New Delhi [India], February 1 (ANI): While quoting Rabindranath Tagore at the beginning of the Union Budget 2021, Finance Minister Nirmala Sitharaman on Monday marked the start of post COVID world in her budget speech — she termed as the ”dawn of a new era”.
“Faith is the bird that feels the light and sings when the dawn is still dark,” she quoted Rabindranath Tagore in her speech.
“Now, just it happened after the two world wars, There are signs that the political, economic and strategic relations in the post COVID world are changing. This moment in history is the dawn of a new era. One in which India is well-poised to truly be the land of promise and hope,” said Sitharaman.
During her speech, Sitharaman also hailed the Indian cricket team for their recent Cricket Test series win against Australia. “In this spirit, I can’t help but recall the joy that we as a Cricket loving nation felt after Team India’s recent spectacular success in Australia,” the Finance Minister said.
During her previous budget speech, she has quoted various eminent leaders. However, this is the first time she has mentioned Rabindranath Tagore,
Prior to the budget presentation, the Union Cabinet approved the budget 2021-22 today. The years Union Budget 2021-22 is being delivered in paperless form for the first time.
The budget speech began at around 11 am today.
Sitharaman allocates Rs 4.78 lakh crore to defence budget for 2021-22, ‘highest in 15 years’
Defence Minister Rajnath Singh thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for increasing the defence budget to Rs 4.78 lakh crore for the financial year 2021-22 and termed it as the highest ever increase in capital outlay for defence in 15 years.
Finance Minister Nirmala Sitharaman on Monday annouced an allocation of Rs 4,78,195.62 crore for the defence sector for 2021-22 as against last year’s Rs 4,71,378 crore (including Defence Pension). Excluding pensions, it is pegged at Rs 3.62 lakh crore from last year’s Rs 3.37 lakh crore.
“I specially thank Prime Minister Narendra Modi and Finance Minister for increasing the defence budget to 4.78 lakh cr for FY21-22 which includes capital expenditure worth Rs 1.35 lakh crore. It is nearly19 percent increase in Defence capital expenditure. This is highest ever increase in capital outlay for defence in 15 years,” Rajnath Singh said.
In the 2021-22 Union Budget, Ministry of defence has been allocated Rs 4,78,195.62 crore. Excluding pensions, it is pegged at Rs 3.62 lakh crore from last year’s Rs 3.37 lakh crore.
Modernisation fund for the armed forces has gone up from Rs 1,13,734 last year to Rs 1,35,060 crore for the financial year 2021-22.
In the last year’s budget, defence forces were provided Rs 20,776 crore additional funds under the capital budget meant for modernisation of armed forces. In 2020-21, the three defence forces were also given emergency procurement powers in view of the situation along the China border.
This comes as Finance Minister Nirmala Sitharaman on Monday announced that the fiscal deficit for FY21 has been pegged at 9.5 per cent of the GDP and will come down to 6.8 per cent in FY22.
The fiscal deficit will reach below 4.5 per cent by FY26, she said while presenting the Union Budget 2021-22.
Sitharaman said while gross expenditure is seen at Rs 34.5 lakh crore, the capital expenditure is expected to be Rs 4.39 lakh crore in FY21.
The government will approach the market for additional Rs 80,000 crore to fund the FY21 fiscal deficit, said the Finance Minister. She said the FY22 gross expenditure is seen at Rs 34.83 lakh crore and capital expenditure at 5.54 lakh crore.
Finance Minister announces Rs 1,41,678 crores for Swachh Bharat 2.0
Union Finance Minister Nirmala Sitharaman on Monday announced that the central government is allocating Rs 1,41,678 crores for Swachh Bharat 2.0.
She also announced an outlay of Rs 2,217 crores for 42 urban centers with a million-plus population, to tackle the burgeoning problem of air pollution.
Presenting the Union Budget 2021-22, Sitharaman said, “Under the ‘Swaccha Bharat and Swasthya Bharat‘, for ‘swacchta’ of urban India, we intend to focus on complete fecal sludge management and wastewater treatment. Source segregation of garbage, reduction in single-use plastic and air pollution, by effectively managing waste from construction and demolition activities and bioremediation of all legacy dump sites.”
“The Urban Swachh Bharat mission 2.0 will be implemented with a total financial allocation of Rs 1,41,678 crores over a period of five years from 2021,” she informed.
Sitharaman further announced, “To tackle the burgeoning problem of air pollution, I propose to provide an amount of Rs 2,217 crores for 42 urban centers with a million-plus population in this budget.”
In Part A of Budget 2021, the Union Finance Minister laid out a vision for Aatmanirbhar Bharat to strengthen the vision of Nation First, doubling farmers’ income, strong infrastructure, women’s empowerment, healthy India, good governance, education for all and inclusive development.
The Union Budget 2021-22 proposals rest on six pillars — health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India reinvigorating human capital, innovation and research and development, minimum government, and maximum governance.
The budget for health and well being would be around Rs 2 lakh crore.
“Investment in health infra in Budget 2021 has increased substantially. Three areas – preventive health, curative health, and well-being to be strengthened,” said Sitharaman.
Budget 2021: ‘One Nation, One Ration Card’ scheme in 32 states, UTs
‘One Nation, One Ration Card‘ scheme of the Union Government is being implemented by 32 States and Union Territories, reaching about 69 crore beneficiaries, said Finance Minister Nirmala Sitharaman on Monday, while announcing the Union Budget.
