PM Modi: Union Budget 2021 shows India's confidence, vision of self-reliance.

 

India Union Budget 2021:- Union Finance Minister Nirmala Sitharaman made several key announcements in her budget speech today. The Centre has emphasized more on healthcare to infrastructure this time, while giving no particular relief for middle class in terms of income tax exemption. Senior citizens above 75 years of age with only pension income, however, are exempted from filing tax returns. The central government will borrow around Rs12 lakh crore in FY22, said the FM. The government's expenditure is pegged at Rs34.83 lakh crore, including Rs5.54 lakh Cr. of capital spending, she added. She said the fiscal deficit for FY21 has been pegged at 9.5 percent of India's GDP due to Covid-19, which is highest so far.



 

Check out some point wise analysis about Union Budget 2021. 

1.) Aatma Nirbhar Bharat a success

The total financial impact of all Aatma-nirbhar Bharat packages, including measures taken by the RBI, was about Rs27.1 lakh crore, more than 13 per cent of GDP, says Nirmala Sitharaman.

2.)  Govt delivered mini-budgets amid Covid crisis

The government stretched its resources for the benefit of the poorest of the poor, says the FM. "The PM Garib Kalyan Yojana, the three Aatma-Nirbhar Bharat packages and subsequent announcements were like five mini-budgets  in themselves," says Finance Minister Nirmala Sitharman.

3.) Two more vaccines accepted soon

Finance Minister says India today has 2 vaccines available and has begun safeguarding not only her own citizens against COVID-19 but also those of 100 or more countries. "It has added comfort to know that 2 more vaccines are also expected soon," she adds.

4.) Budget provides opportunity to grow sustainably

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

5.) In Union Budget 2021: FM Sitharaman lays out vision for Aatma-Nirbhar Bharat

As Part A of Budget 2021, Finance Minister Nirmala Sitharaman lays out a vision for Aatma-Nirbhar Bharat. "To strengthen the vision of Nation First, doubling farmers' income, strong infra, women's empowerment, healthy India, good governance, education for all, and inclusive development," says the FM.

6.)  In Union Budget 2021: Govt. announced PMGKY worth Rs2.76 lakh crore 48 hours after first lockdown, says FM

"When I presented Budget 20'-21' we couldn't have imagined that global economy would be pushed into an unprecedented contraction. Within 48 hours of declaring lockdown PM Modi announced PMGKY valued at Rs2.76 lakh Crores," says the Union Minister.

7.) Union Budget 2021: FM lays out six pillars of Budget 2021 Budget 2021 proposals rest on six pillars

A-Health and Well-Being

B-Physical and Financial capital and infrastructure

C-Inclusive Development for Aspirational India 

D-Reinvigorating Human Capital 

E-Innovation and R&D 

F-Minimum Govt., Maximum Governance.

8.) Union Budget 2021: Investment on health infra priority for govt: FM

Investment on health infra in Budget 2021 has increased substantially, says Sitharaman. "Three areas - preventive health, curative health and well-being - to be strengthened during the current year," she adds.

9.) Union Budget 2021: PM Atma-Nirbhar Swasth Bharat Yojana to be launched, says FM

"A new centrally sponsored scheme PM Atma-Nirbhar Swasth Bharat Yojana will be launched with an outlay of about Rs.64,180 crores over 6 years," says Finance Minister Nirmala Sitharaman. 

10.) Union Budget 2021: FM proposes sharp increase in Capital Expenditure

"For 2021-22, I propose a sharp increase in Capital Expenditure & thus have provided Rs5.54 lakh crores which is 34.5% more than the BE 2020-21," says FM Nirmala Sitharaman.

11.) Rs2.87 lakh crore for Jal Jeevan Mission

Jal Jeevan Mission Urban to be launched, outlay Rs2.87 lakh crore over 5 years. Aimed at universal water supply in all 4,378 urban local bodies, with 2.86 crore household tap connections and liquid waste management in 500 AMRUT cities.

