NEW DELHI: Union Finance Minister Nirmala Sitharaman on Monday unveiled the Union Budget for fiscal year 2021-22 that aims to shore up an economy badly-hit by the novel coronavirus pandemic.
The economy is projected to contract 7.7% in the current fiscal year, although the government forecasts growth of 11% for the coming fiscal year, after a massive COVID-19 vaccination drive and a rebound in consumer demand and investments. Earlier this month, Nirmala Sitharaman had stated that the budget for the fiscal year beginning April will be “like never before”. This was also the first paperless budget in the history of independent India. Sitharaman, in her first budget in 2019, had replaced leather briefcase that had been for decades used for carrying budget documents with a traditional red cloth ‘bahi-khata’. But she replaced 'bahi khata' with a 'Made In India' tab.
Based on the announcement made by FM Nirmala Sitharaman, the following items will now become cheaper and dearer-
Iron & Steel
Following are the key highlights of the 2021-22 Budget: -
FISCAL POSITION AND HEALTH OUTLAY:
Spending on healthcare hiked by 137 pc to over Rs 2.23 lakh crore
Rs 35,000 cr outlay for COVID vaccine in fiscal beginning April 1
Today India has 2 vaccines available, 2 more vaccines are expected soon
Sharp increase in capital expenditure for the next fiscal to Rs 5.54 lakh cr, up from Rs 4.39 lakh cr of last fiscal
Fiscal deficit for current fiscal at 9.5 pc, against 3.5 pc budgeted
Fiscal deficit for next fiscal pegged at 6.8 pc, government to borrow Rs 12 lakh crore
Committed to bring down fiscal deficit below 4.5 pc of GDP by 2025-26
ITR filing not mandatory for senior citizens above 75 years, banks to deduct TDS
Time bar for reopening I-T assessment cases halved to 3 years, for serious frauds it is 10 years
Income tax return filers increased to 6.48 cr in 2020 from 3.31 cr in 2014.
Agri infra cess of 2.5 pc on gold, silver and dore bars; 35 pc on apples
Agri infra cess of 30 pc on Kabuli chana, 10 pc on peas, 50 pc on Bengal gram/chickpeas, 20 pc on lentil (mosur); 5 pc on cotton
Rs 2.5 per litre agri infra cess on petrol, Rs 4 on diesel
New Agri Infra Development Cess to be applicable from February 2
Tax deptt to notify rules to remove hardships of double taxation faced by NRIs
Tax holiday for startups, capital gains exemption extended by 1 yr
Tax exemption for aircraft leasing cos; tax exemption for notified affordable housing for migrant workers.
Rs 1.5 lakh tax deduction on payment of interest for affordable housing extended by 1 yr
Exemption from tax audit limit doubled to Rs 10 cr turnover for companies doing most of their business through digital modes
Proposes review of over 400 customs duty exemptions; to begin extensive consultation from October 2021
Customs duty on certain auto parts, solar equipment raised
ALLOCATION & REFORMS
FDI in insurance increased to 74 pc from 49 pc
Disinvestment target pegged at Rs 1.75 lakh crore
BPCL, IDBI Bank, two more PSU banks, one insurance company to be privatised among others
PSU Bank recapitalisation pegged at Rs 20,000 crore next fiscal
Aatmanirbhar health programme with an outlay of Rs 64,180 cr to be introduced
Budget proposals rest on 6 pillars-- health and well-being, physical and financial capital and infra, inclusive development for aspirational India, human capital, innovation and R&D, Minimum Governance and Maximum Governance
Govt to introduce a bill to set up development financial institution with an outlay of Rs 20,000 cr
Voluntary vehicle scrapping policy to phase out old vehicles; fitness tests after 20 yrs for personal vehicles
National monetisation pipeline for potential brownfield infrastructure assets
Rs 3,726 cr for forthcoming Census which will be the first digital census.