Budget 2021 Updates.
The preparation of the budget was undertaken in circumstances like never before, Union Finance Nirmala Sitharaman said today in the Lok Sabha as she began the presentation of Budget 2021.
Faith is the bird that feels the light and sings when the dawn is still dark” FM quotes Rabindranath Tagore, adding that this moment in history is the dawn of a new era, where India is well-poised to be the land of promise and hope”.
The Budget will be the first budget of this decade and will also be a digital budget The Govt. is fully prepared to support and facilitate economy’s reset This budget provided every opportunity for economy to capture the pace it needs for a sustainable growth
Aatmanirbhar BharatKa Budget:
- AatmanirbharBharat packages accelerated structural reforms Today, India has two vaccines, we have begun to safeguard both our citizens as well as 100 or more countries Two or more more vaccines also expected soon.
- The Govt. stretched its resources for the benefit of the poorest of the poor The PM Garib Kalyan Yojana, the three Aatma Nirbhar Bharat packages and subsequent announcements were like five mini-budgets in themselves – Finance Minister
- Investment on health infra in Budget2021 has increased substantially .
Three areas – Preventive health, curative health and well-being – to be strengthened.
New Centrally Sponsored Scheme PMAatmanirbharSwasthBharatYojana to be launched, outlay of ₹ 64,180 crore over 6 years. To develop capacities of health care systems, develop institutions for detection & cure of new and emerging diseases.
Main interventions under #PMAatmanirbharSwasthBharatYojana include: Support for Health and Wellness Centres Setting up Integrated Public Health labs in all districts Critical care hospital blocks Strengthening of NCDC.
6. Supplementary Nutrition Programme & POSHAN Abhiyaan to be merged, Mission POSHAN 2.0 to be launched To strengthen nutritional content, delivery & outcome Intensified strategy for improving nutritional outcomes in aspirational districts.
7. JalJeevanMission Urban to be launched, outlay ₹ 2.87 lakh crore over 5 years Aimed at universal water supply in all 4,378 urban local bodies, with 2.86 crore household tap connections and liquid waste management in 500 AMRUT cities.
8. Proposals in Part A will strengthen the Sankalp of NATION FIRST
- Doubling farmers’ income
- Strong Infrastructure
- Healthy India
- Good Governance
- Opportunities for Youth
- Education for All
- Women Empowerment, and
- Inclusive Development
9. Urban Swachh Bharat Mission 2.0 with outlay of ₹ 1,41,678 crore over 5 years from 2021 Focused on complete fecal sludge management, waste water treatment, source segregation, management of waste from urban construction, bioremediation of legacy dump sites.
10. ₹ 2,217 crore for 42 urban centres with million plus population, to tackle burgeoning problem of air pollution.
11. A new centrally sponsored scheme ‘PM Aatmanirbhar Swastha Bharat Yojana‘ will be launched with an outlay of Rs 64,180 Crores over 6 years; This will develop capacity of primary, secondary and tertiary care, strengthen national institutions and create new ones.
12. Voluntary vehicle scrapping policy to phase out old and unfit vehicles Vehicles to undergo fitness test in automated fitness centres after 20 years (personal vehicles) and 15 years (commercial vehicles).
13. The pneumococcal vaccine, limited to only 5 states at present, to be rolled out across the country Will avert more than 50,000 child deaths annually.
14. ₹ 35,000 crore for COVID19 Vaccine in this year 2021-’22 Govt. is committed to provide more funds, if required
15. Outlay for health increased to ₹ 2,23,846 crore, an increase of 137% relative to previous year’s budget
16. Urban SwachhaBharatMission 2.0 will be implemented with a total allocation of Rs 1,41,678 crores over 5 years
17. India has 2 vaccines available and has begun safeguarding not just own citizens but also those of over 100 countries.
18. ₹ 1.97 lakh crore over 5 years starting this FY, for Production Linked Incentive Schemes to create manufacturing global champions for an AatmaNirbharBharat Will nurture size and scale and create jobs for youth.
