What the Union Budget 2021 holds for agri, fisheries sectors and migrants?

Stressing on the need to improve the farm infrastructure to ensure higher remuneration to farmers, the Finance Minister Nirmala Sitharaman, presenting the Union Budget 2021, proposed an Agriculture Infrastructure and Development Cess (AIDC) in the range of 2.5 to 100 per cent on certain commodities.

Agriculture

Finance Minister proposed 10 per cent hike in the farm loan disbursal target to Rs 16.5 lakh crore in the Budget, and introduced an agri-infra and development cess of up to 100 per cent to create post-harvest infrastructure for improving farmers' income.

On the government grain procurement, the Finance Minister said, "The minimum support price (MSP) regime has undergone a sea change to assure price that is at least 1.5 times the cost of production across all commodities".

Fisheries

The government also proposed substantial investments for the development of fishing harbours, fish landing centres and promote seaweed farming.

To provide adequate credit to our farmers, the minister said, "I have enhanced the agricultural credit target to Rs 16.5 lakh crores in FY'22. We will focus on ensuring increased credit flows to animal husbandry, dairy, and fisheries".

Presenting the first digital Budget in Parliament, Sitharaman said the proposal on agriculture will further strengthen "the Sankalp of the nation first, doubling farmers' income, strong infrastructure..", among others.

The farm credit target set for the next fiscal is however higher than Rs 15 lakh crore set for the current fiscal.

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To boost the fishery sector, the minister proposed substantial investments in the development of modern fishing harbours and fish landing centres.

To start with, five major fishing harbours – Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat – will be developed as hubs of economic activity. We will also develop inland fishing harbours and fish-landing centres along the banks of rivers and waterways, she said.

Migrants

In the budget speech for 2021-22 fiscal year, Finance Minister Nirmala Sitharaman said the government sees 'Housing for All' and affordable housing as priority areas.

"In the July 2019 Budget, I provided an additional deduction of interest, amounting to Rs 1.5 lakh, for loan taken to purchase an affordable house. I propose to extend the eligibility of this deduction by one more year, to 31st March 2022," she said.

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The minister said the additional deduction of Rs 1.5 lakh shall therefore be available for loans taken up till March 31, 2022, for the purchase of an affordable house.

The minister said that the government is committed to promote supply of affordable rental housing for migrant workers. "For this, I propose to allow tax exemption for notified Affordable Rental Housing Projects."

(With inputs from PTI)