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In a televised address describing the Union Budget tabled in Parliament on Friday, 5 July, Prime Minister Modi called it a "green budget" which focuses on the environment and pitches for green and clean energy and transportation needs.
The new government’s budget saw an increase in the allocation for Ministry of Environment, Forests and Climate Change from last fiscal by 10.4 percent from Rs 2,675 crore in 2018-2019 to Rs 2,954.72 crore in 2019-2020. However, it falls short of the amount earmarked for the ministry in the interim budget presented in February earlier this year by Rs 157 crore.
Finance Minister Nirmala Sitharaman’s maiden budget was almost silent on climate change, air pollution and afforestation, and barely touched upon water scarcity except the announcement of Jal Jeevan Mission.
India is battling one of the worst water crises in independent history, with most states facing almost drought-like situations.
Sitharaman announced the Jal Jeevan Mission, that will be spearheaded by the Jal Shakti Ministry and aims to provide potable water to every rural household by 2024. The ministry has identified 1,592 over-exploited blocks in 256 districts of the country.
VR Raman, Head of Policy at Water Aid India, welcomed the Modi government’s proposal, but added that the budgetary allocation was not enough if the government aimed to achieve its target by 2024.
The budget highlights, released by Sitharaman after the presentation, lists ‘Pollution-free India’ as the third point in the list of vision for India. However, this prioritisation is not reflected in the budget itself, pointed out Centre for Policy Research’s Santosh Harish.
Harish, however, welcomed the allocation of Direct Benefit Transfers for LPG, and steps taken to promote electric vehicles will help mitigating pollution.
Harish explained that there was lack of substantial investment in regulatory bodies like National Green Tribunal. The National Clean Air Programme (NCAP) found just a passing reference in the budget and reflected the government’s commitment to fight air pollution.
With the government allocating only Rs 460 crore to control pollution and not particularly to the NCAP, it only strengthens the concern that it is merely a vision document and places more onus on the cities to mitigate pollution that the central government, he added.
The finance minister proposed lowering of the GST on electric vehicles (EVs) from 12 to five percent. Also to make them affordable to consumers, the government will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase EVs, Sitharaman said.
Sitharaman’s announcement comes close on the heels of Niti Aayog proposing to migrate to full electric vehicles for two-wheelers of engine capacity of up to 150 cc and three-wheelers by 2023 and 2025 respectively.
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