Union budget 2021-22 Important Facts

✅ Published on February 2nd, 2021 in Banking, General Knowledge

Union Budget 2021

The budget presented this year was the third budget of Nirmala Sitharaman’s tenure. People had high expectations from this budget. The interim budget was presented by Piyush Goyal on 1 February 2019. After this, on July 5, 2019, Nirmala Sitharaman presented her first general budget. On February 1, 2020, he presented his second budget.

The government had also sought suggestions for budget 2021 from common people. Along with this, the government had facilitated the MyGov platform to ensure maximum participation of people in the discussions of Budget 2021-22.

The budget for 2021-22 is divided into two parts, the first part (A) is divided into 6 parts, the next part (B) is divided into direct tax proposals, indirect tax proposals, and contracts.

Part (A)

Part (a) of 2021-22 The budget proposal is based on 6 pillars.

  1. Health and welfare
  2. Physical and financial capital, and infrastructure
  3. Inclusive growth for aspirational india
  4. To infuse new life into human capital
  5. Newly Funded and Research and Development
  6. Minimum Government and Maximum Governance

1.Health and welfare

A new centrally sponsored scheme, PM Atmanihar Swachh Bharat Yojana, will be launched with an outlay of more than 6, 64,180 crores in addition to the National Health Mission. Interventions under the main scheme are:

  • 17,788 rural and 11,024 urban health and welfare support centers.
  • Establishment of integrated public health laboratories in all states and 3382 public health units in 11 states.
  • Establishment of critical care hospital blocks in 602 districts and 12 central institutes.
  • Strengthen the National Center for Disease Control (NCDC), its 5 regional branches and 20 metropolitan health units.
  • Extension of Integrated Health Information Portal for all to all States / UTs to establish 15 Health Emergency Operations Centers and 2 Mobile Hospitals to connect all public health laboratories.
  • Establishment of a National Institute, 9 Bio-Safety Level 3 Laboratories and 4 Regional National Institutes for Virology for One Health, which is the regional research platform for the WHO Southeast Asia region.
  • Mission Nutrition 2.0 will be launched by merging the Supplementary Nutrition Program and Nutrition Drive.
  • A water life mission will be launched. It aims to provide universal water supply in all 4378 urban local bodies with 2.86 crore domestic tap connections and liquid waste management in 500 Amrit cities. It will be implemented in 5 years with an outlay of Rs. 2,87,000 crore.
  • Nirmala Sitharaman announced to pursue the Swachh Bharat Mission. Under this, Rs 2,87,000 crore was released for the Amrit scheme in cities. With this, Mission Nutrition 2.0 has been announced by the Finance Minister.

2. Physical and financial capital, and infrastructure

  • PLI plans will be announced for 13 regions to make manufacturing global champions for the self-sustaining India-Production Linked Incentive Scheme (PLI).
  • In order to make the textile industry globally competitive, attract large investments and promote employment generation, a scheme of Mega Investment Textiles Park (MITRA) will be launched in addition to the PLI scheme.
  • 7 textile parks will be built in the country so that India becomes the exporting country in this area. These parks will be built in three years. An announcement was made by the Finance Minister to set up Development Financial Institute (DFI), which would have borrowing projects worth Rs 5 lakh crore within three years.
  • It has been announced in the budget that Railways, NHAI, Airport Authority will now have the ability to pass many projects at their level. The Finance Minister announced a budget of more than 5 lakh crore for capital expenditure.
  • The budget states that over 13,000 km of roads costing 3.3 lakh crores have already been awarded under the Bharatmala Project Scheme of 5.35 lakh crores, of which 3,800 km has been constructed. By March 2022, another 8,500 km of contracts will be awarded and 11,000 km of National Highway Corridors will be completed.
  • The list is as follows-
Rupees (Rs) Length of national highway States Description
1.3 lakh crores 3,500 km national highway Tamilnadu The Madurai-Kollam Corridor, Chittoor-Thachur Corridor are included.
65,000 crores 1,100 km national highway Kerala The 600 km stretch of the Mumbai-Kanyakumari corridor covers.
25,000 crores 675 km highway West Bengal The state of West Bengal includes the existing road-Kolkata / Siliguri.
In the state of Assam, about 19,000 crore national highway construction works are currently going on, besides 1300 km of national highways. More than Rs. 34,000 crore construction works will be completed in the next three years.
  • The National Rail Scheme 2030 has been prepared in the budget. A total budget of Rs 1.10 lakh crore has been given to the Railways. Apart from Indian Railways, the focus will be on the increasing metro, city bus service. A cost of Rs 18 thousand crores will be imposed for this. Now the emphasis is on bringing metro lights. It was announced to promote the metro project in Kochi, Bangalore, Chennai, Nagpur, Nashik.
  • Apart from this, the government is also launching a scheme costing more than Rs 3 lakh crore for the power sector, which will work to strengthen the power connected infrastructure in the country. The hydrogen plant will be built by the government. Work will be done to promote merchant ships in India, initially Rs 1624 crore has been provided for this. Apart from this, work will be done on recycling the ship through the plant in Gujarat.
  • In the petroleum and natural gas sector, 100 more districts will be added to the city gas distribution network in the next 3 years, the gas pipeline project will be started in the Union Territory of Jammu and Kashmir.
  • Asked to amend the Insurance Act, 1938 to increase the permissible FDI limit in insurance companies from 49% to 74%. Under the new structure, most of the directors and key management persons on the board will be resident Indians, with at least 50% of the directors being independent directors, and a specified percentage of the profits will be retained as a general reserve.
  • By adjudicating procedural and technical compoundable offenses under the Companies Act, 2013. The Decriminalization of the Limited Liability Partnership (LLP) Act, 2008 is now proposed.
  • It is proposed to revise the definition under the Companies Act, 2013 for small companies and raise the limit for paid-up capital from “not more than 50 lakhs” to “not more than 2 crores” and “not more than 2 crores “Turnover will not exceed 20 crores”.

