Union Budget 2021 Live Updates: minister of finance Nirmala Sitharaman has presented the Union Budget 2021-22 in Parliament. In significant changes to the taxation process, Sitharaman announced the scrapping of tax for senior citizens under certain conditions, new rules for removal of double taxation for NRIs, and a discount within the period of time of tax assessments among other measures. Startups will get an extension in their tax holiday for a further year. Sitharaman also announced that the advance liabilities on dividend income shall arise after declaration of payment of dividend. At the conclusion of her speech, Sensex was at 47451.62, up 1165.85 points.
In her speech, Sitharaman announced that India’s fiscal deficit is about to leap to 9.5 per cent of Gross Domestic Product in 2020-21 as per Revised Estimates. this is often sharply above 3.5 per cent of GDP that was projected within the Budget Estimates. A slump in government revenues amid the Covid-19 pandemic has led to a pointy rise in deficit and market borrowing. In health care spending, Sitharaman announced a complete spend of around Rs 2 lakh crore on healthcare with Rs 35,000 crore on Covid-19 vaccine development and innoculation.
Sitharaman, in her speech, announced a push to the textile industry, a hike in custom duty on cotton and raw silk, a replacement cess on agriculture development – Rs 2.5 per litre on petrol and Rs 4 per litre on diesel – a central university in Leh, attention on sea-weed farming with a replacement facility in Tamil Nadu and a replacement vehicle scrapping policy that aims to supply the auto sector a lift among other announcements. Sitharaman also announced that a further 1 crore families will now benefit under the Centre’s Ujjwala scheme. Four poll-bound states – Kerala, Tamil Nadu, Assam and West Bengal – will see significant spending on highway road expansion.
Addressing the state after the Budget, Modi said it speaks of “all-round development.” “From Covid-related reforms to Atmanirbhar resolve, we moved ahead with this mantra in Budget 2021. It’s a lively and not a reactive budget,” he added, congratulated the Finance Ministry team.
This was Sitharaman’s third budget under the National Democratic Alliance (NDA) government led by Prime Minister Narendra Modi. during a significant departure from the tradition, this year’s Budget wasn’t printed and was only made available during a digital format.
Here are the latest updates:
Tax exemption on PF goes?
The Budget has introduced a provision to get rid of the tax exemption on income from investments in provident funds, relatable to investments exceeding Rs 2.5 lakh a year. “Instances have come to the notice where some employees are contributing huge amounts to those funds and full interest accrued/received on such contributions is exempt. This exemption with none threshold benefits only those that can contribute an outsized amount to those funds as their share,” the explanatory memorandum to the Finance Bill, 2021, states. – Vikas Dhoot
Govt slashes revenue expectation from telecom sector; pegs receipts at ₹53,986 crore
The government has lowered revenue estimates from the telecom sector while pegging expected receipts at ₹53,986 crore within the next fiscal year , consistent with the budget documents presented in Parliament on Monday.
The Finance Ministry within the allow 2020-21 had projected a revenue of ₹1.33 lakh crore from the telecom sector which was slashed steeply to ₹33,737 crore within the revised estimates presented within the Budget on February 1.
“Receipts under ‘Other Communication Services’ mainly relate to the license fees from telecom operators and receipts on account of spectrum usage charges. Department of Telecom collects recurring licence fees from various Telecom Service Providers licensed by it,” the document said.
The licence fee is levied at 8% of the adjusted gross sales (AGR) — which is taken into account as income from sale of telecom services.
The lowering of revenue estimate comes at a time when the govt has set the ball rolling for the spectrum auction during which radiowaves valued at ₹3.92 lakh crore are going to be placed on the block.
Agriculture infrastructure cess to return up in certain items.
Agriculture Infrastructure and Development Cess (AIDC) has been proposed on petrol and diesel. it’ll Rs.2.5/litre on petrol and Rs.4/litre on diesel.
Consequent to imposition of AIDC, the essential Excise Duty (BED) and Special Additional Excise Duty (SAED) on petrol and diesel is being reduced in order that consumer doesn’t need to bear any additional burden.
Honourable Speaker Sir, With these words, I commend the Budget to the present August House, she says.
Nirmala Sitharaman introduces the Finance Bill.
Custom duty changes
Duty of copper scrap reduced to 2.5%.
We have calibrated customs rates on chemicals to encourage domestic value addition. We are now reducing duty on naphtha to 2.5%.
Custom duty on gold and silver to be rationalised.
We are raising duties on imported solar inverters from 5% to twenty and on solar lanterns from 5% to fifteen .
