Budget 2021 is a ‘Budget like no other’
By: Ashwathy Nair
- Hike in FDI cap in insurance having a long-lasting impact.
- A portion of the agriculture fund will be allocated to APMC.
- Now, Debt capital to flow easily from FPIs with ESR focusing funds & financial institutions.
This year, the budget is being presented in Parliament by Finance Minister, Nirmala Sitharaman in a way like never before. This year’s budget happens to be the first budget after Covid-19 pandemic hit India for the government of Modi and in total it is the ninth one under Modi government. This is the third budget for Nirmala Sitharaman as she was debuted in 2019, introducing herself as a change by replacing decades-old leather briefcase with ‘bahi-khata’. As the year 2021’s budget is totally paperless, a Made-in-India tab replaced Bahi Khata.
Apart from being digital, this year’s Budget is unique in many ways as several stimulus packages were announced by the finance ministry throughout the year in order to ease the blow of the Covid-19 pandemic.
The Economic Survey of the year 2020-2021 has projected that the real GDP growth of India would be around 11% in the year 2021-2022. Whereas, the nominal GDP growth has been estimated to be around 15.4%.
Following are a few Updates of Budget 2021:
- Exception for Senior Citizens
The finance minister stated that Senior citizens who have only pension income are excluded from filing tax returns on income. “We shall decrease 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.”
- Farm Reforms
Nirmala Sitharaman, the finance minister talks about Farm reforms that were taken up in the year 2020, she was disrupted by members. FM stated that “The data that is going to be given is important for all members present in the House.”
- In 2021, Two PSBs to be taken up
Nirmala Sitharaman stated that “it is proposed to take up two public sector banks and one general insurance companies for stake sale in FY22. This proposal is to move amendments to the law this year. This fiscal, LIC’s IPO will also be brought.”
- The theme of this Budget was ‘Sell India’
TMC MP Derek O’Brien: First paperless Budget of India is also considered as a 100 per cent visionless budget and the theme for the ‘fake budget’ is ‘sell India’.
- A Praise for India’s focus on Health
The commitment of India towards fighting COVID is a testimony for Focus on health in Budget. It clearly shows the commitment of India in building a stronger health system as India has been successful in proactively handling the pandemic.
Defining the Budget, things stated by the Finance Minister, Nirmala Sitharaman, are as follows:
- The fight against COVID-19 continues into the year 2021 and there are chances that the economic, political, and strategic relations in the post COVID world are changing. This moment is the dawn of a new era in history. India is seen well-poised towards truly being the land of promise as well as hope.
- The thought of not having a lockdown was far too high.
- Today, two vaccines for COVID is available and it has started medically.
In the run-up to the 2021 Union Budget, Minister of State for Finance Anurag Thakur suggested that the budget will be in line with expectations of people. “Government, which functions on the mantra of ‘Sabka Saath, Sabka Vikas, Sabka Vishwas’ gave a new direction to India by announcing Aatmanirbhar package, protecting it from the pandemic and bringing the economy back on track swiftly,” he said.