“We have launched the ‘One Nation, One ration’ card scheme through which beneficiaries can claim their rations anywhere in the country. Migrant workers in particular benefit from this scheme, those staying away from their families can partially claim their rations where they are stationed, while their family in their native places can claim the rest,” Sitaraman announced in her third budget speech.
The Finance Minister informed that the scheme has covered 86 per cent of the beneficiaries, adding that the remaining four states and UTs will be integrated into the scheme in the coming few months.
Sitharaman also proposed the launch of a portal that will collect all relevant information on gig workers, building and construction workers, among others.
“This will help formulate health, housing, skill, insurance credit and food schemes for all migrant workers,” she said.
Sitharaman, in the ninth budget of Prime Minister Narendra Modi’s government, said that the Budget was prepared in circumstances like never before and that the government was fully prepared to back and facilitate a reset of the economy.
The government will conclude the implementation of four labour codes and social security benefits will be extended to gig and platform workers, she said.
“We will conclude a process that began 20 years ago with the implementation of four labour codes. For the first time globally, social security benefits will be extended to gig and platform workers,” Sitharaman added during her almost two-hour-long budget presentation speech in the Lok Sabha.
She also said that minimum wages will apply to all categories of workers, which will all be covered by the employee state insurance corporation.
“Women will be allowed to work in all categories, and also in the night shift, with adequate protection,” she further announced.
Sitharaman informed that the compliance burden on employees will be reduced with a single registration, licensing and online returns.
FY21 fiscal deficit at 9.5 pc of GDP
Finance Minister Nirmala Sitharaman said on Monday the fiscal deficit for FY21 has been pegged at 9.5 per cent of the GDP and will come down to 6.8 per cent in FY22.
The fiscal deficit will reach below 4.5 per cent by FY26, she said while presenting the Union Budget 2021-22.
Sitharaman said while gross expenditure is seen at Rs 34.5 lakh crore, the capital expenditure is expected to be Rs 4.39 lakh crore in FY21.
The government will approach market for additional Rs 80,000 crore to fund the FY21 fiscal deficit, said the Finance Minister.
She said the FY22 gross expenditure is seen at Rs 34.83 lakh crore and capital expenditure at 5.54 lakh crore.
The market borrowing in FY22 is projected at Rs 12 lakh crore. The figures come amid coronavirus (Covid-19) pandemic which has led to massive economic disruption within and outside the country.
Union Budget 2021: Sitharaman provides boost to affordable housing
Finance Minister Nirmala Sitharaman on Monday gave a boost to the housing sector and home-buyers and proposed to extend exemption available for the purchase of affordable houses and to provide tax exemption for affordable rental housing projects.
“This government sees housing for all and affordable housing as priority areas. In July 2019 Budget, I provided an additional deduction of interest amounting to Rs 1.5 lakh for a loan taken to purchase an affordable house. I propose to extend the eligibility of this condition by one more year to 31st March 2022,” Sitharaman said in her Budget speech.
The additional deduction of 1.5 lakh shall therefore be available for loans taken up to 31st March 2022, for the purchase of the affordable housing, Sitharaman said.
“Further to keep up the supplies of affordable houses, I propose that the affordable housing projects can avail a tax holiday for one more year till 31st March 2022,” she added.
Sitharaman further said that the Central government is committed to promoting affordable rental housing for migrant workers. “We are committed to promoting affordable rental housing for migrant workers. For this. I propose to allow tax exemption for notified rental housing project,” she added.
Big boost for startups: Tax holiday extended by 1 year till March 31, 2022
To help India’s startups amid the COVID-19 pandemic, tax holidays for these businesses have been extended by one year till March 31, 2022, said Finance Minister Nirmala Sitharaman while presenting the Union Budget 2021-22 on Monday.
“Tax holidays for startups extended by one year, till 31st March 2022,” said Sitharaman in the Parliament.
The capital gains exemption given to startups was also extended by a year more.
“Definition of small companies under Companies Act 2013 to be revised. Companies with paid-up capital up to Rs 2 crore and turnover up to Rs 20 crore will fall under small companies, benefiting more than 2 lakh companies in compliance required,” said Sitharaman.
“To incentivise 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,” she added.
Reacting to the announcements made for startups during the Budget presentation today, Lokendra Ranawat, Founder and CEO, WoodenStreet said, the budget was awaited with a lot of expectations and of that most have been met. Infrastructure and healthcare were the main spotlights of budget 2021 and a large investment has been allocated for the expansion of the road network.
“Also, just like it was predicted, Startups were given importance in this budget as well. The tax-exempt on the revenue, as well as investments, have been increased by one more year which will be beneficial for the startup growth in the country,” said Ranawat.
“On the other hand, the investment in MSMEs and the moratorium on loans of up to 2 crore will also play a crucial role for the Indian corporates. Privatization of several government-related sectors such as ports will also add to the economic growth and employment generation,” he added.
The Union Budget 2021-22 proposals rest on six pillars: Health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India reinvigorating human capital, innovation and R&D, minimum government and maximum governance.
While presenting the Budget, Sitharaman said, only three times has the Budget followed a contraction in the economy this time, unlike before, the situation is due to a global pandemic Budget-2021 provides every opportunity for the economy to capture the pace and grow sustainably. (ANI)
