• Revoking ADD and CVD on certain steel products.
• Reducing duties on copper scrap from 5% to 2.5%.
• Some parts of mobiles to move from NIL to 2.5% rate.
• Cutting duty on copper scrap 2.5% from 5%.
• Exempting duty on steel scrap for a specified period.
- Finance Minister Nirmala Sitharaman said the government will borrow Rs 80,000 crore in the remaining two months to meet FY21 expenditure.
“Govt to borrow about Rs 12 lakh cr in FY22; expenditure pegged at Rs 34.83 lakh cr, including Rs 5.54 lakh cr of capital spending,” Sitharaman said. - Budget 2021 Live updates: The FM proposes extension of tax holiday for start-ups by one more year.
- Income tax return filers increased to 6.48 cr in 2020 from 3.31 cr in 2014, says FM.
- Government to provide tax exemption for relocating funds to IFSC
- Aviation gets a boost, Sitharaman gives tax holiday for aircraft leasing business in Gift city
- Govt to extend eligibility of erstwhile tax sop on home loan up to FY22; propose that affordable housing projects can avail tax holiday for one more year
Govt proposes to extend exemption available for the purchase of affordable houses & to provide tax exemption for affordable rental housing projects - Boost to NRIs in Sitharaman’s Budget: Government to notify rules to eliminate double tax for NRIs on foreign retirement funds
- Budget 2021 Live updates: Tax tricks in Sitharaman’s Budget
• For ease of compliance, dividend payment for REIT and InVIT exempted from tax.
• Govt proposes to increase threshold for tax audit to Rs.10 crore vs Rs. 5crore (for those transacting 95% digitally)
• Govt to set-up a faceless dispute resolution mechanism for small taxpayers.
• Advance tax liability on dividend to arise only after declaration.
• FPI to get deduction of tax on dividend at lower treaty rate.
• Tax exemption for aircraft leasing companies. - Finance Minister allocates Rs 3,726 crore for forthcoming Census. This will be the first digital census, Sitharaman said.
- FM reduces tax burden on senior citizens above 75 years. Pensioners over 75 years of age are exempt from filing returns .
To reduce time limit for reopening of tax records to three years from six years. - Hope to get to back to fiscal consolidation path by FY26. Fiscal deficit will reach below 4.5% by FY26, says Sitharaman.
- Airport management cos rise as govt announces monetising more airports
- Union Budget 2021 live: FY21 fiscal deficit at 9.5% of GDP
• FY21 gross expenditure seen at Rs 34.5 lakh crore
• FY21 capital expenditure seen at Rs 4.39 lakh crore
• FY21 fiscal deficit pegged at 9.5% of GDP
• FY22 fiscal deficit target at 6.8% of GDP
• FY22 gross expenditure seen at Rs 34.83 lakh crore
• FY22 capital expenditure seen at 5.54 lakh crore
• Market borrowing in FY22 seen at 12 lakh crore - India to launch Deep Ocean Mission, with allocation of Rs 4,000 crore over 4 years.
- Union Budget 2021 live: Government announces multi-state co-operative for ease of doing business
- Minimum wages to now apply to all categories of workers. Women to be allowed to work in all categories with adequate protection.
- MSME allocation to be doubled. Government to set aside Rs 15,700 crore in FY22
Government also proposes to reduce margin money requirement from 25% to 15% for startups. - Union Budget 2021 live: 69 crore beneficiaries or 86% covered under one-nation, one-ration, says the Finance Minister
- Farmers find a way in the bahi khata. FM announces enhanced agri credit target for FY22, gives update on welfare schemes.
• To increase provision to rural infra development fund to Rs 40,000 crore from Rs 30,000 crore
• Five major fishing harbours to be developed as hubs for economic activity
Scheme updates
• 1.54 crore farmers benefited from MSP in paddy and wheat in FY21 vs 1.24 crore YoY
• Amount paid to farmers for wheat in FY21 was Rs 75,060 crore vs Rs 62,802 crore in FY20
• Amount paid to farmers for paddy in FY21 seen at Rs 1.72 crore Rs vs Rs 1.41 lakh crore in FY20
• Amount paid to farmers for pulses in FY21 seen at Rs 10,530 crore vs Rs 8,285 crore in FY20 - Government to privatise 2 PSU banks, one general insurance company in FY22: Nirmala Sitharaman
• It will complete the divestments of BPCL, CONCOR and SCI in financial year 2021-22.
• Will bring IPO of LIC in FY22 - BPCL, CONCOR, Pawan Hans, Air India divestments to be completed in FY22
- Divestment target for FY22 at Rs 1.75 lakh cr, FM says
• In FY21, the government had budgeted to raise Rs 2.1 lakh crore through divestments but fell short.
• Some of the big ticket divestments planned last year, like the stake sale in LIC, may conclude this year.
• The government has approved a new public sector enterprises policy, which is intended to drive privatisation.
Fiscal support in FY22 depends on revenue generation from the success of these programmes. - 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.
- 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.
