Union Budget 2021-22 Highlights: From Farmers to Small Taxpayers, Education sector to Railways, Key points

The senior citizens who are 75 years of age & above and have pension & interest income are exempted from filing their Income Tax return, said Finance Minister in Parliament. What Finance Minister said presenting the Union Budget 2021-22 here is a detailed report.

By Rohit Sindhu, Updated : Feb 01, 2021 13:20 IST
Union Budget 2021-22 Highlights: From Farmers to Small Taxpayers, Education sector to Railways, Key points
Union Budget 2021-22 highlights- Photo credit/ LSTV

The Budget proposals for 2021-12 rest on six pillars - health & well-being, physical & financial capital & infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation & R&D, Minimum Govt & Maximum Governance, said Finance Minister Nirmala Sitharaman said.

Today India has 2 vaccines available and has begun safeguarding not only its own citizens against COVID19 but also those of 100 or more countries. It has added comfort to know that 2 more vaccines are also expected soon. I have provided Rs 35,000 crores for COVID19 vaccine in this year 2021-22. I am committed to providing further funds if required, FM said in Parliament.

India now has one of the lowest COVID19 death rates of 112 per million population and one of the lowest active cases of about 130 per million. This has laid the foundation for the economic revival we see today, said Finance Minister Nirmala Sitharaman in Parliament.

In May 2020, Govt announced the Atmanirbhar Bharat package, to sustain the recovery further we also rolled out two more Atmanirbhar packages. The total financial impact of all packages including measures taken by RBI was estimated to be about Rs 27.1 lakh crores.

The capital expenditure allocation for 2021-22 is Rs 5.54 lakh crore, as against a revised estimate of Rs 4.39 lakh. Sitharaman promises a performance-related increase in allocations to different ministries. For a 5-trillion dollar economy, our manufacturing sector has to grow in double digits on a sustained basis. Our manufacturing companies need to become an integral part of global supply chains, Union Finance Minister Nirmala Sitharaman said in Parliament.

For 2021-22, I propose a sharp increase in Capital Expenditure & thus have provided Rs 5.54 lakh crores which are 34.5% more than the BE 2020-21. For a 5-trillion dollar economy, our manufacturing sector has to grow in double digits on a sustained basis. Our manufacturing companies need to become an integral part of global supply chains.

Key Points of Union Budget 2021-22:

  • India's finance minister announces Rs 35,000 cr for COVID Vaccine during the Budget announcement.
  • India launches a deep ocean mission with an outlay of Rs 4,000 crore over four years to investigate seabed and biodiversity, announces Finance Minister
  • Rs 18,000 crore sanctioned for expanding public transport buses, says FM Sitharaman
  • Budget outlay for health and well being is Rs 2,23,846 crore
  • FM Sitharaman announces Rs 2.82 lakh crore scheme to provide drinking water connection to every urban household in the next 5 years.
  • Over 13,000 km length of roads at a cost of Rs 3.3 lakh cr has already been awarded under Rs 5.35 lakh cr Bharatmala project of which 3,800 kms have been constructed. By March 2022 we'd be awarding another 8,500 & complete an additional 11,000 kms of National Highway Corridor
  • Govt to launch Mission Poshan 2.0 to improve nutritional outcomes across 112 aspirational districts
  • Consumers will soon get a choice to choose their own power distribution company, says FM Sitharaman while announcing measures to improve the financial performance of Discoms
  • Voluntary vehicle scrapping policy announced to phase out old vehicles.
  • Union Budget: Mega Investments Textile Parks scheme to be launched to create world-class infra.
  • Income tax return filers increased to 6.48 cr in 2020 from 3.31 cr in 2014

Union Budget 2021-22 to Indian Railways:

Indian Railways has prepared a National Rail Plan for India 2030. The plan is to create a future-ready railways system by 2030 - bringing down the logistic costs for the industry is at the core of a strategy to enable Make in India: Finance Minister Nirmala Sitharaman.

I am providing a record sum of Rs 1,10,055 crores for Railways of which Rs 1,07,100 crores is for Capital Expenditure only: Finance Minister Nirmala Sitharaman.

