Your waiting for the highlights of the Union Budget 2021-22 is over. We come with the important highlights of Annual Finance Statement 2021. Candidates can download the Budget 2021 Highlight PDF on this page.
Union Budget 2021-22
Finance Minister Nirmala Sitharaman presented the Union Budget 2021-22. It was India’s first paperless budget
The budget proposals rest on 6 pillars of
- Health and Wellbeing;
- Physical & Financial Capital, and Infrastructure;
- Inclusive Development for Aspirational India;
- Reinvigorating Human Capital;
- Innovation and R&D and
- Minimum Government and Maximum Governance.
Health and Wellbeing:
In the view of Health and Wellbeing, it focus on strengthening three areas; i.e, Preventive, Curative, and Wellbeing. Rs. 2,23,846 crore outlay for Health and Wellbeing in Budget Estimates of 2021-22 as against Rs. 94,452 crore in Budget Estimates of 2020-21 – an increase of 137%.
Physical and Financial Capital and Infrastructure:
Production Linked Incentive scheme (PLI)
- 1.97 lakh crore in next 5 years for PLI schemes in 13 Sectors
- To create and nurture manufacturing global champions for an AatmaNirbhar Bharat
- To help manufacturing companies become an integral part of global supply chains, possess core competence and cutting-edge technology
- To bring scale and size in key sectors
- To provide jobs to the youth
Inclusive Development for Aspirational India:
Various schemes under the fields of Agriculture, Fisheries, Migrant Workers and Labourers, Financial Inclusion are covered in the vision of “Inclusive Development for Aspirational India”
Reinvigorating Human Capital:
Educational, Scheduled Castes and Scheduled Tribes Welfare are covered in “Reinvigorating Human Capital”
Innovation and R&D:
The followings are the highlighted points under “Innovation and R&D”
- Modalities of National Research Foundation announced in July 2019 –
- 50,000 crore outlay over 5 years
- To strengthen overall research ecosystem with a focus on national-priority thrust areas
- 1,500 crore for proposed scheme to promote digital modes of payment
- National Language Translation Mission (NTLM) to make governance-and-policy related knowledge available in major Indian languages
- PSLV-CS51 to be launched by New Space India Limited (NSIL) carrying Brazil’s Amazonia Satellite and some Indian satellites
- As part of the Gaganyaan mission activities:
- 4 Indian astronauts being trained on Generic Space Flight aspects, in Russia
- The first unmanned launch is slated for December 2021
- 4,000 crore over five years for Deep Ocean Mission survey exploration and conservation of deep-sea biodiversity
Minimum Government, Maximum Governance:
The following schemes were covered in “Minimum Government, Maximum Governance”
- Measures being undertaken to bring reforms in Tribunals to ensure speedy justice
- National Commission for Allied Healthcare Professionals already introduced to ensure transparent and efficient regulation of the 56 allied healthcare professions
- The National Nursing and Midwifery Commission Bill introduced for the same in the nursing profession
- Proposed Conciliation Mechanism with a mandate for quick resolution of contractual disputes with CPSEs
- 3,768 crore allocated for the first digital census in the history of India
- 300 crore grant to the Government of Goa for the diamond jubilee celebrations of the state’s liberation from Portuguese
- 1,000 crore for the welfare of Tea workers especially women and their children in Assam and West Bengal through a special scheme
- In addition to the above mentioned 6 pillars of the Union Budget 2021-22, key highlights of the Annual Finance Statement are provided as one-liner. These important points were arranged as respect to their field.
- To promote affordable housing in the country, the government has extended till 31st of March 2022. To keep up the supply of affordable houses, the Minister said that affordable housing projects can avail a tax holiday for one more year – till 31st of March, 2022.
- Government has also allowed tax exemption for notified Affordable Rental Housing Projects for migrant workers.
To provide adequate credit to farmers, the government has enhanced the agricultural credit target to 16.5 lakh crore rupees in next fiscal with a focus on ensuring increased credit flows to animal husbandry, dairy, and fisheries.
Government has planned to invest in the development of modern fishing harbours and fish landing centres. 5 major fishing harbours – Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat – will be developed as hubs of economic activity.
