BUDGET 2021: Today our honorable finance minister presented Bahi khata of the year or say budget of the year 2021. So let's see it how all it is classified. 

Atmanirbhar Bharat

The FM outlined six pillars of proposals to strengthen the vision of Atmanirbhar Bharat, namely health and wellbeing, capital and infrastructure, inclusive development, reinvigorating human capital, innovation and R&D and minimum government and maximum governance.

Healthcare Boost

The FM announced a new centrally-sponsored scheme PM Atmanirbhar Swast Bharat Yojana launching with an outlay of Rs 64,180 crore crore over six years. This will be an addition to the National Health Mission. The FM said govt will merge the supplementary Nutrition program and the Poshan Abhiyaan, launching the Mission Poshan 2.0. The Budget has further provided Rs 35,000 crore for Covid-19 vaccines in 2021-22, and committed to provide further funds if required.

Capital and infrastructure



The Govt is set to introduce a Development Financial Institution (DFI). Rs 20,000 crore will be provided to capitalise the new DFI, with an aim to have a lending portfolio of Rs 5 lakh crore in 3 years. National Monetisation Pipeline for brownfield projects will be launched, the FM announced with NHAI and PGCIL having sponsored one InvIT each. She also added that vehicles will undergo fitness tests after 20 years for PVs, 15 years for CVs, announcing a voluntary vehicle scrapping policy.

Further she gave an outlay of Rs 1.18 lakh crore for the Ministry of Road Transport and Highways, and added that India plans to spend Rs 1.1 lakh crore for railways in FY22

Also Read | My Thought on Atmanirbhar Bharat Swatantra Bharat

Capital expenditure

FY22 capital expenditure provided is up 34.5% (vs FY21 BE) at Rs 5.54 lakh crore, said the Finance Minister. Rs 44,000 crore under capital expenditure will be given to Department of Economic Affairs in FY22, she added. FY21 capital expenditure is seen at Rs 4.39 lakh crorCrore

India's Tax Revenue Estimate

India FY21 Gross Tax Revenue Estimate Said To Be Reduced By About Rs 5 Lakh Crore

India Is Said To Estimate FY22 Expenditure At About Rs 35 Lakh Crore

India Is Said To Target FY22 Disinvestment Revenue At Rs 1.75 Lakh Crore

Agricultural Credit



The Budget set agriculture credit target of Rs 16.5 lakh crore for FY22, and will further increase provision to rural infra development fund to Rs 40,000 crore from earlier Rs 30,000 crore. Sitharaman said the govt is committed to welfare of farmers, pointing at how 1.54 crore farmers benefited from MSP in paddy and wheat in FY21. Furthermore, underlined that Rs 75,060 crore was paid to farmers for wheat in FY21 versus Rs 62,802 crore in FY20.

Fiscal deficit and divestment target

The Govt sees FY22 fiscal deficit at 6.8%, according to the FM, while she had pegged deficit at 3.5% for FY21 in the last Budget. Govt aims to get Rs 1.75 lakh crore through divestments in 2021-22, according to Budget documents. In FY21, it planned to raise Rs 2.1 lakh crore through divestments, falling short.

Amendments

FM Sitharaman proposed to consolidate provisions of the Sebi Act, Depositories Act, Securities Contracts Regulation Act, and the Government Securities Act. Government aims to amend Insurance Act to allow higher FDI, increasing FDI limit in insurance to 74% from 49% and allowing foreign ownership

Railways

An allocation of Rs 1,10,055 crore to be made. Of this, Rs 1.07 lakh crore is for capital expenditure for FY22. The eastern and western dedicated freight corridors will be commissioned by June 2022, it was announced. The FM also announced plans for east coast corridor, east-west corridor, north-south corridors. 100% electrification of broad-gauge routes will be completed by December 2023, she said.

Power Distribution

The government will enable electricity connections portability to consumers by introducing competition in the power distribution space and kickstart a Rs 3 lakh crore reforms scheme for state power distribution companies, finance minister Nirmala Sitharaman announced.

Banking and companies

The Govt plans to allot Rs 20,000 crore for bank recapitalisation of PSBs. The FM also proposed to revise definition under Companies Act, 2013 for small companies by increasing their threshold for capitalisation.




