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Union Budget 2021




The Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman presented the Union Budget 2021-22 in Parliament today, which is the first budget of this new decade and also a digital one in the backdrop of unprecedented COVID-19 crisis.



FM Nirmala Sitharaman said that " The Budget proposals for this financial year rest on six pillars" —

1) Health and Well-Being,

2) Physical and Financial Capital and Infrastructure,

3) Inclusive Development for Aspirational India,

4) Reinvigorating Human Capital,

5) Innovation and R&D, and

6) Minimum Government, Maximum Governance'.


Highlights of the Budget :-


A] Health and Sanitation:

- A new scheme, titled PM Atma Nirbhar Swasthya Bharat Yojana, to be launched to

develop primary, secondary and tertiary healthcare in India.

- Mission POSHAN 2.0 to improve nutritional outcomes across 112 aspirational districts

- Operationalization of 17 new public health units at points of entry

- Modernizing of existing health units at 32 airports, 15 seaports and land ports

- Jal Jeevan Mission Urban aimed at better water supply nationwide sighting the

approach and importance of clean drinking as emphasized by WHO

- Strengthening of Urban Swachh Bharat Mission


B] Education:

- 100 new Sainik Schools to be set up with the help of NGOs

- 750 Eklavya schools to be set up in tribal areas for Tribal and backward class population

- A Central University to come up in Leh


C] Infrastructure:

- Vehicle scrapping policy to phase out old and unfit vehicles – all vehicles to undergo

fitness test in automated fitness centers 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 year 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


D] 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


E] 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


F] 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


G] 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


Budget Highlights (Key Features)
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PDF • 1.98MB
Key_to_Budget_Document_2021
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PDF • 1.85MB
Budget_Speech_Hindi
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PDF • 1.08MB
Budget_Speech_English
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PDF • 768KB

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