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Union Budget 2020-21 Key Highlights
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Union Budget 2020-21 Key Highlights
The new budget for the new decade is here. Finance Minister Nirmala Sitharaman has started her Union Budget Speech in the Parliament. This is her first full time budget presentation. We have come up with big promises in her budget statement. The budget has something for everyone and it will be such that it will attend to weak, old and vulnerable citizens. The budget is aiming to boost growth and enhance purchasing power of people.Union Budget 2020-21: Theme
There are 3 themes of union budget –
1.Aspirational India,
2.Economic development for all, and
3.Developing a caring society
1.Aspirational India,
2.Economic development for all, and
3.Developing a caring society
6 pillars of the Union Budget 2021-22:
1. Health and Wellbeing
2. Physical & Financial Capital, and Infrastructure
3. Inclusive Development for Aspirational India4. Reinvigorating Human Capital
5. Innovation and R&D
6. Minimum Government and Maximum Governance
1. Health and Wellbeing
Rs. 2,23,846 crore outlay for Health and Wellbeing in BE 2021-22 as against Rs. 94,452 crore in BE 2020-21 – an increase of 137%
Focus on strengthening three areas: Preventive, Curative, and Wellbeing
Steps being taken for improving health and wellbeing:
Vaccines
Rs. 35,000 crore for COVID-19 vaccine in BE 2021-22 The Made-in-India Pneumococcal Vaccine to be rolled out across the country, from present 5 states – to avert 50,000 child deaths annually.
Health Systems
Rs. 64,180 crore outlay over 6 years for PM Atma Nirbhar Swasth Bharat Yojana – a new centrally sponsored scheme to be launched, in addition to NHM.
1. Health and Wellbeing
2. Physical & Financial Capital, and Infrastructure
3. Inclusive Development for Aspirational India4. Reinvigorating Human Capital
5. Innovation and R&D
6. Minimum Government and Maximum Governance
1. Health and Wellbeing
Rs. 2,23,846 crore outlay for Health and Wellbeing in BE 2021-22 as against Rs. 94,452 crore in BE 2020-21 – an increase of 137%
Focus on strengthening three areas: Preventive, Curative, and Wellbeing
Steps being taken for improving health and wellbeing:
Vaccines
Rs. 35,000 crore for COVID-19 vaccine in BE 2021-22 The Made-in-India Pneumococcal Vaccine to be rolled out across the country, from present 5 states – to avert 50,000 child deaths annually.
Health Systems
Rs. 64,180 crore outlay over 6 years for PM Atma Nirbhar Swasth Bharat Yojana – a new centrally sponsored scheme to be launched, in addition to NHM.
Main interventions under PM Atma Nirbhar Swasth Bharat Yojana:
National Institution for One Health
17,788 rural and 11,024 urban Health and Wellness Centers, 4 regional National Institutes for Virology. 15 Health Emergency Operation Centers and 2 mobile hospitals. Integrated public health labs in all districts and 3382 block public health units in 11 states. Critical care hospital blocks in 602 districts and 12 central institutions. Strengthening of the National Centre for Disease Control (NCDC), its 5 regional branches and 20 metropolitan health surveillance units. Expansion of the Integrated Health Information Portal to all States/UTs to connect all public health labs. 17 new Public Health Units and strengthening of 33 existing Public Health Units. Regional Research Platform for WHO South-East Asia Region 9 Biosafety Level III laboratories.
Nutrition
Mission Poshan 2.0 to be launched:
To strengthen nutritional content, delivery, outreach, and outcome. Merging the Supplementary Nutrition Programme and the Poshan Abhiyan.Intensified strategy to be adopted to improve nutritional outcomes across 112 Aspirational Districts.
Universal Coverage of Water Supply
Rs. 2,87,000 crore over 5 years for Jal Jeevan Mission (Urban) – to be launched with an aim to provide 2.86 crore household tap connections
Universal water supply in all 4,378 Urban Local Bodies. Liquid waste management in 500 AMRUT cities.
Swachch Bharat, Swasth Bharat
Rs. 1,41,678 crore over 5 years for Urban Swachh Bharat Mission 2.0.
Main interventions under Swachh Bharat Mission (Urban) 2.0:
National Institution for One Health
17,788 rural and 11,024 urban Health and Wellness Centers, 4 regional National Institutes for Virology. 15 Health Emergency Operation Centers and 2 mobile hospitals. Integrated public health labs in all districts and 3382 block public health units in 11 states. Critical care hospital blocks in 602 districts and 12 central institutions. Strengthening of the National Centre for Disease Control (NCDC), its 5 regional branches and 20 metropolitan health surveillance units. Expansion of the Integrated Health Information Portal to all States/UTs to connect all public health labs. 17 new Public Health Units and strengthening of 33 existing Public Health Units. Regional Research Platform for WHO South-East Asia Region 9 Biosafety Level III laboratories.
Nutrition
Mission Poshan 2.0 to be launched:
To strengthen nutritional content, delivery, outreach, and outcome. Merging the Supplementary Nutrition Programme and the Poshan Abhiyan.Intensified strategy to be adopted to improve nutritional outcomes across 112 Aspirational Districts.
