Union Budget 2021 – Free PDF Download -

Table of Contents

Budget 2021 – Highlights

Indian Finance Minister Nirmala Sitharaman presented the Union Budget 2021.
This was the first paperless budget. The FM read out the Budget from a “Made in India”

This was also the first budget to be presented after the COVID-19 pandemic, which had a huge impact on the Indian economy.
Almost all sectors were adversely impacted by the pandemic especially tourism, transport, hospitality and MSME sectors.

This year, Finance minister has avoided giving any income tax relief.
- No increase in standard deduction, no raise in the tax slabs.
For senior citizens who only have pension and interest income
- No need to file their income tax returns.
- The paying bank will deduct the necessary tax on their income directly.
FM has reduced the time-limit for re-opening of assessment to 3 years from the present 6 years.
National Faceless Income Tax Appellate Tribunal Centre will be setup.
Exemption from audit for those who carry out 95% of their transactions digitally with income more than 10 cr.

Health & well being
- Budget outlay for Health and Wellbeing is 2,23,846 crores in BE 2021-22 as against this year’s BE of 94,452 crores an increase of 137%.
- 35,000 crores has been allocated Covid-19 vaccine in BE 2021-22
- A new centrally sponsored scheme, PM AtmaNirbhar Swasth Bharat Yojana, will be launched with an outlay of about 64,180 crores over 6 years.
  - This will be in addition to the National Health Mission.

Health & well being
- Supplementary Nutrition Programme and Poshan Abhiyan to be merged to launch the Mission Poshan 2.0
- Jal Jeevan Mission (Urban), will be launched with an outlay of 2,87,000 crores over next 5 years.
- Urban Swachh Bharat Mission 2.0 will be implemented with a total financial allocation of 1,41,678 crores over next 5 years.

Infrastructure
- For 2021-22, capital expenditure will be 5.54 lakh crores which is 34.5% more than last year.
- AtmaNirbhar Bharat – Production Linked Incentive scheme (PLI) for 13 sectors with outlay of 1.97 lakh crores in next 5 years.
- 7 Mega Investment Textiles Parks (MITRA) in next 3 years.
- Development Financial Institution (DFI) will be setup with a sum of 20,000 crores to capitalise the institution.

Infrastructure in Election states..!!
- Tamil Nadu: 3500km with Rs. 1.03 lakh crores
- Kerala: 1100km with Rs.65,000 crores
- West Bengal: 675km with Rs.25,000 crores
- Assam: 19,000 crores projects in progress
- Overall, a total of Rs.1,18,101 lakh crore for Ministry of Road Transport and Highways has been allocated.

Infrastructure – Railways
- A record sum of 1,10,055 crores, for Railways has been allocated of which 1,07,100 crores is for capital expenditure.
- Indian Railways have prepared a National Rail Plan for India – 2030.
- A new scheme will be launched at a cost of 18,000 crores to support augmentation of public bus transport services.
- Two new technologies – ‘MetroLite’ and ‘MetroNeo’ will be deployed to provide metro rail systems in Tier-2 cities and peripheral areas of Tier-1 cities.

Infrastructure – Misc
- Comprehensive National Hydrogen Energy Mission to be launched.
- Independent Gas Transport System Operator will be set up.
- 1000 crore outlay for Solar Energy Corporation of India
- Seven port projects worth more than Rs.2,000 crore to be offered by major ports in PPP Mode

Financial Capital
- Consolidation of the provisions of SEBI Act, 1992, Depositories Act, 1996, Securities Contracts (Regulation) Act, 1956 and Government Securities Act, 2007 into a rationalized single Securities Markets Code.
- FDI in insurance to be hiked from the existing 49% to 74%.
- Bad bank will be setup to consolidate and take over the existing stressed debt.

Financial Capital
- Revision of definition of small companies under the Companies Act, 2013
  - Paid up capital from 50 lakh to 2cr
  - Turnover from 2cr to 20 cr
- IPO of the LIC will be carried out in FY 2021-22.
  - Two PSUs and 1 insurance company will be considered for disinvestment with a target of 1,75,000 cr.
- From investors perspective, Investor Charter is going to be introduced for investor protection.

Development of Aspirational districts
- Agriculture and Allied sectors
- Farmers’ welfare and rural India
- Migrant workers and labour
- Financial inclusion

Development of Aspirational districts
- MSP regime has assured price that is at least 1.5 times the cost of production across all commodities.
- Under SWAMITVA Scheme till now, about 1.80 lakh property-owners in 1,241 villages have been provided cards.
- One Nation One Ration Card plan is under implementation by 32 states and UTs, will reach about 69 crores beneficiaries.
- For Stand Up India scheme for SCs, STs, and women there will be reduced margin money requirement of only 15%.

Human Capital
- National Education Policy (NEP)
- 100 new Sainik Schools will be set up
- Higher Education Commission of India will be setup as promised in 2019.
- Central University in Leh proposed
- 750 Eklavya model residential schools in tribal areas.

Innovation and R&D
- National Research Foundation will be setup with outlay of 50,000 crores, over 5 years.
- New Space India Limited (NSIL), a PSU under the Department of Space will execute the PSLV-CS51.
- National Language Translation Mission (NTLM) will be launched.
- Rs 1,500 crores for a proposed scheme to promote digital modes of payment.
- Deep Ocean Mission with a budget outlay of more than 4,000 crores, over five years.

Minimum government & Maximum Governance
- Reforms in Tribunals
- National Commission for Allied Healthcare Professionals bill
- National Nursing and Midwifery Commission Bill

Electronic and Mobile Phone Industry
- Some parts of mobiles will move from ‘nil’ rate to a moderate 2.5% custom duty.
Solar Sector
- Custom duty on solar invertors raised from 5% to 20%, and on solar lanterns from 5% to 15%.
- Iron and Steel
- Customs duty uniformly to 7.5% on semis, flat, and long products of non-alloy, alloy, and stainless steels.

The fiscal deficit in BE 2021-2022 is estimated to be 6.8% of GDP.
The gross borrowing from the market for the next year would be around 12 lakh crores.
Govt has planned to continue with the path of fiscal consolidation, and intend to reach a fiscal deficit level below 5% of GDP by 2025-2026 with a fairly steady decline over the period.

Faith is the bird that feels the light and sings when the dawn is still dark.
- Rabindranath Tagore
A King/Ruler is the one who creates and acquires wealth, protects and distributes it for common good.
- Thirukkural