FM Ms Nirmala Sitharaman presents a post covid budget to protect individuals and industry

Agencies

New Delhi, 01 Feb 2021: Presenting a budget in a post covid 19 situation is indeed a challenging task and the Union Finance Minister Ms Nirmala Sitharaman has done her best to spare the individual tax payer of any new fresh taxes and retaining the same slabs rationalization she did last year, enhanced taxes in terms of customs to give a boost manufacturing under the atma nirbhar scheme to protect domestic industry, and considerably enhanced the the expenditure on health care to over 3% of GDP.

 

Senior citizens are exempted from filing returns provided they have reached the age of 75 years. Disinvestment targets have been fixed at rs 1.75 lakh crore through major ones of Air India and BPCL and a massive IPO of LIC, should help in reducing the honestly admitted fiscal deficit of 9.5% of GDP and raised hopes of reducing it to 6.8% by FY 2021-22 and 4% by 2025-26.

 

The FM has opened up the insurance sector by allowing 74% foreign investment from 49 % so as to allow fdi and expand health coverage for the citizens.

 

Ms Nirmala Sitharaman announced a package totalling Rs. 27.1 lakh to deal with COVID-19 pandemic under Atmanirbhar Package while presenting the Union Budget 2021 in the lower house of Parliament. This is the first paperless budget in the history of independent India.

 

General reaction is that the takeaways from the budget is ahead of two elections in West Bengal and Tamil Nadu.

 

The government has announced a package of totalling Rs. 27.1 lakh to deal with COVID-19 pandemic under Astmanirbhar Package. Aatmanirbhar package has accelerated the structural reforms across the country. India has started the nation-wide vaccination programme which is the largest in the world.

 

India has approved two vaccines (Covaxin and Covishield) and two more vaccines will be launched soon said Finance Minister Nirmala Sithraman. The government will provide Rs. 35,000 crore for COVID-19 vaccination. The Finance Minister has committed to providing more funds.

 

Finance Minister Nirmala Sithraman has proposed introduction of Aatmanirbhar health program with an outlay of Rs. 64,180 crores, this will act as an addition to the existing National Health Missi.

 

As the finance minister was presenting the Union Budget, Harsimrat Kaur Badal of the Shiromani Akali Dal, Bhagwant Mann of the Aam Aadmi Party and Hanuman Beniwal of the Rashtriya Loktantrik Party registered their protest inside the House on the three new farm legislations by holding placards demanding that the Centre take back the “black” laws.

 

The protesting members were standing in the aisles of the House.

 

Following are the highlights:

• Operation green scheme to cover 22 more perishable commodities: FM.

• Allocation to rural infra development increased to Rs 40,000 cr in next fiscal from Rs 30,000 crore in FY21: FM.

• Govt committed to welfare of farmers, says FM Sitharaman. 43.36 lakh wheat growing farmers benefited from govt procurement under MSP as against 35.57 lakh previously: FM. Farmers paid Rs 75,100 cr on wheat MSP in FY21: FM. Agriculture credit target raised to Rs 16.5 lakh cr in 2021-22: FM. 1,000 more mandis will be integrated with electronic national market: FM. Agri infra fund would be made available to APMCs to augment infrastructure facilities: FM.

• FM announces development of 5 major fishing hubs.

• FM says NITI Aayog to be asked to work on next list of central public sector companies for divestment.

• Barring four strategic areas, PSUs in other sectors will be divested, says FM announcing new divestment policy.

• FM puts divestment receipts at Rs 1.75 lakh cr for fiscal year beginning April 1, 2021.

• BPCL, Air India, Shipping Corp, Container Corp and other disinvestments will be completed in 2021-22: FM

• LIC IPO will be brought in FY22: FM.

• NCLT framework to be strengthened: FM.

• FM says definition of small companies to be revised by raising capital base to Rs 2 cr from current limit of Rs 50 lakh.

• Asset reconstruction and management company to be set up for stressed assets of banks: FM in Budget for 2021-21.

• FDI in insurance increased to 74 pc from 49 pc: FM.

• FM announces transport system operator (TSO) for regulating common carrier capacity in gas pipelines to boost gas-based economy.

• Govt proposes further recapitalisation of state-owned banks; earmarks Rs 20,000 crore: FM.

• Free cooking gas LPG scheme Ujjwala to be extended to 1 cr more beneficiaries: FM.

• Scheme for promoting flagging of merchant ships in India will be launched by providing subsidy support: FM.

• Govt proposes investor charter across financial products: FM.

• Govt proposes to launch hydrogen energy mission next fiscal for generating hydrogen from green power sources: FM.

• City gas distribution network of providing CNG to automobiles and piped cooking gas to households in 100 more districts: FM.

• Framework will be put in place to allow electricity consumers to choose from more than one distribution company: FM.

• Fuel supplies were kept running without interruption during Covid-19 lockdown: FM

• FM announces Rs 18,000 cr scheme to augment public transport in urban areas.

• FM announces 7 port projects worth more than Rs 2,000 cr via PPA mode.

• Finance Minister says 100 pc electrification of broad gauge rail tracks by December 2023.

• Power sector seen many reforms in last six years, 138 GW of installed capacity added, says FM Nirmala Sitharaman.

• FM allocates Rs 65,000 cr for road, highway projects in Kerala, Rs 3,400 cr for Assam.

• Record Rs 1,10,055 crore provided for railways, of which Rs 1,07,100 cr for capital expenditure in 2021-22: FM.

• FM announces Rs 25,000 cr road projects in poll-bound West Bengal.

• 8,500 kms of road, highway projects to be awarded by March 2022 to further augment road infrastructure: FM Sitharaman.

• Govt to provide Rs 2 lakh cr to states and autonomous bodies to meet capital expenditure: FM.

• Capital expenditure budget to increase to Rs 5.54 lakh cr in FY’22 from Rs 4.39 lakh cr in RE for FY’21.

• PLI scheme with outlay of Rs 1.97 lakh crore for 5 years starting this fiscal.

• FM says national monetisation pipeline for potential brownfield infrastructure assets will be launched.

• FM announces voluntary vehicle scrapping policy to phase out old vehicles; fitness tests after 20 yrs for personal vehicles.

• FM proposes sharp increase in capital expenditure for next fiscal at Rs 5.54 lakh cr, up from Rs 4.39 lakh cr of last year.

• Railway to monetise dedicated freight corridors, says FM Sitharaman in her Budget speech on monetisation of assets.

• Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetised, says FM in Budget for 2021-22.

• Govt announced Aatmanirbhar packages totalling Rs 27.1 lakh crore to deal with COVID pandemic. Aatmanirbhar package accelerated pace of structural reforms: FM. India has 2 COVID-19 vaccines; two more to be launched, she added.

• Only 3 times Budget followed contraction in economy: FM. Govt stretched its resources for benefit of the poorest of the poor. Govt fully prepared to support economy for sustainable growth, says FM.

• Budget proposals rest on 6 pillars, including health and well-being; physical and financial capital.

• FM proposes introduction of Aatmanirbhar health prog with an outlay of Rs 64,180 cr; this in addition to national health mission.

• FM announces Jal Jeevan mission with outlay of Rs 2.87 lakh crore for 4,378 urban local bodies.

• Govt to provide Rs 35,000 cr for Covid-19 vaccination in 2021-22; committed to providing more funds, says FM.

• Swachh Bharat 2.0 will be implemented with outlay of Rs 1,41,678 cr over 5 years: FM.

• Scheme of mega investment textiles park in addition to PLI scheme will be launched: FM.