All nylon products to possess 5 Bureau of Customs duty.
Tunnel boring machines will attract custom of seven . Exemption on certain leather are going to be withdrawn.
To benefit farmers, we are raising customs on cotton from 0 to 10%.
We have seen record GST collections within the last two months. As chairperson of the GST council, i would like to assure this House that we shall take every possible step to smoothen the GST structure further and take away anomalies like inverted duty structures.
A revised custom duty structure is on the annvil.
I now propose to review over 400 old exemptions this year. we’ll conduct this through extensive consultations and a revised customs structure freed from distortions are going to be in situ from October 1.
We have noticed that some employers deduct contributions from employees salaries towards provident fund, and other Social Security schemes, but don’t remit them in time.
This means loss of interest and income for workers and trouble if the employer becomes unviable going forward.
To ensure that the contributions are remitted on time, I reiterate that late deposit of contributions won’t be allowed as deductions to employers.
Now the minister of finance presents Part B of the speech, which incorporates taxes and reforms.
Ms. Sitharaman quotes a Tamil couplet from Thirukkural on the standard of an honest king. an honest king is one who is in a position to accumulate wealth, guard it and distribute it justly, the couplet says.
Relief for senior citizens – many of them, despite having foregone several basic necessities of their own, have strived to create our nation. We shall reduce compliance burden on those above 75 years. this suggests people above 75 years, who get pension and earn interest from deposits needn’t file IT returns.
Presently an assessment are often reopened for 6 years. this point limit has been reduced to 3 years. In serious evasion cases, when the concealment of income is quite Rs.50 lakh per annum , it are often opened for up to 10 years.
Affordable housing projects will get a tax holiday for another year.
Compliance burden of small trusts whose annual receipts doesn’t exceed ₹5 crore are going to be eased.
Fiscal deficit pegged at 9.5% of GDP
In these previous couple of paragraphs of Part A of my speech, I draw the eye of this august House to the very fact that at the start of this fiscal year , the pandemic resulted in weak revenue inflow, says Ms. Sitharaman.
Unlike many other countries, we opted for a series of medium size packages during the pandemic in order that we could calibrate our response as per things .
Once the health situation stabilised, we switched to providing a requirement push.
Fiscal deficit has been pegged at 9.5% of the GDP. we’ve funded this through government borrowings, multilateral funds and short term borrowings. we’d like another ₹80,000 crore that we’ll approach the market within the next two months.
For 2021-22, we are estimating at a fiscal deficit of 6.8% of GDP. The gross borrowing from the market next year is predicted to be ₹12 lakh core.
We hope to realize consolidation of debt by increasing buoyancy of tax revenues and increased receipts from asset monetisation.
We propose to permit States to boost borrowings up to 4% of GSDP in 2021-22, supported recommendations of the Fifteenth Finance Commission, some of which can need to be earmarked for incremental cost .
FRBM Act are going to be amended to permit deviation because the Act mandates a fiscal deficit of three of GDP by March 31, 2021.
Based on the 15th Finance Commission’s recommendations, the govt has decided to retain the States’ vertical share of the divisible pool of revenues at 41%. The funds for the union territories of Jammu and Kashmir and Ladakh are going to be provided by the Centre.
Also, supported the Commission’s recommendations, we’ve allocated a revenue deficit grant of ₹1,18,452 crore for 17 States, compared to ₹74,340 crore paid to 14 States in 2020-21.
Minimum government and maximum governance
We have been taking variety of steps to bring reforms in tribunals, which i will be able to further rationalise this year.
To have simple doing business for those that affect govt or central PSEs, I propose a system for swift resolution of contractual disputes.
The forthcoming census are going to be the primary digital census ever. For it, I even have allocated ₹3,758 crore during this year.
I propose to grant ₹300 crore to the govt. of Goa to celebrate 50 years of liberation.
₹1000 crore for welfare of tea workers, especially women and youngsters , in Assam and West Bengal .
Sensex in green
Investors have welcomed the Union Budget with cheers because the benchmark stock indices rallied on the brink of 2% by noon.
The market rally has helped increase the general market capitalisation of stocks by about 0.75% this morning.
The biggest gainers are banks and non-bank financial companies, which are boosted by the Finance Minister’s announcement that the Centre will found out the equivalent of a ‘bad bank’ to assist revive the banking sector from the bad loan crisis.
100 Sainik Schools are going to be found out . 750 Eklavya schools are going to be found out in tribal areas.
A Central University will come up in Ladakh.
More than 15,000 schools are going to be strengthened under NEP 2020.
