INDIAN BUDGET’21 – Nisha Goenka
Royal Global University
The Indian Budget 2021-2022 was table in the floor of parliament
on February 1, 2021. In simple words , the budget is an estimate of income and expenditure
for a definite duration but it goes on in broad sense it means Indian Budget is the country’s comprehensive Annual Financial Statement. The Indian Budget comprises of a detailed account of the Government finances, it’s revenue and expenditure. Over the decades the budget has been the most important , sensational economic event of the year in India. It is a multidimensional document that effect the lines of all citizens.
Indian Budget’21-Is it same as before?
Every year , there has been a change in the Indian Budget scenario in all the sphere of the economy. Here’s a quick look at the highlights-
- Tax: -No IT filling for people above 75 years who get pension and earn interest from
-Reopening windows for assessment cases reduced from 6to 3 years .However ,in case if 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 5crore to eases.
-Duty of Copper scrap reduced to 25%.
-Custom duty on gold and silver to be rationalized.
-Duty on naphtha reduced to 25%.
-Duty on solar inverter raised from 5% to 20% and on solar lanterns from 5% to 15%.
-All nylon products charged with 5% custom duty.
-Tunnel boring machines to attracts custom duty of 7%.
– Custom duty on cotton raised from 0 to 10%.
-Agriculture infrastructure and development access to proposed on certain items including urea, apples, crude soybean and sunflower oil, crude palm oil , Kabuli Chana and peas
- Economy and Finance: -Fiscal Deficit stand at 9.5% of the GDP; estimated to be 6.8% in 2021-2022.
-Proposal to allow states to raise borrowings up to 4% of GDP 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 own stressed loans.
-Deposit insurance increased from Rs 1 Lakh to Rs 5 Lakh for bank depositors.
-Proposal to decriminalize 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 year.
-Strategic sale of BPCL, IDBI Bank, Air India be completed.
- Agriculture: -Agriculture infrastructure fund to be made available for APMLs for augmenting their infrastructure.
-1000 more Mandis to be integrated into the E-NAM market place.
-Five majors fishing hubs, including Chennai, Kochi and Paradip, to be developed.
-A multipurpose seaweed park to be established in Tamil Nadu.
- Education: -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:- 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 Kerela, 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 city, Plus additional allocation 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 to be set up in Jammu and Kashmir.
-Pradhan Mantri Ujjwala Yojana (LPG Scheme) to be extended to cover 1 crore more beneficiaries.
- Employment: – 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 10% for SCs , STs and women.
Indian Budget are a declaration of financial policy decision made by the government to achieve economic buoyancy and achieving some goals by prioritizing expenditure and allocating fund accordingly. The Finance Minister Nirmal Sitharaman’s budget is bold and offer not only a direction for growth but also a strong intent for reform.
Budget is a key for the booming economy and stable government.