India unveils budget to boost virus-battered economy

India’s government on Monday unveiled a budget aimed at reviving its pandemic-battered economy, with a focus on vaccinations and doubling health care spending.

India’s economy shrank by an eye-watering 23.9 per cent in the first quarter of last year and is projected to record its worst-ever annual recession – a contraction of 7.7 per cent – in the current financial year ending March 31.

“I want to confidently state that our government is fully prepared to support and facilitate the economy’s reset. This budget provides every opportunity for our economy to race and capture the pace that it needs for a sustainable growth,” Finance Minister Nirmala Sitharaman told parliament.

The government will allocate 30.6 billion dollars toward health care spending, marking an increase of 137 per cent, Sitharaman said. A new federal health scheme will be launched with an outlay of about 8.80 billion dollars over the next six years.

Sitharaman also announced 4.81 billion dollars for the development of Covid-19 vaccines in 2021, adding that two further Indian vaccines were likely to be announced this year.

India has the world’s second largest coronavirus caseload after the United States, with a total of more than 10.75 million infections and 154,392 deaths. There has been a decline in new cases in recent months.