Schemes in Budget 2021: Union Finance Minister Nirmala Sitharaman has on 1st February 2021 presented the Union Budget 2021-22 for the 3rd time in a row with multiple new schemes for this financial year. The Union Budget is the yearly financial report estimating the income and expenditure presented to outline future policies to be adopted by the government for sustainable growth and development. This Budget was the first-ever paperless Budget and the first of this new decade.
Finance minister Nirmala Sitharaman concluded her Budget speech at 12.50 pm with many new schemes and initiatives. These new schemes in the Budget are meant for new India and a step towards Aatmanirbhar Bharat. In February 2020, FM Nirmala Sitharaman spoke for a record 162 minutes — two hours and 42 minutes — in Lok Sabha. FM Sitharaman only had two pages of her Budget speech unread, when she appeared uneasy and her Budget speech was cut short.
The Budget proposals for 2021-2022 rest on 6 pillars.
i. Health and Wellbeing
ii. Physical & Financial Capital, and Infrastructure
iii. Inclusive Development for Aspirational India
iv. Reinvigorating Human Capital
v. Innovation and R&D
vi. Minimum Government and Maximum Governance
New Schemes in Budget 2021 Announced Today:
- National Language Translation Mission will be set up to boost regional languages and translation for our regional speakers. This will phenomenally help in increasing the utilization of internet services and augment the vision of digital India!.
- A new centrally sponsored scheme in budget, PM AtmaNirbhar Swasth Bharat Yojana, will be launched with an outlay of about 64,180 crores over 6 years. This will develop capacities of primary, secondary, and tertiary care Health Systems, strengthen existing national institutions and create new institutions, to cater to detection and cure of new and emerging diseases. This will be in addition to the National Health Mission.
- The Urban Swachh Bharat Mission 2.0 will be implemented with a total financial allocation of 1,41,678 crores over a period of 5 years from 2021-2026.
- The forthcoming Census could be the first digital census in the history of India. For this monumental and milestone-marking task, I have allocated 3,768 crores in the year 2021-2022.
- To launch a portal that will collect relevant information on gig, building, and construction-workers among others. This will help formulate Health, Housing, Skill, Insurance, Credit, and food schemes for migrant workers.
- 100 new Sainik Schools will be set up in partnership with NGOs/ private schools/states.
- For accessible higher education in Ladakh, FM to set up a Central University in Leh.
- The government plans to sell part of its holding in Life Insurance Corporation of India through an initial public offering in the coming year. An amendment to the existing Act to facilitate the public offer.
- To enable the textile industry to become globally competitive, attract large investments and boost employment generation, a scheme of Mega Investment Textiles Parks (MITRA) will be launched in addition to the PLI scheme. This will create world class infrastructure with plug and play facilities to enable create global champions in exports. 7 Textile Parks will be established over 3 years.
- Govt Proposes Agri Infra Cess of 100% on Alcoholic Beverages.
- The Finance Minister proposed to provide Rs. 1,000 crore for the welfare of Tea workers especially women and their children in Assam and West Bengal for which a special scheme will be devised.
- In the 75th year of independence, the Budget seeks to reduce compliance burden on senior citizens who are of 75 years of age and above. Such senior citizens having only pension and interest income, will be exempted from filing their income tax return. The paying Bank will deduct the necessary tax on their income.
- The government of India will set up 15 Health Emergency Centres.
- Finance Minister Nirmala Sitharaman has announced a voluntary vehicle scrapping policy. Vehicles to undergo fitness test – which is 20 years for passenger vehicles and 15 years for commercial vehicles.
- National Infrastructure Pipeline has been expanded to 7,400 projects. Further, projects worth Rs 1.1 lakh crore have been completed under the National Infra Pipeline. The government will also introduce a bill to set up DFI providing Rs 20,000 crore to launch the National Asset Monetisation Pipeline to fund new infra projects.
- The government will allot Rs 1.03 lakh crore for National Highway Projects in Tamil Nadu; Rs 65,000 core for National Highway Projects in Kerala; Rs 25,000 crore for National Highway Projects in West Bengal.
- FDI in the insurance sector proposed to be hiked to 74% from 49% now.
- Finance Minister Nirmala Sitharaman announces a new gas pipeline project for Jammu and Kashmir.
- The government has announced an important scheme in the union budget for independent gas transport system operators for booking and coordination to ensure unbiased allocation of natural gas transportation capacity.
- FM puts disinvestment receipts at Rs 1.75 lakh cr for the fiscal year beginning April 1, 2021. Two PSBs and one general insurance company to be divested, legislations amendments to be introduced in this session.
- “Over 15,000 schools to be qualitatively strengthened under the National Education Policy.
- Finance Minister Nirmala Sitharaman earmarks Rs 1,500 crore for promoting a digital mode of payment.
- Finance Minister Nirmala Sitharaman announced an allocation of Rs 300 crore to the state of Goa for celebrating the 60th anniversary of the liberation from Portuguese rule.
- 1,000 more mandis will be integrated with the electronic national market.
- To boost value addition in agriculture and allied products and their exports, the scope of ‘Operation Green Scheme’ that is presently applicable to tomatoes, onions, and potatoes, will be enlarged to include 22 perishable products.
- Non-resident individuals with entrepreneurial potential are now enabled to set up One Person Companies (OPC) with no paid-up capital and turnover restrictions, reducing the registration timeline from 182 days to 120 days. Earlier only Indian resident citizens were permitted to set up OPCs.
- NRIs to be spared from double taxation. New rules to be notified. Tax audit limit increased from Rs 5 crore to Rs 10 crore.
- The National Nursing and Midwifery Commission Bill will be introduced by the government for passing.
- To benefit farmers, we are raising customs duty on cotton from nil to 10% and on raw silk and silk yarn from 10% to 15%. We are also withdrawing end-use based concession on denatured ethyl alcohol. Currently, rates are being uniformly calibrated to 15% on items like maize bran, rice bran oil cake, and animal feed additives.
- To build up domestic capacity, we will notify a phased manufacturing plan for solar cells and solar panels. At present, to encourage domestic production, we are raising duty on solar invertors from 5% to 20%, and on solar lanterns from 5% to 15%.
- The Finance minister surprised taxpayers by not announcing any change in income tax slab rates. Some relief in filing ITR for senior citizens above 75. No Covid tax, surcharges on income tax.
- Agri infra cess of 30% on kabuli chana, 10% on peas, 50% on bengal gram/chick peas, 20% on lentil (mosur); 5% on cotton imposed in Budget
- Agri infra cess of 2.5% imposed on gold, silver and dore bars; 35% on apples; 5% on specified fertilizer; 1.5% on coal, lignite and peat
- Agri infra cess of 100 pc imposed on alcoholic beverages
- Agri infra cess of 17.5% on crude palm oil, 20% on crude soyabean, sunflower oil imposed.
- Government has proposed farm cess of Rs 2.5/litre on petrol, Rs 4 on diesel.
- Tax holiday for startups extended by 1 yr; exemption on capital gains on investment in startups extended by 1 yr.
- Rs 1.5 lakh deduction on payment of interest for affordable housing extended by 1 yr.
- Proposal to allocate Rs. 2,217 crore for 32 urban centres to tackle the burgeoning air pollution problem.
- A comprehensive National Hydrogen Mission will be launched in 2021-22 for generating hydrogen from green power sources.
UNION BUDGET 2021-22 HIGHLIGHTS IN HINDI – BUDGET 2021 INDIA CURRENT AFFAIRS – UPSC, SSC, BANK