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.
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.
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
- 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
- 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
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.
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.
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.”
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%.
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 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.”
> 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
Barring four strategic areas, PSUs in other sectors will be divested, says Finance Minister Nirmala Sitharaman as she announces a new disinvestment policy.
Amid the opposition sloganeering against three farm laws, FM Nirmala Sitharaman said agriculture procurement has increased steadily, benefiting farmers.
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.
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 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.
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.
The FM has proposed an extension of the tax holiday for start-ups by one more year.
Rs 1.5 lakh for loans to purchase an affordable house is now extended by one more year, the FM has announced.
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.
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.