Budget 2021 Highlights: Finance Minister Nirmala Sitharaman presented Union Budget 2021-22 today. She used a tablet computer to deliver the paperless Budget address. This Budget assumes great significance as it comes amid the novel coronavirus pandemic, which has led to massive economic disruption in India and around the world. While the country has witnessed strong economic recovery since lockdown restrictions were eased, there’s still a long way to go. All eyes were on this Budget, with hopes that it will help revitalise the economy. FM Sitharaman said that the Budget preparation was undertaken under circumstances "like never before" and that the Centre is fully prepared to support and facilitate economic growth. The finance minister proposed income tax filing exemption for those over 75 years of age who have only pension and interest income. She also said that reopening of tax assessment will happen only for three years, against the earlier limit of six years.
Most of the corporate CEO have applauded the Union Budget, stating the new vision will help India recover from the economic losses that were caused due to COVID-19 pandemic.
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 reduced to three years from six years
Union Budget 2021 |
All the action from FM Sitharaman’s budget– as it happened
Union Finance Minister Nirmala Sitharaman on February 1 presented the Union Budget 2021 and revised the expenditure target for FY 2021 at Rs 34.50 lakh crore. She allocated Rs Rs 2,23,846 crore for health, Rs 1.18 lakh crore for road infra, Rs 1,10,055 crore for Railways, outlay over Rs 3 lakh crore for power and set the divestment target for FY22 at Rs 1.75 lakh crore, among other things.
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Budget 2021 |
Budget Missed out onsupply chain enterprise that keeps consumption drive intact: CredAble's Ram Kewalramani
Mr. Ram Kewalramani, Co-founder & Managing Director, CredAble: "Amid unprecedented times where COVID-19 economically affected the entire world, the budget was expected to focus more on the financial backbone that kept the cash flow for aligned sectors and those in need. Although the major focus being healthcare, infrastructure, and agriculture, the financial institutions could have got a cushion from the government. Looking at the fiscal deficit for 2020-21, which is approx. 9% range, the government now needs to find the means to execute the emphasized projects, with ease.
"The budget missed out on the supply chain enterprise that keeps the consumption drive intact. Cash requirements for the short run, especially for small as well as large business houses remain untouched. Besides, the additional cess has been proposed on both petrol and diesel, which will only add to the cost of goods and services. In fact, the focused projects announced for infrastructure which may help stimulate demand, in the long run, will also be subject to implementation effectiveness.”
Union Budget 2021 LIVE Updates | The Budget and Privatisation
Union Budget 2021 LIVE Updates | Impact of the Budget on Healthcare
Budget 2021 | Govt announces gas pipeline project for Jammu and Kashmir
The Centre has announced a maiden gas pipeline project for the Union Territory of Jammu and Kashmir.In her Budget speech on Monday, Finance Minister Nirmala Sitharaman said a gas pipeline project will be taken up in Jammu and Kashmir.
She also announced setting up of a central university in Leh district of Union Territory of Ladakh for accessible higher education. READ MORE HERE
Union Budget 2021 LIVE Updates | Prashant Kumar - MD & CEO, YES Bank-
Overall, the Government seems conscious of triggering positive growth impulse with the Union Budget striking the right chords in terms of reviving consumption and boosting investments.
Union Budget 2021 LIVE Updates | CBDT Chairman PC Mody as per ANI reports-
The revised estimate for direct tax collection this year is Rs 9.05 lakh crores, out of which we have collected Rs 6.63 lakh crores. I am very confident that we will achieve the target.
Union Budget 2021 LIVE Updates | Congress leader P.Chidamabaram per ANI reports
-It was not a Budget like never before, it was a let down like never before. The Budget like the previous one will unravel sooner than you think.
Budget 2021: Centre bets on multiplier effect of infrastructure projects to create jobs, boost demand
The Budget will deliver growth, create jobs, restore incomes and boost consumption. But more likely over a medium-term rather than in the immediate few months. This is because the focus is on infrastructure building and construction, which takes time to deliver results.
