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Budget 2021 highlights: Finance minister Nirmala Sitharaman presents budget
Budget 2021: Nirmala Sitharaman said the government is fully ready revive growth in the economy. Follow latest updates here
Union finance minister Nirmala Sitharam on Monday presented the budget for the fiscal year 2021-22 which she said was prepared under circumstances like never before. She said the government, however, was fully prepared to revive economic growth in the country. “This budget provided every opportunity for the economy to capture the pace it needs for sustainable growth,” she said.
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The Union minister said budget stands on six pillars—health and wellness, physical and financial capital and infrastructure, inclusive development for aspiring India, To infuse new life into human capital, innovation and R&D, and minimum government and maximum governance
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Recalling the Aatmanirbhar packages announced for the people in view Covid-19 pandemic, Sitharaman said the three stimulus packages provided last year were like five mini budgets before the budget for this financial year. The minister announced a budget of ₹35,000 crore for vaccines against the coronavirus disease.
Here’s a look at highlights of Nirmala Sitharaman’s Budget 2021:
Agricultural credit: The agricultural target has been enhanced to ₹16.5 lakh crore with a on ensuring increased credit flow to animal husbandry, dairy and fisheries sectors, Sitharaman said.
New definition of small companies: The finance minister revised the definition of small companies under Companies Act 2013. In the 2021-22 financial year, companies with paid-up capital up to ₹2 crore and turnover up to ₹20 crore will fall under small companies, benefiting more than two lakh companies in compliance req.
IPO of LIC: Sitharaman said that the IPO of LIC will be brought in in the 2021-22 fiscal year. "Two public sector banks apart from IDBI and one general insurance company to be taken up for strategic disinvestment in 2021-'22," she added.
Education commission to be set up: While announcing measures for the education sector, Sitharaman said, "I had mentioned about setting up of Higher Education Commission in last budget; we will introduce legislation this year. It will be an umbrella body having 4 separate vehicles for standard setting, accreditation, regulation and funding."
She added that more than 15,000 schools will be qualitatively strengthened, with all components of National Education Policy to emerge as exemplar schools in their regions, handholding and mentoring other schools. At a 100 new Sainik schools will also be set up, Sitharaman said.
More economic corridors: The government has planned at four more economic corridors—3500 kms of National Highway Works in Tamil Nadu at ₹1.03 lakh crore, 1100 kms in Kerala at ₹65000 crore, 675 kms in West Bengal at ₹25000 crore, and over 1300 kms in Assam at ₹34000 crore.
No change in income tax slabs: In Budget 2021-22, Union minister Nirmala Sitharaman kept the income tax slabs same as the previous year. Only those above 75 years, who depend on pension income, were exempt from ITR filing.
Boost for startups: To incentivize incorporation of one-person companies, such companies will be allowed to grow without any restriction on paid-up capital or turnover and to convert into any other type of company at any time, the finance minister said.
Senior citizens exempt from filing ITR: Sitharaman announced that exempts senior citizens who are above the age of 75 years and only have pension income will be exempted from filing income tax returns.
Fiscal deficit for 2020-21 at 9.5%: Finance minister Nirmala Sitharaman said that fiscal deficit for the current financial year is pegged at year at 9.5% and that there will be a borrowing of ₹80,000 crore in the next two months. She added that the fiscal deficit in 2021-22 at 6.8%. of GDP and the borrowing from market next year will be ₹12 lakh crore. She also set a target of fiscal deficit less than 4.5% of GDP in 2025-26.
Urban Swachh Bharat Mission 2.0 with outlay of ₹1,41,678 crore over 5 years from 2021. The scheme is focused on complete fecal sludge management, waste water treatment, source segregation, management of waste from urban construction, bioremediation of legacy dump sites
First digital budget: The finance minister said the budget will be the first budget of this decade and will also be a digital budget and added that the government is fully prepared to support and facilitate economy's reset. "This budget provided every opportunity for economy to capture the pace it needs for a sustainable growth," she said.
