Indian Union Budget 2021-22: Right Way to Revive the Economy of the Country?
Indian Union Budget 2021-22: The Finance minister of India, Nirmala Sitharaman in her Budget 2021 speech disclosed a slew of taxation reforms along with raised spending on healthcare with Rs 35,000 crore on Covid-19 vaccine advancement. Nirmala Sitharaman has proposed the Union Budget 2021-22 in Parliament. Minor changes to the taxation process, new rules for disposal of double taxation for NRIs, Sitharaman confirmed the scrapping of income tax for senior citizens under special conditions and a decrease in the period of tax assessments among other measures. Startups will get an expansion in their tax holiday for an additional year.
India Budget 2021-22: Highlights
- Enthusiasm from the budget announcement boosted the Indian stock market, as a result, Sensex rose 2000 points
- Union Finance Minister Nirmala Sitharaman on February 1 announced the Union Budget 2021 and revised the expenditure target for FY 2021 at Rs 34.50 lakh crore
- Rs 2,23,846 crore has been allocated for health, and Rs 1.18 lakh crore for road infra
- Rs 1,10,055 crore has been allocated for Railways, with an outlay of over Rs 3 lakh crore for power
- The divestment target for FY22 has been set at Rs 1.75 lakh crore, among other things
- Finance Minister Nirmala Sitharaman utilized a tablet computer to deliver the paperless Budget address.
India Budget 2021-22: Finance Minister’s Speech
In her speech, the Finance Minister announced that India’s fiscal deficit is set to leap to 9.5 percent of GDP in 2020-21 as per Revised Estimates. This is dashingly higher than the 3.5 percent of GDP that was propelled in the Budget Estimates. A recession in government revenues amid the Covid-19 epidemic has led to a quick rise in market borrowing and deficit. In health care spending, she announced a total spend of around Rs 2 lakh crore on healthcare with Rs 35,000 crore on Covid-19 vaccine development and innovation. She also declared that the advance tax liability on dividend income shall ensue after the declaration of payment of dividend. After her speech, Sensex was at 47451, raised up by 1165 points.
Sitharaman, in her speech, declared a push to the textile industry, a hike in customs duty in raw silk and cotton, a new cess on agriculture development, a hike of Rs 2.50 per liter on petrol and Rs 4.00 per liter on diesel, a focus on sea-weed farming with a new facility in Tamil Nadu, a central university in Leh and a new vehicle scrapping policy that strives to furnish the auto sector a boost among other statements. Sitharaman also declared that an additional one crore households will now benefit under the Centre’s Ujjwala scheme. Four poll-bound states – Assam, Kerala, Tamil Nadu, and West Bengal – will see substantial spending on highway road expansion.
Prime Minister Modi Addressed the Nation
Addressing the nation after the Budget, PM Modi said it speaks of ‘all-round development.’ ‘From Covid-19 related reforms to Atmanirbhar resolve, we strode ahead with this mantra in Budget 2021. It’s an active and not a reactive budget,’ he added and complimented the Finance Ministry team.
First Budget in Digital Format
Under the National Democratic Alliance (NDA) government led by PM Modi, this was Nirmala Sitharaman’s third budget. In a considerable departure from the tradition, this year’s Budget was not printed and was only made available in a digital format. Finance Minister Nirmala Sitharaman utilized a tablet computer to deliver the paperless Budget address.
Economic Expansion amid Novel Coronavirus Outbreak
This Budget infers great significance as it comes amid the novel coronavirus outbreak, which has led to huge economic disruption in India and around the globe. While the country has witnessed a strong economic comeback since lockdown restrictions were eased, there’s still a long way to go. All eyes were on this Budget, with hopes that it will help breathe life into the economy. FM Sitharaman said that the Budget practice was undertaken under circumstances like never before and that the Centre is fully instructed to facilitate and support economic expansion. Most of the corporate CEOs had commended the Union Budget, asserting the new vision will help India recover from the economic expenses that were resulted in the COVID-19 epidemic.
