For the first time budget was introduced in a "digital tablet" instead of brief case. Infact "digital" was the keyword throughout the budget. These are the challenging times for India and the world. As Indians we are going through some serious economic crisis amid which many lost their jobs, buisness and even life.
Many believe that government has to increase its expenditure to revive the Indian economy. To lower the economic burden of the citizens.
The Middle Class
For the salaried middle class person there is no change in income tax rates, many experts believe that it's a good thing as unchanged rates will led to less confusion.
People with 75 years of age or more don't have to file income tax return, which doesn't mean that they don't have to pay income tax but banks will take care of that
A New Cess
A new cess is introduced by the government the "Agriculture, Infrastructure and Development cess" which will led to hike in the prices of many commodities, agriculture products like Peas will attract 30% cess, Apple with 35% cess, lentils(pulses) with 20%, chick peas 50%,
Fertilizer like urea 5%, crude soyabean, sunflower oil 20%, cotton with 5% extra cess.
Cell phones will be more costly as custom duty is being increased by 2.5% on mobile components and parts, AC , Refrigerator, leather, solar lantern, automobile these are the things that would affect your pocket according to this budget.
While nylon, iron, copper, gold and shoes will be in your budget as government has reduced custom duty on these products.
Healthcare Budget increased?
According to government they have doubled the expenditure on healthcare sector upto 2.2 lac crore rupees. While other argues that it's a misleading figure as it includes Covid-19 vaccination cost of 35,000 crore which is a one time cost. Apart from this government will be spending 64,000 crore in next 6 years under "Atmanirbhar Swasth Bharat Yojana", to improve healthcare system of India.
Promise on MSP
Government has again given assurance to farmers on continuation of MSP at 1.5 times the cost of production.
But as not much farmer in the nation gets the benefit of MSP, it will not solve the problem, government has to focus on providing MSP to more and more farmers.
A new Portal for Workers
First time ever government has decided to launch a portal to gather relevant information of gig workers, building/construction worker etc. This is an unorganised sector which is often maltreated as they are not salaried employees they don't get any benefits like social security, insurance, pension etc. This portal will help in making this sector more organised by increasing their participation in food schemes, health insurance, housing scheme and many more. Added to that they will also get benefited by One Nation One Ration Card.
"Privatisation" the controversy
In this Budget 2021, government has cleared their intentions on privatisation, which simply means all the PSUs (leaving only four strategic sectors) will be privatised sooner or later. They named it " Disinvestment and Strategic Sale". While Privatisation is a controversial topic to talk some believe it improves the productivity and profitability, while for other it means monopoly of the big corporates and losing assets. Privatisation comes with its own merits and demerits while what matters is how government will handle it, as they have been bidding for Air India from last 3 years.
Gift for Businesses and startups
Now companies with turnover of upto 10 crore does not require any tax audit by a chartered accountant earlier this limit was 5 crore only.
Government is also planning to redefine the definition of small businesses from a limit of annual turnover of 2 crore to 20 crore. Small businesses often attracts less paper work, many exemption from government.
Small charitable trust running hospitals and schools having turnover of upto 5 crore are exempted from tax, earlier this limit was 1 crore.
To promote startups government has also increased the eligibility to claim tax holiday by 1 year which is 31st March 2022.
Overall this budget doesn't have any big announcements, but definitely have introduced some small and positive changes.