‘Budget Has Vision of Self-Reliance and Inclusiveness’: PM Modi
Catch all the live updates on Budget 2021 here.
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Soon after the presentation of the Union Budget by Finance Minister Nirmala Sitharaman on Monday, 1 February, PM Narendra Modi, in a video statement, said it contains a vision of self-reliance as well as inclusiveness.
FM Sitharaman, in her Budget speech, proposed an exemption from filing Income Tax returns for senior citizens aged 75 years and above, who only have pension and interest income. The income tax slab for the financial year 2021-22 will remain unchanged.
Meanwhile, the fiscal deficit for the FY21 has been pegged at 9.5 percent of the GDP, while for FY22, it has been estimated at 6.8 percent, the finance minister said.
The finance minister also announced a 137% increase in the health budget.
Earlier, chants of 'repeal the farm laws' could be heard in the Parliament as she presented the Union Budget.
- FM Nirmala Sitharaman announced Rs 2.83 lakh crore for health and wellness sector, which includes Rs 35,000 crore for COVID-19 vaccines
- A sharp increase in capital expenditure for the next fiscal at Rs 5.54 lakh crore has been proposed
- The Foreign Direct Investment (FDI) limit in insurance has been increased from 49 percent to 74 percent
- FM Sitharaman announced a record sum of Rs 1,10,055 crore for the Railways in 2021-22
- The Budget proposals this year are based on six pillars
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Budget 2021 LIVE: Expenditure on Vaccination
Among the most-watched figures in the Budget will be the expenditure on vaccination in Financial Year 2022 which could be shared among the central government, state governments and households.
Budget 2021 LIVE: What to Expect
The government is likely to focus on strengthening the Atmanirbhar Bharat Abhiyan and providing further impetus to the 'Make in India' program in order to boost economic demand and stimulate growth.
The expectation is that the government will focus on infrastructure, healthcare, agriculture, rural economy and sectors impacted by the pandemic.
The budget gap in the ongoing fiscal is expected to rise to 6.5-8 percent of the GDP. For the next fiscal, the government is expected to target for a deficit of around 5.6 percent, according to consensus of estimates.
Economists and market observers have said that the Budget will be a balancing act between stimulating long-term growth while keeping government finances in check.
Budget 2021 LIVE: Cabinet Meeting to be Held at 10.15 am
A cabinet meeting will be held at 10:15 am on Monday in Parliament, ahead of the presentation of the Union Budget.
11% GDP Growth Projected for FY22: Economic Survey
Finance Minister Nirmala Sitharaman tabled the pre-Budget Economic Survey in the Lok Sabha on Friday. A GDP growth of 11 percent has been projected for the financial year 2021-22 by the survey. In this financial year, the GDP is estimated to contract 7.7 percent.
4-5 Mini Budgets in 2020, This Budget Part of the Series: PM Modi
Prime Minister Narendra Modi on Friday said the finance minister had to present 4-5 mini budgets in 2020 in the form of different packages, and the upcoming Union Budget would be a part of the series.
“For the first time in India’s history, in a way, the Finance Minister had to present 4-5 mini budgets in 2020 in the form of different packages. So this Budget will be seen as a part of the series of those 4-5 mini budgets, I believe this,” he was quoted as saying, while addressing the media at the Parliament.
Budget 2021: What to Expect? Two Experts Answer
What can one expect from Budget 2021? How will it impact the stock market?
The Quint interviewed two ace investors – Saurabh Mukherjea, Co-Founder of Marcellus Investment Managers and Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services – to answer all your questions ahead of the Budget 2021 announcement.
These market veterans elaborated on budget expectations, stock market situations and advised young investors where to invest.
Read the full story here.
‘Budget 2021 Will Be Key To India’s Growth’: HSBC Chief Economist
With Monday's Budget announcement being one-of-a-kind, coming, as it does, in the shadow of the coronavirus pandemic and economic contraction, there are many questions on how the annual announcement of the government's monetary, fiscal and tax policies will be impacted.
The Quint's Editorial Director Sanjay Pugalia spoke to Pranjul Bhandari, the Chief Economist for HSBC Securities, to examine some of the most important issues ahead of the Budget announcement.
Read the full story here.
Budget 2021 LIVE: GST Collection for January 2021 at All-Time High
Ahead of the Budget presentation, the government on Sunday released the GST collection numbers for January 2021, with the revenues touching an all-time high of Rs 1.19 lakh crore.
'Budget Will be in Accordance With People's Expectations': MoS Anurag Thakur
Ahead of the Budget presentation, Minister of State (MoS) for Finance Anurag Thakur said on Monday that it will be in accordance with the people's expectations.
"The government, which functions on the mantra of 'Sabka Saath, Sabka Vikas, Sabka Vishwas', gave a new direction to India by announcing the Atmanirbhar package, protecting it from the pandemic and bringing the economy back on track swiftly," he told news agency ANI.
