Budget: Nirmala Sitharaman said that the budget preparation took place in circumstances like never before.
Highlight
- FDI in the insurance sector increased from 49% to 74%
- Life Insurance Corporation (LIC) IPO this year, said Nirmala Sitharam
- 35 billion rupees announced for Covid vaccines
New Delhi:
Finance Minister Nirmala Sithraman announces the 2021 budget in Parliament. Sitharaman said the budget was prepared under circumstances – as never before – and that the government was fully prepared to support and facilitate a restart of the economy. According to her, the total impact of the Atmanirbhar Bharat and Covid relief measures was Rs 27.1 million lakh, which is equivalent to 13% of GDP.
Here’s your 10-point cheat sheet for Budget 2021:
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In her speech on the 2021 Budget, the Minister of Finance, Nirmala Sitharaman, announced that Foreign Direct Investment (FDI) in the insurance sector has increased from 49% to 74%.
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Atmanirbhar Bharat’s plans announced in 2020 were like five mini-budgets, the finance minister said. He added that two more COVID-19 vaccines will arrive.
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The finance minister said capital spending would increase to Rs 5.54 lakh crore in the 2021-22 budget, about 34% more than last year. “Only three times the Budget has followed a contraction in the economy. This time, unlike before, the situation is due to a global pandemic,” said Sitharaman, adding that the Budget 2021 provides all opportunities for the economy to take the pace and grow sustainably.
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The Finance Minister announced this year 35 billion rupees for COVID-19 vaccines, and announced that probably two more vaccines this year, in addition to Covaxin and Serum Institute’s Covishield from Bharat Biotech.
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According to Ms. Sitharaman, the 2021 Budget proposals are based on six pillars. These are Health and Welfare, Capital and Physical and Financial Infrastructure, Inclusive Development for Aspirational India, Revitalization of Human Capital, Innovation and R&D, Minimal Government, and Maximum Governance.
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Sitharaman said that the manufacturing sector has to grow in double digits to achieve a $ 5 trillion economy. The Finance Minister also announced a voluntary scrapping policy to dispose of old vehicles. Vehicles will pass proficiency tests after 20 years for passenger vehicles, 15 years for commercial vehicles.
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In a great relief to citizens, the Minister of Finance announced that the compliance burden will be reduced for 75 years or more. Seniors with only one pension and interest plan are exempt from filing income tax returns.
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Ms. Sitharaman proposed three steps for the National Infrastructure Pipeline, which involve creating institutional structures, monetizing assets, and improving the share of capital spending in state and central budgets. It announced Rs 20,000 crore for the Development Finance Institution, targeting a portfolio of five lakh crore over three years. The 2021 budget will provide Rs 1.1 lakh crore to Indian Railways, of which Rs 1.07 lakh crore is for capital expenditures.
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The Minister of Finance announced that the Supplementary Nutrition Program and POSHAN Abhiyaan will merge and the POSHAN 2.0 Mission will be launched. This will strengthen the content, delivery, and nutritional results. Intensified strategy to improve nutritional outcomes in aspirational districts.
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Sitharaman said the government would inject Rs 20 billion into public sector banks (PSBs) in 2021-22, to comply with regulatory standards. For the current financial year, the government had made a provision of Rs 20 billion for recapitalization.
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