Many of the projects announced by Finance Minister Nirmala Sitharaman will be built over a period of over five years, create durable assets and deliver growth in the medium term rather than provide a short-term boost. The government is betting on the fiscal multiplier effect of infrastructure projects – estimated at 2.5x – to achieve its objective.
The problem with the emphasis on large infrastructure projects is that implementation can be delayed due to a variety of reasons including land acquisitions and environmental clearances. Land acquisition is not easy and that will affect the execution of several proposed projects such as expansion of highways and roads, metro rail projects and textile parks... READ MORE HERE
Budget 2021: Customs duty hike to make ACs, mobile phones, spandex expensive but gold, silver, nylon get cheaper
Imported products such as compressors for refrigerators and air conditioners (ACs), alcoholic beverages, raw silk, spandex fibre, LED lamps, solar lanterns, mobile phones and power banks are set to cost more as Finance Minister Nirmala Sitharaman proposed an increase in the customs duty on a range of items in her Budget 2021 speech.
However, on the other hand, products like gold, silver, nylon fibres, copper scrap and Naptha will get cheaper due to a customs duty cut. READ MORE HERE
Budget 2021 podcast | Expansionary reforms were promised, expansionary reforms were delivered
In this special episode on the Union Budget, host Keerthana Tiwari and Moneycontrol's Arup Roychoudhury discuss the key points from the announcements made by Finance Minister Nirmala Sitharaman.
Roychoudhury explains about the government reforms announced for the infrastructure sector and the disinvestment plans.
Budget 2021: Govt pegs gross market borrowing at Rs 12.05 lakh crore for FY22
The government will borrow Rs 12.05 lakh crore from the market in 2021-22, lower than the Rs 12.80 lakh crore estimated for the current financial year.
According to the Revised Estimate, the gross borrowing for the current financial year was raised to Rs 12.8 lakh crore as against the Budget Estimate of Rs 7.8 lakh crore, registering an increase of 64 percent.
"The gross borrowing from the market for the next year would be around Rs 12 lakh crores. We plan to continue with our path of fiscal consolidation, and intend to reach a fiscal deficit level below 4.5 percent of GDP by 2025-2026 with a fairly steady decline over the period," Finance Minister Nirmala Sitharaman said while unveiling Budget 2021-22 in Lok Sabha on Monday.... READ MORE HERE
Budget 2021 | Government takes the Budget route to give SEBI more teeth
For the top honchos of the Securities and Exchange Board of India (SEBI), listening to the Union Budget is not only about knowing the government’s thinking on important policies related to the various aspects of the economy like finance, health, infrastructure, and agriculture among other things but also about the capital market regulator’s own jurisdiction, powers, and new initiatives.
The government seems to have taken a special liking for the Mumbai-based watchdog to ensure that there is at least one major announcement in the Budget related to the regulator that monitors key sections of the capital market like equities, commodities, and currencies, along with a vast number of mutual funds and foreign investors... READ MORE HERE
Union Budget 2021 LIVE Updates | Sanjay Jalona, CEO & MD, LTI (L&T Infotech)
- We welcome the increased focus on Innovation and on ease of doing business. This budget appears to have set the right pace for India’s journey to a digital first approach. From an IT services perspective, the industry is facing an intense global competition and needs tax incentives and digital infrastructure support to ensure seamless work from anywhere ecosystem, which is the new normal. This is a critical requirement for the sector that employs nearly 4.5 million professionals, contributes 8% of the country’s GDP, has created high-quality jobs during the pandemic, and is the face of Brand India across the world.
Union Budget 2021 Updates | What's getting costlier?
Union Budget 2021 LIVE Updates | Munish Sharda, Managing Director & CEO, Future Generali India Life Insurance Company Limited
-In conjunction with Infra push, the government has announced the bold step of liberalisation of the FDI rules in the Insurance sector to 74% from the incumbent 49%, which will provide an immediate backstop in terms of capital for growth and improve the insurance penetration. This will help create the safety net and financial inclusion in the economy. The increase in FDI limit will definitely encourage foreign insurers to bring more capital into the country which has a huge potential for growth in the sector.