An ‘umbrella’ structure are going to be created for central education institutions in various cities like Hyderabad.
Migrant workers and labourers
We have launched the One Nation, One card to assist migrant workers. i’m happy to tell you that ON,OR plan is under implementation by 32 states and union territories reaching about 59 crore beneficiaries.
I propose to launch a portal to take care of information on gig workers and construction workers, this may help provide benefits to migrant workers.
Social security are going to be extended to gig and platform workers. this may be ensured through the four new labour codes.
Women workers are going to be allowed in night shift with adequate protection.
To further facilitate credit flows for Standup India scheme for SCs, STs and ladies , I propose to scale back the margin capital required for loans from 25% to fifteen .
We have taken variety of steps to assist the MSME sector during this Budget with an allocation of ₹15,700 crore, quite double that of last year.
Agriculture and rural development
Our government is committed to the welfare of farmers, Ms. Sitharaman says amid thumping from Treasury and sloganeering by Opposition.
She says the MSP has been increased to 1.5 times. She reads out more data on farm procurement.
In case of wheat, the entire amount paid to farmers in 2013-14 was ₹33,874 crore. In 2019 -20, it had been ₹62,804 crore. In 2020-21, this amount paid to farmers was ₹75,050 crore. the amount of wheat growing farmers benefited, increased to 43.36 lakh compared to 35.57 lakh in 2019-20.
For paddy, the quantity paid in 2013-14 was ₹53,928 crore. In 2019-20, this increased to ₹1.41 lakh crore. Even better, in 2020-21, this is often further estimated to extend to ₹1,72,752 crore.
Agriculture infrastructure fund are going to be available for APMCs for augmenting their infrastructure, she says. one among the most argument against the new farm laws is that the that these laws will put an end to APMCs.
1,000 more Mandis to be integrated into the E-NAM market place.
Five major fishing hubs are going to be developed as hubs for economic activity including Chennai, Kochi and Paradip.
To promote seaweed farming, I propose a multipurpose sea weed park to be established in Tamil Nadu .
On the recommendations of the Fifteenth Finance Commission, we’ve undertaken an in depth exercise to rationalise centrally sponsored schemes.
Disinvestment and strategic sale
Two PSU bank and one general insurance company are going to be disinvested this year. An IPO of LIC are going to be debuted this year.
Idle assets won’t contribute to Atmanirbhar Bharat. Monetising of land are going to be haunted , she says. A SPV are going to be launched to hold out this activity.
A revised mechanism are going to be introduced for timely closure of loss making PSUs, she says.
“Inspite of COVID-19, we kept working towards strategic sale of BPCL, IDBI Bank, Air India, which can be completed in 2021-22,” she says.
Niti Aayog has been asked to return up with the list of companies which will be disinvested next…. I even have estimated receipts of Rs 1.75 lakh crore as receipts from disinvestment in 2021-22, she adds.
I propose to consolidate the provisions of the Sebi Act, Depositories Act, and two other laws, into a Unified stock exchange Code, says Nirmala Sitharaman.
Towards investor protection, I propose to introduce an investor charter as a right for all investors altogether financial products.
I propose to amend the insurance act to extend the FDI limit from 49% to 74%.
The high level of provisioning by public sector banks involves measures to wash up their books. An asset reconstruction company are going to be found out to require over stressed loans. Asset reconstruction and Asset management companies are going to be found out for value realisation.
Deposit insurance: the govt has approved a rise within the cover from ₹1 lakh to ₹5 lakh for bank depositors. I shall be moving amendments to streamline the supply in order that depositors can get easy and time bound access to their savings to the extent of the deposit insurance. this may help depositors in banks that are currently under stress.
Decriminalisation of offences under the businesses Act is now complete. I now propose to finish the decriminalisation of the indebtedness Partnership Act of 2008.
A gas pipeline project are going to be haunted within the Union Territory of Jammu and Kashmir.
City Gas Distribution (CGD) programme are going to be extended to 100 districts in next three years.
The Ujjwala (LPG) scheme which has benefited 8 crore households so far are going to be extended to hide 1 crore more beneficiaries.
Shipping and ports
Major ports are going to be moving from providing operational services on their own, to a system where the private players will manage it for them, says the minister of finance
Around 90 ship recycling yards at Alang in Gujarat are compliant with latest international norms. Recycling capacity are going to be doubled by 2024, this may generate a further 1.5 lakh jobs for our youth.
In a bid to finish monopoly of power distribution, the govt will create a framework to permit consumers of electricity alternatives to settle on from quite one distribution company.
