The latest Union budget shaped up in the new circumstances created by Covid have not hurt the ordinary citizen. This is the first thing that needs mention.
Though there is no visible benefits, there are some good instructions that would help nation to find a solution to the problems she is facing now.
It is clear that Finance Minister Nirmala Sitharaman's intention is to bring at least some relief from the current embarrassing situation rather than getting applauds.
The economic sector has been viewed as six pillars and some good instructions have been included for the growth and development of these pillars.
The central government hopes that the country will be able to overcome the recession by setting apart a very high outlay for key sectors such as infrastructure, agriculture, health, education, drinking water and waste management.
If the budget allocation can be utilized in such a way so as to facilitate the completion of the big projects abandoned midway during Covid times, it will prove beneficial.
There are many in the Opposition who see politics in the generous allocation of basic development projects to the five poll-bound states including Kerala. But most of the complaints heard soon after the Central budget have been about neglect at the end of the normal central budget presentation.
Ironically this time what has angered them is big funds allotted for the states in the run up to the election.
The finance minister said the country's healthcare spending would be doubled to Rs 2,23,846 crore and added that 35,000 crore would be spent on Covid vaccines. Capital expenditure will be increased to Rs 5.54 lakh crore, which is around 34 per cent higher than last year. The government also announced infrastructure projects in states like Bengal and Assam, where polls are due by May. While there were no big tax announcements, the Finance Minister announced a reprieve for pensioners who are 75-plus, will no longer be required to file tax returns.
The finance minister expanded the National Infrastructure Pipeline to cover 7,400 projects by 2025. She also announced the creation of a development finance institution called the National Bank for Financing Infrastructure and Development, with a capital base of Rs 20,000 crore and a lending target of Rs 5 lakh crore over a 3-years time horizon
In an incentive to the farming community, the government announced an increase in agriculture credit target to Rs 16.5 lakh crore in FY 2021-22. The Finance Minister also gave an assurance that the procurement of produce by the government under the minimum support price (MSP) will continue at a steady pace.
The Foreign Direct Investment (FDI) in the insurance sector was increased from 49 per cent to 74 per cent
In a big relief to citizens, the Finance Minister announced that the compliance burden will be reduced for citizens aged 75 years and above. Senior citizens with only one pension and interest scheme are exempted from filing income tax returns.
Sitharaman said the government will infuse Rs 20,000 crore into public sector banks (PSBs) in 2021-22 in order to meet the regulatory norms. For the current financial year, the government had made a provision of Rs 20,000 crore towards recapitalisation.
In order to incentivise the purchase of affordable house, the finance minister proposed to extend the period for claiming an additional deduction for the interest of ₹ 1.5 lakh paid for home loans by one year to March 31, 2022
Nirmala Sitharaman announced special infrastructure projects for poll-bound states of Assam, West Bengal, Kerala and Tamil Nadu. A whooping 1.03 lakh crore has been set aside for Tamil Nadu; Kerala will receive Rs 65,000 crore and Assam Rs 34,000 crore.
According to Sitharaman, Budget 2021 proposals rest on six pillars. These are Health and Well-Being, Physical and Financial capital and infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, Innovation and R&D, and Minimum Government, and Maximum Governance.
The proposals in the budget that are beneficial to Kerala include the commercial development of the Kochi fishing harbor and the development of the Kochi Shipyard.
Among the infrastructure development projects, great importance has been given to the construction of National Highways. While Tamil Nadu has been allotted Rs 1.03 lakh crore for this, Bengal's share is Rs 95,000 crore.
The Finance Minister came to Parliament with a completely paperless budget text.
The speech was less than two hours
Though the Opposition made some noise in the beginning to express their anger over Farm bill, eventually they started listening to the budget, calm and composed.
It was a new experience to protest because everything was digital and no one was left with even a single piece of paper to be torn off in protest.
The finance minister said that the census to happen next year will also be completely digital. Rs 3500 cr has been included in the budget for this.
For the mobilization of resources, what the Finance Minister will be depending on will be the sale of shares and borrowing from the public market.
She added that Rs 12 lakh crore will be collected thus. In the current year, Rs 80000 crore will have to be borrowed as there is no other option left.
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