Budget 2021 LIVE: FM Sitharaman Reaches Finance Ministry
Finance Minister Nirmala Sitharaman has reached the Finance Ministry along with MoS Anurag Thakur, ahead of the Budget presentation at 11 am in the Parliament.
Budget 2021 LIVE: Sensex Rises 443 Pts to 46,729; Nifty Over 13,700
Sensex on Monday rose 443 points to 46,728.83 in the opening session ahead of the presentation of the Union Budget by Finance Minister Nirmala Sitharaman, while Nifty was up 114.85 points to 13,749.45.
FM Sitharaman to Present Budget Through Tablet
Finance Minister Nirmala Sitharaman will be presenting the Union Budget this year through a tablet, and not the traditional 'bahi khata'.
Budget 2021 LIVE: FM Sitharaman Calls on President Kovind
Ahead of the presentation of the Union Budget, Finance Minister Nirmala Sitharaman and MoS Anurag Thakur called on President Ram Nath Kovind at the Rashtrapati Bhavan.
FM Sitharaman Reaches Parliament, Cabinet Meeting to Start Shortly
Finance Minister Nirmala Sitharaman has reached the Parliament along with MoS Anurag Thakur.
A Cabinet meeting will be held at 10:15 am, followed by the presentation of the Budget at 11 am. A post-Budget press conference will be held at 3 pm by the finance minister.
Cabinet Meeting Underway, Budget Speech Shortly
A Cabinet meeting is underway ahead of the presentation of the Union Budget by Finance Minister Nirmala Sitharaman in the Parliament.
Cabinet Approves Union Budget
The Cabinet has approved the Union Budget 2021-22 that will be presented by Finance Minister Nirmala Sitharaman in the Parliament shortly.
FM Sitharaman Tables Union Budget
Finance Minister Nirmala Sitharaman is presenting the Union Budget 2021-22 in the Parliament.
At the outset of her address, Sitharaman said the Budget preparation has been undertaken in “circumstances like never before".
Budget: FM Sitharaman Announces Atmanirbhar Swasth Bharat Yojana
Presenting the Union Budget 2021-22, Finance Minister Nirmala Sitharaman said the PM Atmanirbhar Swasth Bharat Yojana will be launched with an outlay of over Rs 64,000 crore over six years to address health infrastructure.
The government will also provide Rs 35,000 crore for COVID-19 vaccination in 2021-22, she said, adding that it is committed to providing more funds.
Along with these, an Urban Swachh Bharat Mission 2.0 will be launched with an outlay of Rs 1,48,000 crore over five years.
Budget Proposals Based on Six Pillars: FM Sitharaman
The Budget proposals this year are based on six pillars: health and well being; physical and financial capital and infrastructure; inclusive development for aspirational India; innovation and R&D; reinvigorating human capital; minimum government and maximum governance.
Sharp Increase in Capital Expenditure for Next Fiscal: FM Sitharaman
Finance Minister Nirmala Sitharaman has proposed a sharp increase in capital expenditure for the next fiscal at Rs 5.54 lakh crore, up from Rs 4.39 crore of last year.
"For 2021-22, I propose a sharp increase in capital expenditure and thus have provided Rs 5.54 lakh crores, which is 34.5 percent more than in BE 2020-21," she was quoted as saying.
8,500 Km of Road, Highway Projects to be Awarded by March 2022: FM Sitharaman
In her budget speech, Finance Minister Nirmala Sitharaman said 8,500 km of road and highway projects will be awarded by March 2022, and an additional 11,000 kms of the National Highway Corridor will be completed, to augment road infrastructure.
"Over 13,000 km length of roads at a cost of Rs 3.3 lakh crore has already been awarded under the Rs 5.35 lakh crore Bharatmala project, of which 3,800 kms has been constructed," she was quoted as saying.
Road projects worth Rs 25,000 crore were also announced for West Bengal, where elections will be held later this year.
Chants of ‘Repeal Farm Laws’ as FM Sitharaman Presents Budget
Chants of 'repeal the farm laws' could be heard in the Parliament on Monday as Finance Minister Nirmala Sitharaman presented the Union Budget.
“Our government is committed to the welfare of farmers. The MSP regime has undergone a sea of change to assure price that is at least 1.5 times the cost of production across all commodities,” FM Sitharaman said.
The agriculture procurement has increased steadily, benefiting farmers, Sitharaman said.
"43.36 lakh wheat-growing farmers benefited from government procurement under MSP as against 35.57 lakh previously... Farmers (were) paid Rs 75,100 cr on wheat MSP in FY21," she was quoted as saying.
The agriculture credit target has been raised to Rs 16.5 lakh crore in 2021-22, and the allocation to rural infrastructure has been increased to Rs 40,000 crore in the next fiscal from Rs 30,000 crore in the current fiscal.
Fiscal Deficit Pegged at 9.5% of GDP for FY21; 6.8% for FY22
Fiscal deficit for the financial year 2020-21 has been pegged at 9.5 percent of the GDP, while for FY22, it has been estimated at 6.8 percent, FM Sitharaman said.