Sitaraman Talked in shorts 

 1. Scrapping policy for 15yrs CV & 20 yrs perosnal

 2. 7 mega TEXTILE parks within 3 yrs time

 3. Development financial Institute will start with 20k cr

 4. Railway will sale dead assets

 5. PSUs warehousing assets will be sold

 6. Capital expentidure for FY22-5.5Lk crs

 7. GAIL IOC HPCL Will sale pipeline assets 

 8. Health will get FY22-2.2 lk cr

 9. By next yr 8500km of ROAD project will be completed

 10. 25k cr will be spent on WEST BENGAL highways 

 11. Min of road transport n highway will get 1.18 lk cr

 12. FY-22 Fiscal deficit estimate -**6.8**%

 13. FY-21 Fiscal deficit- 9.5% Actual

 14. Railway will get record 1.1 lk cr

 15. Public buses will get 18k cr

 16. City gas distribution new 100 disticts will be included

 17. Security market code will be launched

 18. GOLD Exchange will be regulated by SEBI

 19. FDI in insurance- increase to 74% from 49%

 20. FY-22 PSUs will get 20k cr

 21. No restriction on OPC 

 22. NCLT framework will be strenghten

 23. Small cos PAID UP CAPITAL limit increased to 20Cr

 24. Main PSUs divestment will take in FY 21-22 INCLUDING 2 public banks & 1 General insurance co

 25. LIC IPO will be launched in FY-22

 26. 1.75 lk cr is target of strategic PSU divestment

 27. Rural infra fund will get 40k cr 

 28. Margin money requirement reduced from 25% to 15%

 29. 5 major fishing hubs would be developed in the country

 30. MSME will get 15,700 Cr 

 31. 100 new army schools will be build

 32. National research foundation will get 50k cr

 33. Digital payment will be provided with an incentive of 1500 cr

 34. Estimated gross borrowing of govt for FY 22 would be 12 lk cr

 35. FISCAL DEFICIT Target of 4.5 % of GDP BY FY25-26

 36. Exemption for those above 75 yrs not to pay TAX having income from pension

 37. E-ITAT will now come to forces

 38. TAX AUDIT Limit increased from 5 cr to 10 cr for those making 95% transactions digitally

 39. REIT,INVIT dividends are now out from TDS regime

 40. Limit for reopening of IT Assessmemts reduced to 3 yrs from 6yrs

 41. Details of capital gain from listed exchanges, bank interest PPF interest will come pre filled in ITR FORMS

 42. Tax holiday period for start ups by 1 more year

 43. Increased Start up investment capital gain exemption by 1 more year

 44. New custom duty code will come in place from 01/10/2021

 45. Reduced custom duty to alloy(**steel/iron**) to 7.5%

 46. Mobile components custom duty increased to 2.5%

 47. Copper custom duty reduced 2.5%

 48. Rationlising custom duty on gold and silver





💈 Budget Key Highlights

💸2020-21 Fiscal deficit at 9.5% of GDP

📡Census to go Digital: FM: ₹ 3,768 Cr for Digital Census In India

🏡100 New Sainik Schools to be set up

🏭Central University in Leh Soon

🏢 750 New Eklavya Model Schools

🏛15,000 Schools to be strengthened under N.E.P

🦬Multi-purpose seaweed park to be established in T.N.

🍃Rural Infra fund increased to ₹ 40,000 Cr

🌾Over ₹ 75,000 Cr Wheat MSP paid to farmers in FY21

🪙 ₹ 1.75 Lakh Cr disinvestment target in FY21-22

🏫₹ 20,000 Cr for recapitalisation of Govt Banks

🚨FDI raised from 49% to 74% in Insurance sector

🚋 ₹ 1,10,055 Cr allocated to Railways

💈Over ₹ 27 Lakh Cr Aatmanibhar Package announced

🦠Total Covid package amounts to 13% of GDP

🧪 ₹ 35,000 Cr to be allocated for Covid Vaccines

 🏰7 Textile parks to be set up in 3 years

🚧₹ 1.18 Lakh Cr for Road Transport Ministry

🟢DON'T CONFUSE UNION BUDGET 2021 OF GDP

🔷 FY22 fiscal deficit seen at 6.8%

🔷 FY21 fiscal deficit at 9.5%

🔷 FY21 gross expenditure seen at Rs 34.5 lakh crore

🔷 FY21 capital expenditure seen at Rs 4.39 lakh crore

🔷 FY21 fiscal deficit pegged at 9.5% 

🔷 FY22 fiscal deficit target at 6.8% 

🔷 FY22 gross expenditure seen at Rs 34.83 lakh crore

🔷 FY22 capital expenditure seen at 5.54 lakh crore

🔷 Market borrowing in FY22 seen at 12 lakh crore


Budget 2021 PDFs - Budget 2021