FM Took Several Tax Reforms
The finance minister proposed an income tax filing exemption for those over 75 years of age who have only pension and interest income. She also said that the reopening of tax inspection will happen only for 3 years, against the earlier limit of 6 years.
India Budget 2021-22: Key Announcements
- FY22 capital expenditure target is set at Rs 5.54 lakh crore while FY21’s was at Rs 4.39 lakh crore.
- FY22 fiscal deficit pegged at 6.8 percent of GDP while FY21 fiscal deficit pegged at 9.5 percent of GDP.
- Government to launch new securities market code.
- Foreign Direct Investment in insurance to be boosted to 74%.
- Rs 1.75 lakh crore has been set as the divestment target for FY22.
- No change in Income Tax slab, No tax relief to the working class. The tax audit limit has been doubled to Rs 10 crore from Rs 5 crore. NRIs will be exempted from audit.
- 2.5 percent customs duty will be levied on mobile parts, Mobile phones and chargers, they are likely to become more expensive.
- Gold-silver is likely to be cheaper. With reduced customs duty on steel by 7.5 percent and Increased custom duty on auto parts, Iron-steel will be cheaper as well.
- Big announcement for senior citizens above 75 years, no more income tax for 75-year-olds. Tax exemption only for pensioners and senior citizens.
- Extended relief for 1 year for cheap building and Startup tax exemption till 31st March 2022. Till 2020, home loans will be exempted.
- Mission Nutrition 2.0 will be launched. Allocation of Rs 2,23,849 crore for health. Amrut Yojana will be taken forward in the city under Bharat Mission. Rs 2,87,000 crore will be allocated for Amrut Yojana.
- 35 thousand crore advertisement for corona vaccine. More emphasis will be placed on health this year. Health and infrastructure budgets will be increased.
- There will be a scrapping policy for older vehicles.
- Under a self-sufficient India, farmers’ income will double.
- 7 textile parks will be built.
- 1.03 lakh crore for the Tamil Nadu National Highway project, which will include economic corridors. National highways worth Rs 65,000 crore will also be constructed in Kerala. Mumbai-Kanyakumari Economic Corridor announced. Announcement of Kolkata-Siliguri National Highway Project in West Bengal
- Allocation of 1 lakh 10 thousand 55 crores to Railways. Vista Dome coaches will be built on the railways. National Rail Plan 2030 ready.
- Customers will get the option to choose the power company. Major reforms were made in the energy sector, with a Rs 3 lakh crore scheme announced in the power sector. Announcing the creation of a hydrogen plant. Projects in the energy sector will be completed under the PPP model
- Implemented a public bus transport system for Rs 18000 crore. Gas pipeline project to be started in Jammu and Kashmir.
- One crore more beneficiary will be connected under the Ujjawala scheme. FDI in the insurance sector can now be up to 74 percent, earlier it was 49 percent.
- Creating a charter for investors will be announced. The government will sell Air India airlines. LIC’s IPO will come this year.
- 3-year-old pending tax case will not be opened. Only in serious cases will a 10-year-old case be opened.
- Customers will now be able to choose the power distributor as they wish
How can India’s economy be successfully revived?
Currently, the economic crisis all around the world is an extraordinary situation. It cannot be overcome by mere planning and performing. In an extraordinary circumstance like this human alone cannot overcome it. The human community must seek help from the Almighty God Kabir Saheb. We must please the Supreme Being by performing His true worship Sat-Bhakti.
How to Perform Sat-Bhakti to Get Rid of Sorrows?
Presently, only Sant Rampal Ji is enlightened by the true way of worship of the Supreme God Kabir. Everyone must take Naam Diksha (initiation) from Sant Rampal Ji Maharaj and ask Almighty God Kabir for mercy and power to fight this extraordinary situation. Only then can a nation or the entire planet overcome these circumstances.
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