Universal Coverage of Water Supply
Rs. 2,87,000 crore over 5 years for Jal Jeevan Mission (Urban) – to be launched with an aim to provide 2.86 crore household tap connections
Universal water supply in all 4,378 Urban Local Bodies. Liquid waste management in 500 AMRUT cities.
Swachch Bharat, Swasth Bharat
Rs. 1,41,678 crore over 5 years for Urban Swachh Bharat Mission 2.0.
Main interventions under Swachh Bharat Mission (Urban) 2.0:
Complete faecal sludge management and waste water treatment
Source segregation of garbage. Reduction in single-use plastic. Reduction in air pollution by effectively managing waste from construction-and-demolition activities. Bioremediation of all legacy dump sites.
Clean Air
Rs. 2,217 crore to tackle air pollution, for 42 urban centers with a million-plus population.
Scrapping Policy
Voluntary vehicle scrapping policy to phase out old and unfit vehicles 1′ Fitness tests in automated fitness centres:
After 20 years in case of personal vehicles
After 15 years in the case of commercial vehicles.
Source segregation of garbage. Reduction in single-use plastic. Reduction in air pollution by effectively managing waste from construction-and-demolition activities. Bioremediation of all legacy dump sites.
Clean Air
Rs. 2,217 crore to tackle air pollution, for 42 urban centers with a million-plus population.
Scrapping Policy
Voluntary vehicle scrapping policy to phase out old and unfit vehicles 1′ Fitness tests in automated fitness centres:
After 20 years in case of personal vehicles
After 15 years in the case of commercial vehicles.
Physical and Financial Capital and Infrastructure
Production Linked Incentive scheme (PLI)
Rs. 1.97 lakh crore in next 5 years for PLI schemes in 13 Sectors. To create and nurture manufacturing global champions for an Atma Nirbhar Bharat.
Textiles
Mega Investment Textiles Parks (MITRA) scheme, in addition to PLI:
7 Textile Parks to be established over 3 years
Textile industry to become globally competitive, attract large investments and boost employment generation & exports.
Infrastructure
National Infrastructure Pipeline (NIP) expanded to 7,400 projects:
Around 217 projects worth 1.10 lakh crore completed. Measures in three thrust areas to increase funding for NIP:
i. Creation of institutional structures
ii. Big thrust on monetizing assets
iii. Enhancing the share of capital expenditurei.
Production Linked Incentive scheme (PLI)
Rs. 1.97 lakh crore in next 5 years for PLI schemes in 13 Sectors. To create and nurture manufacturing global champions for an Atma Nirbhar Bharat.
Textiles
Mega Investment Textiles Parks (MITRA) scheme, in addition to PLI:
7 Textile Parks to be established over 3 years
Textile industry to become globally competitive, attract large investments and boost employment generation & exports.
Infrastructure
National Infrastructure Pipeline (NIP) expanded to 7,400 projects:
Around 217 projects worth 1.10 lakh crore completed. Measures in three thrust areas to increase funding for NIP:
i. Creation of institutional structures
ii. Big thrust on monetizing assets
iii. Enhancing the share of capital expenditurei.
Creation of institutional structures: Infrastructure Financing
Rs. 20,000 crore to set up and capitalise a Development Financial Institution(DFI) – to act as a provider, enabler and catalyst for infrastructure financing. 5 lakh crore lending portfolio to be created under the proposed DFI in 3 years.
ii. Big thrust on monetizing assets
National Monetization Pipeline to be launched
Important asset monetization measures:
a. 5 operational toll roads worth Rs. 5,000 crore being transferred to the NHAIInvIT.
iii. Sharp Increase in Capital Budget
Rs. 5.54 lakh crore capital expenditure in BE 2021-22 – sharp increase of 34.5% over Rs. 4.12 lakh crore allocated in BE 2020-21 :
Over Rs. 2 lakh crore to States and Autonomous Bodies for their Capital Expenditure.
Over Rs. 44,000 crore for the Department of Economic Affairs to provide for projects/programmes/
Roads and Highways Infrastructure
Rs. 1,18,101 lakh crore, highest ever outlay, for Ministry of Road Transport and Highways – of which Rs. 1,08,230 crore is for capital.
Under the Rs. 5.35 lakh crore Bharatmala Pariyojana, more than 13,000 km length of roads worth Rs. 3.3 lakh crore awarded for construction:3,800 km have already been constructed. Another 8,500 km to be awarded for construction by March 2022. Additional 11,000 km of national highway corridors to be completed by March 2022.
Rs. 20,000 crore to set up and capitalise a Development Financial Institution(DFI) – to act as a provider, enabler and catalyst for infrastructure financing. 5 lakh crore lending portfolio to be created under the proposed DFI in 3 years.
ii. Big thrust on monetizing assets
National Monetization Pipeline to be launched
Important asset monetization measures:
a. 5 operational toll roads worth Rs. 5,000 crore being transferred to the NHAIInvIT.
iii. Sharp Increase in Capital Budget
Rs. 5.54 lakh crore capital expenditure in BE 2021-22 – sharp increase of 34.5% over Rs. 4.12 lakh crore allocated in BE 2020-21 :
Over Rs. 2 lakh crore to States and Autonomous Bodies for their Capital Expenditure.
