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. This blog is now closed.
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 revitalize 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 an 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 an 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
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