19. Scheme of Mega Investment Textile Parks to be launched, in addition to PLI scheme, to create world class infra in textile sector, with plug-and-play facilities, to create global export champions 7 textile parks to be set up over 3 years
20. To give further thrust to National Infrastructure Pipeline, three concrete actions to be taken: Creating institutional structures, Monetizing assets, Increasing share of capital expenditure in central and state budgets
21. Professionally managed Development Financial Institution to be set up, to provide, enable & catalyze infra financing. ₹ 20,000 crore to capitalize this institution. Aim is to have lending portfolio of at least ₹ 5 lakh crore in 3 years.
22. National Monetization Pipeline of potential brownfield infrastructure assets to be launched, for monetizing operating public infra assets Asset Monetization Dashboard to track progress and provide visibility to investors.
23. 100% electrification of rail broad gauge routes to be completed by December 2023
24. High density rail networks and highly utilized rail routes to be provided with indigenously developed automatic train protection system which will eliminate train collision due to human error
25. Record sum of ₹ 1,10,055 crore to be provided for Indian Railways, out of which ₹ 1,07,100 is for capital expenditure only
26. New scheme at a cost of ₹ 18,000 crore for augmentation of public bus transport services Will facilitate deployment of innovative PPP models enabling private players to finance, acquire, operate and maintain over 20,000 buses
27. MetroLite and Metro New Technologies to be deployed to provide metro rail systems in tier 2 cities and peripheral areas of tier 1 cities, at much lesser cost, with same experience, convenience and safety
28. For 2021-22 FM propose a sharp increase in capital expenditure and thus have provided Rs 5.54 lakh crores, 34.5% more than BE 2020-21 We will provide over Rs 2 lakh crores to states and autonomous bodies for their capital expenditure
29. Framework to be put in place, to provide consumers alternatives to choose from, from among more than one power distribution company.
30. Revamped, reforms-based, result-linked Power Distribution Sector Scheme to be launched, with outlay of ₹ 3,05,984 crore over 5 years Will provide assistance to distribution companies for infrastructure creation
31. Comprehensive National Hydrogen Energy Mission to be launched, as per PM ‘s announcement at 3rd REINVEST conference in Nov 2020 Mission will help generate hydrogen from green power sources.
32. Seven port projects worth more than ₹ 2,000 crore to be offered by major ports in PPP Mode, in FY 2021-’22 To move to a model where private partner will manage operations of ports
33. Scheme for promoting flagging of merchant ships in India to be launched, by providing subsidy support to Indian shipping companies in global tenders floated by Ministries and CPSEs ₹ 1,624 crore over 5 years for this
34. Ship Recycling Capacities of around 4.5 million Light Displacement Tonnage to be doubled by 2024, expected to generate around 1.5 lakh jobs for our youth
35. Ujjwala scheme which has benefited 8 crore households, will be extended to cover 1 crore more beneficiaries.
36. 100 more districts to be added in next 3 years, to City Gas Distribution Network.
37. Independent Gas Transport System Operator to be set up, for facilitation and coordination of booking of common gas carrier capacity, in all natural gas pipelines, on non-discriminatory and open access basis.
38. A single and rationalized Securities Markets Code to be set up, by consolidating provisions of SEBI Act 1992, Depositories Act 1996, Securities Contracts Regulation 1956 and Govt. Securities Act 2007
39. Record sum of ₹ 1,10,055 crore for Indian Railways, of which ₹ 1,07,100 is for capital expenditure only 100% electrification of rail broad gauge routes to be completed by December 2023 FM announces additional railway initiatives
40. Permanent institutional framework to set up, to instill confidence in corporate bond market participants during times of stress and enhance secondary market liquidity.
42. To set up a system of regulated gold exchanges in the country, SEBI will be notified as regulator and Warehousing Dev. and Regulatory Authority will be strengthened.