12.)  Union Budget 2021: Following Announcements made by Nirmala Sitharaman So far

  • Voluntary vehicle scrapping policy to phase out old vehicles; fitness tests after 20 years for personal vehicles.
  • National monetization pipeline for potential brownfield infrastructure assets will be launched. 
  • PLI scheme with outlay of Rs1.97 lakh crore for 5 years starting this fiscal year.
  • Govt to introduce bill to set up development financial institution with an outlay of Rs20,000 cr.
  • Swachh Bharat 2.0 will be implemented with outlay of Rs1,41,678 cr over 5 years.
  • Scheme of mega investment textiles park in addition to PLI scheme will be launched.
  • Jal Jeevan mission with outlay of Rs2.87 lakh crore for 4,378 urban local bodies.
  • Govt to provide Rs35,000 cr for Covid-19 vaccination in 2021-22.
  • FM proposes Aatma-Nirbhar health programme with an outlay of Rs64,180 crore in addition to national health mission.

13.) Govt to monetize dedicated freight corridors

 

Railway to monetize dedicated freight corridors, says FM Sitharaman in her Budget speech on monetization of assets. 

 

14.) GAIL, IOC, HPCL to be monetized

 

The Centre government will monetize the pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL, says FM Sitharaman.

 

15.) Budget 2021: Rs2 lakh cr to meet capex

 

The government will provide Rs 2 lakh crore to states and autonomous bodies to meet capital expenditure, says the FM.

 

16.) 8,500 kms of road, highways by 2022

 

The government to award about 8,500 kms of road and highway projects by March 2022 to further augment road infrastructure.

 

17.) Budget 2021: Over 1.1 lakh crore for railways

 

Record Rs1.1 lakh crore provided for railways, of which Rs1.07 lakh crore for capital expenditure in 2021-22, says FM Nirmala Sitharaman.

 

18.)  Union Budget 2021-22: Other key announcements in FM's Budget speech

 

  • FM announces Rs25,000 cr road projects in poll-bound West Bengal. 
  • Power sector seen many reforms in last six years, 138 GW of installed capacity added, says FM Nirmala Sitharaman. 
  • FM allocates Rs65,000 cr for road, highway projects in Kerala, Rs3,400 cr for Assam. 
  • A framework to be put in place to give power consumer option to chose discos.
  • FM Finance Minister says 100 pc electrification of broad gauge rail tracks by December 2023.
  • FM announces 7 port projects worth more than Rs2,000 cr via PPA mode. 
  • FM announces Rs18,000 cr scheme to augment public transport in urban areas.
  • Framework will be put in place to allow electricity consumers to choose from more than one distribution company: FM.

19.) Union Budget 2021: FDI up in Insurance to 74%

 

Finance Minister Nirmala Sitharaman announces the enhancement of foreign direct investment (FDI) in insurance to 74 per cent from 49 per cent. The FM also earmarks Rs20,000 crore for further recapitalization of state-owned banks.

 

20.) Budget 2021-21: NCLT framework to be strengthened

 

The central government will strengthened NCLT framework. The finance minister says the definition of small companies will be revised by raising capital base to Rs2 crore from current limit of Rs50 lakh. Asset reconstruction and management company to be set up for stressed assets of banks.

 

21.) FM announces disinvestment receipts of Rs1.75 lakh cr

 

Finance Minister puts disinvestment receipts at Rs 1.75 lakh crore for fiscal year beginning April 1, 2021. "Two PSBs and one general insurance company to be divested, legislations amendments to be introduced in this session," says the FM.

 

22.) FM announces new disinvestment policy

 

The Centre to divest PSUs in all sectors, except four, says FM; announces new disinvestment policy. NITI Aayog will work on the next list of central public sector companies for disinvestment.

 

23.) Budget 2021 highlights: Govt committed to farmers' welfare: FM

 

Agri procurement has increased steadily, benefiting farmers, says FM Sitharaman, amid opposition slogan shouting against three farm laws.

 

24.) Budget 2021 highlights: Farmers paid Rs75,100cr wheat MSP

 

Over Rs.43.36 lakh wheat growing farmers benefited from the Centre's MSP procurement scheme against 35.57 lakh previously, says FM Sitharaman. Farmers paid Rs75,100 crore on wheat MSP in FY21, says FM. "Agriculture credit target raised to Rs16.5 lakh crore in 2021-22."

