Union budget presented in Lok Sabha

No new exemption in income tax

• 100 new Sainik schools to be opened
• Centre guarantees MSP (minimum support price) to be 1.5 times the cost of production across all commodities.
• Two new COVID vaccines will be introduced.
• LIC, Air India, IDBI Banks to be privatised.

New Delhi – Union Finance Minister Nirmala Sitharaman presented the Union Budget in the Lok Sabha on 1st February. Disappointment loomed large over common people as the budget lacked any kind of new exemption on the expected income tax, but people over the age of 75 have been exempted from ‘IT returns’. Presently, in view of the Corona pandemic, Rs 2,23,843 crore have been allocated to the health sector, up three times from 94,452 crore rupees. Along with the introduction of 2 new vaccines against Corona, Sitharaman also announced Rs 35,000 crores for the vaccine. The Finance Minister said that the fiscal deficit of the country is pegged at 9.5% of the ‘GDP’ for 2020-2021. This was the third budget presented by Finance Minister Nirmala Sitharaman. A paperless budget was presented for the first time on a ‘Made in India’ tab .

Cheaper

Gold and silver jewelry, leather goods, electronics goods, utensils

Expensive

Mobile, charger, headphones, petrol, diesel, vehicles, solar inverters

Overall defense expenditure increased to Rs 4, 78,196 crore

The overall defense expenditure has been increased to Rs 4, 78,196 crore which is Rs 7000 crore more than the previous budget. This includes Rs 1.35 lakh crores for upgrades, 2.12 lakh crore for revenue expenditure and 1.12 lakh crore for pensions.

Privatisation of Life Insurance Corporation of India

Disinvestment of India’s largest insurance company, Life Insurance Corporation of India (LIC) announced through the Initial public offer (IPO). FDI limit has been increased to 74% from 49%.  Along with this, IDBI will also be privatized and revenue of 90 thousand crores is expected to be raised. Also companies like BPCL, Container Corporation of India, Shipping Corporation of India, Air India are slated to be privatised this year.

Thousands of crores for Nashik and Nagpur Metro

• FM Sitharaman has announced a provision of 2.92 thousand crore for the Nashik Metro, and Rs. 5.9 thousand crore for the Nagpur Metro.
• Rs.14 thousand crores have been allotted for the expansion of Bengaluru Metro and an amount of 63,240 thousand crores will be given for the route expansion of the Chennai metro.

Rs 300 crore to Goa

(Courtesy: ABP MAJHA)

Rs 300 crore have been earmarked on the occasion of 60 years of Goa liberation.

Important provisions of the Union budget 2021-22

• Digital counting of population census for the first time after the country became independent, Rs 3.38 thousand crore is allotted for this.
• 4 new National Institute of Virology (NIV) are to be established.  At present, only one NIV, Pune exists in the country.
• 100 new Sainik Schools will be opened in the country.
• Minimum Wage Act will be implemented in all areas.
• ‘Ujjwala Yojana’ to reach out to another 1 crore beneficiaries. In the next 3 years, 100 more districts will be added to the gas distribution network. Gas pipe line project will be started in Jammu and Kashmir.
• Online portal for unorganized labourers will be created.
• 1.5 times MSP for all agricultural products
• 75thousand 60 crore rupees will be provided as assistance to wheat growers
• 20 thousand crores will be raised to strengthen nationalized banks.
• ‘Scrapping Policy’ for old vehicles introduced. ‘Fitness test’ for private vehicles after 20 years, and for commercial vehicles after 15 years.
• 25 thousand crore rupees will be provided for highways in Bengal.
• 1.78 lakh crore will be provided for disposal of waste.
• 64 thousand crore allotted for Mumbai-Kanyakumari highway.
•  Set up of 15 critical care health centers and 2 mobile hospitals.
• Women to be allowed to work on night shifts.
• Central University in Leh, Ladakh.
•  Rs 1,10,055 crore allotted to develop adequate rail infrastructure by the 2030.