A comprehensive National Hydrogen Mission is being launched for generating hydrogen from green power sources.
Metro services in 27 cities
MetroLite and MetroNeo are going to be introduced in Tier 2 cities and peripheral areas of Tier 1 cities. These are low cost Metro projects.
Kochi Metro, Chennai Metro Phase 2, Bengaluru Metro Phase 2A and B, Nashik and Nagpur Metros get additional allocations.
“We will work towards raising the share of conveyance in urban areas through expansion of metro networks and augmentation of city bus services,” Ms. Sitharaman says.
The scheme will facilitate deployment of innovative PPP models to enable private players to supply and operate over 20,000 buses.
A total of 702 km of conventional metro is operational and another 1,016 of metro and RRTS is under construction in 27 cities.
National Rail Plan
National Rail Plan has been created to bring a future ready railway by 2030.
The Somnagar-Gomu section of Eastern Dedicated Corridor are going to be haunted this year. The dedicated Eastern and Western Freight corridors are going to be ready by 2022, she says.
100% electrification are going to be completed by 2023. Vistadome coaches altogether tourist corridors.
New voluntary scrappage policy
Union minister of finance announces new voluntary scrappage policy to end old vehicles. the small print would be unveiled later. The scrappage policy has been long awaited by the automotive industry. Tamil Nadu being an enormous marketplace for both commercial vehicle and private vehicles is probably going to profit . – Sanjay Vijayakumar
A national monetising pipeline are going to be launched and a dashboard are going to be created to overlook the progress, announces Ms. Sitharaman.
“Monetising operating public infrastructure assets may be a vital financing option for brand spanking new infrastructure construction. A national monetisation pipeline are going to be launched, with a dashboard to trace the progress and supply visibility to investors,” she says.
The next lot of airports are going to be monetised for operation and management.
3900 km of National Highway work will come up in Tamil Nadu . 1,100 km of National Highway works in Kerala, including 600 km in Mumbai-Kanyakumari corridor. 600 km corridor in West Bengal . ₹34,000 crore covering over 1,000 km are going to be haunted in Assam, she says. it’s going to be noted these four States are going to be witnessing Assembly elections later this year.
I am also providing an enhanced outlay of ₹1,18,101 crore for ports and highways, she says.
Physical and Financial Capital and Infrastructure
For a five trillion dollar economy, our manufacturing sector has got to grow in double digits for a sustained period, says minister of finance Nirmala Sitharaman.
To achieve an equivalent , a PLI scheme has been announced for 13 sectors. For this government has committed ₹1.97 lakh crore over subsequent 5 years.
Recalling earlier performance linked schemes announced for the manufacturing sector, she says additionally thereto seven textile parks are going to be added within the next three years.
The National Infrastructure Pipeline (NIP) was launched with 6,835 projects, which has now expanded to 7,400 projects.
The NIP would require a serious increase in funding from both the govt. and therefore the financial sector. i will be able to take concrete steps to try to to this – creating institutional structure, monetising assets, and raising the share of infrastructure expenditure in Central and State Budgets.
“I will introduce a bill to line up a Development Finance Institution, and have provided ₹20,000 crore for this. we should always have a lending portfolio of ₹5 lakh crore in three years’ time,” she says.
Health and wellbeing
A new centrally sponsored scheme called PM Atma Nirbhar Swasthya Bharat Yojana at the outlay of ₹64,180 crore over six years to develop primary, secondary and tertiary healthcare systems.
This will be additionally to the National Health mission and can support 17,000 rural and 11,000 urban health care centres.
The government envisages establishing critical health care hospital blocks in 602 districts.
We will launch Mission Poshan 2.0 to enhance nutritional outcomes across 112 aspirational districts.
An urban Jal Jeevan Mission to be launched and implemented over five years with an outlay of ₹2.87 lakh crore.
The Urban Swachh Bharat Mission are going to be implemented over five years.
To tackle the burgeoning pollution problem, i’m allocating ₹2,217 crore for 32 urban centres, says the minister of finance
₹35,000 crore has been allocated for COVID-19 vaccines and shall provide further funds if required.
For Atmanirbhar Bharat
Finance Minister Nirmala Sitharaman now reads the Part A of the Budget. She says the Part A of the Budget will lay the vision for Atmanirbhar or independent nation.
“Atmanirbhar isn’t a replacement word for India. Ancient India was largely self-reliant and equally, was the epicentre of the planet .”
She says the vision outlines on 13 points, the primary one being health and well being. we’ll strengthen three areas: preventive, curative and wellbeing.
