Highlights of Union Budget 2021-22

Union Finance Minister Nirmala Sitharaman holds up a folder with the Government of India logo as she leave her Office to present the Budget for 2021-2022 on February 1, 2021.  

Here are sector-wise highlights of the 2021 Union Budget presented by Finance Minister Nirmala Sitharaman

Presenting the Union Budget for 2021-22, Finance Minister 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
3. infrastructure, inclusive development for aspirational India
4. reinvigorating human capital
5. innovation and R&D
 6. 'Minimum Government, Maximum Governance'.

Significant announcements included a slew of hikes in customs duty to benefit Make in India, proposal to disinvest two more PSBs and a general insurance company, and numerous infrastructure pledges to poll-bound States. Fiscal deficit stands at 9.5% of the GDP, and is estimated to be 6.8% in 2021-22. Personal income tax slabs remain as is. 

Here are the highlights of this year’s budget:

Health and Sanitation:

1. A new scheme, titled PM Atma Nirbhar Swasthya Bharat Yojana, to be launched to develop primary, secondary and tertiary healthcare

2. Mission POSHAN 2.0 to improve nutritional outcomes across 112 aspirational districts

3. Operationalisation of 17 new public health units at points of entry

4. Modernising of existing health units at 32 airports, 15 seaports and land ports

5. Jal Jeevan Mission Urban aimed at better water supply nationwide

6. Strengthening of Urban Swachh Bharat Mission

Education:

1. 100 new Sainik Schools to be set up

2. 750 Eklavya schools to be set up in tribal areas

3. A Central University to come up in Ladakh

Infrastructure:

1. Vehicle scrapping policy to phase out old and unfit vehicles –  all vehicles to undergo fitness test in automated fitness centres every 20 years (personal vehicles), every 15 years (commercial vehicles)

2. Highway and road works announced in Kerala, Tamil Nadu, West Bengal and Assam

3.National Asset Monetising Pipeline launched to monitor asset monetisation process

4. National Rail Plan created to bring a future ready Railway system by 2030

5. 100% electrification of Railways to be completed by 2023

6. 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

7. National Hydrogen Mission to be launched to generate hydrogen from green power sources

8. Recycling capacity of ports to be doubled by 2024

9. Gas pipeline project to be set up in Jammu and Kashmir

10.Pradhan Mantri Ujjwala Yojana (LPG scheme) to be extended to cover 1 crore more beneficiaries 

Tax:

1. No IT filing for people above 75 years who get pension and earn interest from deposits

2. 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

3. Affordable housing projects to get a tax holiday for one year

4. Compliance burden of small trusts whose annual receipts does not exceed Rs. 5 crore to be eased

5. Duty of copper scrap reduced to 2.5%

6. Custom duty on gold and silver to be rationalised

7. Duty on naphtha reduced to 2.5%.

8. Duty on solar inverters raised from 5% to 20%, and on solar lanterns from 5% to 15%

9. All nylon products charged with 5% customs duty

10. Tunnel boring machines to attract customs duty of 7%

11.Customs duty on cotton raised from 0 to 10%

12. Agriculture infrastructure and development cess proposed on certain items including urea, apples, crude soyabean and sunflower oil, crude palm oil, kabuli chana and peas

Economy and Finance:

1. Fiscal deficit stands at 9.5% of the GDP; estimated to be 6.8% in 2021-22

2. Proposal to allow States to raise borrowings up to 4% of GSDP this year

3. A Unified Securities Market Code to be created, consolidating provisions of the Sebi Act, Depositories Act, and two other laws

4. Proposal to increase FDI limit from 49% to 74%

5. An asset reconstruction company will be set up to take over stressed loans

6. Deposit insurance increased from Rs 1 lakh to Rs 5 lakh for bank depositors

7. Proposal to decriminalise Limited Liability Partnership Act of 2008

8. Two PSU bank and one general insurance firm to be disinvested this year

9. An IPO of LIC to debut this fiscal

10.Strategic sale of BPCL, IDBI Bank, Air India to be completed

Agriculture:

1. Agriculture infrastructure fund  to be made available for APMCs for augmenting their infrastructure

2. 1,000 more Mandis to be integrated into the E-NAM market place

3. Five major fishing hubs, including Chennai, Kochi and Paradip, to be developed

4. A multipurpose seaweed park to be established in Tamil Nadu

Employment:

