Finance Minister Nirmala Sitharaman has presented the first paperless union budget today. The budget contains numerous important points and a slew of measures on healthcare and infrastructure to give a boost to the Covid-hit economy. Here are the quick highlights of the Union budget 2021-22.

  • This Budget has been undertaken in circumstances like never before: FM
  • The preparation of this budget was undertaken in circumstances like never before, in view of calamities that have affected a country or a region within a country. But what we have endured with Covid-19 to 2020 is Sui generis.
  • The finance minister also mentioned that this year’s budget rest on six pillars – health and well-being, physical, financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D.
  • Rs 64,180 crore will be invested over 6 years to improve primary, secondary and tertiary healthcare. This is in addition to The National Health Mission.
  • FM Nirmala Sitharaman has also announced measures under Aatmanirbhar Package. She said the early PM Garib Kalyan Yojana amounted to almost presenting five mini budgets in 2020. She proposed strengthening of ‘Sankalp of Aatmanirbhar Bharat’.
  • She added that the govt is fully prepared to support and facilitate economic growth and they are introducing Aatmanirbhar Swastha Bharat Yojana with an outlay of Rs 64,180 crore
  • An outlay of Rs 2.87 lakh crore for Jal Jeevan Mission.
  • Urban Swachh Bharat Mission 2.0 with an outlay of ₹ 1,41,678 crore over 5 years from 2021.
  • The budget also includes highway works in various states including a 3,500 km corridor in Tamil Nadu, 1,100 km in Kerala at an investment of Rs 65,000 crore, 675 km in West Bengal for Rs 95,000 crore, and 1,300 km in Assam in the next 3 years.
  • Under the Railways Budget, the FM announced that Indian Railways will have a National Rail Plan for up to 2030. Rs 1.10 lakh crore outlay for railways, of which Rs 1.07 lakh crore is for capital expenditure.
  • ₹ 35,400 crores allocated towards COVID vaccines for FY22 and are committed to more if required.
  • The total budget outlay for healthcare is 2.23 lakh crore. This is an increase of 137% from last year.
  • Ujjwala scheme to be expanded to over 1 crore more beneficiaries.
  • A gas pipeline project to be taken up in Jammu and Kashmir.
  • For the aviation sector, FM said that the next lot of airports will be privatized in tier 2 and 3 towns and cities.
  • Sitharaman also announces new scrappage policy – 20 years in case of personal vehicles and 15 years in case of commercial vehicles
  • More economic corridors being planned to boost road infrastructure. The Government also aims to complete 11,000km of national highway infrastructure this year. 
  • Budget 2021 also contains a proposal for a sharp increase in capital expenditure at 5.54 lakh crore, from Rs 4.39 lakh crore in 2021.
  • 100 more cities to be added in the next 3 years to the gas distribution network
  • Rs 1,000 crore to solar energy corporation and Rs 1,500 to the renewable energy development agency
  • Further infusion of Rs 20,000 crore for public sector banks.
  • Over 15,000 schools to be qualitatively strengthened under National Education Policy: FM
  • Government to bring LIC IPO in 2022
  • There is also a proposal to increase the agriculture credit target to Rs 16.5 lakh crore. MSP procurement to continue at a steady pace. FM also added that Over Rs 75,000 crore paid to wheat farmers in 2020-21, 43.36 lakh benefited from the same. And the Government is committed to the welfare of farmers.

Income Tax Slabs Rates in India for FY 2021-22

  • The budget 2021 has surprised taxpayers by not introducing any change in income tax slab rates. However, there is some relief in filing ITR for senior citizens above 75 and NRIs. The budget also proposed to provide GST relief by reducing inverted GST structures. 
  • Senior citizens above 75 years who are getting pension and interest income from deposits would not be required to file Income Tax Return. 
  • The government has also proposed to allow tax exemption on the maturity of ULIP having an annual premium up to Rs 2.5 lakh. However, EPF interest income above Rs 2.5 lakh will be taxable.
  • To make filing your income tax easier, FM said that apart from tax deduction at source, now details of capital gains and interests from banks and post offices would be pre-filled. Pre-filled forms improve tax compliance and also help taxpayers to file their taxes quickly and efficiently as it already contains the data.
  • Deduction on home loan interest has been extended in budget 2021.
  • Affordable housing on a boost with benefits available to those who avail deduction for buying an affordable home will now be extended to those who take a housing loan until March 31, 2022.
Union Budget 2021: The Key Highlights
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Union Budget 2021: The Key Highlights
The union budget 2021 contains numerous important points and a slew of measures on healthcare and infrastructure to give a boost to the Covid-hit economy.
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Finance Buddha
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