Budget 2021 | Tax compliance framework to help stabilise economy
With the economy still in the early stages of recovery from the coronavirus pandemic, the release of cash to the taxpayers was never on the cards, particularly after recognisable efforts of the government in the recent budgets. After the Budget announcement on February 1, the effort to bring back the growth in the economy and work on the “India First” motto can be clearly seen and much appreciated.
The Finance Minister shared the vision of a sustainable economy, starting with efforts towards putting the economy back on track in the aftermath of the pandemic, by resting on six obvious and relevant pillars – Health & Wellbeing, Physical and Financial Capital & Infrastructure, Inclusive Development, Human Capital, Innovation and R&D, Minimum Government and Maximum Governance... READ MORE HERE
Union Budget 2021 LIVE Updates
|Munish Sharda, Managing Director & CEO, Future Generali India Life Insurance Company Limited-The government’s commitment to spur the economy is conspicuous, with the announcement of a three pronged strategy of providing impetus to the Infrastructure sector. This will have a far-reaching positive impact on growth. Budget has made a hallmark move of setting-up a Development Financial Institution (DFI) with immediate capitalisation of Rs 20,000 Cr under National Infrastructure pipeline and has an ambitious target to have a lending portfolio of 5 lakh crores in three years’ time.
Union Budget 2021 LIVE Updates | Munish Sharda, Managing Director & CEO, Future Generali India Life Insurance Company Limited
- Budget 2022 has fired on all fronts, delivering a ‘Holistic, Forward Thinking and a Pro-Growth Budget‘, with strong policy reforms. This will have a long term impact and the potential to drive the economic growth for years to come. While these pro-growth measures have entailed a higher fiscal deficit, the government has given more importance to growth over fiscal consolidation at this juncture, which is the need of the hour.
Union Budget 2021 LIVE Updates | Munish Sharda, Managing Director & CEO, Future Generali India Life Insurance Company Limited
- Budget 2022 has fired on all fronts, delivering a ‘Holistic, Forward Thinking and a Pro-Growth Budget‘, with strong policy reforms. This will have a long term impact and the potential to drive the economic growth for years to come. While these pro-growth measures have entailed a higher fiscal deficit, the government has given more importance to growth over fiscal consolidation at this juncture, which is the need of the hour.
Union Budget 2021 LIVE Updates
|Dilip Modi, Founder of Spice Money-The incentive of Rs. 1,500 crore for digital payments is a move in the right direction. We are eagerly waiting to see what the scheme entails and how the industry can benefit from it. We hope a part of the fund goes towards fostering the banking correspondents (BC) network by introducing reimbursement schemes or alternatives to zero merchant discount rates (MDR) which has hampered the growth of the network and the payments ecosystem. We also expect the scheme to have provisions for device subsidy to strengthen the micro ATM infrastructure in rural India. We believe it will accelerate the transformation towards an Aatmanirbhar, Digital India and bring about financial inclusion for underserved parts of India.
Budget 2021 | ‘Fiscal stimulus’ should be clearly linked to the growth trajectory
The Union Budget for the year 2021-22 (FY22) has been announced against the backdrop of an unprecedented economic disruption triggered by the COVID-19 pandemic. Postponement of the fiscal discipline is the need of the hour given the gravity of economic stresses the nation is suffering from. Several governments across the world have followed the same path to help their respective economies stay afloat. While preparing the Budget for FY22, the Government of India too has used the escape clause to allow temporary deviation from the fiscal rules.
The Budget has given a strong push to economic growth by significantly increasing the capital expenditure to Rs 5.54 trillion in FY22 by placing health and infrastructure at the centre. Not just that, it has pushed the expenditure even in the last quarter of FY21 by more-than-double. This has increased the fiscal deficit to GDP ratio to 9.5 percent in FY21 and 6.8 percent in FY22 with gross market borrowings pegged at Rs 12.06 trillion in FY22 also. While the long-term government security yields and corporate bond yields rose sharply post the announcement of the market borrowing numbers, the real sector was buoyed due to a significant and transparent push to growth.... READ MORE HERE
Union Budget 2021 LIVE Updates | Dilip Modi, Founder of Spice Money
- It was encouraging to see the ‘Sankalp of Aatmanirbhar Bharat’ as well as inclusive and sustainable development come into focus right at the beginning of Financial Minister Nirmala Sitharaman’s budget speech. We had hoped for a boost to digital as it has the ability to bridge the gap between haves and have-nots when it comes to access to financial services. This was evident when the lockdown hit last year, when the digital financial infrastructure came to the rescue of millions of citizens. So, the incentive of Rs. 1,500 crore for digital payments is a move in the right direction.