Rural Infrastructure Development:
- Government has also enhanced the allocation to the Rural Infrastructure Development Fund from 30,000 to 40,000 crore rupees.
- Government has also decided to integrate 1,000 more mandis with e-NAM to ensure transparency and competitiveness in agricultural market.
- A professionally managed Development Financial Institution will be set up to provide, enable and to act as catalyst for infrastructure financing. A sum of 20,000 crore rupees to be provided to capitalise this institution.
One Nation One Ration Card – One Nation One Ration Card plan is under implementation by 32 states and UTs, reaching about 69 crore beneficiaries, covering 86 per cent of total beneficiaries. She said the remaining 4 states and UTs will be brought under One Nation One Ration Card plan in next few months.
Jal Jeevan Mission- Jal Jeevan Mission (Urban) will be launched to provide universal water supply in all 4,378 Urban Local Bodies with 2.86 crore household tap connections to be implemented over 5 years, with an outlay of 2 lakh 87 thousand crores.
Urban Swachh Bharat Mission 2.0- Urban Swachh Bharat Mission 2.0 to be implemented with a total financial allocation of over 1.41 lakh crores over a period of 5 years from 2021 to 2026.
To tackle the problem of air pollution 2,217 crore rupees will be provided for 42 urban centres.
PM Atma Nirbhar Swasth Bharat Yojana – A new centrally sponsored scheme, PM Atma Nirbhar Swasth Bharat Yojana, will be launched with an outlay of about 64,180 crores over 6 years. This will be in addition to the National Health Mission.
Mission Poshan 2.0- To strengthen nutritional content, delivery, outreach, and outcome, the Supplementary Nutrition Programme and the Poshan Abhiyan will be merged and Mission Poshan 2.0 will be launched to improve nutritional outcomes across 112 Aspirational Districts.
- Mega Investment Textiles Parks (MITRA) will be launched in addition to the Production Linked Incentive scheme to create world class infrastructure in exports. Seven Textile Parks to be established over 3 years.
- By March 2022, another 8,500 kms will be awarded to complete an additional 11,000 kms of national highway corridors.
- Indian Railways have prepared a National Rail Plan for India – 2030 to create a ‘future ready’ Railway system by 2030; It is expected that Western Dedicated Freight Corridor (DFC) and Eastern DFC will be commissioned by June 2022.
- A new scheme will be launched at a cost of 18,000 crore rupees to support augmentation of public bus transport services.
- Two new technologies – ‘MetroLite’ and ‘MetroNeo’ will be deployed to provide metro rail systems in Tier-2 cities and peripheral areas of Tier-1 cities.
- 3,500 km of National Highway works in the state of Tamil Nadu at an investment of 1.03 lakh crores has been proposed. These include Madurai-Kollam corridor, Chittoor-Thatchur corridor. Construction will start next year.
- 1,100 km of National Highway works in the State of Kerala at an investment of 65,000 crores has been proposed. This includes 600 km section of Mumbai-Kanyakumari corridor in Kerala. 675 km of highway works in the state of West Bengal also announced at a cost of 25,000 crores including upgradation of existing road-Kolkata – Siliguri.
- National Highway works of around 19,000 crores are currently in progress in the State of Assam. Further works of more than 34,000 crores covering more than 1300 kms of National Highways will be undertaken in the State in the coming three years.
- A revamped power distribution sector scheme will also be launched with an outlay of over 3.05 lakh crores over 5 years.
- A Hydrogen Energy Mission will be launched in 2021-22 for generating hydrogen from green power sources as announced by the Prime Minister Narendra Modi in November 2020.
- Seven projects worth more than 2,000 crores will be offered by the Major Ports on Public Private Partnership mode in Financial Year 21-22 to move major ports from managing their operational services on their own to a model where a private partner will manage it for them.
- Government has provided additional capital infusion of 1,000 crore rupees to Solar Energy Corporation of India and 1,500 crore rupees to Indian Renewable Energy Development Agency to give a further boost to the non-conventional energy sector.
- To generate an additional 1.5 lakh jobs, efforts will be made to bring more ships to India from Europe and Japan for recycling with a capacity of around 4.5 Million Light Displacement Tonne (LDT) which will be doubled by 2024.