Over Rs. 44,000 crore for the Department of Economic Affairs to provide for projects/programmes/
Roads and Highways Infrastructure
Rs. 1,18,101 lakh crore, highest ever outlay, for Ministry of Road Transport and Highways – of which Rs. 1,08,230 crore is for capital.
Under the Rs. 5.35 lakh crore Bharatmala Pariyojana, more than 13,000 km length of roads worth Rs. 3.3 lakh crore awarded for construction:3,800 km have already been constructed. Another 8,500 km to be awarded for construction by March 2022. Additional 11,000 km of national highway corridors to be completed by March 2022.
Economic corridors being planned:
Rs. 1.03 lakh crore outlay for 3,500 km of NHs in Tamil Nadu. Rs. 65,000 crore investment for 1,100 km of NHs in Kerala. Rs. 25,000 crore for 675 km of NHs in West Bengal. Over Rs. 34,000 crore to be allocated for 1300 km of NHs to be undertaken in next 3 years in Assam, in addition to Rs. 19,000 crore works of NHs currently in progress in the State.
Flagship Corridors/Expressways:
Delhi-Mumbai Expressway – Remaining 260 km to be awarded before 31.3.2021
Bengaluru-Chennai Expressway – 278 km to be initiated in the current FY; construction to begin in 2021-22
Kanpur-Lucknow Expressway – 63 km expressway providing an alternate route to NH 27 to be initiated in 2021-22
Delhi-Dehradun economic corridor – 210 km to be initiated in the current FY; construction to begin in 2021-22
Raipur-Vishakhapatnam – 464 km passing through Chhattisgarh, Odisha and North Andhra Pradesh, to be awarded in the current year; construction to start in 2021-22
Chennai-Salem corridor – 277 km expressway to be awarded and construction to start in 2021-22
Amritsar-Jamnagar – Construction to commence in 2021-22
Delhi-Katra – Construction will commence in 2021-22
Rs. 1.03 lakh crore outlay for 3,500 km of NHs in Tamil Nadu. Rs. 65,000 crore investment for 1,100 km of NHs in Kerala. Rs. 25,000 crore for 675 km of NHs in West Bengal. Over Rs. 34,000 crore to be allocated for 1300 km of NHs to be undertaken in next 3 years in Assam, in addition to Rs. 19,000 crore works of NHs currently in progress in the State.
Flagship Corridors/Expressways:
Delhi-Mumbai Expressway – Remaining 260 km to be awarded before 31.3.2021
Bengaluru-Chennai Expressway – 278 km to be initiated in the current FY; construction to begin in 2021-22
Kanpur-Lucknow Expressway – 63 km expressway providing an alternate route to NH 27 to be initiated in 2021-22
Delhi-Dehradun economic corridor – 210 km to be initiated in the current FY; construction to begin in 2021-22
Raipur-Vishakhapatnam – 464 km passing through Chhattisgarh, Odisha and North Andhra Pradesh, to be awarded in the current year; construction to start in 2021-22
Chennai-Salem corridor – 277 km expressway to be awarded and construction to start in 2021-22
Amritsar-Jamnagar – Construction to commence in 2021-22
Delhi-Katra – Construction will commence in 2021-22
Railway Infrastructure
Rs. 1,10,055 crore for Railways of which Rs. 1,07,100 crore is for capital expenditure. National Rail Plan for India (2030): to create a „future ready‟ Railway system by 2030. 100% electrification of Broad-Gauge routes to be completed by December, 2023
Broad Gauge Route Kilometers (RKM) electrification to reach 46,000 RKM, i.e. 72% by end of 2021. Western Dedicated Freight Corridor (DFC) and Eastern DFC to be commissioned by June 2022, to bring down the logistic costs – enabling Make in India strategy.
Urban Infrastructure
Raising the share of public transport in urban areas by expansion of metro rail network and augmentation of city bus service. Rs. 18,000 crore for a new scheme, to augment public bus transport:Innovative PPP models to run more than Rs. 20,000 buses. A total of 702 km of conventional metro is operational and another 1,016 km of metro and RRTS is under construction in 27 cities
Power Infrastructure
139 Giga Watts of installed capacity and Rs. 1.41 lakh circuit km of transmission lines added, and additional 2.8 crore households connected in the past 6 years.Rs. 3,05,984 crore over 5 years for a revamped, reforms-based and result-linked new power distribution sector scheme. A comprehensive National Hydrogen Energy Mission 2021-22 to be launched.
Ports, Shipping, Waterways
Rs. 2,000 crore worth 7 projects to be offered in PPP-mode in FY 21-22 for operation of major ports. Indian shipping companies to get Rs. 1624 crore worth subsidy support over 5 years in global tenders of Ministries and CPSEs. To double the recycling capacity of around 4.5 Million Light Displacement Tonnes (LDT) by 2024; to generate an additional 1.5 lakh jobs
Petroleum & Natural Gas
Extension of Ujjwala Scheme to cover 1 crore more beneficiaries. To add 100 more districts to the City Gas Distribution network in the next 3 years.
