Union Budget 2021-22: Main highlights

Nirmala Sitharaman

New Delhi: Following are the highlights of the 2021-22 Budget presented Monday by Finance Minister Nirmala Sitharaman in Parliament

Fiscal position and health outlay

Spending on healthcare hiked by 137 per cent to over Rs 2.23 lakh crore

Rs 35,000 crore outlay for COVID vaccine in fiscal beginning April 1

India currently has two COVID-19 vaccines available, two more vaccines are expected soon

Sharp increase in capital expenditure for next fiscal to Rs 5.54 lakh crore, up from Rs 4.39 lakh crore of last fiscal

Fiscal deficit set for current fiscal at 9.5 per cent, against 3.5 per cent budgeted

Fiscal deficit for next fiscal pegged at 6.8%, government to borrow Rs 12 lakh crore

Committed to bring down fiscal deficit below 4.5 per cent 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 crore in 2020 from 3.31 crore in 2014.

Agri infra cess of 2.5% on gold, silver and dore bars; 35% per cent on apples. It means gold will be costlier.

Agri infra cess of 30% on Kabuli chana, 10% on peas, 50% on Bengal gram/chickpeas, 20% on lentil (mosur), five per cent 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 department to notify rules to remove hardships of double taxation faced by NRIs

Tax holiday for startups, capital gains exemption extended by 1 year

Tax exemption for aircraft leasing companies; 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 year

Customs duty on certain auto parts, solar equipment raised

Allocation and reforms

FDI in insurance increased to 74% from 49%

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 crore to be introduced

Government to introduce a bill to set up development financial institution with an outlay of Rs 20,000 crore

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 crore for forthcoming Census which will be the first digital census.

 

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