Ms. Sitharaman quotes Rabindranath Tagore: “Faith is that the bird that feels the sunshine when the dawn remains dark.”
She also compares the economic recovery thereupon of India’s series win in Australia. “Team India’s spectacular success in Australia reminds us of the inherent strengths of the people of India.”
Ms. Sitharaman says India has witnesses contractions only thrice. this point it had been thanks to the worldwide pandemic.
Lok Sabha assembles. Lok Sabha Speaker Om Birla is within the Chair. He calls minister of finance Nirmala Sitharaman to present the Budget.
“I present the allow the year 2021-22,” she begins her speech. Opposition members raise slogans.
She recalls the extraordinary circumstances at which the Budget is being presented amid pandemic. She also recalls the pandemic-induced lockdown, PM’s Garib Kalyan Yojana, and therefore the essential services continuing despite lockdown. She expresses her gratitude to the frontline workers during her speech.
She also recalls the three atmanirbhar packages and RBI packages, which amounted to 13% of GDP, on the brink of Rs. 20 lakh crores. These were like five mini-Budgets by itself, she says.
Rahul Gandhi’s Budget list
Ahead of Budget, Congress leader Rahul Gandhi took to Twitter seeking support to MSMEs and farmers.
Here is Mr. Gandhi’s list for the Budget:
Budget2021 must: -Support MSMEs, farmers and workers to get employment. -Increase Healthcare expenditure to save lots of lives. -Increase Defence expenditure to safeguard borders.
Meanwhile, Congress MPs Jasbir Singh Gill and Gurjeet Singh Aujla were spotted wearing a black gown to the Parliament, as a mark of their protest and in solidarity with the protesting farmers.
Union Cabinet meet is underway at Parliament House before the Budget.
Chaired by Prime Minister Narendra Modi, the cupboard approved the Budget.
Markets in green
Ahead of the Budget, The BSE benchmark Sensex surged over 443 points and therefore the NSE Nifty advanced 115 points in opening trade on Monday.
The 30-share Sensex was trading higher by 443.06 points or 0.96 per cent at 46,728.83; and therefore the broader Nifty was up 114.85 points or 0.84 per cent at 13,749.45.
On the Sensex chart, IndusInd Bank, ICICI Bank, HDFC, ONGC, Titan and HDFC Bank were prominent gainers.
Of the Sensex constituents, 16 shares were trading within the green.
FM meets President
Union minister of finance Nirmala Sitharaman has called on President Ram Nath Kovind at Rashtrapati Bhavan, before the presentation of Union Budget 2021-22 within the Parliament today.
GST Revenue collection for January 2021 almost touches ₹1.20 lakh crore
The gross GST revenue collected within the month of January 2021till 6PM on 31.01.2021 is ₹ 1,19,847 crore of which CGST is ₹ 21,923 crore, SGST is ₹ 29,014 crore, IGST is ₹ 60,288 crore (including ₹ 27,424 crore collected on import of goods) and Cess is ₹ 8,622 crore (including ₹ 883crore collected on import of goods). the entire number of GSTR-3B Returns filed for the month of December up to 31January 2021 is 90 lakhs, consistent with Press Information Bureau.
Budget in accordance with people’s expectations: Anurag Thakur
Budget are going to be in accordance with people’s expectations, MoS Finance Anurag Thakur told ANI.
“Govt which functions on mantra of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas’ gave new direction to India by announcing Aatmanirbhar package, protecting it from pandemic & bringing economy back on target swiftly,” he said.
For the primary time, minister of finance Nirmala Sitharaman will present a paperless Budget. The soft copies of the Budget documents are going to be distributed electronically to the parliamentarians.
The Finance Ministry has also released an app for the general public to download these documents.
Ms. Sitharaman had in her first budget in 2019 replaced the leather briefcase that had been for many years used for carrying budget documents with a standard red cloth ‘bahi-khata’. This year she opted for a tab.
Govt. may tweak customs on a number of products in Budget
The government may tweak customs within the Budget next week on several goods, including furniture raw materials, copper scrap, certain chemicals, telecommunication system and rubber products, to market domestic manufacturing and exports, sources said.
The sources said that while duty might be tweaked on quite 20 products like cut and polished diamonds, rubber goods, leather garments, telecommunication system and carpet, customs might be removed on select raw materials like wood in rough, swan wood and hardboard used for furniture manufacturing and copper concentrate. “Expensive raw materials impact India’s price competitiveness within the international market. The country’s exports of furniture are extremely low [about 1%], while countries like China and Vietnam are major players within the sector,” they added.