Union Budget 1 feb 2021 | Nirmala Sitharaman| budget gave a boost to many sectors
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| Union Budget 1 feb 2021 | Nirmala Sitharaman| budget gave a boost to many sectors |
This years budget has gave a boost to many sectors mainly health, infrastructure, financial capital, innovation, human capital. Our Finance Minister Nirmala Sitharaman presented today the union budget in the parliament at 11 am.
2021-22 speech FM announced
For the finance and economic sector FM announced.
The Proposal to increase FDI limit from 49% to 74% . Govt has allowed foreign ownership in insurance with safeguards.Fiscal deficit that stands at 9.5% of the GDP is estimated to be 6.8% in 2021-22. Which is actually higher than 3.5 - 4 % of GDP that was projected in the Budget Estimates .
A Unified Securities Market Code to be created, which will include SEBI Act, Govt Sec act, Depositories Act. SEBI will be notified as regulator for a gold exchange.
FM announced that the govt is proposing to be strategically dis-invested this year 2 PSU banks and 1 general insurance company. An stepp up to asset reconstruction company will be take to over loans stress.
In 2021-22, they are going to launch the IPO of LIC for which it will be bringing the requisite amendments in present session itself. The government will also include incentivize one-person companies. Proposal to decriminalise Limited Liability Partnership Act of 2008
An asset reconstruction company will be set up to take over stressed loans FM added that the NCLT system will be powered , e-Courts will be adopted and alternate mechanism of debt resolution will be set up Strategic sale of BPCL, IDBI Bank, Air India to be completed . And announced decriminalisation of LLP Act.
For health FM announced
FM said that, today India has two vaccines available and has begun safeguarding not only her own citizens against COVID-19 but also those of 100 or more countries.And said two more vaccines are also expected very soon in indian markets. In health care govt will spend around Rs 2 lkh crore and Rs 35,000 crore on Covid-19 vaccine development and innoculation.
Improvement in POSHAN 2.0 with nutritional outcomes across 112 aspirational districts.17 new public health units will be created. And modernise the existing health units at 32 airports, 15 seaports and land ports
For employment and farmers FM announced
A portal to be launched to maintain information on gig workers and construction workers . Agriculture infrastructure and development cess proposed on certain items including urea, apples, crude soyabean and sunflower oil, crude palm oil, kabuli chana and other . FM also said our Govt is committed to the welfare of farmers.
The MSP regime has undergone a change to assure price of at least 1.5 times the cost of production across all commodities, wheat farmers are paid with Rs 75,060 as procurement in 2020-21,
FM added to the speach that govt is fully prepared to support and facilitate economic growth . Also introducing to Aatmanirbhar Swastha Bharat Yojana with an outlay of Rs 64,180 crore.
FM announced that Jal Jeevan Mission Urban will be launched with and supply of ₹ 2.87 lkh crore over 5 years which is aimed at universal water supply in all 4,378 urban local bodies strengthening them, with 2.86 crore household tap connections and liquid waste management in 500 AMRUT cities.
FM also announced Urban Swachh Bharat Mission 2.0 a new scheme, named PM Atma Nirbhar Swasthya Bharat Yojana, will be launched for the develop of primary, secondary and tertiary healthcare.
And outlay of ₹ 1,41,678 crore over 5 years from 2021 focused on complete fecal sludge management, waste water treatment, source segregation, management of waste from urban construction, bioremediation of legacy dump sites.
Focusing on MADE IN INDIA Atmanirbhar Bharat package, to sustain the recovery further and coming up with two more Atmanirbhar packages. Total financial impact of all packages including measures taken by RBI was estimated to be about Rs 27.1 lkh crores.
Where as for IT and Tax
No IT filing for senior citizens above 75 years who get pension and earn interest from deposits.Margin capital required for loans reduced from 25% to 15% for SCs, STs and women
Reopening of tax cases have been reduced from 6 to 3 years. Excluding serious tax evasion cases (Rs. 50 lakh or more), that 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. 5 crore to be eased.
Customs duty on cotton raised from 0 to 10% . Duty of copper scrap reduced to 2.5%. Duty on solar inverters increased from 5% to 20%, and on solar lanterns from 5% to 15% .
Where as nylon products will be charged with 5% customs duty .Tunnel machines to attract customs duty of 7% Custom duty on gold and silver to be rationalized Duty on & naphtha reduced to 2.5%.
Infrastructure development will include
FM announced boost to the textile industry, a growth in custom duty on cotton and raw silk, a new cess on agriculture development – Rs 2.5 per litre on petrol and Rs 4 per litre on diesel – a central university in Leh a focus on sea-weed farming with a new facility in Tamil Nadu and
A new vehicle scrapping policy that aims to provide the auto sector a boost . All vehicles will have to go through some test in automated test centres every 20 years (personal vehicles), every 15 years (commercial vehicles). Four states Kerala, Tamil Nadu, West Bengal and Assam will see significant spending on highway road expansion.
FM announced that Indian Railways will have a National Rail Plan for upto 2030 metro services announced in 27 cities, plus additional allocations for Kochi Metro, Chennai Metro Phase 2, Bengaluru Metro Phase 2A and B, Nashik and Nagpur Metros .
For aviation sector, FM said that the next lot of airports will be privatized in tier 2 and 3 towns and cities.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 and 1,300 km in Assam .
FM said that budget estimate for health & well-being is up 138%, that is Rs 2,23,846 crore. Govt has also allocated Rs 35,400 crore towards COVID vaccines for FY22 and is committed to more if required. FM said govt is committed to achieving targets laid out under the national infrastructure pipeline.
National Hydrogen Mission will be launched in order to generate hydrogen from green power sources. And a boost to solar energy.
Under the Centre’s Ujjwala scheme.Pradhan Mantri Ujjwala Yojana (LPG scheme) will now benefit 1 crore famlies. Setup of gas pipeline project to be set up in Jammu and Kashmir. Govt will add 100 more districts in the next three years to the city gas distribution network. Pegged the GDP growth at 11 % in 2022.
Education Fm announced
Govt will make 100 new Sainik Schools . A Central University to come up in Ladakh &750 Eklavya schools will come into existence in tribal areas.
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