Home राष्ट्रीय Union Budget 2021 : Spending boost to lift pandemic-hit economy, new cess...

Union Budget 2021 : Spending boost to lift pandemic-hit economy, new cess to finance agri-infra


Nirmala Sitharaman has become one of the few Indian finance ministers who has announced a post-contraction budget with today’s presentation. But Sitharaman’s challenge is much tougher compared to her former counterparts in the wake of the coronavirus pandemic. Meanwhile, citizens expect the government to provide some tax benefits, following Sitharaman’s statement that this year’s budget will be like “never before”.

Here are the highlights of the Union Budget 2021 updates.

FM announces Aatmanirbhar Bharat package 

Aatmanirbhar Bharat package has been announced by the Finance Minister to sustain recovery. In total, three Atmanirbhar packages and RBI measures amounted to over Rs 27 lakh crore or 15% of GDP.

The budget was prepared in circumstances like never before: Nirmala Sitharaman

Presenting Budget-2021, Finance Minister Nirmala Sitharaman said that the preparation of the Budget was undertaken in circumstances like never before. “But what we have endured with Covid-19 to 2020 is sui generis.”

A vision for Atmanirbhar Bharat in part of Sitharaman’s first part. FY22 budget proposals based on six pillars

This is to further strengthen the Sankalp of Nation-first. Including,

  • Health & Well-being
  • Inclusive Development Human Capital
  • Innovation and R&D
  • Physical & Financial capital and infrastructure
  • Minimum government, maximum governance

India has two COVID-19 vaccines available and we expect two more vaccines soon, the Finance Minister says

India currently also has one of the lowest death rates and active cases in the world.
FM lays out a Rs 64,180 crore spending plan for healthcare over the next six years
  • Will be spent on primary, secondary, and tertiary healthcare
  • In addition to the National Health Mission.
  • 17,000 rural and 11,000 urban health and wellness centers to be set up
  • Integrated public health labs to be set up in each district.

Budget 2021 provides the opportunity for the economy to capture pace and grow sustainably: Sitharaman

“This Budget will be the first of this new decade. Budget 2021 will also be a digital budget,” says Finance Minister Nirmala Sithraman

Only three times has the Budget followed a contraction in the economy. This time, unlike before, the situation is due to a global pandemic. Budget 2021 provides every opportunity for the economy to capture the pace and grow sustainably: FM Nirmala Sitharaman.

FM announces Rs 4.12 lakh crore towards capital expenditure

Long-term debt financing: Rs 5 lakh crore for DFI within the 5 five years

India to set up a development finance institution (DFI) with a capital of Rs 20,000 crore in FY-22 with an aim to have a lending capacity of Rs 5 lakh crore in three years, FM Nirmala Sitharaman has said.

More economic corridors being planned: Nirmala Sitharaman

On roads and highways, Nirmala Sitharaman said, “To further augment road infrastructure, more economic corridors are being planned. Some are 3,500 of the national highway in the state of Tamil Nadu worth Rs 1.03 lakh crore.”

Nirmala Sitharaman announces 7 ‘textile parks’ in the next 3 years

The FM has announced Rs 20,000 crore for infrastructure development. Seven textile parks will come up over three years, the Finance Minister has said.

Swachh Bharat 2.0 will be implemented with an outlay of Rs 1,41,678 cr over 5 years: FM

The Finance Minister has announced Swachh Bharat 2.0, which will be implemented with an outlay of Rs 1,41,678 cr over the next five years.

FM’s infra boost: Providing Rs 1.15 lk cr for Railways, privatizing airports

  • Out of the Rs 1.15 lk cr for Railways, Rs 1.07 lk cr is towards CAPEX
  • Indian Railways national rail plan for India to prepare a future-ready railway system by 2030, says the FM.
  • Indian Railways have a National Rail Plan for 2030.
  • Next lot of airports to be privatized in tier 2 and 3 towns and cities.
Higher capital expenditure outlay

Nirmala Sitharaman presents Budget: “In 2020-21, we have provided for Rs 4.12 lakh crore for capital expenditure. We are likely to end at Rs 4.39 lakh crore towards it. We will provide Rs 5.54 lakh crore towards capex in FY22 – 34% more than the budget estimates of last year.”

