The 2021 Union Budget was presented by the Honourable Finance Minister of India, Mrs Nirmala Sitharaman. This time the Union Budget was of particular significance because it came when the world struggled with the economic crisis created due to the Covid-19 pandemic. Like every other country, India is also responding to the situation by making investments in critical areas. Many of these investments were not planned before.
Therefore, there were high speculations this time regarding Budget 2021 Highlights. Here are the significant snapshots of the ninth Union Budget under the Narendra Modi government.
Healthcare as a focal point
As the Covid-19 outbreak challenged the healthcare sector massively, this year, the major emphasis was on healthcare in the Union Budget. Sitharaman announced a centrally-sponsored scheme worth Rs 64,180 crore by the name Aatmanirbhar Swasth Bharat Yojana.
The finance ministry shall spend the money allocated through this scheme on developing the entire country’s primary, secondary, and tertiary care health system.
This scheme shall also provide financial support to develop and improve the existing healthcare infrastructures and establish new healthcare institutions to better detect and cure diseases.
Proposal for infrastructural developments
The next important area of concern of the India Budget 2021 Highlights was the infrastructural development of India.
In the Union Budget, the finance minister announced that India’s finance ministry and the central government would fund this infrastructural development.
Moreover, a new development finance institution shall be set up for the purpose, and Rs 20,000 crore has also been proposed for accomplishing the objective.
Greater capital expenditure value
Sitharaman declared a hiked fiscal impulse in the Union Budget, which is among the most interesting Budget 2021 Highlights.
Previously, the Revised Estimate (RE) capital expenditure value (RE) of 2020-21 was Rs 4.12 lakhs. But the budget session announced an increase of 34.46 %. So, the Capex value for 2021-2 2 will be Rs 5.54 lakh crores.
Reform announcements for banking
The banking sector has some significant takeaways in 2021-22, as declared in this year’s Union Budget.
The union finance minister has declared that two prominent banks belonging to the public sector shall be prepared for their assets’ disinvestment and eventual liquidation. Assumptions of the finance ministry are that this decision will help meet the revenue shortfalls from these institutions.
It was also declared that the finance ministry would set up an asset reconstruction company and an asset management company shortly. These institutions would manage the banks’ existing debts and dispose of these assets to other potential investors.
Encouragement in FDI inflow in the insurance sector
An amendment in the Insurance Act, 1938 was also proposed in the Union Budget. This amendment declared that the FDI in the insurance sector would also be increased from 49% presently to 74%. Expectations are that this scheme shall allow foreign ownership in the insurance sector.
Further, a state-owned insurance company has also been lined up for disinvestment.
No tax relief for the people
This fiscal year has been quite tumultuous as far as the general public’s income and expenditure are considered. Nonetheless, the public should not expect anything extraordinary from Union Budget 2021, where tax relief is concerned.
To be specific, Sitharaman did not declare any income tax relief for the year.
There will be no increase in tax slab or standard deductions for the coming year too.
Expansion of gas distribution networks
Budget 2021 Highlights show that the Union Budget of 2021 had a vital scoop for India’s petroleum and natural gas sector.
Sitharaman recounted in the Union Budget that the Ujjwala Scheme under the Modi government had successfully provided the gas connection to eight crore families of the country so far.
In an extension of this success, Sitharaman announced that the gas distribution network would be extended further to one crore more beneficiaries within the coming fiscal year. She further added that the network would expand to 100 more districts within the timeline of three years.
If you’re wondering how to interpret the modifications and new provisions in the Union Budget 2021 concerning taxation, investments and other regulatory compliance for your business, hire a reliable firm in India like Dewan P.N. Chopra & Co., Desai Haribhakti & Co., Neeraj Bhagat & Co., etc.