Union Budget 2021 | Budget at glance, key takeaways; other details

Union Finance Minister Nirmala Sitharaman on February 1, while reading out the Budget 2021-22, she announced a slew of measures to revive the Indian economy and announced the total size of the 2021-22 budget at Rs 34.83 lakh crore.

Here is the Union Budget 2021-22 at a glance on which sector received how much allocation?

1) Health and Well Being:

a) Total allocation: Rs 2,23,846 crore (138% increase than previous Budget).
b) PM Aatmanirbhar Swastha Bharat: Rs 64,180 crore over 6 years.
c) Urban Swachcha Bharat Mission: Rs 1,41,678 crore over 5 years.
d) Voluntary vehicle scrapping policy. Vehicles will undergo fitness tests after 20 years for PVs, 15 years for CVs.

2) Manufacturing:

a) Capital expenditure for FY 21-22: Rs 5.54 lakh crore
b) Mega Investment Textiles Parks over 3 years, in addition to PLI.
c) Bill to set-up a Development Finance Institution (DFI), capitalised with Rs 20,000 crore.
d) DFI for infrastructure financing: Bill will be passed to set up the DFI with a target lending portfolio of Rs 5 lakh crore in 3 years
e) Capital expenditure for FY 21-22: Rs 5.54 lakh crore (an increase by 34.5% YoY).
f) To launch National Monetisation Pipeline for brownfield projects, NHAI and PGCIL have sponsored one InvIT each

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Roads Connectivity:

a) Allotment to Ministry of Road Transport & Highways: Rs 1.18 lakh crore.
b) To award 8,500-km of highways by March 2022 and 11,000-km of national highway corridor to be completed.
c) Highway works proposed:
i) 3,500 km corridor in Tamil Nadu.
ii) 1,100 km in Kerala at investment of Rs 65,000 crore.
iii) 675 km in West Bengal at a cost of Rs 95,000 crore.
iv) 1,300 km in Assam in the next 3 years.
d) 3500 km of national highway work being planned in Tamil Nadu at an estimated investment of Rs 1.3 lakh crore.
e) 1500 km of national highway work being planned in Kerala at a cost of Rs 65,000 crore.
f) Government to undertake future freight corridor development projects.
g) The govt to work towards raising the share of public transport with an outlay of Rs 18,000 crore.

Railways:

a) Total allocation: Rs 1,10,055 crore.

Power:

a) Scheme to assist Discoms will be launched: Outlay over Rs 3 lakh crore.
b) Ujjwala scheme to be expanded to over 1 crore more beneficiaries.
c) City gas distribution network to be expanded to 100 more districts.
d) Independent gas network operator will be set up.

Disinvestment:

a) Divestment target for FY22: Rs 1.75 lakh crore.
b) Proposal to strategically divest 2 PSU banks & 1 general insurance co.
c) Proposal to take up 2 PSBs and one general insurer for divestment.
d) To bring IPO of LIC in FY22.
e) Approved policy for divestment in strategic and non-strategic sectors.
e) Set up a separate administrative structure for cooperatives.
f) Approval policy for divestment in strategic and non-strategic sectors.
g) Non-core assets like surplus land will be monetised. SPVs will be set up to carry out this activity.

Startups/MSMEs:

a) Innovators would be allowed to form 1-person companies without restrictions, paid-up capital, or turnover norms.
b) Govts says provided Rs 15,700 crore to MSME sector, more than 2x of the previous year.
c) Proposal to reduce the margin money requirement from 25% to 15% doe Stand Up India for SCs, STs, and women, and to also include loans for activities allied to agriculture.
d) Proposal to provide Rs 1,000 crores for the welfare of Tea workers especially women and their children in Assam and West Bengal. A special scheme will be devised for the same

Agriculture and Allied Services:

a) For wheat procurement in 2020-21 to farmers: Rs 75,060 crore.
b) Enhanced agriculture credit target for FY22. Additional allocations for rural infrastructure & irrigation.
c) Micro-irrigation corpus doubled to Rs 10,000 crore.
d) Agriculture infra funds will be made available to APMCs.
e) Rural infra fund increased to Rs 40,000 crore.
f) Set up multi seaweed park in Tamil Nadu.

