A reduction in funds for the Environment Ministry means that many green initiatives and critical projects will come to a grinding halt

The Union Budget has always been a hit and a miss and this year is no different as the annual financial statement for the year 2021-22 brought cheer to a section of the 1.38 billion-strong population while it disappointed some others. The 350 million-strong middle class that bore the major brunt of the COVID-19 pandemic was expecting some relief from the Budget this year. However, it was left disappointed as the Income-Tax slabs remained unchanged.

On the other hand the business community seems to be satisfied with the provisions in the financial spreadsheet that aim to rejuvenate the ailing economy. The environment, however, has landed in a mixed bag.

In a surprise move, it  slashed the funds meant for the National Climate Change Action Plan from Rs 40 crore to Rs 30 crore. The Budget reduced the allocation to the Ministry of Environment, Forests and Climate Change (MoEF&CC)  by a whopping Rs 230 crore —   from Rs  3,100 crore last year to Rs 2,869 crore this year.

A reduction in funds means that many green initiatives and critical projects will come to a grinding halt. This also implies that the total budgetary allocation to the five autonomous institutes, under the MoEF&CC has been effectively reduced by 20 per cent.

 These figures in fact caught many environmentalists off-guard as a rise in budgetary allocation was expected instead of a reduction, given India’s commitment to the cause on the global arena. However, this slashing of allocations shows the lack of seriousness on the part of the Government when it comes to dealing with pressing environmental issues.

At this critical juncture, “recovery in all spheres” including the environment should have been the key theme of the Budget. Instead of making a big reduction in the allocations to the MoEF&CC the Government would have done well to adopt a phased approach for fund disbursal while at the same time ensuring that the funds to fight pollution and other environmental degradation issues are diverted more to the areas that are highly compromised urban hotspots of pollution. The Centre should have reduced the fund allocation for other parts of the country where the conditions are relatively better. 

Similarly, it was also a great opportunity for the Centre to convey its vision of recovery in “all spheres” in the present situation. Ironically, the lion’s share of recovery measures seems to be earmarked for the economy and healthcare only.

 On a positive note, the Government’s financial statement gave a shot in the arm to clean air by earmarking Rs 2,217 crore for controlling air pollution in 42 cities across India. However, there is no clarity on how this fund will be utilised. This clarity is very essential given the fact that no concrete information is available on public domain regarding how last year’s allocation of Rs 4,400 crore for clean air was spent. It is a issue of grave concern given the fact that 231 cities out of 287 have Particulate Matter 10 (PM10) levels exceeding the  limits prescribed by the Central Pollution Control Board (CPCB). 

A baffling aspect of the Budget is the voluntary vehicle scrapping policy under which  20-year-old personal vehicles, instead of being scrapped, will be sent to automated fitness checking centres for health certificates and will be re-registered. Can the Government ensure the much-needed transparency in the process? It is also unfortunate that the National Green Tribunal (NGT) rule pertaining to mandatory scrapping of 10-year-old diesel vehicles and 15-year-old petrol vehicles seems to have been scrapped automatically. This may prove costly for the environment in the long run, as old vehicles during the process of re-registration can slip through system loopholes and keep polluting the environment.

Instead of allowing 20-year-old vehicles to ply, the Government through the Budget could have put the urban electric energy driven mass transit system and passenger electric vehicle policy on fast track. This would have helped achieve multiple objectives of fostering entrepreneurship, increasing employment, conserving the environment and so on. The Budget cuts for the MoEF&CC reflect the Government’s tepid response towards fulfilling its environmental commitments. However, steps such as setting up of the Hydrogen Energy Mission in 2021-22 to harness hydrogen from green sources will go a long way in reducing India’s carbon footprint.

The writer is an environmental journalist. The views expressed are personal.