Union Budget 2021
The hot topic which is being discussed by each and every citizen of India and each sector, company, school and government institution that is our Union Budget.
Each year Union Budget is brought up by Finance minister of India ( Current- Nirmala Sitarman) on 1st February. Budget specifies about the government's earnings and expenses. It also specifies whether there is an increase in revenue or increase in expenses and if there is then in which sector. Budget is of three types- Surplus, balanced and deficit. Surplus when revenue is greater than expenses. Balanced when both are equal and deficit when expenses are greater than revenues. So in this blog You will come across all the key points about the budget 2021-2022 brought up by Nirmala Sitarman https://www.worldfinance.com/featured/pressure-mounts-on-nirmala-sitharaman-as-indias-economic-woes-continue on 1st February 2021.
1. Qualitative strengthening of 15000 schools all over India and construction of a central university in Leh-Ladakh.
2. FDI ( Foreign Direct Investment) limit for insurance raised from 49% to 74% and the long awaited LIC IPO (Initial public offer) to be launched in FY22 (Fiscal year 2022) (Fiscal year is from 1st April to 31st March).
3. Disinvestment target of 1.75 lakh crore for FY22 and plans to privatize two PSU banks ( Public sector undertaking banks) ( PSU's are owned and operated by Government) and one general insurance company.
4. Government has decided to set up bad banks to segregate bad assets from the good so that banks can focus on fresh lending.
5. Raising of Customs duty ( type of a tax) on solar powered products, cotton and automobile parts to boost domestic production; Agricultural credit will be increased to 16.5 lakh crore and FM(Finance minister) has proposed to enhance the scope of the 'Operation Green Scheme'.
6. A 137% increase in the health budget along with the introduction of the Atmanirbhar Swastha Bharat Yojana- A comprehensive coverage of health infrastructure, sanitation and waste measures.
7. The FM announced that the '1 nation-1 ration card' plan has been implemented by 32 states and UT's. Migrant workers benefit from this scheme as they can claim ration from anywhere in the country.
8. The 'tax audit limit' under section 44AB has been increased from rs.5 crores to rs.10 crores where 95% of the business transactions are done in digital mode.
9. A 2200 crore allocation towards tackling air pollution with the announcement of the Voluntary Vehicle Scrapping policy to phase out old vehicles.
10. Empowering start-ups and solar energy sectors through grants, tax holidays and amendments in the Companies act, 2013 and LLP(limited liability partnership) act, 2008.
11. Big infrastructure push with a 34.5% higher capital budget at R. 5.54 lakh crore.
12. The defence budget was increased to rs. 4.78 lakh crore. It's nearly a 19% increase in defence capital expenditure. The highest ever in 15 years.
13. Plan to reduce fiscal deficit from 9.5% in FY21 to 4.5% by FY26.