11:41 AM IST
Major boost to infrastructure projects ahead of Assembly elections in Tamil Nadu, Assam and West Bengal

 675 km of highway work announced in West Bengal at a cost of Rs 25,000 crore

 FM Nirmala Sitharaman announces highways projects in Tamil Nadu, Kerala, West Bengal and Assam  .Government aims to complete 11,000 km of national highway infrastructure this year. FM announces a record Rs 1.10 lakh crore outlay for railways, of which Rs 1.7 lakh crore is for capital expenditure

FY22 fiscal deficit seen at 6.8%.

The government had pegged the fiscal deficit at 3.5% for FY21 in the last budget before the onset of the Covid-19 crisis.

Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetised, says FM in Budget for 2021-22.

Ujjwala Scheme will be extended to cover 1 cr more beneficiaries.

  • 100 more districts to be added in the next 3 years for city gas distribution
  • An independent gas transport system operator to be set up

Finance Minister Nirmala Sitharaman proposes to consolidate provisions of SEBI Act, Depositories Act, Securities Contracts Regulation Act, Government Securities Act.

FDI in insurance increased to 74% from 49%: Focus on insurance sector

FDI in insurance to be hiked to 74 per cent from 49 per cent, Nirmala Sitharaman announced as she presented Budget 2021 on Monday. “In 2021-22, we would also bring the IPO of LIC for which I am bringing the requisite amendments in this session itself.”

Nirmala Sitharaman announces measure for farmers

Government committed to welfare of farmers, says FM

Govt says MSP procurement to continue at a steady pace

Total amount paid to paddy farmers surged to Rs 1.72 lakh crore in 2020-21

>> Over Rs 75,000 crore paid to wheat farmers in 2020-21, 43.36 lakh benefited from this

FM proposes increase in agriculture credit target to Rs 16.5 lakh crore
Nirmala Sitharaman announces new disinvestment policy

Barring four strategic areas, PSUs in other sectors will be divested, says Finance Minister Nirmala Sitharaman as she announces a new disinvestment policy.

Agri procurement increased steadily, benefiting farmers, says FM

Amid the opposition sloganeering against three farm laws, FM Nirmala Sitharaman said agriculture procurement has increased steadily, benefiting farmers.

Central University to be set up in Leh: Nirmala Sitharaman

Nirmala Sitharaman announced that Higher Education Commission will be set up in 2021, which was announced last year. A central university will also be set up in Leh.

India to launch Deep Ocean Mission, with an allocation of Rs 4,000 crore over 4 years. Rs 1,500 crore for the promotion of digital payments

Rs 1,500 crore will be set aside to promote a digital mode of payment, Finance Minister Nirmala Sitharaman has announced.

Govt to revise definition of small companies: FM

The government has said the definition of small companies will be revised by raising the capital base to Rs 2 crore from the current limit of Rs 50 lakh. In the Union Budget for 2021-22, Finance Minister Nirmala Sitharaman proposed setting up of investor charter across financial products.

Social security benefit to be extended to platform and gig workers: FM

“Social security benefits will be extended to gig and platform workers. Minimum wages will apply to all categories of workers. Women will be allowed to work in all categories and also in night shifts with adequate protection,” FM Nirmala Sithraman said.

Govt proposes Rs 2.24 lakh crore outlay for healthcare in 2021-22

The government has proposed a Rs 2,23,846 crore Budget outlay for health and well-being for 2021-22, compared to Rs 94,452 crore in the current fiscal, an increase of 137 percent.

FM Nirmala Sitharaman also proposed a Rs 35,000 crore outlay for Covid-19 vaccines for the next fiscal and announced the rollout of pneumococcal vaccines across the country to help save over 50,000 deaths annually.

Budget 2021 Live updates: FM reduces the tax burden on senior citizens above 75 years. Pensioners over 75 years of age are exempt from filing returns.

To reduce the time limit for reopening of tax records to three years from six years.
Incentives for start-ups

The FM has proposed an extension of the tax holiday for start-ups by one more year.

Affordable housing a priority: FM

Rs 1.5 lakh for loans to purchase an affordable house is now extended by one more year, the FM has announced.

Serious tax offenses of concealment of income of over Rs 50 lakh can be reopened after 10 years: FM
Sitharaman proposes to review more than 400 old exemptions in customs

Nirmala Sitharaman proposes to review more than 400 old exemptions in customs this year. To put into place new customs duty structure by Oct-1, 2021.

FM Nirmala Sitharaman has concluded the Budget-2021 speech

Finance Minister Nirmala Sitharaman has ended her Budget 2021 speech in the Lok Sabha. FM Sitharaman tabled the 15th Finance Commission report in Lok Sabha.



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