Budget 2021

Delhi, Feb 1: Finance minister Nirmala Sitharaman presents a Budget 2021 like never before in Parliament, which happens to be the Modi government’s first Budget after the Covid-19 pandemic hit India and the ninth one under the Modi government. For Nirmala Sitharaman, this is the third budget as she debuted in 2019, springing a change by replacing decades-old leather briefcase with ‘bahi-khata‘. As this year’s Budget is paperless, Bahi Khata has been replaced with a Made-in-India tab.

Union Budget 2021 is unique in many regards, apart from being digital. The year 2020, as PM Modi said ahead of the joint session of Parliament on Friday, was a year of four to five mini budgets as the finance ministry announced several stimulus packages throughout the year to cushion the blow of the pandemic. Union Budget 2021 will be an extension of those, PM Modi said.

Follow all the updates here:

  • Budget Live 2021: Nirmala Sitharaman concludes speech, no change in IT slabs: Finance minister Nirmala Sitharaman has concluded her Budget speech. There has been no announcement for individual taxpayers.
  • Budget Live 2021: Customs duty on auto parts to be raised: Customs duty on some auto parts to be raised to 15%, announces FM

  • Budget Live 2021: FM’s announcement of PF: Late deposit of employee’s contribution (towards social security) will not be allowed as a deduction to the employer, says Nirmala Sitharaman

  • Budget Live 2021: Income tax filing has gone up: Nirmala Sitharaman says Income tax return filers increased to 6.48 crore in 2020 from 3.31 crore in 2014
  • Budget Live 2021: Sop for housing:

> Affordable housing projects can avail a tax holiday for one more year till 31 March 2022.

> Notified rental housing projects can avail of tax exemptions.

  • Budget Live 2021: Exemption for senior citizens: Senior citizens who only have pension income are exempt from filing income tax returns. “We shall reduce the compliance burden for those 75 years and above. Senior citizens above 75 years of age with only interest income will not have to file income tax returns,” the FM said.

  • Budget Live 2021: Nirmala Sitharaman on fiscal deficit:

    > Fiscal deficit in 2020-21 is pegged at 9.5% of the GDP.

    > Gross borrowing will be around ₹12 lakh crore in the next fiscal.

    > We need ₹80,000 crore from the markets in the last two months of financial year 2021-22

  • Agri Budget: What Nirmala Sitharaman said:

    > Increase in agriculture credit target to ₹16.5 lakh crore.

    > MSP procurement will continue at a steady pace.

  • Education Budget 2021: FM announced education budget:

    > More than 15,000 schools will be qualitatively strengthened

    > 100 new Sainik schools to be set up

    > Legislation for umbrella body of higher education

    > Central university in Leh

  • Budget ’21: FM on migrant workers:

> 32 states covering 69 crore beneficiaries have implemented One Nation One Ration card.

> A site compiling details of workers

  • Budget ’21: Members disrupt as FM talks about farm reforms: As finance minister Nirmala Sitharaman talks about farm reforms taken up in 2020, members disrupt her. ” The data I am going to give now is important for all members in the House,” FM says.

  • Budget ’21: Two PSBs to be taken up in 2021: “We propose to take up two public sector banks and one general insurance company for stake sale in FY22. I propose to move amendments to the law this year. We will also bring LIC’s IPO this fiscal,” Nirmala Sitharaman says
  • Budget ’21: How markets react to FM’s announcements: Sensex jumps 950 points to 47,238.55, Nifty nears 13,900 as Sitharaman makes key budget announcements
  • Budget ’21: Deposit Insurance ₹5 lakh crore: FM announced ₹20,000 crores for PSB recapitalisation and ₹5 lakh crore for as deposit insurance.
  • Budget ’21: Insurance companies to have 74% FDI: Nirmala Sitharaman proposes a change in laws to permit FDI in the insurance sector from 49% to 74%
  • Budget ’21: Ujjwala scheme to be extended to 1 crore more: Ujjwala scheme will be extended to 1 crore additional families, FM said. About eight crores are already covered under this scheme.
  • Budget ’21: ₹1.10 lakh crore from Railways: Sitharaman announces ₹1.10 lakh crore outlay for railways. Out of this, ₹1.7 lakh crore is for capital expenditure.
  • Budget ’21: Allocation for Jal Jeevan Mission: 

  • Budget India ’21: Highway works proposed in Kerala, West Bengal: Nirmala Sitharaman spelt out the proposed highways works in several states.

> 3,500 km corridor in Tamil Nadu

> 1,100 km in Kerala at an investment of ₹65,000 cr

> 675 km in West Bengal at a cost of ₹95,000 cr

> 1,300 km in Assam in the next 3 years

  • Budget India ’21: FM on railways reforms: Indian Railways has prepared a national railways plan by 2030. It will bring down the logistics cost, Nirmala Sitharaman said.
  • Budget India ’21: Special scheme to nudge states to spend more of their budget on infrastructure: “In 2020-21, we have provided for ₹4.12 lakh crore for capital expenditure. We are likely to end at ₹4.39 lakh crore towards it. We will provide ₹5.54 lakh crore towards Capital Expenditure in FY22 – 34% more than the budget estimates of last year,” says FM
  • Vaccine Budget: ₹35,000 crores for covid-19 vaccines: Finance minister Nirmala Sitharaman announced ₹35,000 crores for Covid-19 vaccines.
  • Health Budget ’21: Nirmala Sitharaman announces ₹2,83,846 lakh crore for health and wellness: Finance minister Nirmala Sitharaman announced ₹2,83,846 lakh crore for health and wellness sector which also includes ₹35,000 crores for Covid-19 vaccines.
  • India Budget ’21: FM announced voluntary vehicle scrapping policy: Nirmala Sitharaman announced a voluntary vehicle scrapping policy where vehicles will undergo the fittest.