Safety measures undertaken in the past yrs have borne results. To further strengthen, high-density network &highly utilized network routes of Railways will be provided with an indigenously developed automatic train protection system that eliminates train collision due to human error

A new centrally sponsored scheme termed Atmanirbhar Swasthya Yojana with an allocation of Rs 64,180 crore over 6 years announced. Aims to strengthen primary and secondary health infrastructure

Union Budget 2021-22 to Farmers: 

Union Budget 2021-22: Govt says MSP procurement to continue at a steady pace Total amount paid to paddy farmers surged to Rs 1.72 lakh crore in 2020-21. 

Our Govt is committed to the welfare of farmers. The MSP regime has undergone a change to assure price that is at least 1.5 times the cost of production across all commodities, said Nirmala Sitharaman.

Wheat procurement in FY14 was just 32,000 crore. While the same in FY21 was 75,000 crores more than double. About 10% increase in the number of procurement year on year in wheat and paddy.

Procurement has also continued to increase at a steady pace. This has resulted in an increase in payment to farmers substantially. In the case of wheat, the total payment paid to farmers in 2013-14 was Rs Rs 33,874 cr. In 2019-20 it was Rs 62,802 cr. In 2020-21, it was Rs 75,060 crores

Agriculture credit target raised to Rs 16.5 lakh cr in 2021-22.

Substantial investments in the development of modern fishing harbours & fish landing centres. 5 major fishing harbors - Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat will be developed as hubs for economic activities.

Union Budget 2021-22 for Education Sector: 

A total of 100 New Sainik Schools to be developed across India, Finance Minister said. "100 new Sainik schools will be set up in partnership with NGOs, private schools, and states. We would be introducing the legislation this year to implement the setting-up of Higher Education Commission of India", Finance Minister said.

The government is working on setting up of Higher Education Commission in India. FM has also announced setting up a Central University in Leh soon. "For accessible higher education in Ladakh. I propose to set up a central university in Leh", FM said.

Should Watch- Finance Minister Nirmala Sitharaman presenting Union Budget 2021-22, Live Updates

Annual Budget 2021-22 for Corporate Sector: 

FM says the definition of small companies to be revised by raising the capital base to Rs 2 cr from the current limit of Rs 50 lakh. I propose to amend the Insurance Act 1938 to increase the permissible FDI limit from 49% to 74% in insurance companies and allow foreign ownership & control with safeguards

Two PSBs and one general insurance company to be divested, legislations amendments to be introduced in this session. An asset reconstruction company will be set up to take over the existing stressed debt of banks.

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.

To further extend efforts towards unorganized labour force, I propose to launch a portal to collect relevant information on gig workers, building/construction workers among others. It'll help formulate health, housing, skill, insurance credit &food schemes for migrant worker

Union-Budget 2021-22 for Startups:

Funding to startups extended one more year till 31st March 2022. "In order to incentivize startups in the country, I propose to extend the eligibility for claiming tax holidays for startups by one more year, till 31st March 2022", Finance Minister said.

Fiscal deficit in 2020-21 pegged at 9.5% of GDP. We would need another Rs 80,000 crores for which we would be approaching the market in these two months: FM Nirmala Sitharaman. 

Annual Budget 2021-22 for the Taxpayers: 

No tax for citizens above 75 years. "We shall reduce the compliance burden on our senior citizens who are 75 years of age & above - for senior citizens who only have pension & interest income, I propose exemption from filing their Income Tax return", FM said.

I propose to reduce the time limit for reopening of assessments (tax assessments) to 3 years from the present 6 years, Union Minister of Finance added. "To further reduce litigation for small taxpayers I propose to constitute a dispute resolution committee which will be faceless to ensure efficiency, transparency. Anyone with a taxable income up to Rs 50 Lakhs & disputed income up to Rs 10 Lakhs eligible to approach committee", FM said.

To further reduce litigation for small taxpayers I propose to constitute a dispute resolution committee which will be faceless to ensure efficiency, transparency. Anyone with a taxable income up to Rs 50 Lakhs & disputed income up to Rs 10 Lakhs eligible to approach the committee.