Rs. 1,10,055 crore for Railways of which Rs. 1,07,100 crore is for capital expenditure. National Rail Plan for India (2030): to create a „future ready‟ Railway system by 2030. 100% electrification of Broad-Gauge routes to be completed by December, 2023
Broad Gauge Route Kilometers (RKM) electrification to reach 46,000 RKM, i.e. 72% by end of 2021. Western Dedicated Freight Corridor (DFC) and Eastern DFC to be commissioned by June 2022, to bring down the logistic costs – enabling Make in India strategy.
Urban Infrastructure
Raising the share of public transport in urban areas by expansion of metro rail network and augmentation of city bus service. Rs. 18,000 crore for a new scheme, to augment public bus transport:Innovative PPP models to run more than Rs. 20,000 buses. A total of 702 km of conventional metro is operational and another 1,016 km of metro and RRTS is under construction in 27 cities
Power Infrastructure
139 Giga Watts of installed capacity and Rs. 1.41 lakh circuit km of transmission lines added, and additional 2.8 crore households connected in the past 6 years.Rs. 3,05,984 crore over 5 years for a revamped, reforms-based and result-linked new power distribution sector scheme. A comprehensive National Hydrogen Energy Mission 2021-22 to be launched.
Ports, Shipping, Waterways
Rs. 2,000 crore worth 7 projects to be offered in PPP-mode in FY 21-22 for operation of major ports. Indian shipping companies to get Rs. 1624 crore worth subsidy support over 5 years in global tenders of Ministries and CPSEs. To double the recycling capacity of around 4.5 Million Light Displacement Tonnes (LDT) by 2024; to generate an additional 1.5 lakh jobs
Petroleum & Natural Gas
Extension of Ujjwala Scheme to cover 1 crore more beneficiaries. To add 100 more districts to the City Gas Distribution network in the next 3 years.
Financial Capital
A single Securities Markets Code to be evolved.
Support for development of a world class Fin-Tech hub at the Gift-Ifsc.Capital infusion of Rs. 1,000 crore to Solar Energy Corporation of India and Rs. 1,500 crore to Indian Renewable Energy Development Agency
Increasing FDI in Insurance Sector
To increase the permissible FDI limit from 49% to 74% and allow foreign ownership and control with safeguards.
Disinvestment and Strategic Sale
Rs. 1,75,000 crore estimated receipts from disinvestment in BE 2020-21.
Strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited etc. to be completed in 2021-22.
Government Financial Reforms
Treasury Single Account (TSA) System for Autonomous Bodies to be extended for universal application.Separate Administrative Structure to streamline the „Ease of Doing Business‟ for Cooperatives
3. Inclusive Development for Aspirational India
Agriculture
Ensured MSP at minimum 1.5 times the cost of production across all commodities.With steady increase in the procurement, payment to farmers increased as under:(in Rs. crore)
Wheat:Rs.62,802(2019-20) Rs.75,060(2020-21)
Rice:Rs.1,41,930(2019-20)Rs.
Pulses:Rs. 8,285(2019-20)Rs. 10,530(2020-21)
SWAMITVA Scheme to be extended to all States/UTs, 1.80 lakh property-owners in 1,241 villages have already been provided cards. Agricultural credit target enhanced to Rs. 16.5 lakh crore in FY22 – animal husbandry, dairy, and fisheries to be the focus areas.Rural Infrastructure Development Fund to be enhanced to Rs. 40,000 crore from Rs. 30,000 crore
Around 1.68 crore farmers registered and Rs. 1.14 lakh crore of trade value carried out through e-NAMs; 1,000 more mandis to be integrated with e-NAM to bring transparency and competitiveness.
Fisheries
Investments to develop modern fishing harbours and fish landing centres – both marine and inland.
5 major fishing harbours – Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat to be developed as hubs of economic activity. Multipurpose Seaweed Park in Tamil Nadu to promote seaweed cultivation
Migrant Workers and Labourers
One Nation One Ration Card scheme for beneficiaries to claim rations anywhere in the country – migrant workers to benefit the most.
Scheme implementation so far covered 86% of beneficiaries across 32 States and UTs. Remaining 4 states to be integrated in next few months.
School Education
15,000 schools to be strengthened by implementing all NEP components. Shall act as exemplar schools in their regions for mentoring others.100 new Sainik Schools to be set up in partnership with NGOs/private schools/states
Higher Education
Legislation to be introduced to set up the Higher Education Commission of India as an umbrella body with 4 separate vehicles for standard-setting, accreditation, regulation, and funding.
Creation of formal umbrella structure to cover all Govt. colleges, universities, research institutions in a city for greater synergy.Glue grant to implement the same across 9 cities. Central University to come up in Leh for accessibility of higher education in Ladakh
Scheduled Castes and Scheduled Tribes Welfare
750 Eklavya model residential schools in tribal areas:Unit cost of each school to be increased to 38 crore. For hilly and difficult areas, to 48 crore.
Revamped Post Matric Scholarship Scheme for welfare of SCs
Rs. 35,219 crore enhanced Central Assistance for 6 years till 202520264 crore SC students to benefit.
