Union Budget 2021: Here are the key takeaways

(Image: Reuters)

Finance Minister Nirmala Sitharaman on February 1 presented the Union Budget for 2021-22.

Sitharaman said this Budget was prepared "under circumstances like never before", referring to disruptions caused by the COVID-19 pandemic.

Also read: Budget 2021 | Infra push for poll-bound states in FM's big-ticket announcements

Here are the major announcements that were made:

> Amid the pandemic, healthcare budget of Rs 2.23 lakh crore has been allocated for FY22, 137 percent higher than the Budget estimate (BE) for FY21. In 2021-22, Rs 35,000 crore earmarked for the COVID-19 vaccination programme.

> India's nominal gross domestic product (GDP) is estimated to grow by 14.4 percent in FY22.

> PM Aatmanirbhar Swasth Bharat Yojana to be launched, outlay of Rs 64,180 crore over six years. Sitharaman said the scheme will develop capacities of primary, secondary, and tertiary care health systems, and strengthen existing national institutions

> A voluntary vehicle scrappage policy, where passenger vehicles will undergo fitness tests after 20 years, and commercial vehicles after 15 years. The move will bring relief to the automotive sector.

Also read: FM Nirmala Sitharaman opens government purse-strings to rebuild India

> Senior citizens who are 75 years and above, and have only pension and interest income, are now exempt from filing income tax returns. Income tax rebate of Rs 1.5 lakh for affordable home loans will continue until March 2022.

> Public sector banks (PSB) to receive fresh capital infusion of Rs 20,000 crore in 2021-22.

> Fiscal deficit has been pegged at 9.5 percent of the Gross Domestic Product (GDP) in FY21, and 6.8 percent in FY22. Sitharaman said the government will approach the market for additional Rs 80,000 crore.

> The upcoming Census will be the first one to be conducted digitally, for which Rs 3,758 crore has been allocated.

> A development financial institution (DFI) will be created to fund infrastructure projects, for which Rs 20,000 crore has been set aside. A bill in this regard will be tabled in the Parliament's current session.

> Against the backdrop of the ongoing farmers' protests, the Centre raised the farm credit target for FY22 to Rs 16.5 lakh crore, from Rs 15 lakh crore in 2020-21.

Also read: Budget 2021 | Amid farmer protests, agriculture, rural India get top priority

> Customs duty on some parts of mobile phones has been raised to 2.5 percent from nil.

> Creation of a "bad bank", or an entity to address the stressed assets of banks, which will be set up through the asset reconstruction (ARC) model.

> For 2021-22, the disinvestment target has been set at at Rs 1.75 lakh crore. This includes the Centre reducing its stake in two state-owned banks and a general insurance company, and large-scale asset sales. It will also include the listing of Life Insurance Corporation of India (LIC), and proposed privatisation of major state-run companies such as Air India and Bharat Petroleum Corporation (BPCL).

Also read: Budget 2021 | 10 changes that impact your personal finances

> Foreign direct investment (FDI) limit in insurance companies will be raised to 74 percent from 49 percent.

> An agriculture infrastructure and development cess (AIDC) on petrol, diesel, alcoholic beverages gold, silver, crude soyabean, and a few other commodities. However, this will not impact consumers.