JOIN USBudget 2021 | Key takeaways from the Budget speech
Presenting India’s first digital budget, Finance Minister Nirmala Sitharaman said the preparations for the annual exercise culminated in an environment like never before.
Here are the key takeaways from Union Budget 2021 basis Sitharaman’s Budget speech:
1) Pandemic-induced global slowdown wasn’t expected during Budget 2020. Coronavirus prompted for emphasis on Aatmanirbhar Bharat which was rolled out in May 2020. Overall Covid-19 measures by the government and RBI amount to Rs 27.1 lakh crore
2) Healthcare is the first pillar of Union Budget 2021. The government will introduce Aatmanirbhar Healthcare Yojana with an outlay of Rs 64,180 crore with a 6-year horizon. This will strengthen the National Centre for Disease Control and 15 Health Emergency Centres will also be set up. Additional Rs 35,000 crore for Covid Vaccine. The government will also launch Mission Poshan 2.0. Integrated public health labs to be set up in each district, 3,382 block public health units in 11 states.
3) Budget 2021 makes provisions for a voluntary vehicle scrappage policy. Vehicles to undergo fitness test - which is 20 years for passenger vehicles and 15 years for commercial vehicles.
4) FM says plans to set up Development Financial Institution with a Rs 20,000 cr outlay. FM targets Rs 5 lakh crore lending portfolio within 3 years' time.
5) There is a sharp increase in capital expenditure at Rs 5.44 lakh crore.
6) Government has committed Rs 1.97 lakh crore for PLI schemes covering 13 sectors. Further, 7 textile parks will be launched over three years.
7) More economic corridors planned including in Tamil Nadu (Rs 1.03 lakh crore investment); in Kerala (Rs 65,000 crore); in Bengal (Rs 25,000 crore). National highway works worth Rs 19,000 crore in progress in Assam.
8) The Union Budget 2021 sets aside Rs 1.15 lakh crore for railways, the bulk of it allocated for infrastructure development and upgradation. High-density railway networks to get collision protection system.
9) Plans for Metro Neo and Metro Lite in Tier-II cities and outskirts of Tier-1 cities.
10) Government to launch the Hydrogen Energy Mission.
11) Insurance Act to be amended to increase FDI limit in insurance to 74 per cent from 49 per cent with safeguards.
12) FM proposes further recapitalisation of state-owned banks with an outlay of Rs 20,000 crore.
13) Asset reconstruction and asset management companies to be set up to take over stressed debt.
14) LIC IPO will be brought in FY22. BPCL, Air India, Shipping Corp, Container Corp and other disinvestments will be completed in 2021-22
15) The free cooking gas LPG scheme, Ujjwala will be extended to one crore more beneficiaries.
16) The allocation to rural infrastructure development has been increased to Rs 40,000 crore in next fiscal from Rs 30,000 crore in FY21. Agriculture credit target raised to Rs 16.5 lakh crore in 2021-22. Agri infra fund would be made available to APMCs to augment infrastructure facilities. Social security benefit to be extended to platform and gig workers.
17) The government has proposed to set up a Central University in Leh.
18) Budget 2021 envisages a scheme for setting up mega textile parks, as part of the Centre's efforts to position India as a fully integrated, globally competitive manufacturing and exporting hub for the sector.
19) Budget 2021 exempts income tax returns filing for senior citizens above 75 years of age having only interest income and pension. This is expected to reduce compliance burden on senior citizens.
20) Tax holiday for startups extended by another year. In order to incentivise funding for startups, capital gains exemption to continue for one more year.
More to follow...