What type of externality will the increase in budget allocation create ........

Read the below case and answer the questions that follow:

The Centre on Saturday increased the budgetary allocation for the environment ministry from last fiscal by nearly five percent for 2020-21 with no change in the amount allotted to pollution abatement and climate change action plan. 

Union Finance Minister, Nirmala Sitharaman, allocated 3,100 crore for the ministry out of which im 460 crore were allotted to control pollution, which is the same as the money it received in the last budget.
Control of pollution has been conceptualized to provide financial assistance to Pollution Control Boards/Committees and funding to National Clean Air Programme (NCAP).
Similarly, budget for pollution abatement, which was cut by 50 percent last year from 2018-19,
remained unchanged at 10 crore.

The minister also announced that states, which are formulating and implementing plans for ensuring cleaner air in cities above one million population should be encouraged.
- Budget 2020: Allocation for Environment Ministry
up 5% to 3,100 crore - Business Standards, 1st
February, 2020

 

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