What Budget 2021 means for taxpayers, investors and consumers
Budget 2021 has touched a broad canvas of people. Here are the key takeaways for the investor, taxpayer, depositors and common consumers.
For taxpayers:
Senior citizens benefit
There is good news for senior citizens. For those above the age of 75, filing income-tax returns is not required, effective financial year 2021-22. But there is a small caveat. Those who earn income from pension and interest alone are exempt. But if you have an income from capital gains, investments in direct equities or even mutual funds, then you have to file your income-tax returns as usual...READ MORE HERE
Union Budget 2021 LIVE Updates | Saugata Gupta, MD and CEO, Marico Limited
- Overall, this Union Budget ticks most of the right boxes with an encouraging capital infusion in infrastructure and funding the same through prudent borrowing, divestment and restructuring of allocations without impacting consumers negatively. I believe that, going forward, this will bode well for generating demand, driving consumption and sustaining the growth momentum needed to revive the economy.
Union Budget 2021 LIVE Updates | Prasad Shahane, Head of Lender Partnerships at Rupeek
-The reduction of high taxes on gold imports will reduce the landed price of gold and increase its affordability for the masses. We also welcome the focus on establishing regulated gold exchanges and continue to believe that India should take efforts to build on its strength of widely held gold ownership and facilitate monetisation and circulation of gold within the economy. We hope to see more policy and regulatory support on this front in the days to come.
Union Budget 2021 LIVE Updates | Prasad Shahane, Head of Lender Partnerships at Rupeek
-The budget ticks all the right boxes with the proposed structural reforms and signals. It does a fine balancing act of promoting growth and mobilising resources without increasing tax burden. The focus and visibility on privatisation (rather than just divestment), and the bold large capital expenditure driven borrowing program are welcome.
In Chart | Union Budget 2021: Where does rupee come from and where does it go?
Finance Minister Nirmala Sitharaman has concluded her Union Budget 2021-22 presentation. She used a 'made in India' tablet computer to deliver the paperless Budget address. The total expenditure size for FY21 now stands at 34.5 lakh crore, up from Rs 30.4 lakh crore planned.
For FY22, the Centre will now spend Rs 34.83 lakh crore. Moneycontrol presents an illustrative account of sources of receipts and their expenditure through info-graphic from the Budget document 2021-22.
Data shows that Budget 2021-22 estimates borrowings and other liabilities are likely to be much higher compared to Budget 2020-21. Estimates also show that there will be a bit less income from non-tax revenue. On the other side, more spending like to see subsidies.
Union Budget 2021 LIVE Updates | Pankaj Pathak, Fund Manager, Fixed Income, Quantum Mutual Fund-
Increased government spending for extended period will create inflationary impulse over medium term. Government’s tax proposals particularly related to introduction of new cess and import duties on various products could also cause inflation to rise. The RBI may find it difficult to support the government’s borrowing program if inflation comes back.
Proposal to create a permanent institutional framework to provide liquidity in the corporate bond market is a positive development. In recent past many debt funds faced this problem of liquidity crunch and system level liquidity infusion by the RBI was not trickling down to the needy borrowers. This move will go a long way in the development of the corporate bond market. This will also bring down the liquidity and credit premiums and thus cost of capital for borrowers.
Union Budget 2021 LIVE Updates | Pankaj Pathak, Fund Manager, Fixed Income, Quantum Mutual Fund
- From the bond market’s prospective the budget had more negatives than positives. Increase in fiscal deficit in the current fiscal year to 9.5% of GDP and target of 6.8% for FY22 was a surprise. This, along with the extended fiscal consolidation roadmap indicate that the bond market will face heavy supply pressure not just in this year but over many years. State governments may also pursue similar expansionary fiscal policy.
