Finance Minister Nirmala Sitharaman presented the Union budget of India on Feb 01st 2021.
Six pillars of Indian Union Budget 2021
- Health and Well being
- Physical and financial capital and Infrastructure
- Inclusive Development of Aspirational India
- Reinvigorating Human Capital
- Innovation and R&D
- Minimum Government and Maximum Governance
Lets discuss the key highlights from the budget in a simple terms.
Health and well being
New Scheme PM Atma Nirbhar Swasthya Bharat Yojana to develop primary, secondary and tertiary healthcare facilities
To strengthening Swatch Bharat Mission in Urban areas
Jal Jeevan Mission Urban to provide better water supply to the whole Nation
Operationalization and Modernizing existing health units at points of entry at various airports, seaports and land ports
POSHAN 2.0 mission to improve nutritional outcomes
Infrastructure
The new Vehicle scrapping policy is announced. The old and unfit vehicles will be scrapped. All vehicles should undergo fitness test in automated fitness centers after 20 years for personal vehicles and 15 years for commercial vehicles.
Highway and road works development in various stretches of Tamil Nadu, Kerala, West Bengal and Assam.
National Asset Monetization pipeline for potential brownfield infrastructure assets.
National Rail Plan for future ready trains and 100% electrification of trains by 2030.
Metro service projects in 27 cities.
National Hydrogen Mission to be launched to generate hydrogen from green power sources.
Pradhan Mantri Ujjwala Yojana – LPG scheme to be extended to cover 1 crore more beneficiaries.
Gas Pipeline project to be setup in Jammu and Kashmir
Education
New sainik Schools(100) are setup to provide best education
Setting up Ekalavya Schools(750) in Tribal areas
A Central University in Leh region of Ladakh
Agriculture
1000 more mandis to be integrated into E-NAM market place
Major shipping hubs to be developed including Chennai, Kochi, Paradeep
A multipurpose seaweed part to be established in Tamil Nadu state
Agriculture infrastructure fund to be made available for APMCs for augmenting their infrastructure
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Employment
A portal to be launched to maintain information on gig workers and construction workers
Social security is now extended to Gig and Platform networks
Margin capital required for loans via Stand-up India scheme reduced from 25% to 15% for SCs, STs and women
Tax
IT need not be filed by people above 75 years of age who receive pension and 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
Low cost affordable housing projects to get 1 year tax holiday
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 rationalized
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 soybeans 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 ₹ 1 lakh to ₹ 5 lakh for bank depositors
Proposal to decriminalize Limited Liability Partnership Act of 2008
Two PSU bank and one general insurance firm to be disinvested this year
LIC IPO will be launched this year (2021)
Strategic sale of BPCL, IDBI Bank, Air India to be completed
Hope you got a glimpse of Indian Union Budget 2021, Please let me know if you have any questions in the comment section and don’t forget to follow us social media, see you in the next blog. TA-DA!!