Skilling
Proposed amendment to Apprenticeship Act to enhance opportunities for youth.Rs. 3000 crore for realignment of existing National Apprenticeship Training Scheme (NATS) towards post-education apprenticeship, training of graduates and diploma holders in Engineering.
5. Innovation and R&D
Modalities of National Research Foundation announced in July 2019 –
Rs. 50,000 crore outlay over 5 years
To strengthen the overall research ecosystem with focus on national-priority thrust areas.Rs. 1,500 crore for proposed scheme to promote digital modes of payment.National Language Translation Mission (NTLM) to make governance-and-policy related. knowledge available in major Indian languages.
PSLV-CS51 to be launched by New Space India Limited (NSIL) carrying Brazil‟s Amazonia Satellite and some Indian satellites.
6. Minimum Government, Maximum Governance
Measures being undertaken to bring reforms in Tribunals to ensure speedy justice. National Commission for Allied Healthcare Professionals already introduced to ensure transparent and efficient regulation of the 56 allied healthcare professions. The National Nursing and Midwifery Commission Bill introduced for the same in the nursing profession. 3,768 crore allocated for the first digital census in the history of India.
300 crore grant to the Government of Goa for the diamond jubilee celebrations of the state’s liberation from Portuguese. 1,000 crore for the welfare of Tea workers especially women and their children in Assam and West Bengal through a special scheme.
A single Securities Markets Code to be evolved.
Support for development of a world class Fin-Tech hub at the Gift-Ifsc.Capital infusion of Rs. 1,000 crore to Solar Energy Corporation of India and Rs. 1,500 crore to Indian Renewable Energy Development Agency
Increasing FDI in Insurance Sector
To increase the permissible FDI limit from 49% to 74% and allow foreign ownership and control with safeguards.
Disinvestment and Strategic Sale
Rs. 1,75,000 crore estimated receipts from disinvestment in BE 2020-21.
Strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited etc. to be completed in 2021-22.
Government Financial Reforms
Treasury Single Account (TSA) System for Autonomous Bodies to be extended for universal application.Separate Administrative Structure to streamline the „Ease of Doing Business‟ for Cooperatives
3. Inclusive Development for Aspirational India
Agriculture
Ensured MSP at minimum 1.5 times the cost of production across all commodities.With steady increase in the procurement, payment to farmers increased as under:(in Rs. crore)
Wheat:Rs.62,802(2019-20) Rs.75,060(2020-21)
Rice:Rs.1,41,930(2019-20)Rs.
Pulses:Rs. 8,285(2019-20)Rs. 10,530(2020-21)
SWAMITVA Scheme to be extended to all States/UTs, 1.80 lakh property-owners in 1,241 villages have already been provided cards. Agricultural credit target enhanced to Rs. 16.5 lakh crore in FY22 – animal husbandry, dairy, and fisheries to be the focus areas.Rural Infrastructure Development Fund to be enhanced to Rs. 40,000 crore from Rs. 30,000 crore
Around 1.68 crore farmers registered and Rs. 1.14 lakh crore of trade value carried out through e-NAMs; 1,000 more mandis to be integrated with e-NAM to bring transparency and competitiveness.
Fisheries
Investments to develop modern fishing harbours and fish landing centres – both marine and inland.
5 major fishing harbours – Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat to be developed as hubs of economic activity. Multipurpose Seaweed Park in Tamil Nadu to promote seaweed cultivation
Migrant Workers and Labourers
One Nation One Ration Card scheme for beneficiaries to claim rations anywhere in the country – migrant workers to benefit the most.
Scheme implementation so far covered 86% of beneficiaries across 32 States and UTs. Remaining 4 states to be integrated in next few months.
School Education
15,000 schools to be strengthened by implementing all NEP components. Shall act as exemplar schools in their regions for mentoring others.100 new Sainik Schools to be set up in partnership with NGOs/private schools/states
Higher Education
Legislation to be introduced to set up the Higher Education Commission of India as an umbrella body with 4 separate vehicles for standard-setting, accreditation, regulation, and funding.
Creation of formal umbrella structure to cover all Govt. colleges, universities, research institutions in a city for greater synergy.Glue grant to implement the same across 9 cities. Central University to come up in Leh for accessibility of higher education in Ladakh
Scheduled Castes and Scheduled Tribes Welfare
750 Eklavya model residential schools in tribal areas:Unit cost of each school to be increased to 38 crore. For hilly and difficult areas, to 48 crore.
Revamped Post Matric Scholarship Scheme for welfare of SCs
Rs. 35,219 crore enhanced Central Assistance for 6 years till 202520264 crore SC students to benefit.
Skilling
Proposed amendment to Apprenticeship Act to enhance opportunities for youth.Rs. 3000 crore for realignment of existing National Apprenticeship Training Scheme (NATS) towards post-education apprenticeship, training of graduates and diploma holders in Engineering.
5. Innovation and R&D
Modalities of National Research Foundation announced in July 2019 –
Rs. 50,000 crore outlay over 5 years
To strengthen the overall research ecosystem with focus on national-priority thrust areas.Rs. 1,500 crore for proposed scheme to promote digital modes of payment.National Language Translation Mission (NTLM) to make governance-and-policy related. knowledge available in major Indian languages.
