Budget 2021-22 key highlights

FM Nirmala Sitharaman said Budget 2021 depends on six pillars:

1- Health & well-being.

2- Physical, financial capital & infrastructure.

3- Inclusive development for aspirational India.

4- Reinvigorating human capital, innovation.

5. R&D

6. Minimum government and maximum governance.

“One’s the people of India decides to do something, nothing is impossible.”

PM Narendra Modi

Budget highlights FY 2021-22:

  • Total financial impact of govt measures pegged at Rs 27.1 lakh crores.
  • At Rs 5.54 lakh crores, govt expenditure for FY22 hiked by 34.5%.
  • 2.23 lakhs alloted towards health and well being.
  • 13,000-km length road projects already awarded under Rs 5.35 lakh cr Bharatmala project.
  • The FM proposed the following National Highway budget for the states: Tamil Nadu: 3500km @Rs. 1.03 lakh crores, Kerala: 1100km @Rs.65,000 crores, West Bengal: 675km @Rs.25,000 crores.
  • Metro projects will be taken up in Metro cities. Also in line are the ‘Metro Lite’ & ‘Metro New’ concepts for tier 1& 2 cities.
  • FM proposes to focus on the various allied laws of the securities market to be merged to the Securities Market Code.
  • Ujjwala scheme will be extended to cover 1 crore more beneficiaries.
  • FM proposes hiking FDI limit in insurance from 49% to 74%.
  • FM grants Rs.1,000 crores to the Solar Energy Corporation of India for the growth of the Solar Energy Sector.
  • India’s manufacturing sector has to grow in double digits for $5-trillion economy.
  • The FM proposed to amend the DICGC Act, 1961 to streamline its provision where the depositors of the bank can get easy access to deposits through insurance in the case of a stressed bank.
  • The FM announced that MCA 21 V3.0 to be introduced with additional modules for e-scrutiny and e-adjudication.
  • The FM proposed to withdraw exemption on import of leather as they are domestically produced.
  • MSP regime has undergone a change to provide 1.5 times the product cost across all commodities.
  • The FM announced that the ‘1 nation-1 ration card’ plan has been implemented by 32 States and UTs.
  • FM announces voluntary vehicle scrappage policy putting auto sector in top gear.
  • FM gives Rs 1.97 lakh cr boost for PLI scheme to energise manufacturing
  • Record sum of Rs 1,10,055 crores allocated to Indian Railways.
  • ₹3.05 trillion electricity distribution reform programme to help reduce losses and improve efficiency of electricity distribution companies.
  • LIC IPO to come in 2022, sale of Air India and BPCL to be completed by 2022।
  • ₹18,000 crore scheme to future freight projects, public transport in urban areas.
  • Compliance burden for senior citizens eased: No need to file ITRs
  • Govt to set-up faceless dispute resolution mechanism for small taxpayers allowed to re-open tax investigation to 3 years as opposed to 6 years now.
  • New financial institution to finance DFIs.
  • FM proposes an amount of Rs.35000 crore to manufacture and make accessible the COVID19 vaccine.
  • Rs 15,700 cr provision for MSME sector.
  • The Govt plans to allot Rs 20,000 crore for bank recapitalisation of PSBs.
  • Nirmala Sitharaman announces reforms in taxation, no changes in income tax slabs.
  • FM proposed a faceless Income Tax Appellate Tribunal (ITAT) for providing online resolution.
  • The FM announced that the deduction under section 80EEA is to be extended to loans taken up to 31st March 2022.
  • FM announces the pre-filled #ITR in Budget2021: Salary, Tax Payments, TDS are already pre-filled. Capital Gains, dividend incomes, and interest income will now be pre-filled.
  • Govt. will borrow Rs 80,000 crore in the remaining two months to meet FY21 expenditure, and is projected to borrow about Rs 12 lakh crore in FY22.
  • The FM raised customs duty on solar inverters from 5% to 20% and solar lanterns from 5% to 15%.
  • Revise definition under Companies Act, 2013 for small companies by increasing their threshold for capitalisation.
  • Minimum wages will now apply to all categories of workers and women will be allowed to work in all categories with adequate protection.
  • Basic customs duty raised on import of sub-parts of mobile phones and battery chargers from nil to 2.5% in FY21-22.
  • The FM proposed Rs1.41 lakh crores over a period of 5 Years for the Urban Swacch Bharath 2.0.
  • India will set up seven textile parks over three years under the scheme of mega investment textile parks.
  • The Budget set agriculture credit target of Rs 16.5 lakh crore for FY22, and will further increase provision to rural infra development fund to Rs 40,000 crore from earlier Rs 30,000 crore.
  • Consolidate provisions of the Sebi Act, Depositories Act, Securities Contracts Regulation Act, and the Government Securities Act.
  • One-person companies with no restriction on paid-up capital and turnover. Non-resident Indians will also be allowed to incorporate one-person companies.
  • India to launch Deep Ocean Mission, with allocation of Rs 4,000 crore over next four years.
  • Tax Holiday extended.
  • Rs 3,726 crore for the forthcoming Census, calling it “the first digital census”.
  • Govt plans on reducing customs duty uniformly to 7.5% on products of non-alloy, alloy and stainless steel, exempting duty on steel scrap till March 2022.
  • Govt aims to get Rs 1.75 lakh crore through divestments in 2021-22.
  • Sitharaman pegged FY21 fiscal deficit at 9.5% of GDP, with FY22 fiscal deficit target at 6.8% of GDP.

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