How Green is our Budget?

An Analysis of the Union Budget 2021-22

This year’s budget was unique in that it was introduced amid the country and the world battling a public health crisis. As a pandemic bought the world economy to a halt, people tried to find their silver linings in blue skies and wildlife sightings. An almost complete shutdown of industrial and transit activities meant that markers such as air pollution levels went down by a few notches as visible in the report by the Central Pollution Control Board which marked improvement in air quality levels in 85 cities. There was also a sense of hope that these changes could be long–term. In the wake of this, it is important to assess how cognizant the budget, introduced on 1st February 2021, is of the growing environmental concerns and the rising threat of climate change.

An initial reading of the budget provides multiple instances of reassurance that the government is actively interested in the ecological health of the nation. There is a major focus on keeping up with and capturing emerging modes of sustainable energy sources, which includes Renewables, Hydrogen and, Smart Metering. There is a provision for a National Hydrogen Mission to be launched during the fiscal year for generating Hydrogen from green power sources. According to the budget speech, any existing exemptions on machinery and equipment required for setting up solar power generation will be rescinded and a phased manufacturing plan is to be put in place for solar cells as well as panels.

Further, the government has announced the expansion of its Ujjwala Scheme which aims to increase the usage of LPG and help reduce health disorders, air pollution, and deforestation. Another unique introduction is a voluntary vehicle scrapping policy, which would phase out old and unfit vehicles and encourage fuel-efficient and environmentally-friendly vehicles. The new scheme to augment public transportation could also be potentially helpful in reducing vehicular emissions. The finance minister also announced a focus on “waste-water treatment, source segregation of garbage, reduction in single-use plastic, reduction in air pollution by effectively managing waste from construction-and-demolition activities and bio-remediation of all legacy dumpsites” under the Urban Swachh Bharat Mission 2.0.

However, a deeper analysis of the monetary allotments of the budget, reveals that environmental concerns have taken a backseat amongst the more pertinent concerns of the economy. The total allocation for the five autonomous institutes under the Ministry of Environment, Forest and Climate Change has been reduced. The allocation of 305.5 crores is lower than the previous budget as well as the actual expenditure for the last fiscal year. The funds allocated for the GB Pant Himalayan Institute of Environment and Development have also been reduced.

The government has allocated 2217 crores to tackle air pollution, which is, almost half of what it was last year. Looking back at the use of this grant in the previous years, it is clear that several measures to tackle emissions fall under agencies that cannot even use these grants. Even though these grants are welcome, the strings attached to them might make them difficult to access. The amount allocated to the National Clean Air Programme is troublingly low and can only be accessed by million-plus cities. Most of these cities receive amounts that might not even be enough to cover the cost of an air-quality monitor. However, the introduction of the new Commission on Air Quality Management in the National Capital Region and Adjoining Areas could potentially be helpful in going beyond city limits to address air pollution in the larger airshed.

Another cause for alarm is the government’s plan to strategically disinvest in power, petroleum, coal, and other minerals. In her speech, the Finance Minister asserted that minimum CPSEs (central public sector enterprises) would be maintained while the rest would be privatized. The reduction of government participation in these sectors and a move toward private interest could signal a move towards more profit-driven operations. This could spell trouble for affected communities as well as ecologically sensitive areas.

In summary, multiple “green” provisions are textually present within the budget. There is a notable dedication to move towards more sustainable sources of energy use, and a push for the public to do the same. However, monetary allocations to institutes, bodies, and research organizations that are actively responsible for the environment and climate in the country are inadequate. This is a clear indication that the government still sees protecting the environment and climate as a luxury. The race to ensure that corporates, industrialists, and fossil fuel companies do not suffer, comes at the cost of the larger suffering of the environment and natural resources which continue to be exploited. The budget for the fiscal year 2021-22 sets larger climate goals which might be helpful markers for the road ahead, however, it fails to substantiate these with specific commitments and schemes, which is what makes it disappointing.