Key highlights of Budget 2021-22

Following are the key highlights of the 2021-22 Budget: –

FISCAL POSITION AND HEALTH OUTLAY:

  • Spending on healthcare hiked by 137 pc to over Rs 2.23 lakh crore
    Rs 35,000 cr outlay for COVID vaccine in fiscal beginning April 1
    Today India has 2 vaccines available, 2 more vaccines are expected soon
    Sharp increase in capital expenditure for the next fiscal to Rs 5.54 lakh cr, up from Rs 4.39 lakh cr of last fiscal
    Fiscal deficit for current fiscal at 9.5 pc, against 3.5 pc budgeted
    Fiscal deficit for next fiscal pegged at 6.8 pc, government to borrow Rs 12 lakh crore
    Committed to bring down fiscal deficit below 4.5 pc of GDP by 2025-26

TAX PROPOSALS:

  • ITR filing not mandatory for senior citizens above 75 years, banks to deduct TDS
    Time bar for reopening I-T assessment cases halved to 3 years, for serious frauds it is 10 years
    Income tax return filers increased to 6.48 cr in 2020 from 3.31 cr in 2014.
    Agri infra cess of 2.5 pc on gold, silver and dore bars; 35 pc on apples
    Agri infra cess of 30 pc on Kabuli chana, 10 pc on peas, 50 pc on Bengal gram/chickpeas, 20 pc on lentil (mosur); 5 pc on cotton
    Rs 2.5 per litre agri infra cess on petrol, Rs 4 on diesel
    New Agri Infra Development Cess to be applicable from February 2
    Tax deptt to notify rules to remove hardships of double taxation faced by NRIs
    Tax holiday for startups, capital gains exemption extended by 1 yr
    Tax exemption for aircraft leasing cos; tax exemption for notified affordable housing for migrant workers.
    Rs 1.5 lakh tax deduction on payment of interest for affordable housing extended by 1 yr
    Exemption from tax audit limit doubled to Rs 10 cr turnover for companies doing most of their business through digital modes
    Proposes review of over 400 customs duty exemptions; to begin extensive consultation from October 2021
    Customs duty on certain auto parts, solar equipment raised

ALLOCATION & REFORMS

  • FDI in insurance increased to 74 pc from 49 pc
    Disinvestment target pegged at Rs 1.75 lakh crore
    BPCL, IDBI Bank, two more PSU banks, one insurance company to be privatised among others
    PSU Bank recapitalisation pegged at Rs 20,000 crore next fiscal
    Aatmanirbhar health programme with an outlay of Rs 64,180 cr to be introduced
    Budget proposals rest on 6 pillars– health and well-being, physical and financial capital and infra, inclusive development for aspirational India, human capital, innovation and R&D, Minimum Governance and Maximum Governance
    Govt to introduce a bill to set up development financial institution with an outlay of Rs 20,000 cr
    Voluntary vehicle scrapping policy to phase out old vehicles; fitness tests after 20 yrs for personal vehicles
    National monetisation pipeline for potential brownfield infrastructure assets
    Rs 3,726 cr for forthcoming Census which will be the first digital census.

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