Taking a cue from the Union budget, the Gujarat government refrained from announcing any new taxes or revising existing levies in the state budget for 2021-22. Due to this, large number of people benefiting from the Aatmanirbhar schemes and small businesses becoming self-reliant again.
Despite the unprecedented focus on the health and healthcare infrastructure following the Covid-19 pandemic, the budget marginally increased the outlay for health and family welfare. “The budget plan size of £22.70 billion for 2021-22 is higher than that of 2020-21,” said deputy chief minister Nitin Patel, who presented the £58.78 million surplus in the state assembly. The budget size, however, shows a rise of just 4.48% over the £21.72 billion size of the previous budget. “The budget endeavours to ensure that the state’s development is not hampered by the pandemic,” he said. No new major project or noteworthy scheme was announced.
Health budget gets just 0.7% more
Despite the impact of the Covid-19 pandemic on the state government’s health infrastructure and the extraordinary rise in health spending over the past one year, the state government chose not to affect a significant hike in budgetary allocation for the health and family welfare department.
Compared to a budgetary provision of £1.12 billion in the 2020-21 budget, Nitin Patel announced a budgetary allocation of £1.13 billion for the year 2021-22, a meagre rise of £8 million. This comes down to a mere 0.7% hike. Interestingly, in the previous budget year (2019-20), the state government had hiked the budget by 4%.
While presenting the budget, Patel dwelt at length on the untiring work by employees of the health department during the pandemic, and the infrastructure that the state government has put in place to handle the situation. The Speaker too praised the government’s handling of the pandemic.
However, when it came to loosening its purse strings to strengthen the health infrastructure and resources, the government failed to walk the talk.
When questioned about the mere 1% rise in budgetary allocation for the health and family welfare department, Patel, who also holds the finance and health portfolios said the government had spent a massive amount of money for Covid-19 relief from various sources, including government of India grants.
“Budgetary allocation is for long term infrastructure and permanent development of the health sector, so there is no need for specific Covid-19 related allocation. We have sufficiently allocated funds for new medical colleges-cum-hospitals, expansion in medical services and bringing new technologies. During the year, we can increase allocation for the department,” he said.
Sabarmati Ashram makeover
For the first time in its budget, the state government has made an allocation £5 million under the tourism department for the overall development of Sabarmati Ashram and its development as a place of national eminence. The state government in the budget stated, “It is proposed for overall development of Sabarmati Ashram as a place of national eminence. For this purpose, an amount of £5 million would be required during the year 2021-22.
Statue of Unity gets £65.2 mn
The Statue of Unity (SoU) built to honour Sardar Vallabhbhai Patel, has got another booster dose of £65.2 million in the state budget outlay. The allocation has been made for ongoing and upcoming projects under the Statue of Unity Area Development Project. The state government has announced a provision of £31.5 million for making available qualitative modern facilities to the tourists visiting Gujarat. The government has proposed an outlay of £2.5 million to set up a museum displaying the legacy of the erstwhile royalties who dissolved their states in unified India at the behest of Sardar Vallabhbhai Patel.