43. For investor protection, Investor Charter as a right of all financial investors across all financial products to be introduced
44. Additional capital infusion of ₹ 1000 crore to Solar Energy Corporation of India and ₹ 1500 crore to IREDA, to give further boost to green energy sector
45. Insurance Act 1938 to be amended, to increase permissible FDI limit in insurance companies from 49% to 74% and allow foreign ownership and control with safeguards
46. Asset Reconstruction Company Ltd. to be set up to consolidate and take over existing stressed debts and manage and dispose of assets for eventual value realization
47. Deposit Insurance Cover for bank customers to be increased from ₹ 1 lakh to ₹ 5 lakh, provision to be streamlined to enable depositors get access to funds within insurance cover limit
48. In case of wheat
Amount paid to farmers in 2013-14 -Rs 33,874 crores
Amount paid in 2019-20 -Rs 62,802 cr
Amount paid in 2020-21 – Rs 75,060 cr
No. of farmers benefitted in 2020-21 – 43.36 lakhs
in 2019-20 – 35.57 lakhs
49. Minimum loan size eligible for debt recovery under SARFAESI Act 2002, to be reduced from ₹ 50 lakh to ₹ 20 lakh, for NBFCs with minimum asset size of ₹ 100 crore
50. Definition of small companies under Companies Act 2013 to be revised Companies with paid-up capital up to ₹ 2 crore & turnover up to ₹ 20 crore will fall under small companies, benefiting more than 2 lakh companies in compliance req.
51. To incentivize incorporation of one-person companies, such companies will be allowed to grow without any restriction on paid-up capital or turnover and to convert into any other type of company at any time Big boost for Startups
52. NCLT framework will be strengthened, e-court system to be implemented, alternate debt resolution mechanism and special framework for MSMEs to be introduced, Data Analytics and AI driven MCA 21 version 3.0 to be introduced.
53. Two public sector banks apart from IDBI and one general insurance company to be taken up for strategic disinvestment in 2021-’22 IPO of LIC also to be brought in.
54. setting up of Higher Education Commission in last budget; we will introduce legislation this year It will be an umbrella body having 4 separate vehicles for standard setting, accreditation, regulation and funding.
55. Policy on Strategic Disinvestment of Public Sector Enterprises has been approved, as announced earlier in Aatma Nirbhar Bharat Package
56. ₹ 1.75 lakh crore is estimated to be the receipts in 2021-’22, by way of strategic disinvestment.
57. Treasury Single Account system will be extended from autonomous bodies for universal application from 2021-22, enabling other bodies too to withdraw funds from govt. account during actual expenditure, without incurring interest costs
58. More economic corridors are planned
1. 3500 kms of National Highway Works in Tamilnadu at Rs 1.03 lakh cr.
2. 1100 kms in Kerala at Rs 65000 cr
3. 675 kms in West Bengal at Rs 25000 cr
4. over 1300 kms in Assam at Rs 34000 cr
59. To further streamline Ease of Doing Business for cooperatives, a separate administrative structure for them to be set up
60. SVAMITVA (Survey of Villages Abadi and Mapping with Improvised Technology in Village Areas) scheme to be extended during 2021-22 to cover all states and union territories
61. Agricultural credit target enhanced to ₹ 16.5 lakh crore, focus will be on ensuring increased credit flow to animal husbandry, dairy and fisheries sectors
62. Allocation for Rural Infrastructure Development Fund to be enhanced from ₹ 30,000 crore to ₹ 40,000 crore ₹ 5,000 crore Micro Irrigation Fund to be augmented by another ₹ 5,000 crore
63. Scope of Operation Greens Scheme to be extended from tomatoes, onions and potatoes to 22 perishable crops
64. 1,000 more mandis to be integrated with National Agriculture Market or eNAM
65. Agricultural Infrastructure Fund to be made available to APMCs for augmenting their infrastructure facilities
Report of the 15th Finance Commission
- Gross tax revenues for 5-year period is expected to be ₹135.2 lakh crore
- Total size of the grant to local governments should be ₹4,36,361 crore for the period 2021-26
- Health spending by States should be increased to more than 8 per cent of their budget by 2022
- Grants of ₹4,800 crore from 2022-23 to 2025-26 for incentivising States to enhance educational outcomes
Portal that will collect relevant information on gig workers, building and construction workers and others to be launched, to help formulate health, housing, skill, food, credit and insurance schemes for all migrant workers