- Government has decided to extend social security benefits to gig and platform workers for the first time. Minimum wages will apply to all categories of workers, and they will all be covered by the Employees State Insurance Corporation.
- Government has provided 15,700 crore rupees to MSME sector in the next fiscal, more than double of this year’s Budget Estimates.
- Finance Minister has provided 1,000 crore rupees for the welfare of Tea workers especially women and their children in Assam and West Bengal. A special scheme will be devised for the same.
- Government has allocated 3,768 crore rupees for the forthcoming Census, which will be the first digital census in the history of India.
- National Faceless Income Tax Appellate Tribunal Centre to be set up. Communication between the Tribunal and the appellant shall be electronic and personal hearing if needed, it is proposed to be done through video-conferencing.
- Government has extended the eligibility for claiming tax holiday for start-ups by one more year – till 31stof March, 2022.
- Senior citizens of 75 years of age and having only pension income are exempted from filing their income tax returns.
Customs duty: Customs duty rates on chemicals have been calibrated to encourage domestic value addition and to remove inversions. Apart from other items, customs duty on Naptha to 2.5 per cent is being reduced to correct inversion.
- Gold and silver presently attract a basic customs duty of 12.5 per cent. Since the duty was raised from 10 per cent in July 2019, prices of precious metals have risen sharply. To bring it closer to previous levels, custom duty on gold and silver is being rationalized.
- To make the nation a 5 trillion US dollar economy, the government has committed nearly 1.97 lakh crores, over 5 years starting the Financial year 2021-22.
- Government has increased FDI limit from 49 to 74 per cent in Insurance Companies and allowed foreign ownership and control with safeguards.
- Government has proposed to infused 20 thousand crore rupees to re-capitalized Public Sector Banks.
- Asset Reconstruction Company and Asset Management Company will be set up to tackle the stressed asset of Public Sector Banks. This company will help to consolidate and take over the existing stressed debt and then manage and dispose of the assets to Alternate Investment Funds.
- Government plans to complete strategic disinvestment in BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited among others in the next fiscal.
- Other than IDBI Bank, government will also take up the privatization of two Public Sector Banks and one General Insurance company in the year 2021-22. A Bill in this regard will be introduced in the Budget session of Parliament itself.
- The government will also bring the IPO of LIC
- Government has also decided to revise the definition under the Companies Act, 2013 for Small Companies by increasing their thresholds for Paid up capital from not exceeding 50 Lakh rupees to not exceeding 2 Crore rupees and the turnover from not exceeding 2 Crore rupees to not exceeding 20 Crore rupees.
- Fiscal deficit for the financial year 2021-22 pegged at 6.8 percent.
- Government will also set up 100 new Sainik Schools in partnership with NGOs, private schools and states.
- Government will bring Legislation this year to set up Higher Education Commission of India. It will be an umbrella body having 4 separate vehicles for standard-setting, accreditation, regulation, and funding.
- Government will also set up a Central University in Leh to ensure access to higher education in Ladakh.
- Government has allocated 35,219 crore rupees for the Post Matric Scholarship Scheme till 2025-2026, to benefit 4 crore SC students.
- It has also increased the unit cost of Eklavya Model Residential Schools in tribal areas from 20 to 38 crore rupees and that of 48 crore rupees in hilly and difficult areas.
Government has decided to set up National Nursing and Midwifery Commission to ensure transparency, efficiency and governance reforms in the nursing profession. The Government will bring a Bill in this regard.
Union Budget 2021-22 has given historic push to defence modernization by increasing defence capital outlay by 18.75 per cent.
- The allocation under capital expenditure which relates to modernization and infrastructure development of Armed Forces has been significantly increased.
- The allocation under Capital of over 1 lakh 35 thousand 60 crore rupees for Financial Year 2021-22 represents an increase of 18.75 per cent over Financial Year 2020-21 and 30.62 per cent over Financial Year 2019-20. This is the highest ever increase in capital outlay of Defence in the last 15 years.
- The Capital allocation for DRDO has been increased to over 11 thousand 375 crore rupees
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