Finance Minister Nirmala Sitharaman is presenting Union Budget 2021-22 today at the Parliament. For the first time ever in the history of India’s Union Budget, she is using a ‘Made in India’ tablet to deliver a paperless budget. She has started the address post the Cabinet’s Budget 2021 approvals.
Ahead of Union Budget 2021, LS Speaker Om Birla tweets key details on the country’s budget record. “From 1947 to 2020, a total o 92 budget speeches were presented in the Lok Sabha. This includes an interim budget, a statement on the economic situation and tax proposals. Between 1947 and 2016, 86 railway budgets were also presented. Since 2017, the railway budget has been presented in the Union Budget”.
In her speech, FM Nirmala Sitharaman said that 2021 is the year of many milestones for India and that the country has always been self-reliant. She further said that aatmanirbhar Bharat package helped the needy and that the government is committed to inclusive development.
Below are the Key Highlights:
FM says that the government withdraws exception on tunnel boring machines.
Sitharaman earmarked Rs.1,500 crore for a proposed scheme to provide financial incentive to promote digital mode of payment. She said that this will give a further boost to digital transaction.
IT return forms to now be pre-filled with Capital Gains and Bank Interest details.
Tax benefits for startups extended by one more year: Sitharaman.
Government will set up national income tax appellate tribunal centre. Will make income tax appellate tribunals faceless: FM.
Exemption for tax audit limit doubled to Rs.10 crore turnover for companies doing business mostly through digital modes.
Sitharaman said that dividend payment by REIT’s and InvITs not subject to TDS. Advanced tax liability on dividend income shall arise only after payment of dividend, she adds.
Tax holiday for aircraft leasing businesses in Gift City: FM.
Tax exemption for rental housing projects announced.
Government will notify rules to eliminate double tax for NRIs on foreign retirement funds.
Sitharaman also launches dispute resolution scheme for small taxpayers through special committee.
FM said that in case of serious frauds, only if tax concealed has evidence of over 50 lakh, can the term go ahead.
The Budget has also reduced time limit for reopening tax returns to three years from present six.
Sitharaman said that the senior citizens above 75 years of age with only pension income exempted from filing tax returns.
Allocates Rs.3,726 crore for forthcoming Census which will be the first digital census” FM.
Government needs Rs.80,000 crore from the markets in last two month of FY21, said Sitharaman.
FM: Fiscal deficit for FY22 pegged at 6.8 percent.
FM: Fiscal deficit for FY21 pegged at 9.5 percent.
It also proposes national language translation initiative.
Government also proposes deep ocean mission with outlay of more than Rs.4,000 crore over five years, said the FM.
FM said that Rs.1,000 crore to be provided for welfare of tea workers.
Sitharaman said, “Discoms are monopolies. There is a need to provide a choice to customers to choose service provider. A framework will be put in place to provide an alternative”.
86 percent or 69 crore beneficiaries covered under one-nation, one-ration: FM.
FM said that the farmers paid Rs.75,100 crore on wheat MSP in FY21 with nearly 43.36 lakh wheat-growing farmers benefited from government procurement under MSP as against 35.57 lakh previously.
Minimum wages will apply to all categories of workers.
For the first time, social security benefits to be extended to gig and platform workers for the first time.
She said that the despite the opposition of three farm laws, agro procurement has increased steadily, benefitting farmers.
FM Sitharman mentioned that the government is committed to welfare of farmers.
Sitharaman also said that barring four strategic areas, PSUs in other sectors will be divested while announcing new disinvestment policy.
FM: Agriculture credit target at Rs.16.5 lakh crore.
Sitharaman also said that the government will bring IPO of LIC for which ‘I am brining the requisite amendments in this session itself.
FM also said that the government also allots Rs.20,000 crore for bank recapitalization.
The government also proposes investor charter across financial products: FM.
The government also proposes launch of scheme for promoting flagging of merchant ships in India by providing subsidy support.
FM also said that the government proposes to launch hydrogen energy mission next fiscal for generating hydrogen from green power sources.
Jal Jeevan Mission announced with an outlay of Rs.2.87 lakh crore for 4,378 urban local bodies.
Centre will provide Rs.18,000 crore for public buses: FM Sitharaman.
Seven port projects worth over Rs.2,000 crore via PPA mode announced in the Budget.
Our manufacturing companies need to become an integral part of global supply chain.
Sitharaman said that for a $5 trillion economy, our manufacturing sector has to grow in double digits on a sustained basis.
FM said that the pipelines of GAIL (India), Indian Oil Corp and HPCL will be monetized.
Ujjwala Scheme will be extended to cover one crore more beneficiaries. It will add 100 more districts in the next three years for city gas distribution.
NHAI has sponsored an InVit to attract investors. Five operational roads with Rs.5,000 crore value being transferred to NHAI InVit, and NHAI operational roll roads will be monetized: FM.
Sitharaman said that Indian Railways has prepared a national railways plan by 2030. It will bring down the logistics cost. Meanwhile, railways will monetize dedicated freight corridor after commissioning while the next lot of airports will also be monetized for operations and management. AAI airports in tier II and III cities and other railway assets are to be monetized.
National Infrastructure Pipeline has been expanded to 7,400 projects. FM also mentioned that projects worth Rs.1.1 lakh crore have been completed under the National Infra Pipeline. We will also introduce bill to set up DFI providing Rs.20,000 crore to launch the National Asset Monetization Pipeline to fund new infra projects.
The highway infra work proposed include building 8,500 km of highways by March 2022. This includes 3,500 km corridor in Tamil Nadu; 1,100 km in Kerala at investment of Rs.65,000 crore; and 675 km in West Bengal at a cost of Rs.95,000 crore.
She said, “For 2021-22, I propose a sharp increase in Capital Expenditure and thus have provided Rs.5.54 lakh crore which is 34.5 percent more than the BE 2020-21”.
FM Sitharaman said that outlay of Rs.1.18 lakh crore for Ministry of Road Transport and Highways.
Seven textile parks will be launched over three years, Sitharaman said.
The government has also committed Rs.1.97 lakh crore for PLI schemes covering 13 sectors.
FM Sitharaman also said that Urban Swachh Bharat 2.0 Mission will be launched at outlay of Rs.1.41 crore over five years.
Sitharaman also announced Rs.2,83,846 lakh crore for health and wellness sector which also includes Rs.35,000 crore for COVID-19 vaccines.
The government will also set up 15 Healthcare Emergency Centes, she said.
FM said that the government has introduced the Aatmanirbhar Health Yojana with an outlay of Rs.64,180 crore over six years. This will strengthen the National Centre for Disease Control.
Sitharaman started the speech with the six pillars of Budget – health and wellbeing, infrastructure, inclusive development, development of human capital, research and development and minimum government, maximum governance. She said the investment on healthcare infrastructure has increased substantially.