PSLV-CS51 to be launched by New Space India Limited (NSIL) carrying Brazil‟s Amazonia Satellite and some Indian satellites.
6. Minimum Government, Maximum Governance
Measures being undertaken to bring reforms in Tribunals to ensure speedy justice. National Commission for Allied Healthcare Professionals already introduced to ensure transparent and efficient regulation of the 56 allied healthcare professions. The National Nursing and Midwifery Commission Bill introduced for the same in the nursing profession. 3,768 crore allocated for the first digital census in the history of India.
300 crore grant to the Government of Goa for the diamond jubilee celebrations of the state’s liberation from Portuguese. 1,000 crore for the welfare of Tea workers especially women and their children in Assam and West Bengal through a special scheme.
Fiscal Position
Fiscal Deficit (as % of GDP) – 9.5% 6.8%. RE for Expenditure is Rs. 34.50 lakh crore as against original BE expenditure of Rs. 30.42 lakh crore. Quality of expenditure has been maintained as Capital Expenditure estimated as per RE is 4.39 lakh crore in 2020-2021 as against Rs. 4.12 lakh crore in BE 2020-21
Estimates of Rs. 34.83 lakh crore BE for expenditure in 2021-2022 including Rs. 5.5 lakh crore as capital expenditure, an increase of 34.5% to give required push to economy
The fiscal deficit in BE 2021-2022 is estimated to be 8% of GDP. The fiscal deficit in RE 2020-21 is pegged at 9.5% of GDP – funded through Government borrowings, multilateral borrowings, Small Saving Funds and short term borrowings. Gross borrowing from the market for the next year to be around 12 lakh crore.
Plan to continue on the path of fiscal consolidation, achieving a fiscal deficit level below 4.5% of GDP by 2025-2026 with a fairly steady decline over the period. It will be achieved by increasing the buoyancy of tax revenue through improved compliance, and secondly, by increased receipts from monetisation of assets, including Public Sector Enterprises and land.
Net borrowing of the States:
Net borrowing for the states allowed at 4% of GSDP for the year 2021-2022 as per recommendation of 15th FC.Part of this earmarked for incremental capital expenditure
Additional borrowing ceiling of 0.5% of GDP will be provided subject to conditions.States expected to reach a fiscal deficit of 3% of GSDP by 2023-24, as recommended by the 15th Finance Commission.
Fifteenth Finance Commission:
The final report covering 2021-26 was submitted to the President, retaining vertical shares of states at 41%. Funds to UTs of Jammu and Kashmir and Ladakh would be provided by the Centre. On the Commission‟s recommendation, Rs. 1,18,452 crore have been provided as Revenue Deficit Grant to 17 states in 2021-22, as against Rs. 74,340 crore to 14 states in 2020-21.
Tax Proposals
Vision of a transparent, efficient tax system to promote investments and employment in the country with minimum burden on taxpayers
1. Direct Taxes
Achievements:
Corporate tax rate slashed to make it among the lowest in the world. Burden of taxation on small taxpayers eased by increasing rebates. Return filers almost doubled to 6.48 crore in 2020 from 31 crore in 2014. Faceless Assessment and Faceless Appeal introduced.
Relief to Senior Citizens:
Exemption from filing tax returns for senior citizens over 75 years of age and having only pension and interest income; tax to be deducted by paying the bank.
Incentivising Digital Economy:
Limit of turnover for tax audit increased to 10 crore from Rs. 5 crore for entities carrying out 95% transactions digitally.
Tax incentives to IFSC in GIFT City:
Tax holiday for capital gains from incomes of aircraft leasing companies. Tax exemptions for aircraft lease rentals paid to foreign lessors
Tax incentive for relocating foreign funds in the Ifsc. Tax exemption to investment division of foreign banks located in Ifsc.
Ease of Filing Taxes:
Details of capital gains from listed securities, dividend income, interest from banks, etc. to be pre-filled in returns.
Relief to Small Trusts:
Exemption limit of annual receipt revised from ₹1 crore to ₹5 crore for small charitable trusts running schools and hospitals.
Labour Welfare:
Late deposit of employee‟s contribution by the employer not to be allowed as deduction to the employer. Eligibility for tax holiday claim for start-ups extended by one more year. Capital gains exemption for investment in start-ups extended till 31st March, 2022.
2. Indirect Taxes
GST:
Measures taken till date:
Nil return through SMS Quarterly return and monthly payment for small taxpayers. Electronic invoice system. Validated input tax statement
Pre-filled editable GST return. Staggering of returns filing. Enhancement of capacity of GSTN system. Use of deep analytics and AI to identify tax evaders.
Custom Duty Rationalization:
Twin objectives: Promoting domestic manufacturing and helping India get onto the global value chain and export better. 80 outdated exemptions already eliminated. Revised, distortion-free customs duty structure to be put in place from 1st October 2021 by reviewing more than 400 old exemptions
New customs duty exemptions to have validity up to the 31st March following two years from its issue date.