Union Budget 2021 LIVE Updates |
Budget 2021 is balanced and has clarity on all aspects: Nitish Kumar
Nitish Kumar, CM, Bihar says that the Union Budget is balanced and has clarity on all aspects. He congratulated Finance Minister for bringing such a budget despite the adverse impacts of COVID-19.
Union Budget 2021 LIVE Updates |
Policy announced in Budget 2021 will provide choices to the consumers: RK Singh
RK Singh, Union Ministerstated that the policy announced in Budget 2021 will provide choices to the consumers, bring competition and eliminate monopoly of discoms.
Union Budget 2021 LIVE Updates |
Budget will bring in a positive change for investors, businesses & general public: Anurag Thakur
Anurag Thakur, MoS for Finance: "We've focused on MSME & infrastructure & are going to spend big on healthcare sector. We've allocated around Rs 1.10 lakh crores for roadways & railways each. This Budget will bring in a positive change for investors, businesses & general public."
Union Budget 2021 LIVE Updates | Anagha Deodhar, Senior Economist, ICICI Securities
- By accounting for ‘below-the-line’ items such as loans to FCI, the government has taken an important step towards making its finances more transparent.
On the revenue front, direct and indirect taxes were left broadly untouched. This is likely to boost sentiment and aid consumption recovery. Overall, its assumptions on tax buoyancy, growth and asset sale look credible and achievable. Moreover, major announcements such as forming of a bad bank, privatization of two PSBs, thrust on privatization, LIC IPO, hike in FDI limit for insurance sector etc are big positives. The FM definitely lived up to her promise of delivering a ‘budget like never before
Union Budget 2021 LIVE Updates | Anagha Deodar, Senior Economist, ICICI Securities
- The Union Budget FY22 was full of pleasant surprises. Although fiscal deficit has increased sharply and consolidation path has been prolonged, the quality of expenditure in FY22 and beyond is likely to improve. This is evident from the fact that the share of capex in total expenditure is budgeted to increase, expenditure on subsidies is set to fall, and lower share of fiscal deficit is budgeted to be spent on financing current consumption.
Union Budget 2021 LIVE Updates | Hardika Shah, Founder and CEO Kinara Capital-
One of the major proposals made by the Finance Minister is the revision of the definition for small companies under Companies Act, 2013, to increase their threshold for capitalization up to Rs 2 crore and turnover up to Rs 20 crore. The reduction of customs duty on raw materials for several sectors will help going forward. Digital payments, Textile Parks and Socialization of the gig economy are effective moves to give a further fillip to the pace of last-mile digital transformation and financial inclusion.
Union Budget 2021 LIVE Updates |
Defence not been adequately addressed despite growing border threat from China, Pakistan: Capt. Amarinder Singh
Captain Amarinder Singh, CM Punjab stated that the vital sector of Defence had not been adequately addressed despite the growing border threat from China and Pakistan.
Union Budget 2021 LIVE Updates | Vikas Garg, Chief Financial Officer at Paytm
- The Finance Minister has presented a balanced budget that is aimed at maximum growth of all sectors in the coming year. The Rs.1500 crore proposed scheme to incentivize digital payments is a welcome move that will accelerate the growth of cashless transactions in our country. During the pandemic, digital payments emerged as one of the key enablers of empowerment at the grassroots and brought millions of people under the fold of the formal economy. Government's continued emphasis on increasing investment in Infrastructure, Insurance and digital payments will ensure financial inclusion of the masses.
Union Budget 2021 LIVE Updates |
FM's emphasis on healthcare spending will help India recover from COVID-19 pandemic: Adar Poonawalla
Adar Poonawalla, CEO, Serum Institute welcomed theFinance Minister's emphasis on healthcare spending for COVID-19. He added this will help India recover rapidly from this COVID-19 pandemic.
Union Budget 2021 LIVE Updates | Mr. Ramnath Krishnan, President Ratings, ICRA Limited
- The Union Budget provided a refreshing re-orientation towards the critical sectors of health and infrastructure. The increase in health spending, especially towards the vaccine, will be a shot in the arm for the economy and economic agents, helping them regain the confidence to get their lives and livelihoods back on track. The increase in capital spending has exceeded our hopes and expectations, and should create a virtuous cycle of job creation, augmented incomes, and consumption.