 

25.) Other key announcements made by Finance Minister Nirmala Sitharaman  

 

Allocation to rural infra development increased to Rs40,000 crore in FY22 from Rs30,000 crore in FY21 Operation green scheme to cover 22 more perishable commodities. FM announces development of 5 major fishing hubs.

Over 1,000 more mandis to be integrated with electronic national market. Agri infra fund to be made available to APMCs to augment infra facilities. Agri Infra Fund increased to Rs40,000 cr, Micro Irrigation Corpus doubled to Rs10,000 cr. Social security benefit to be extended to platform and gig workers. One nation, one ration card plan under implementation in 32 states and 1 UT Central university to be set up in Leh. Govt proposes portal to collect info on gig-workers, building and construction workers, among others.

 

26.) More opportunities under apprenticeship law 

 

The Centre has proposed to amend apprenticeship law to enhance opportunities for youth. Modalities have been worked out for national research foundation. The Centre has earmarked Rs50,000 crore over five years.

 

27.) Fiscal deficit pegged at 9.5%

 

Finance Minister Nirmala Sitharaman says in the RE 2020-21, the fiscal deficit has been pegged at 9.5 per cent of India's GDP, while the fiscal deficit in BE 2021-22 is pegged at 6.8 per cent of the GDP. The central government is aiming to bring it down to less than 5 per cent of the GDP by 2025-26, says Sitharaman.

 

28.) Forthcoming census to be digital, says Sitharaman 

 

The forthcoming census would be the first digital census in the history of India. "For this monumental task, I have allocated 3,768 crores in this year 2021-22," says FM Nirmala Sitharaman. Over Rs3,726 crore allocated for forthcoming Census, which will be the first digital census.

 

29.) Union Budget Highlights: Govt to borrow R 80,000cr in next 2 months

 

The FM says COVID-19 relief led to rise in expenditure to Rs34.50 lakh crore in the current fiscal as against Rs30.42 lakh crore budgeted a year back. "The government will borrow Rs80,000 crore in the remaining two months to meet FY21 expenditure," says FM.

 

30.) Budget 2021 Highlights: Govt to borrow Rs12 lakh crore in FY22

 

The central government will borrow around Rs12 lakh crore in FY22. The expenditure pegged at Rs34.83 lakh crore, including Rs5.54 lakh cr of capital spending, says the FM.

 

31.) Budget 2021 Highlights: No I-T returns filing for pensioners over 75 

 

Senior citizens above 75 years of age with only pension income exempted from filing tax returns, says the FM.

 

32.)  Union Budget Highlights: Announcements on auto, customs, steel 

 

Customs duty on certain auto parts, solar equipment raised 

Govt rationalizes customs duties on gold and silver for FY22 

Govt exempts duty on steel scrap up to March 2022 

Customs duty on naphtha cut to 2.5%.

 

33.) Union Budget Highlights: Tax exemptions announced by FM

 

Govt to review over 400 old exemptions in indirect taxes 

Tax holiday for startups extended by 1 year in view of Covid 

Exemption on capital gains on investment in startups also extended by 1 year 

Tax exemption for aircraft leasing companies 

Tax exemption for notified affordable housing for migrant workers.

 

34.) Budget 2021: Other key highlights

 

  • Rs1.5 lakh deduction on payment of interest for affordable housing extended by 1 yr
  • Govt proposes to relax norms to attract more foreign investment in infrastructure sector
  • Advance tax liability on dividend income shall arise only after payment of dividend
  • Exemption from tax audit limit doubled to Rs 10 crore turnover for companies doing business via digital modes.
  • Govt proposes to make income tax appellate tribunals faceless
  • Serious tax offences of concealment of income of over Rs 50 lakh can be reopened after 10 years
  • States to get 41 per cent share of taxes as per 15th Finance Commission recommendation.


 

Watch Full Video of Budget on You Tube as following linked Videos.

 



 

 

 

 

 

 

 

 

 

 

 

 

  

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