Iron and Steel:
Customs duty reduced uniformly to 7.5% on semis, flat, and long products of non-alloy, alloy, and stainless steel. Duty on steel scrap exempted up to 31st March, 2022
Anti-Dumping Duty (ADD) and Countervailing Duty (CVD) revoked on certain steel products
Duty on copper scrap reduced from 5% to 2.5%.
Textiles:
Basic Customs Duty (BCD) on caprolactam, nylon chips and nylon fiber & yarn reduced to 5%
Chemicals:
Calibrated customs duty rates on chemicals to encourage domestic value addition and to remove inversion. Duty on Naphtha reduced to 2.5%.
Gold and Silver:
Custom duty on gold and silver to be rationalized
Renewable Energy:
Phased manufacturing plan for solar cells and solar panels to be notified. Duty on solar inverters raised from 5% to 20%, and on solar lanterns from 5% to 15% to encourage domestic production.
Capital Equipment:
Tunnel boring machine to now attract a customs duty of 7.5%; and its parts a duty of 2.5%.
Duty on certain auto parts increased to a general rate of 15%.
MSME Products:
Duty on steel screws and plastic builder wares increased to 15%. Prawn feed to attract customs duty of 15% from earlier rate of 5%. Exemption on import of duty-free items rationalized to incentivize exporters of garments, leather, and handicraft items.
Agriculture Products:
Customs duty on cotton increased from nil to 10% and on raw silk and silk yarn from 10% to 15%.Withdrawal of end-use based concession on denatured ethyl alcohol. Agriculture Infrastructure and Development Cess (AIDC) on a small number of items.
Achievements and Milestones during the COVID-19 pandemic
Pradhan Mantri Garib Kalyan Yojana (PMGKY):
Valued at 2.76 lakh crore. Free food grain to 80 crore people. Free cooking gas for 8 crore families. Direct cash to over 40 crore farmers, women, elderly, the poor and the needy.
Atma Nirbhar Bharat package (ANB 1.0):
Estimated at 23 lakh crore – more than 10% of GDP. PMGKY, three ANB packages (ANB 1.0, 2.0, and 3.0), and announcements made later were like 5 mini-budgets in themselves.
27.1 lakh crore worth of financial impact of all three ANB packages including RBI‟s measures – amounting to more than 13% of GDP Structural reforms:One Nation One Ration Card
Agriculture and Labour Reforms.
2021 – Year of milestones for Indian history
Atma Nirbharta – not a new idea – ancient India was self-reliant and a business epicentre of the world. AtmaNirbhar Bharat – an expression of 130 crore Indians who have full confidence in their capabilities and skills.
Strengthening the Sankalp of:
1.Nation First
2.Doubling Farmers Income
3.Strong Infrastructure
4.Healthy India
5.Good Governance
6.Opportunities for Youth
7.Education for All
8.Women Empowerment
9.Inclusive Development
13 promises made in the Union Budget 2015-16, and resonating with the vision of Atma Nirbharta, to materialise during the AmrutMahotsav of 2022 – on the 75th year of our independence.
Fiscal Deficit (as % of GDP) – 9.5% 6.8%. RE for Expenditure is Rs. 34.50 lakh crore as against original BE expenditure of Rs. 30.42 lakh crore. Quality of expenditure has been maintained as Capital Expenditure estimated as per RE is 4.39 lakh crore in 2020-2021 as against Rs. 4.12 lakh crore in BE 2020-21
Estimates of Rs. 34.83 lakh crore BE for expenditure in 2021-2022 including Rs. 5.5 lakh crore as capital expenditure, an increase of 34.5% to give required push to economy
The fiscal deficit in BE 2021-2022 is estimated to be 8% of GDP. The fiscal deficit in RE 2020-21 is pegged at 9.5% of GDP – funded through Government borrowings, multilateral borrowings, Small Saving Funds and short term borrowings. Gross borrowing from the market for the next year to be around 12 lakh crore.
Plan to continue on the path of fiscal consolidation, achieving a fiscal deficit level below 4.5% of GDP by 2025-2026 with a fairly steady decline over the period. It will be achieved by increasing the buoyancy of tax revenue through improved compliance, and secondly, by increased receipts from monetisation of assets, including Public Sector Enterprises and land.
Net borrowing of the States:
Net borrowing for the states allowed at 4% of GSDP for the year 2021-2022 as per recommendation of 15th FC.Part of this earmarked for incremental capital expenditure
Additional borrowing ceiling of 0.5% of GDP will be provided subject to conditions.States expected to reach a fiscal deficit of 3% of GSDP by 2023-24, as recommended by the 15th Finance Commission.
Fifteenth Finance Commission:
The final report covering 2021-26 was submitted to the President, retaining vertical shares of states at 41%. Funds to UTs of Jammu and Kashmir and Ladakh would be provided by the Centre. On the Commission‟s recommendation, Rs. 1,18,452 crore have been provided as Revenue Deficit Grant to 17 states in 2021-22, as against Rs. 74,340 crore to 14 states in 2020-21.