1. A portal to be launched to maintain information on gig workers and construction workers

2. Social security to be extended to gig and platform workers

3. Margin capital required for loans via Stand-up India scheme reduced from 25% to 15% for SCs, STs and women

GK Snapshots on 1 Feb 2021

Govt committed to farmers' welfare, MSP system strengthened, sharp increase in payment to farmers: FM

New Delhi: Finance Minister Nirmala Sitharaman said the MSP regime has undergone a "sea change" to assure price at least 1.5 times of production cost with sharp increase in procurement of foodgrains and payment to farmers.

National

COVID-19: India records 11,427 new cases, 117 fatalities

New Delhi: With 11,427 new coronavirus cases being reported in a day, India''s COVID-19 tally has increased to 1,07,57,610, while the number of people who have recuperated from the disease has surged to 1,04,34,983, according to the Union Health Ministry data.

Some respite from cold wave in Kashmir as min temp rises

Residents of Kashmir got a major respite from the intense cold wave conditions on Monday as the minimum temperatures across the Valley rose by several degrees amid fresh snowfall in many areas, including Srinagar, officials said.

International

Myanmar military seizes power, detains elected leader Aung San Suu KyiMyanmar military seizes power, detains elected leader Aung San Suu Kyi

Over 5,000 arrested at pro-Navalny protests across Russia

Moscow: Chanting slogans against President Vladimir Putin, tens of thousands took to the streets Sunday across Russia to demand the release of jailed opposition leader Alexei Navalny, keeping up nationwide protests that have rattled the Kremlin.

UN Chief strongly condemns detention of political leaders, transfer of powers to military in Myanmar

The top United Nations leadership has strongly condemned the detention of Myanmar''s State Counsellor Aung San Suu Kyi, President U Win Myint and other political leaders, as UN Secretary General Antonio Guterres voiced concern over transfer of powers to the military, calling it a serious blow to democratic reforms in the country.

Biden invites GOP lawmakers to White House virus relief talk

President Joe Biden has invited to the White House a group of 10 Republican senators who have proposed spending about one-third of what he is seeking in coronavirus aid.

EU: AstraZeneca to supply 9 million more vaccine doses

Pharmaceutical company AstraZeneca has agreed to supply 9 million additional doses of its coronavirus vaccine to the European Union during the first quarter, the bloc''s executive arm said Sunday.

Major storm heads to Northeast after blanketing Midwest

After days of frigid temperatures, the Northeast braced for a whopper of a storm that could dump well over a foot of snow in many areas, create blizzard-like conditions and cause travel problems for the next few days.
 

Entertainment

Anushka Sharma, Virat Kohli reveal daughter's name

Mumbai: Actor-producer Anushka Sharma and her cricketer-husband Virat Kohli announced that they have named their first child, daughter Vamika.

Jane Fonda receives COVID-19 vaccine

Hollywood veteran and activist Jane Fonda said she has received the first dose of the coronavirus vaccine.

Sports

Messi shows his worth, leads Barcelona to win over Athletic

Madrid: Lionel Messi showed his worth yet again, scoring on a beautiful free kick to lead Barcelona to a 2-1 win over Athletic Bilbao in the Spanish league.

Indian women's hockey team holds world No.2 Argentina to 1-1 draw

The Indian women''s hockey team put up a spirited performance to hold world No.2 Argentina to a 1-1 draw and end its tour of the country on a high.

Barcelona, Real Madrid women seek better COVID-19 protocols

Players for Barcelona and Real Madrid''s women''s teams staged a protest before the cl sico between the sides in the Spanish league to demand better COVID-19 protocols.

Tottenham struggles without Kane in 1-0 loss to Brighton

Tottenham struggled without the creativity and cutting edge of injured striker Harry Kane in a 1-0 loss at Brighton, leaving Jose Mourinho''s team six points off the Premier League''s top four.

Business

Asian shares rise after vaccine maker boosts Europe supplies

Asian stock markets gained Monday after coronavirus vaccine maker AstraZeneca agreed to increase supplies to Europe amid rising worries about the disease.