Edlyn Cardoza | 01 February, 2021 | Mumbai
Nirmala Sitharaman, the Finance Minister of India had presented the Union Budget today, 01 February, 2021 in the Parliament. Today’s Union Budget plan was Sitharaman’s third year as Finance Minister, and the budget has come at a time when the entire country is battling with the Coronavirus pandemic, and whilst the economy is reeling from the impact of the lockdown.
On Friday, Prime Minister Narendra Modi told at the start of the joint session of Parliament, that the Finance Minister (FM) has already announced three to four mini budgets, and that the 2021-2022 Budget should be viewed as the extension of the same effort.
However, after an estimated downtick of 7.7 percent in 2020-2021, the FM’s Economic Survey gauges that in 2021-2022, India’s real GDP would record a rise of 11 percent. The nominal GDP growth has been approximated at 15.4 percent, with the assumption of 4.4 percent inflation to be seen during the year.
Although, investors will be watching closely how the FM will bring in the big aid to spend for the economic recovery. Sitharaman has already hiked expectations by saying “It will be a budget like never before”. The budget is also expected to revolve around the philosophy of “growth with a human touch”, reported The Hindustan Times. The budget could focus on generating jobs for the young, raising farmers’ income, ease of compliance for business and citizens, improving healthcare standards, continuing the support to MSMEs, big infrastructure projects, and a push to make India self-reliant to become a key player in the global supply chain.
The Budget presentation was scheduled to take place at 11 am, with a speech from the FM in the Parliament. Prior to that there was a meeting held by the Union Cabinet at 10:15 am.
Here are some key takeaways, with everything discussed throughout the Budget presentation :
The six pillars of Budget introduced by the FM minister :
- Health and Well-being
- Inclusive development
- Infrastructure, Physical, and Financial Capital
- Reinvigoeating Development of Human Capital
- Innovation, Research and development
- Minimum Government and Maximum Governance
- FM Minister said that the PM Atmanirnhar Swasth Bharat Yojana will be launched for over six years with an outlay of over 2,83,846 lakh crore, that was addressed to the healthcare infrastructure.
The government in 2021-2022 will also be providing Rs. 35,000 crore for COVID-19 vaccination. Additionally, they are also committed to providing more funds, and two or more vaccines are on the way to prevent the spread of the virus
2) Nirmala Sitharaman propsed an exemption for senior citizens of age 75 years and above from filing Incom Tax Returns who only have interest income and pension. This will be applicable to those under the pension scheme.
3) Special scheme fr Rs. 4.12 lakh crore for capital expenditure, which will most probably end at Rs. 4.39 lakh crore for it. They will also be providing towards capital expenditure in FY22, an amount of Rs. 5.54 lakh crore, which is a 34 percent growth than last year’s budget estimate. This is a nudge to states to spend more on infrastructure.
4) Highway in workworks have been proposed for Kerala, West Bengal, and several other states.
- 3,500 km corridor in Tamil Nadu
- 675 km in West Bengal at Rs. 94,000 crore for cost.
- 1,300 km in Assam in the next three years.
- Rs. 65,000 crore investment for 1,100 km in Kerala.
Also keeping in mind, the elections for all these states are going to take place later this year.
5) The Education Budget focuses on more than 15,000 schools that will be strengthened qualitatively.
- Legislation for umbrella body of higher education
- Central university in Leh
- 100 new Sainik schools to be set up
- Rs. 35,219 crore over six years to benefit the Schedule Caste Students.
6) The Indian Railways have prepared a national railways plan by 2030. It will bring down the logistics cost. FM Minister announces Rs. 1.10 lakh crore outlay for the railways.
7) Rs. 300 crore has been granted to the Goa Government for the celebration of independence of 50 years from the Portuguese.
8) The FM has announced two disinvestment plans :
- Two public sector banks and one general insurance company for stake sale in FY22
- The FM Minister also announced that she will bring LIC’S IPO this Fiscal.
9) FM Minister also talks about migrant workersworkers, where 32 states covering the amount go 69 crore benficiaries have implemented the One Nation One Ration cardcard and will also be including a site compiling of details of workers.
10) The SOP for housing has been announced where the FM minister spoke about notified rental housing projects that can avail of tax exemptions, and affordable housing projects that can avail a tax holiday for one more year till 31 March 2022.
Till February 15 2021, the first part of the Budget Session is scheduled. The second part is scheduled to be from March 8 to April 8 2021.
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