Tax Proposals
Vision of a transparent, efficient tax system to promote investments and employment in the country with minimum burden on taxpayers
1. Direct Taxes
Achievements:
Corporate tax rate slashed to make it among the lowest in the world. Burden of taxation on small taxpayers eased by increasing rebates. Return filers almost doubled to 6.48 crore in 2020 from 31 crore in 2014. Faceless Assessment and Faceless Appeal introduced.
Relief to Senior Citizens:
Exemption from filing tax returns for senior citizens over 75 years of age and having only pension and interest income; tax to be deducted by paying the bank.
Incentivising Digital Economy:
Limit of turnover for tax audit increased to 10 crore from Rs. 5 crore for entities carrying out 95% transactions digitally.
Tax incentives to IFSC in GIFT City:
Tax holiday for capital gains from incomes of aircraft leasing companies. Tax exemptions for aircraft lease rentals paid to foreign lessors
Tax incentive for relocating foreign funds in the Ifsc. Tax exemption to investment division of foreign banks located in Ifsc.
Ease of Filing Taxes:
Details of capital gains from listed securities, dividend income, interest from banks, etc. to be pre-filled in returns.
Relief to Small Trusts:
Exemption limit of annual receipt revised from ₹1 crore to ₹5 crore for small charitable trusts running schools and hospitals.
Labour Welfare:
Late deposit of employee‟s contribution by the employer not to be allowed as deduction to the employer. Eligibility for tax holiday claim for start-ups extended by one more year. Capital gains exemption for investment in start-ups extended till 31st March, 2022.
2. Indirect Taxes
GST:
Measures taken till date:
Nil return through SMS Quarterly return and monthly payment for small taxpayers. Electronic invoice system. Validated input tax statement
Pre-filled editable GST return. Staggering of returns filing. Enhancement of capacity of GSTN system. Use of deep analytics and AI to identify tax evaders.
Custom Duty Rationalization:
Twin objectives: Promoting domestic manufacturing and helping India get onto the global value chain and export better. 80 outdated exemptions already eliminated. Revised, distortion-free customs duty structure to be put in place from 1st October 2021 by reviewing more than 400 old exemptions
New customs duty exemptions to have validity up to the 31st March following two years from its issue date.
Iron and Steel:
Customs duty reduced uniformly to 7.5% on semis, flat, and long products of non-alloy, alloy, and stainless steel. Duty on steel scrap exempted up to 31st March, 2022
Anti-Dumping Duty (ADD) and Countervailing Duty (CVD) revoked on certain steel products
Duty on copper scrap reduced from 5% to 2.5%.
Textiles:
Basic Customs Duty (BCD) on caprolactam, nylon chips and nylon fiber & yarn reduced to 5%
Chemicals:
Calibrated customs duty rates on chemicals to encourage domestic value addition and to remove inversion. Duty on Naphtha reduced to 2.5%.
Gold and Silver:
Custom duty on gold and silver to be rationalized
Renewable Energy:
Phased manufacturing plan for solar cells and solar panels to be notified. Duty on solar inverters raised from 5% to 20%, and on solar lanterns from 5% to 15% to encourage domestic production.
Capital Equipment:
Tunnel boring machine to now attract a customs duty of 7.5%; and its parts a duty of 2.5%.
Duty on certain auto parts increased to a general rate of 15%.
MSME Products:
Duty on steel screws and plastic builder wares increased to 15%. Prawn feed to attract customs duty of 15% from earlier rate of 5%. Exemption on import of duty-free items rationalized to incentivize exporters of garments, leather, and handicraft items.
Agriculture Products:
Customs duty on cotton increased from nil to 10% and on raw silk and silk yarn from 10% to 15%.Withdrawal of end-use based concession on denatured ethyl alcohol. Agriculture Infrastructure and Development Cess (AIDC) on a small number of items.
Achievements and Milestones during the COVID-19 pandemic
Pradhan Mantri Garib Kalyan Yojana (PMGKY):
Valued at 2.76 lakh crore. Free food grain to 80 crore people. Free cooking gas for 8 crore families. Direct cash to over 40 crore farmers, women, elderly, the poor and the needy.
Atma Nirbhar Bharat package (ANB 1.0):
Estimated at 23 lakh crore – more than 10% of GDP. PMGKY, three ANB packages (ANB 1.0, 2.0, and 3.0), and announcements made later were like 5 mini-budgets in themselves.
27.1 lakh crore worth of financial impact of all three ANB packages including RBI‟s measures – amounting to more than 13% of GDP Structural reforms:One Nation One Ration Card
Agriculture and Labour Reforms.
2021 – Year of milestones for Indian history
Atma Nirbharta – not a new idea – ancient India was self-reliant and a business epicentre of the world. AtmaNirbhar Bharat – an expression of 130 crore Indians who have full confidence in their capabilities and skills.
Strengthening the Sankalp of:
1.Nation First
2.Doubling Farmers Income
3.Strong Infrastructure
4.Healthy India
5.Good Governance
6.Opportunities for Youth
7.Education for All
8.Women Empowerment
9.Inclusive Development
13 promises made in the Union Budget 2015-16, and resonating with the vision of Atma Nirbharta, to materialise during the AmrutMahotsav of 2022 – on the 75th year of our independence.