3. Inclusive growth for aspirational India

  • In the budget, it has been said about the agriculture sector that the Modi government has transferred nearly three times the amount from the UPA government to the farmers’ accounts. The Finance Minister said that in every sector farmers have been provided by the Modi government, MSP has been increased for other crops including pulses, wheat, paddy.
  • It is my proposal to set up a multipurpose CVD park in Tamil Nadu to boost SWED production.

4. To infuse new life into human capital

  • 100 new Sainik Schools will be set up in partnership with NGOs / private schools/states.
  • According to the budget, about 100 new Sainik Schools will be built in the country and a Central University will be established in Leh to arrange for higher education in Ladakh.

5. Newly Funded and Research and Development

  • New Space India Limited will launch PSLV-CS51 this time. The first unmanned launch of the Gaganyaan mission will take place in December this year. A tribunal will be created under the finance minister and Ease of Doing Business, which will soon settle the disputes of the companies. The upcoming census will be the first digital census.
  • According to the budget, under a new initiative, the “National Language Translation Mission (NTLM) will be launched so that knowledge related to governance and policy will be made available in the major languages ​​of India on the Internet.
  • A deep-sea mission will be launched for which a budget outlay of Rs.4,000 crores has been arranged for the next five years, under this mission, deep-sea conservation projects are included.

6. Minimum Government and Maximum Governance

  • The upcoming census will be the first digital census in the history of India. For this very important and millstone work, Rs. 3,768 crore has been allocated in the budget for the year 2021-22.

Fiscal position

The budget said that the fiscal deficit is expected to be 6.8 percent. For this, the government will need 80 thousand crores, which will be taken from the market in the next two months.

Part (B)

Part (B) of the 2021-22 Budget proposal is based on direct tax proposal, indirect tax proposal, and contract.

Direct tax proposal

  • This time a special announcement was made in the budget for senior citizens. Senior citizens above 75 years of age have now been given tax relief. Now those over 75 years of age do not have to fill ITR. However, these pensioners will get benefits only.
  • NRI people used to have difficulty in paying taxes, but now this time they are being exempted from the double tax system. Finance Minister Nirmala Sitharaman has announced that the tax exemption granted to the start-up to pay the initial tax has now been extended till March 31, 2022.

Indirect tax proposal

  • According to the budget, the customs duty on mobile devices has been increased, now it has been increased to 2.5 percent. However, duty has been reduced in copper and steel. The finance minister has announced that the customs duty has also been reduced from gold and silver. A new custom policy is being implemented in the country from 1 October.
  • Sulk has been increased from 5% to 20% on solar inverters and from 5% to 15% on solar lanterns.
  • The customs duty on cotton in agricultural production has been increased from zero to 10% and on raw silk and silk suits from 10% to 15% and the usage-based exemption on denatured ethyl alcohol has been withdrawn.

The contract

Highlights of investment/objectives of strategic disinvestment policy

(A) Greater public presence in the public sector of the central government, including financial institutions, and the possibility of new investment for the non-government sector is not originated.
(B) Post-disinvestment, Central Public Sub-Division (CPSE) / Financial Institution
The economy will be done through private capital, technology, and best management practices. This will contribute to economic growth and new jobs.
(C) Various programs of the social sector and development will be financed from disinvestment receipts.

Read in Hindi : आम बजट 2021-22 की मुख्य बातें

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