Finance Minister Nirmala Sitharaman presented the Union Budget 2021 on Monday. The Union budget gave major emphasis to healthcare and infra sectors. Besides, a host of substantial announcements were made on the divestment front, including the coming IPO of Life Insurance Corporation.
No significant change was made in the area of income tax in this Union Budget.
A large number of commonly used items, including refrigerators, air conditioners, LED lights and mobile phones, will become more expensive due to hike in customs duty on imported parts.
Here are the highlights of Union Budget:
Health and Sanitation (Union Budget 2021-22):
-A new scheme, titled PM Atma Nirbhar Swasthya Bharat Yojana, to be launched to develop primary, secondary and tertiary healthcare
-Mission POSHAN 2.0 to improve nutritional outcomes across 112 aspirational districts
-Operationalisation of 17 new public health units at points of entry
-Modernising of existing health units at 32 airports, 15 seaports and land ports
-Jal Jeevan Mission Urban aimed at better water supply nationwide
-Strengthening of Urban Swachh Bharat Mission
Education (Union Budget 2021-22) :
-100 new Sainik Schools to be set up
-750 Eklavya schools to be set up in tribal areas
-A Central University to come up in Ladakh
Infrastructure (Union Budget 2021-22) :
-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)
-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 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
Tax (Union Budget 2021-22) :
The government has left direct taxes unchanged, but took steps in direct tax incentives to ease compliance for taxpayers. The FM proposed making it so that advance tax liability on dividend income shall arise only after payment of dividend.
-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 channa and peas
Economy and Finance (Union Budget 2021-22) :
-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 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
Agriculture (Union Budget 2021-22) :
-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
Employment (Union Budget 2021-22) :
-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