The government is committed to bringing down the fiscal deficit below 4.5 percent of the GDP by 2025-26, she added.
FDI Limit in Insurance increased to 74%: FM Sitharaman
The permissible Foreign Direct Investment (FDI) limit in insurance has been increased from 49 percent to 74 percent, the finance minister said in her Budget speech.
“In 2021-22, we would also bring the IPO of LIC, for which I am bringing the requisite amendments in this session itself,” she added.
Rs 1.10 Lakh Crores Provided for Railways
Finance Minister Nirmala Sitharaman announced a record sum of Rs 1,10,055 crore for the Railways in 2021-22, of which Rs 1,07,100 crore has been earmarked for capital expenditure.
Exemption from Filing I-T Return for Senior Citizens Above 75: FM
Finance Minister Nirmala Sitharaman, in her Budget speech on Monday, proposed an exemption from filing Income Tax returns for senior citizens 75 years of age and above, who only have pension and interest income.
Sitharaman also proposed to reduce the time limit for reopening of tax assessments to three years from the present six years.
Social Security Benefits to be Extended to Gig, Platform Workers
FM Nirmala Sitharaman, in her Budget speech, announced that social security benefits will be extended to gig and platform workers.
“Minimum wages will apply to all categories of workers. Women will be allowed to work in all categories, and also in night shifts with adequate protection," she said, while proposing a portal to collect information on gig workers, as well as building and construction workers.
Rs 3,726 Cr Allocated for First Digital Census
A total of Rs 3,726 crore has been allocated for the upcoming Census, which has been billed as the first digital census.
Central University in Leh, Tax Holiday for Startups: FM's Other Budget Announcements
Among various other announcements made by FM Sitharaman during her Budget speech included the setting up of a Central university in Leh, and the earmarking of Rs 1,500 crore for the scheme to incentivise digital payments.
The tax holiday eligibility for startups has also been extended by one year. "In order to incentivise startups in the country, I propose to extend the eligibility for claiming tax holidays for startups by one more year, till 31 March 2022," Sitharaman said.
Moreover, states will get 41 percent share of taxes as per the recommendation of the 15th Finance Commission, which has been accepted by the government.
FM Sitharaman Announces New Vehicle Scrappage Policy
Finance Minister Nirmala Sitharaman on Monday announced a voluntary vehicle scrappage policy in the Union Budget to phase out old vehicles and to boost the sales of new vehicles.
The scrappage policy is a programme that encourages vehicle owners to scrap vehicles older than 15 years old and purchase new ones instead.
A major advantage of such a policy is that it helps reduce air pollution by removing older and more polluting vehicles from the roads.
Read the full story here.
Agriculture Infrastructure Development Cess to be Applicable from 2 Feb
A new Agriculture Infrastructure Development Cess will be applicable from 2 February.
The cess will be Rs 2.5 per litre on petrol, and Rs 4 per litre on diesel, reported PTI.
Meanwhile, an agriculture infrastructure cess of 100 percent will be imposed on alcoholic beverages.
'Budget Contains Vision of Self-Reliance and Inclusiveness': PM Modi
Soon after the presentation of the Union Budget by Finance Minister Nirmala Sitharaman, PM Narendra Modi said it contains a vision of self-reliance as well as inclusiveness.
Calling it a pro-active Budget that provides a boost to wealth and wellness, Modi went on to say, "The Budget focuses on increasing farmers' income, several measures have been taken in this direction. Farmers will be able to get loans easily. Provisions have been made to strengthen APMC markets with the help of Agriculture Infrastructure Fund."
Health, Infrastructure Focus Of Budget 2021: Sitharaman
Finance Minister Nirmala Sitharaman said that the focus of Budget 2021 was to give importance to health and infrastructure.
“If there are two important features of this Budget, it is that we chose to spend big on infrastructure which spans across roads, power generation, bridges, ports,” said Sitharaman.
She added that as second feature, it tends to the need of the healthcare sector.
“Capacities for better health management had to be brought in in light of what we had gone through last year,” she added.
Fiscal Deficit Increased to 9.5% GDP
Finance Minister Nirmala Sitharaman, addressing a press conference after presenting the Union Budget, said that our fiscal deficit has increased to 9.5 percent of GDP.
“Our fiscal deficit which started at 3.5 percent during Feb 2020 has increased to 9.5 percent of GDP, so we have spent, we have spent and we have spent. At the same time, we have given a clear glide path for deficit management,” Shitharaman added.
Centre Ready to Have Clause-By-Clause Discussion With Farmers: Sitharaman
On farm laws, Finance Minister Nirmala Sitharaman said that the government has always been open to dialogue with farmers.
“The agriculture minister has been ready to have a clause-by-clause discussion with farmers on the farm laws. Hence we believe that dialogue is the way forward,” said Finance Minister Nirmala Sitharaman.