Finance Minister proposed to revise definition under Companies Act, 2013 for small companies by increasing their threshold for capitalization to not exceeding Rs 50 lakh to not exceeding Rs 2 crore and turnover not exceeding Rs 2 crore to not exceeding Rs 20 crore.
- The one man show, Government to now allow one-person companies
• No restriction on paid-up capital and turnover, to incentivise incorporation of one-person companies
• Conversion of one-person company to any other kind, reducing residency limit from 182 days to 120 days
• Allow non-resident Indians to incorporate one-person companies in India - The Finance Minister proposed to revise definition under Companies Act, 2013 for small companies by increasing their threshold for capitalization to not exceeding Rs 50 lakh to not exceeding Rs 2 crore and turnover not exceeding Rs 2 crore to not exceeding Rs 20 crore.
- Union Budget 2021 live: Government allots Rs 20,000 crore for bank recapitalisation, as FM emphasizes the need to clean up banks’ books
- Sitharaman’s announcement of the addition of 100 cities to the City Gas Distribution network boosts stocks
- Government to amend Insurance Act to allow higher FDI
• FDI limit in insurance increase to 74% from 49%.
• Govt allows foreign ownership in insurance with safeguards. - Finance Minister Nirmala Sitharaman proposes to consolidate provisions of SEBI Act, Depositories Act, Securities Contracts Regulation Act, Government Securities Act
- Union Budget 2021 live: Ujjwala Scheme will be extended to cover 1 cr more beneficiaries.
• 100 more districts to be added in the next 3 years for city gas distribution
• An independent gas transport system operator to be set up - Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetised, says FM in Budget for 2021-22
- FY22 fiscal deficit seen at 6.8%.
The government had pegged the fiscal deficit at 3.5% for FY21 in the last budget before the onset of the Covid-19 crisis. - FM’s infra boost: Providing Rs 1.15 lk cr for Railways, privatizing airports
• Out of the Rs 1.15 lk cr for Railways, Rs 1.07 lk cr is towards CAPEX
• Indian Railways national rail plan for India to prepare a future-ready railway system by 2030, says the FM.
• Indian Railways have a National Rail Plan for 2030.
• Next lot of airports to be privatized in tier 2 and 3 towns and cities - Highway infra work proposed include building 8,500-km of highways by March 2022.
• 3,500 km corridor in Tamil Nadu
• 1,100 km in Kerala at investment of Rs 65,000 cr
• 675 km in West Bengal at a cost of Rs 95,000 cr
• 1,300 km in Assam in the next 3 years - National Monetisation Pipeline for brownfield projects to be launched. NHAI and PGCIL have sponsored one InvIT each.
• 5 operational roads with estimated enterprise value of Rs 5,000 cr being transferred to NHAI InvIT
• Transmission assets worth Rs 7,000 crore to be transferred to PGCIL InvIT - Finance Minister: FY22 capital expenditure up +34.5% (Vs FY21 BE) at Rs 5.54 lakh crore.
• FY21 capital expenditure seen at Rs 4.39 lakh crore
• Rs 44,000 crore under capital expenditure to be given to Department of Economic Affairs in FY22
• Over and above this, Rs 2 lakh crore will be provided to states and autonomous bodies to nudge their expenditure. - Government to set-up a Development Finance Institution (DFI), capitalised with Rs 20,000 crore
• India will introduce bill to set up new Development Financial Institution.
• New DFI aims to have lending portfolio of Rs 5 lakh crore in 3 years - Union Budget 2021 Live: Vehicles to undergo fitness tests after 20 yrs for PVs, 15 years for CVs, says FM, announcing a voluntary vehicle scrapping policy.
- Rs 1.41 lakh crore for Urban Clean India Mission
• Urban Swachh Bharat 2.0 Mission to be launched at outlay of Rs 1.41 lakh crore over 5 years.
• Jal Jeevan Mission Urban to have an outlay of Rs 2.87 lakh crore. - FM lays out a Rs 64,180 crore spending plan for healthcare over the next six years
• Will be spent on primary, secondary and tertiary healthcare
• In addition to the National Health Mission.
• 17,000 rural and 11,000 urban health and wellness centres to be set up
• Integrated public health labs to be set up in each district - Union Budget 2021 live: India has two COVID-19 vaccines available and we expect two more vaccines soon, the Finance Minister says
India currently also has one of the lowest death rate and active cases in the world. - Union Budget 2021 live: A vision for Atmanirbhar Bharat in part of Sitharaman’s first part. FY22 budget proposals based on six pillars
This is to further strengthen the sankalp of Nation-first. Including,
• Health & Well-being
• Inclusive Development Human Capital
• Innovation and R&D
• Physical & Financial capital and infrastructure
• Minimum government, maximum governance
- The total estimate of all relief measures announced by govt & RBI so far is Rs 27.1 lakh cr (13% of GDP), the Finance Minister says.
- Union Budget 2021 Live: Through the past year, the Finance Minister announced a Rs 30-lakh-crore plan, in ‘mini-budgets’ to beat Covid
• AtmaNirbhar Bharat programmes
• Performance-linked incentives
• Boost for domestic manufacturing
• Improved credit access for enterprises
• Moratorium on interest payments
• Thrust on affordable housing
• Booster shots for MNREGA - Union Budget 2021: Nirmala Sitharaman steps up to the mic, all eyes on the Finance Minister now
