As Union Finance Minister Nirmala Sitharaman presented Budget 2021 in Parliament today, here you can read its highlights to know if this was a ‘Budget like never before’ as she promised earlier. Expectations were high that in her third Budget, Nirmala Sitharaman would make announcements to bolster the economy hit hard by the Covid-19 pandemic. This is the first time that a paperless Budget was presented in the house.
Budget 2021: Highlights
- No income tax filing required for seniors citizens above 75 years of age and who have income only from pension and interest income.
- I propose to reduce the time limit for reopening of assessments (tax assessments) to 3 years from the present 6 years: Nirmala
- Rs 1.5 lakh deduction on payment of interest for affordable housing extended by 1 yr: FM
- FM proposes tax exemption for aircraft leasing cos; tax exemption for notified affordable housing for migrant workers.
- Record GST collections in the last few months; govt to take every possible measure to reduce anomalies.
- 1,000 more mandis to be integrated with National Agriculture Market or eNAM.
- Scope of Operation Greens Scheme to be extended from tomatoes, onions and potatoes to 22 perishable crops.
- Allocation for Rural Infrastructure Development Fund to be enhanced from ₹30,000 crore to ₹40,000 crore ₹5,000 crore Micro Irrigation Fund to be augmented by another ₹ 5,000 crore.
- Agricultural credit target enhanced to ₹ 16.5 lakh crore, focus will be on ensuring increased credit flow to animal husbandry, dairy and fisheries sectors.
- In the case of wheat Amount paid to farmers in 2013-14 – ₹ 33,874 crore Amount paid in 2019-20 – ₹ 62,802 crore Amount paid in 2020-21 – ₹ 75,060 crore No. of farmers benefitted in 2020-21 – 43.36 lakhs in 2019-20 – 35.57 lakhs
- Two public sector banks apart from IDBI and one general insurance company to be taken up for strategic disinvestment in 2021-’22 IPO of LIC also to be brought in.
- To incentivize incorporation of one-person companies, such companies will be allowed to grow without any restriction on paid-up capital or turnover and to convert into any other type of company at any time Big boost for Startups: FM
- Definition of small companies under Companies Act 2013 to be revised Companies with paid-up capital up to ₹ 2 crore & turnover up to ₹ 20 crore will fall under small companies, benefiting more than 2 lakh companies in compliance req.
- Govt proposes to relax norms to attract more foreign investment in the infrastructure sector.
- Advance tax liability on dividend income shall arise only after payment of dividend.
- 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: FM Nirmala Sitharaman.
- Tax holiday for startups extended by 1 yr; exemption on capital gains on investment in startups extended by 1 yr: FM
- Fiscal deficit pegged at 9.5% of GDP during current fiscal ending March 31, 6.8% in next: FM
- Govt to borrow about Rs 12 lakh cr in FY22; expenditure pegged at Rs 34.83 lakh cr, including Rs 5.54 lakh cr of capital spending: FM
- We have launched one nation, one ration card scheme through which beneficiaries can claim their rations anywhere in the country. Migrant workers in particular benefit from the scheme. One nation, One ration card plan is under implementation by 32 states & UTs: FM Nirmala Sithraman.
- I am proposing substantial investments in the development of modern fishing harbours & fish landing centres. 5 major fishing harbours – Kochi, Chennai, Visakhapatnam, Paradip and Petuaghat will be developed as hubs for economic activities: FM Nirmala Sitharaman.
- I propose to amend the Insurance Act 1938 to increase the permissible FDI limit from 49% to 74% in insurance companies and allow foreign ownership & control with safeguards: Finance Minister Nirmala Sitharaman.
- Our Govt is committed to the welfare of farmers. The MSP regime has undergone a change to assure price that is at least 1.5 times the cost of production across all commodities: Finance Minister Nirmala Sitharaman
- Procurement has also continued to increase at a steady pace. This has resulted in an increase in payment to farmers substantially. In the case of wheat, the total payment paid to farmers in 2013-14 was Rs Rs 33,874 cr. In 2019-20 it was Rs 62,802 cr. In 2020-21, it was Rs 75,060 crores: FM
- Ujjwala scheme will be expanded to over 1 crore more beneficiaries. We will add 100 more districts in the next three years to the city gas distribution network.
- In 2021-22 we would also bring the IPO of LIC for which I am bringing the requisite amendments in this session itself: Finance Minister Nirmala Sitharaman
- By March 2022, another 8,500 km of road projects to be awarded, an additional 11,000 km of NH corridors to be completed, under the Bharat Mala Pariyojna project.
- Indian Railways has prepared a National Rail Plan for India 2030. The plan is to create a future-ready railways system by 2030 – bringing down the logistic cost for the industry is at the core of a strategy to enable Make in India: Finance Minister Nirmala Sitharaman
- FM says NITI Aayog to be asked to work on the next list of central public sector companies for disinvestment.
- Two PSBs and one general insurance company to be divested, legislations amendments to be introduced in this session: FM.
- FM puts disinvestment receipts at Rs 1.75 lakh cr for fiscal year beginning April 1, 2021.
- I am providing a record sum of Rs 1,10,055 crores for Railways of which Rs 1,07,100 crores is for Capital Expenditure only: Finance Minister Nirmala Sitharaman
- FM announces Rs 18,000 cr scheme to augment public transport in urban areas.
- Govt proposes to launch hydrogen energy mission next fiscal for generating hydrogen from green power sources: FM
- The government on Monday announced the Jal Jeevan mission with an outlay of Rs 2.87 lakh crore for 4,378 urban local bodies.
- Presenting the Union Budget for 2021-22, Finance Minister Nirmala Sitharaman further said Swachh Bharat 2.0 will be implemented with an outlay of Rs 1,41,678 crore over a period of five years.
- Asset reconstruction and management company to be set up for stressed assets of banks: FM in Budget for 2021-21.
- FM lays out a Rs 64,180 crore spending plan for healthcare over the next six years
- Social security benefit to be extended to platform and gig workers
Agri Infra Fund increased to Rs 40,000 cr, Micro Irrigation Corpus doubled to Rs 10,000 cr: FM in Budget for 2021-22.
- Agri infra fund would be made available to APMCs to augment infrastructure facilities
- Urban Swachha Bharat Mission 2.0 will be implemented with a total allocation of Rs 1,41,678 crores over 5 years: FM
- ₹ 1.97 lakh crore over 5 years starting this Financial Year, for Production Linked Incentive Schemes to create manufacturing global champions for an Aatma Nirbhar Bharat will nurture size and scale and create jobs for youth
- Today India has 2 vaccines available and has begun safeguarding not just its own citizens but also those of over 100 countries: Union Finance Minister
- Pneumococcal vaccine, a made in India product, presently limited to 5 States, will be rolled out across the country; This will avert over 50,000 child deaths annually I have provided Rs 35,000 Cr for COVID vaccines in 2021-22, committed to providing further funds: FM @nsitharaman
Ahead of the Budget, the government announced some mini budgets as stimulus packages for the economy. In the Economic Survey, the finance ministry has projected that India’s real GDP will record a growth of 11 per cent in 2021-22, though the economy is expected to witness around 7.7 per cent contraction in 2020-21 as per estimates.
Before presenting the 2021-2022 Union Budget, Finance Minister Nirmala Sitharaman called on President Ram Nath Kovind at Rashtrapati Bhavan.