Budget 2021 Highlights: Govt to rationalise custom duties on gold,sliver
NEW DELHI: Union finance minister Nirmala Sitharaman presented the Union Budget 2021 in Parliament on Monday.
The finance minister provided a major boost to healthcare and infrastructure in Union Budget 2021. However, there was no change in Income Tax slabs this year.
In her speech, the finance minister mentioned that this year's budget proposals rest on six pillars — health and well-being, physical, financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D and minimum government and maximum governance.
Prime Minister Narendra Modi on Monday said that the Union Budget 2021 has been presented amid unprecedented circumstances. He added that it is a proactive, not reactive budget and will boost India's self-confidence.
Here is a look at the highlights of the budget.
Government's earnings & spendings
- Consequent to imposition of Agriculture Infrastructure and Development Cess (AIDC) on petrol and diesel, the Basic excise duty (BED) and Special Additional Excise Duty (SAED) rates have been reduced on them so that overall consumer does not bear any additional burden. Consequently, unbranded petrol and diesel will attract basic excise duty of Rs 1.4, and Rs 1.8 per litre respectively. The SAED on unbranded petrol and diesel shall be Rs 11 and Rs 8 per litre respectively. Similar changes have also been made for branded petrol and diesel.
- Fiscal deficit pegged at 9.5% of GDP during current fiscal ending March 31. It is pegged at 6.8% in the next financial year.
- The minister said that the government would need another Rs 80,000 crore for which we would be approaching the market in these two months.
- Finance Minister Nirmala Sitharaman on Monday said the government is rationalising custom duties on gold and silver.
Taxes
- The number of Income Tax return filers has increased from 3.31 cr in 2014 to 6.48 cr in 2020.
- We shall reduce the compliance burden on our senior citizens who are 75 years of age and above. For senior citizens who only have pension and interest income, I propose exemption from filing their Income Tax return, the minister announced.
- Serious tax offences of concealment of income of over Rs 50 lakh can be reopened after 10 years.
- Exemption from tax audit limit doubled to Rs 10 crore turnover for companies doing most of their business through digital modes.
FDI and disinvestments
- Barring four strategic areas, PSUs in other sectors will be divested, the finance minister saidannouncing the new disinvestment policy.
- Two PSBs and one general insurance company to be divested, legislations amendments to be introduced in this session, the finance minister said. The finance minister puts disinvestment receipts at Rs 1.75 lakh crore for fiscal year beginning April 1, 2021.
- The FDI in insurance increased to 74% from 49%. In 2021-22 we would also bring the IPO of LIC for which I am bringing the requisite amendments in this session itself, the finance minister said.
- The states to get 41% share of taxes as per recommendations of the 15th Finance Commission. The govt, the minister said, has accepted the recommendation.
Agriculture
- The MSP regime has undergone a change to assure price that is at least 1.5 times the cost of production across all commodities, the minister said.
- Around 43.36 lakh wheat growing farmers benefited from the government procurement under MSP as against 35.57 lakh previously.
- One thousand more mandis to be integrated with electronic national market.
- The government raised the agriculture credit target to Rs 16.5 lakh cr in 2021-22.
- The government raised the agriculture credit target to Rs 16.5 lakh cr in 2021-22.
Schemes
- New centrally sponsored scheme PM Aatmanirbhar Swasth Bharat Yojana to be launched with an outlay of Rs 64,180 crore over 6 years. Main interventions under PM Aatmanirbhar Swasth Bharat Yojana would include:
- Support for Health and Wellness Centres
- Setting up Integrated Public Health labs in all districts
- Critical care hospital blocks
- Strengthening of NCDC
- One Nation, One Ration Card scheme launched through which beneficiaries can claim their rations anywhere in the country. The migrant workers in particular benefit from scheme. One Nation, One Ration Card plan is under implementation by 32 states & UTs.
- Comprehensive National Hydrogen Energy Mission to be launched, as per PM Narendra Modi's announcement at third REINVEST conference in Nov 2020. The mission will help generate hydrogen from green power sources.
- Ujjwala scheme will be expanded to over one crore more beneficiaries. We will add 100 more districts in the next three years to the city gas distribution network. A gas pipeline project will be taken up in Jammu and Kashmir.
- MetroLite and Metro New Technologies to be deployed to provide metro rail systems in tier 2 cities and peripheral areas of tier 1 cities, at much lesser cost, with same experience, convenience and safety.
- A record sum of Rs 1,10,055 crore to be provided for Indian Railways, out of which Rs 1,07,100 has been reserved for capital expenditure.
- Allocation to rural infrastructure development increased from Rs 30,000 crore to Rs 40,000 cr in FY21.
- The government allocated Rs 3,726 cr for forthcoming Census which will be the first digital census.
- Allocation to rural infrastructure development increased from Rs 30,000 crore to Rs 40,000 cr in FY21.
- To further extend efforts towards unorganised labour force, I propose to launch a portal to collect relevant information on gig workers, building/construction workers among others. It'll help formulate health, housing, skill, insurance credit and food schemes for migrant workers, the minister said.
- The MSP regime has undergone a change to assure price that is at least 1.5 times the cost of production across all commodities, the minister said.
- Around 43.36 lakh wheat growing farmers benefited from the government procurement under MSP as against 35.57 lakh previously.
- 1,000 more mandis to be integrated with electronic national market.
- The government raised the agriculture credit target to Rs 16.5 lakh cr in 2021-22.
- New centrally sponsored scheme PM Aatmanirbhar Swasth Bharat Yojana to be launched with an outlay of Rs 64,180 crore over 6 years.
- - Support for Health and Wellness Centres
- - Setting up Integrated Public Health labs in all districts
- - Critical care hospital blocks
- - Strengthening of NCDC
The finance minister proposed to take concrete steps to increase funding for National Infrastructure Pipeline—
- - By creating institutional structures
- - By monetising assets
- - By enhancing share of capital expenditure in Central and State Budgets
