Union Budget 2021-2022 Highlights

Author : Praveeth Shetty & Sheshadri Subramaniam




Health and Sanitation:

  • A new scheme - PM Atma Nirbhar Swasthya Bharat Yojana, to be launched to develop primary, secondary and tertiary healthcare.

  • Mission POSHAN 2.0 to improve nutritional outcomes across 112 aspirational districts.

  • Modernising of existing health units at 32 airports, 15 seaports and land ports.

  • Jal Jeevan Mission Urban aimed at better water supply nationwide.

  • Strengthening of Urban Swachh Bharat Mission

Education:

  • 100 new Sainik Schools to be set up

  • 750 Eklavya schools to be set up in tribal areas

  • A Central University to come up in Ladakh


Infrastructure:

  • Vehicle scrapping policy to phase out old and unfit vehicles – all vehicles to undergo fitness test in automated fitness centres every 20 years (personal vehicles), every 15 years (commercial vehicles)

  • 100% electrification of Railways to be completed by 2023

  • Gas pipeline project to be set up in Jammu and Kashmir

  • Pradhan Mantri Ujjwala Yojana (LPG scheme) to be extended to cover 1 crore more beneficiaries

TAX

  • No IT filing for people above 75 years who get pension and earn interest from deposits

  • Reopening window for IT assessment cases reduced from 6 to 3 years. However, in case of serious tax evasion cases (Rs. 50 lakh or more), it can go up to 10 years

  • Duty of copper scrap reduced to 2.5%

  • Duty on solar inverters raised from 5% to 20%, and on solar lanterns from 5% to 15%

  • All nylon products charged with 5% customs duty

  • Customs duty on cotton raised from 0 to 10%

Economy and Finance:

  • Fiscal deficit stands at 9.5% of the GDP; estimated to be 6.8% in 2021-22

  • Proposal to allow States to raise borrowings up to 4% of GSDP this year

  • An IPO of LIC to debut this fiscal

  • A Unified Securities Market Code to be created, consolidating provisions of the Sebi Act, Depositories Act, and two other laws

  • Proposal to increase FDI limit from 49% to 74%

  • Deposit insurance increased from Rs 1 lakh to Rs 5 lakh for bank depositors

  • Proposal to decriminalize Limited Liability Partnership Act of 2008

  • Two PSU bank and one general insurance firm to be disinvested this year

  • Strategic sale of BPCL, IDBI Bank, Air India to be completed

  • Rs. 1,500 crore for promotion of Digital Payments


Agriculture:

  • Agriculture credit target set by government to Rs. 16.5 lakh crore

  • Agriculture infrastructure fund to be made available for APMCs for augmenting their infrastructure

  • 1,000 more Mandis to be integrated into the E-NAM market place

  • Five major fishing hubs, including Chennai, Kochi and Paradip, to be developed

  • A multipurpose seaweed park to be established in Tamil Nadu


Employment:

  • A portal to be launched to maintain information on gig workers and construction workers

  • Social security to be extended to gig and platform workers

  • Margin capital required for loans via Stand-up India scheme reduced from 25% to 15% for SCs, STs and women

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