Oulining that the Budget was prepared under circumstances like never before, Finance Minister Nirmala Sitharaman presented India’s first paperless Budget on Monday. The traditional ‘Bahi-khata’ made way for a Made In India tablet.
The Finance Minister said that the focus of the Budget was on inclusive growth to realise the vision of Atmanirbhar Bharat. She added that the total impact of Atmanirbhar Bharat and measures by Reserve Bank of India was Rs 27.1 lakh crore which adds up to about 30 per cent of GDP.
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The Budget is aimed at sustaining economic recovery, Sitharaman said, while laying the premise for the budgetary allocation.
“Faith is the bird that feels the light and sings when the dawn is still dark” Nirmala Sitharaman quoted Rabindranath Tagore adding that this moment in history represents the dawn of a new era where India is well-poised to be the land of promise and hope.
UNION BUDGET: KEY TAKEAWAYS
Six Pillars of Budget:
Health and well-being
Physical and financial capital and infra
Innovation and Research & Development (R&D)
Minimum government and maximum governance
Rs 64,180 Crore Aatma Nirbhar Health Yojana:
The government will set up 15 health emergenct centres. It will strengthen National Center for Disease Control.
Pandemic support measures amount to 13% of GDP:
Budget focuses on self-reliance, starting with health & wellbeing. Rs 2200 cr on clean air, Rs 35000 cr on vaccines, Rs 64000 cr on health schemes. A regional research centre for WHO and 4 virology labs.
Proposed Highway works:
3,500 km corridor in Tamil Nadu
1,100 km in Kerala at investment of Rs 65,000 crore
675 km in West Bengal at a cost of Rs 95,000 crore
1,300 km in Assam in the next 3 years
Infrastructure Pipeline Expansion:
Infra pipeline expansion expanded to 7,400 projects. Further, projects worth Rs 1.1 lakh crore have been completed under the National Infra Pipeline. Bill to be introduced to set up DFI providing Rs 20,000 crore to launch the National Asset Monetisation Pipeline to fund new infra projects.
Increase In Capital Expenditure:
For 2021-22, sharp increase in Capital Expenditure proposed and Rs 5.54 lakh crores provided which is 34.5% more than the BE 2020-21.
Formation of Asset Reconstruction Company:
An asset reconstruction company will be set up to take care of NPAs of banks. FDI in ins increased to 74% from the earlier 49%. FY22 Capex is targetted at Rs 5.54 lakh crore as compared to FY21’s Rs 4.39 lakh crore. Power transmission assets of Rs 7,000 crore is to be transferred to Power Grid InvIT. Centre will also provide Rs 2 lakh crore to states and autonomous bodies for Capex, states will also be nudged for more capital expenditure.
Start Ups, LIC and Divestments:
For start ups, Centre to allow 1% companies to grow without any restriction on their paid up capital. Besides IDBI, 2 more banks to be taken up for disinvestment.
LIC IPO will come in 2022.
All divestments announced so far, including Air India, BPCL, CONCOR, Pawan Hans, to be completed by 2022.
Budget to provide Rs 1.1 lakh crore to Indian Railways in FY-22 of which Rs 1.07 lakh crore is for capital expenditure, the Finance Minister has announced.
Indian Railways’ national rail plan to prepare a future-ready railway system by 2030. Eastern and western dedicated freight corridors to be commissioned by June 2022.
Rs 1.18 trillion provided for Ministry of Roads, of which Rs 1.08 trillion will be towards capital expenditure, the highest ever.
FDI In Insurance:
FDI in insurance to be hiked to 74 per cent from existing 49 per cent.
Voluntary Vehicle Scrappage Policy:
Voluntary vehicle scrapping policy to phase out old and unfit vehicles announced to encourage environment friendly and fuel-efficient vehicles thereby reducing vehicular pollution and oil import bills.
Voluntary scrappage policy will ve based on fitness tests and for private vehicles, the life has been set at 20 years, while for commercial vehicles, the life is set at 15 years.
Centre committed to welfare of farmers, assures Finance Minister. MSP procurement to continue at a steady pace.
Total amount paid to paddy farmers surged to Rs 1.72 lakh crore in 2020-21, over Rs 75,000 crore paid to wheat farmers in 2020-21, 43.36 lakh benefited from this.
1.5 crore farmers benefitted from increased MSP.
1,000 mandis to be linked with E-NAM
Cotton farmers saw stupendous increase in the amount that was paid to them in 2013-14, that was 90 cr and it was increased to over 25,000 crore in 2020-21.
Agriculture credit target increased to Rs 16.5 lakh crore.
New Disinvestment Policy:
Barring four strategic areas, PSUs in other sectors will be divested, says Finance Minister Nirmala Sitharaman as she announces a new disinvestment policy.
Mega Investment Textile Parks to be launched, in addition to PLI scheme, to create world class infra in textile sector, with plug-and-play facilities, to create global export champions. 7 textile parks to be set up over 3 years.
Fiscal deficit is pegged at 9.5 % of GDP.
The forthcoming Census will be India’s first digital Census. FM said Rs 3,768 crore has been allocated for FY21.
Incorporation of one-person companies proposed to incentivize innovation in startups. Reducing residency limit for Indian citizen to set up 1 person company from 182 to 120 days.
Tax holiday for start ups extended by 1 year.