Social security:

a)  '1 Nation 1 Ration Card' plan under implementation by 32 states & UTs. To launch a portal to collect data on migrant workers.
b) Social security benefits will be extended to gig and platform workers.
c) To launch a portal to collect data on migrant workers.
d) Social security benefits will be extended to gig economy workers.
e) Women will be allowed to work in all areas and in night shifts.

Education and Skill Development:

a) Introduction of legislation for setting up of higher education commission. Will set up a central university in Leh.
b) 15,000 schools to be strengthened as per National Education Policy c) 100 new Sainik schools to be set up in partnership with NGOs.
d) Raise allocation for 'Eklavya' schools to Rs 38 crore & Rs 40 crore in hilly areas.
e) For skill initiatives for the youth: Rs 3,000 crore to be set aside.
f) National Research Foundation to be allocated Rs 50,000 crore over 5 years

Digital Payments:

a) To boost digital payments.
b) For financial incentives for digital payments: Rs 1,500 crore earmarked.
c) NRF to get Rs 50,000 crore over 5 years. NRF will focus on the Research system being strengthened in the industry.

Expenditure target:

a) FY21 revised expenditure target: Rs 34.50 lakh crore.
b) Govt to approach the market for additional Rs 80,000 crore to fund the FY21 fiscal deficit.
c) Fiscal deficit will reach below 4.5% by FY26.
d) Gross market borrowing target at Rs 12 lakh crore for FY22.
e) 41% devolution to states retained.
f) Contingency Fund of India to be enhanced: Rs 30,000 cr.
g) Propose to discontinue loans to FCI. Have provided support in budget.
h) 15th Finance Commission reconfirming share of States at 41%.
i) Fiscal deficit in the revised estimate for FY21 pegged at 9.5% of GDP
j) Need another Rs 80,000 crore for FY21.
k) Will approach market in next the 2 months for the additional Rs 80,000 crore.
l) Fiscal Deficit Estimated at 6.8% for FY22.
m) Gross Borrowing Estimated at around Rs 12 lakh crore for FY22
n) Will look to bring the fiscal deficit below 4.5% by 2025-2026 (FY26).
o) Expect a fairly decent decline of Fiscal Deficit up to FY26.

Income Tax:

a) Senior citizens above 75 years with only pension and interest income exempted from filing returns.
b) Reopening of tax cases only till after 3 years Vs 6 years earlier.
c) To set-up a faceless dispute resolution mechanism for small taxpayers.
d) To make Income Tax Appellate Tribunal faceless.
e) Proposal to Propose to increase the threshold for tax audit to Rs 10 crore Vs Rs 5 crore (for those transacting 95% digitally).

Affordable Housing:

a) Affordable housing deduction extended by one year to FY22.
b) Tax exemption to notified rental housing projects
c) Notified infra debt funds to be eligible to raise tax-efficient zero-coupon bonds.

Other Taxes:

a) FPI to get a deduction of tax on the dividend at a lower treaty rate.
b) Tax exemption for aircraft leasing companies. Tax holiday for Aircraft leasing business in Gift city.
c) Details of cap gains, div income, interest income to be pre-filled in tax forms.
d) Late deposit of employee’s contribution will not be allowed as a deduction for the employer.
e) Extension of cap gains tax exemption for investment into start-ups by another year.
f) Delayed contribution of EPF by an employer for the employee will not be allowed as a deduction.
g) Proposal to review more than 400 old exemptions in customs this year.
h) To put into place new customs duty structure by Oct-1, 2021.
i) Withdrawal of exemptions on some parts of mobile phones. Some parts of mobiles to move from NIL to 2.5% rate.
j) Exemption of duty on steel scrap for a specified period. Revocation of ADD and CVD on certain steel products.
h) Cut in duty on copper scrap 2.5% from 5%.
i) Cut in Basic Customs Duty rate on nylon chips & nylon fiber.
j) Rationalisation of customs duties on gold and silver.
k) Introduction of a phased manufacturing plan for solar cells & panels.
l) Withdrawal of exemption on tunnel boring machines, to be taxed at 7.5%.
m) Increase in customs duties on some auto parts.
n) Withdrawal of exemption on certain kinds of leather imports.
o) Raise in customs duty on cotton and raw silk.