Nirmala Sitaraman, The Union Finance Minister presented the Budget for the year 2021-2022. She walked towards the office holding the logo of the Government of India to present the first budget for the decade.
The budget is focused on 6 basic pillars which include Health and wellbeing, Reinvigorating Human Capital, Physical and financial Capital, and infrastructure, Innovation and Research and Development, Minimum Government, and Maximum Governance.
This year’s budget is under the vision of AatmaNirbhan Bharat which is focusing on the development of skilled citizens, increasing farmer’s pay, better infrastructure, a Healthy nation, equal education, and new opportunities for youth, women empowerment, and good governance.
There is an upwards shift in customs duty for the benefit of Make in India. There is a stake of sale for one of the general insurance companies and 2 PSBs.There are no changes in the Income-tax slabs. There is an estimate for a positive move in the GDP for the year 2021-2022.
Key Highlights of the budget 2021
HEALTH AND WELLBEING:
There is an increase of 137% in the investment of healthcare from 94,452 crores to 2,23,846 crore. An outlay of Rs. 64,180 crore spread over 6 years which would help the health sector to create new technologies, institutions, and research centers. The main focus of this scheme are
- PM Atma Nirbhar Swasth Bharat Yojana – A new scheme for the development of Primary, secondary and tertiary healthcare sector
- Jal Jeevan Mission – To provide water supply across the nation.
- Focusing to strengthen the Swachh Bharat Mission
- Setting up the operation of 17 new public health centers in every entry point such as airports, land crossing, and seaports
- An amount of Rs. 35,000 crore to providing Covid-19 vaccines across the country.
REINVIGORATING HUMAN CAPITAL:
An amount of 35,219 crores laid out for educational purposes. Development of primary and higher education in the rural sector. Joining hands with other institutions across different borders.
- Opening 15,000 schools in the rural sector of the country
- Setting up 100 Sainik schools in collaboration with NGO or other schools
- 750 Eklavya model schools to be introduced in the tribal areas
- Providing scholarships to students.
- To build a Central University in Leh for higher education purposes in Ladakh.
- Women empowerment
- Equal education rights to all the students
PHYSICAL AND FINANCIAL CAPITAL AND INFRASTRUCTURE:
An Amount of Rs.1,18,101 lakh crore had been outlay for the construction of Highways. And 1,10,055 towards the expansion of railways which is a part of the Make in India strategy. This is one of the highest layouts ever.
- Vehicle scrapping policy – All the old vehicles will have to go through a fitness test. For personal vehicles, fitness tests have to be taken every 20 years and for Commercial vehicles every 15 years.
- Highways to be constructed in 4 states Tamil Nadu, Kerala, Assam, and West Bengal.
- Providing jobs to the youth in the country
- Expansion of National infrastructure pipeline projects to 7,400 projects.
- Expansion of the textile industry and go globally.
- Easy access of metros in the urban sector
- Gas Line to be provided across Jammu and Kashmir
INNOVATION AND RESEARCH AND DEVELOPMENT:
Rs. 50,000 crores outlay spread across 5years for the research and development of the
- Fiscal deficit to 6.8% this year from 9.5%.
- States governments to raise funds up to 4%on GSDP
- A hike of 25% in the foreign direct investment
- An initial public offering from LIC
- Up to 5lakhs deposit in the insurance policy.
- Double payment for farmers.
- Funds for agricultural infrastructure to be available.
MINIMUM GOVERNMENT AND MAXIMUM GOVERNANCE:
Rs. 3768 crores provided to conduct the national census digitally. Rs.1,000 towards the Tea plantation workers especially in the eastern part of Indian mainly focussing on women.
- National commission for all the healthcare staff
- Rs.300 crores granted to goa government to celebrate the golden jubilee independence from the Portuguese.
- No taxes for senior citizens who earn interest through their deposits and pensions.
- The income tax slab remains the same.
- No special cess for Covid.
- No other exemptions.
- There is a reduction in the reopening of the IT assessment to 3 years from 6 years.
- Custy duty to be levied on Gold and Silver.
- Housing projects to get tax exemption for one year.
- The tax audit turnover limit increased to 10%.
- Custom duty on cotton has increased from zero to 10%.