit target to Rs 16.5 lakh crore.

The finance minister also announced Rs 1,000 crore for tea workers in Assam and Bengal.


Finance Minister Nirmala Sitharaman announced substantial investments in the development of modern fishing harbours and fish landing centres.

To start with five major fishing harbours, Kochi (Kerala), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Paradeep (Odisha), and Petuaghat (West Bengal) will be developed as hubs for economic activity.

She also announced launching of a Deep Sea Mission with an allocation of Rs 4,000 crore for five years. 

Nirmala said that a multipurpose seaweed park will be established in Tamil Nadu soon to promote seaweed farming and cultivation. This will help generate jobs for coastal communities.

Renewable energy and environment 

Union Budget 2021 has provided a boost to the renewable energy sector. The finance minister informed Rs 1,000 crore allocation to solar energy corporation and Rs 1,500 to renewable energy development agency.

Sitharaman has proposed Rs 2,217 crore outlay for 42 urban centres with over a million population to tackle air pollution. She also allocated Rs 18,000 crore for a new scheme to augment public bus transport.

Urban Swachh Bharat Mission 2.0 with outlay of ₹ 1,41,678 crore over 5 years from 2021 will focus on complete fecal sludge management, waste water treatment, source segregation, & bioremediation of legacy dump sites.

Finance minister also announced hydrogen energy mission in 2021-22 for generating hydrogen out of green-powered sources.

One Nation, One Ration Card

In her Budget 2021 speech, Nirmala Sitharaman said that ‘One Nation, One Ration Card’ scheme of the Indian government was being implemented in 32 states and union territories, reaching about 69 crore  beneficiaries. This has greatly benefitted the migrant workers, said the minister. 

She informed the Centre will launch a portal to collect data on migrant workers. In addition, social security benefits will now apply to platform and gig workers. Minimum wages will apply to all category of workers.


Over 15,000 schools to be qualitatively strengthened under National Education Policy


By March 2022, another 8,500 km of road projects to be awarded, additional 11,000 km of NH corridors to be completed, under Bharat Mala Pariyojna project, informed the finance minister.