Union Budget 2021 LIVE Updates | FM Nirmala Sitharaman to Rahul Joshi, Group Editor-in-Chief, Network18:
Surprising that farmers doubt the intent of the government. MSP has been steadily gowing up since 2013-14. We want farmers to be at the table and talk it out with the agriculture minister. The Prime Minister said he is willing to look at the modifications farmers want. We want farmers to talk on their points of concern and specifically highlight what aspects of the farm laws are problematic. We feel that some farmers at the protest sites are misguided.
Budget 2021 is an honest attempt. The Prime Minister never missed out on anything that needed to be done for the poor and needy.
Union Budget 2021 LIVE Updates | FM Nirmala Sitharaman to Rahul Joshi, Group Editor-in-Chief, Network18:
The industry has slowly revealed that corporate tax rate cuts have helped. Many corporates have offloaded debts looking at Capex. Guess the private sector's spirit to invest is coming back and companies are raising funds.
Union Budget 2021 LIVE Updates | FM Nirmala Sitharaman to Rahul Joshi, Group Editor-in-Chief, Network18:
We have looked at 400 custom notiifications issued years ago and have made changes to custom notifications for stakeholder consultations. The changes to custom notifications will be applicable from August 1, 2021. Any notification from now will expire after two years unless specifically renewed.
Union Budget 2021 LIVE Updates |
Budget provides much-needed fillip to health, sanitation, nutrition andpollution control: K Srinath Reddy
K Srinath Reddy, PHFI chief, says Union Budget 2021-22 provides much-needed fillip to health, sanitation, nutrition and pollution control. He added that all these aspects are key elements in promoting health and well-being of our population in a holistic manner.
Union Budget 2021 LIVE Updates | FM Nirmala Sitharaman to Rahul Joshi, Group Editor-in-Chief, Network18:
We need for efficient banks in the economy - cannot have laggards. Have engaged with the Reserve Bank of India (RBI) in a big way on bank privatisation.One development financial institution (DFI) is not enough for aspirational India. Amendments will have provisions for private DFIs to come and we will create space for them. Seeing demand for development financing and the holding company will take bad assets from various banks - it will have government participation, but will largely be led by banks. Bad loans can be sold off to the AIFs and private ARCs and banks will get back what they should on the stressed legacy loans.We are bringing a workable solution and had extensive consultation with banks and the RBI. The banks are on board with the idea.
Union Budget 2021 LIVE Updates |
FM Nirmala Sitharaman to Rahul Joshi, Group Editor-in-Chief, Network18: Engaging with the Reserve Bank of India (RBI) in a big way on privatisation of banks.Union Budget 2021 LIVE Updates | FM Nirmala Sitharaman to Rahul Joshi, Group Editor-in-Chief, Network18:
Have not seen the market's reactions on the Budget yet, but we hope people understand the intent of the government. If I had more resources, I would have given it to the people - but I didn't have the comfort of resources then, nor do I have now.Increasing tax wasn't on the table for consideration - we didn't want to fund the Budgetary allocations through taxation.
Union Budget 2021 LIVE Updates |
FM Nirmala Sitharaman to Rahul Joshi, Group Editor-in-Chief, Network18: I was pulled for making an over-estimation on privatisation targets. The economy was not in a position to take all privatisation moves then. I agree that the Rs 2-lakh crore privatisation target could not be achieved.
Union Budget 2021 LIVE Updates | Avinash Gupta, Managing Director Dun & Bradstreet, India
- The government’s commitment to revive economic growth is clear through the measures announced in the Union Budget. Building on the six pillars, the union budget has unveiled many unique initiatives such as setting up of a professionally managed Development Financial Institution (DFI), establishment of an asset reconstruction and management company, development of a Fin-Tech hub and transition to digital census, etc. I find five notable initiatives, out of many positives.
Union Budget 2021 LIVE Updates |
FM Nirmala Sitharaman to Rahul Joshi, Group Editor-in-Chief, Network18: Given the situation, the stimulus was necessary. We made a conscious statement that if I don't spend now, I will be postponing growth.
