Union Budget 2021 Highlights | Committees on DTC were constituted in a certain context and with a certain intent in mind: CBDT chief

| Here’s a roundup of other key Budget announcements:
> FY22 capital expenditure target at Rs 5.54 lakh crore vs. FY21's Rs 4.39 lakh crore
> FY22 fiscal deficit pegged at 6.8 percent of GDP; FY21 fiscal deficit pegged at 9.5 percent of GDP
> Government to launch new securities market code
> FDI in insurance to be increased to 74 percent
> FY22 divestment target set at Rs 1.75 lakh crore
> Allocation of Rs 35,000 crore as additional funds for COVID-19 vaccines

Key announcements: Direct taxes
> Exemption from filing tax returns for senior citizens over 75 years of age and having only pension and interest income; tax to be deducted by paying bank
> Time limit for re-opening cases

This live session has now ended.

- Decided to set up an ARC & AMC. ARC will warehouse all stressed assets of ticket size of Rs 500 crore. AMC will try to operate stressed assets in the interim & dispose of stressed asset.

|DIPAM Secretary Tuhin Kanta Pandey told Moneycontrol that while the names of two state-owned banks and one general insurance company to be privatised are yet to be decided, just announcing that PSBs are up for privatisation was a big statement of intent in itself. Read the full story here.

INTERVIEW | Corporate Tax Collection In FY2021-22 Expected To Be Better Than Pre-COVID Collections: CBDT Chief

In an exclusive interview with Moneycontrol, PC Mody said that committees like those on Direct Tax Code (DTC) were constituted in a certain context and with certain intent in mind and it's not…... Read More

- The Budget ticks all important boxes; public enterprise policy, bank privatisation & LIC IPO are key announcements.

|Education is regarded as a key factor for a country's development, yet the allocation for the sector witnessed a massive slump in the aftermath of the COVID-19 pandemic.The governmentslashed Rs 6,088 crore from the education sector's budgetary allocation. The cut in education spending, however, comes in the year the government begins to implement the National Education Policy 2020. Read the full article here.

Budget Session: Lok Sabha Adjourned For The Day After Ruckus By Opposition Over Farm Laws

Earlier in the day, the Rajya Sabha was adjourned for the day after members of the Opposition parties raised slogans demanding the suspension of the business of the day and take up discussions over…... Read More

Union Finance Minister Nirmala Sitharaman, during her Budget speech on February 1 announced a slew of measures all aimed at spurring the job creation in the country ranging from the creation of 7 textile parks to the proposal of setting up of a seaweed park in Tamil Nadu to the announcement of Rs.18,000 crore scheme for increased transport in urban areas. How will this translate in the labour market?Read the full article here to find out.

INTERVIEW | Government Can't Sustain Handouts Indefinitely, Says Expenditure Secretary TV Somanathan

Speaking exclusively to Moneycontrol in a post-budget interview, Expenditure Secretary TV Somanathan said it was a conscious decision by the government to invest in infrastructure projects which will…... Read More

Union Finance Minister Nirmala Sitharaman in her Budget 2021 speech on February 1 announced an entity in the form of an asset reconstruction company/asset management company or more commonly called as a ‘Bad Bank’ to help the banking system get rid of the existing stock of problematic loans. The bad bank will absorb the existing stock of non-performing assets (NPAs) of the banks and will attempt resolution through a professional approach.

Thereare a few reasons why a government-backed ARC can perform better than existing private ARCs. Find out what they are in this article.

Reform Measures In Budget To Take India Out Of COVID-induced Downturn: Rajiv Kumar

NITI Aayog Vice-Chairman Rajiv Kumar also stressed that reform measures announced in the Budget will help us achieve the target of $5 trillion economy.... Read More

Anil Patwardhan, Senior Director, Brickwork Ratings-The Formation of Development Financial Institutions (DFI) is proposed with a capitalisation of Rs.20,000 Crs. The lending portfolio of such DFI’s to the Infrastructure sector is expected to increase to at least Rs.5 lakh crores over a span of next three years. This will enable the PSBs to reduce its exposure to infrastructure projects and enhance its credit to other industries.

- The Government of India (GOI)’s proposal to recapitalise Public sector Banks (PSBs) to the tune of Rs.20,000 Crs will enable the PSBs to access and raise funds from the capital market and strengthen its capitalisation levels. Formation of Asset Reconstruction Company (ARC) and Asset Management Company (AMC) will address the large stressed portfolio of PSBs, reduce their provisioning burden and improve profitability. The proposed amendment in the provisions of Deposit Insurance cover will reduce the depositors stress in making available their deposits in a defined time bound manner