Presenting the Union Budget for 2021-22 , Finance Minister Nirmala Sitharaman said that the Budget proposals for this financial year rest on six pillars — health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D, and 'Minimum Government, Maximum Governance'.
Significant announcements included a slew of hikes in customs duty to benefit Make in India, proposal to disinvest two more PSBs and a general insurance company, and numerous infrastructure pledges to poll-bound States. Fiscal deficit stands at 9.5% of the GDP, and is estimated to be 6.8% in 2021-22. Personal income tax slabs remain as is.
Here are the highlights of this year’s budget:
Health and Sanitation:
A new scheme, titled PM Atma Nirbhar Swasthya Bharat Yojana , to be launched to develop primary, secondary and tertiary healthcare
Mission POSHAN 2.0 to improve nutritional outcomes across 112 aspirational districts
Operationalisation of 17 new public health units at points of entry
Modernising of existing health units at 32 airports, 15 seaports and land ports
Jal Jeevan Mission Urban aimed at better water supply nationwide
Strengthening of Urban Swachh Bharat Mission
Education:
100 new Sainik Schools to be set up
750 Eklavya schools to be set up in tribal areas
A Central University to come up in Ladakh
Infrastructure:
Vehicle scrapping policy to phase out old and unfit vehicles – all vehicles to undergo fitness test in automated fitness centres every 20 years (personal vehicles), every 15 years (commercial vehicles)
Highway and road works announced in Kerala, Tamil Nadu, West Bengal and Assam
National Asset Monetising Pipeline launched to monitor asset monetisation process
National Rail Plan created to bring a future ready Railway system by 2030
100% electrification of Railways to be completed by 2023
Metro services announced in 27 cities, plus additional allocations for Kochi Metro, Chennai Metro Phase 2, Bengaluru Metro Phase 2A and B, Nashik and Nagpur Metros
National Hydrogen Mission to be launched to generate hydrogen from green power sources
Recycling capacity of ports to be doubled by 2024
Gas pipeline project to be set up in Jammu and Kashmir
Pradhan Mantri Ujjwala Yojana (LPG scheme) to be extended to cover 1 crore more beneficiaries
Tax :
No IT filing for people above 75 years who get pension and earn interest from deposits
Reopening window for IT assessment cases reduced from 6 to 3 years. However, in case of serious tax evasion cases (Rs. 50 lakh or more), it can go up to 10 years
Affordable housing projects to get a tax holiday for one year
Compliance burden of small trusts whose annual receipts does not exceed Rs. 5 crore to be eased
Duty of copper scrap reduced to 2.5%
Custom duty on gold and silver to be rationalised
Duty on naphtha reduced to 2.5%.
Duty on solar inverters raised from 5% to 20%, and on solar lanterns from 5% to 15%
All nylon products charged with 5% customs duty
Tunnel boring machines to attract customs duty of 7%
Customs duty on cotton raised from 0 to 10%
Agriculture infrastructure and development cess proposed on certain items including urea, apples, crude soyabean and sunflower oil, crude palm oil, kabuli chana and peas
Economy and Finance:
Fiscal deficit stands at 9.5% of the GDP; estimated to be 6.8% in 2021-22
Proposal to allow States to raise borrowings up to 4% of GSDP this year
A Unified Securities Market Code to be created, consolidating provisions of the Sebi Act, Depositories Act, and two other laws
Proposal to increase FDI limit from 49% to 74%
An asset reconstruction company will be set up to take over stressed loans
Deposit insurance increased from Rs 1 lakh to Rs 5 lakh for bank depositors
Proposal to decriminalise Limited Liability Partnership Act of 2008
Two PSU bank and one general insurance firm to be disinvested this year
An IPO of LIC to debut this fiscal
Strategic sale of BPCL, IDBI Bank, Air India to be completed
Agriculture:
Agriculture infrastructure fund to be made available for APMCs for augmenting their infrastructure
1,000 more Mandis to be integrated into the E-NAM market place
Five major fishing hubs, including Chennai, Kochi and Paradip, to be developed
A multipurpose seaweed park to be established in Tamil Nadu
Employment:
A portal to be launched to maintain information on gig workers and construction workers
Social security to be extended to gig and platform workers
Margin capital required for loans via Stand-up India scheme reduced from 25% to 15% for SCs, STs and women
Published - February 01, 2021 02:11 pm IST
