Budget 2021 Live Updates: Budget will bring in several positive changes, says PM

Communist Party of India-Marxist statement: "It is a classic illustration of the Modi government's unshakeable commitment to promoting the interests of a handful of big business houses at the expense of increasing distress and misery for the working people."
 

"The panacea for this Government is to sell off India’s national assets and privatize even profit-making public sector companies. The monetisation project announced in the budget included the sale of valuable land held at present by public sector companies. The target is to mobilise 1.75 lakh crores through disinvestment. The increase in FDI in insurance to 74 per cent is highly objectionable. This drive for privatisation is a subversion of the national interests and a mockery of the slogan of Atmanirbharta."
 

"The Polit Bureau calls upon the people to protest against this pro-corporate budget and step up struggles for immediate cash transfers, free food and universal employment guarantee programmes."

Nirmala Sitharaman says that Budget 2021 introduces various reforms in financial sectors.

* Progressive steps such as IPO of LIC, disinvestment to continue, opening up of insurance sector to FDI.

* We have come up with a formulation to clean up NPAs in banks

* Agriculture has received emphasis in Budget 2021

* Government has attended to the needs of the health sector, capacity building in health given a big place

* Allocation for credit flow through NABARD increased

* Government is bringing in Agriculture Infrastructure Development Cess through restructuring, without consumers having to pay more.

* DEA Secretary: Confident of meeting the fiscal deficit target of 6.8 per cent for FY22

Prime Minister Narendra Modi has assured the country that the Union Budget 2021 will bring in several positive changes for individuals, investors, industry and infrastructure sector
 

In a brief address to the nation, Prime Minister Modi said, "Union Budget 2021-22 has been presented amid unprecedented circumstances."
 

"We have taken the approach of widening new opportunities for growth, new openings for our youth, a new high to human resources, develop new regions for infrastructure, walking towards technology & bring new reforms with this Budget."

The Congress party has come out and slammed the Union Budget, calling it disappointing. 
 

Congress leader Anand Sharma took to Twitter to say, "Budget 2021 is disappointing as it is without a roadmap for accelerating growth & revival of consumer demand. The FM could have been brave but chose to be timid. The nation needed a bold budget and more direct transfers to the weaker sections to revive demand, restart job creation."
 

He further said, "The FM could have been bold and extended help to the poor and the working class. She chose to be timid and continued with the government's rhetoric."
 

"The sale of profit making PSUs like LIC and GIC is against broader national interests. More needs to be done to recapitalize banks, facing serious NPA concerns. The economy is not in a V shaped but a K shaped recovery because many sectors continue  to be under severe stress," Sharma said.
 

"One nation, one ration card and increased spending on public health were two bright spots in an otherwise directionless budget which will be forgotten in a few weeks," he added.

Finance Minister Nirmala Sitharaman will address her post-Budget Press Conference at 3PM at the National Media Centre in New Delhi.

Nirmala Sitharaman's Union Budget 2021 has received rave reviews from the industry with some even terming it as one of the finest-ever.

Shortly after the Budget speech, Asianet Newsable reached out to industry majors who gave a thumbs up to the Union Budget 2021.

Finance Minister Nirmala Sitharaman announces extending of tax holidays for startups by one year, till March 31, 2022
 

* Govt withdraws exemptions on some mobile phone parts.
 

* Tax audit limit for MSMEs increased from Rs 5 crore to Rs 10 crore.
 

* Customs duties on gold and silver rationalised.
 

* Exemption on tunnel boring machines withdrawn, and to be taxed at 7.5%.
 

* Duties on copper scrap reduced from 5% to 2.5%.

FM: Senior citizens over 75 years with only pension and interest income need not file IT returns
 

* Our tax system should be transparent. Government instructed series of reforms for Direct Tax mechanism. Faceless assessment was introduced in the direct tax administration to improve the tax efficiency.
 

* Reopening of tax cases only till after 3 years (it was 6 years earlier).
 

* Government to set-up a faceless dispute resolution mechanism for small taxpayers.

Finance Minister Nirmala Sitharaman said that the fiscal deficit in FY21 has been pegged at 9.5% of GDP. The government will need another Rs 80,000 crore for which it intends to approach the market in next two months. FY22 gross borrowing target at Rs 12 lakh crore.
 

* A National Language Translation Mission will be set up to further boost our regional languages
 

* Rs 1,500 cr earmarked for a scheme for financial incentives for digital payments.
 

* Social security benefit to be extended to platform and gig workers

Finance Minister Nirmala Sitharaman provides Rs 700 crore for MSME sector, more than double of what it was.
 

* Allocation raised for 'Eklavya' schools to Rs 38 crore and Rs 40 crore in hilly areas.
 

* 15,000 schools to be strengthened as per National Education Policy.
 

* 100 new sainik schools to be set up in partnership with NGOs. 
 

* To ramp up Higher Education in Ladakh under NEP 2020, FM proposes setting up of central university in place

US-India Business Council welcomes Nirmala Sitharaman's announcement raising FDI limits on insurance to 74%.
 

The USIBC said that the government had "acknowledged the need for changes to management & control regulations".
 

"Details matter so we look forward to further engagement on these safeguards. More foreign capital in the sector will give a substantial lift to Indians' personal security, financial inclusion, entrepreneurship & economic growth," the USIBC said.

* A portion of the agricultural fund will be allocated to APMC for furthering their infrastructure.
 

* Micro irrigation corpus doubled to Rs 10,000 cr. Agriculture infra fund will be made available to APMCs.
 

* Migrant workers can claim ration under 'One Nation One Ration Card'. 32 states and UTs are under the scheme with over 69 crore beneficiaries.
 

* Rural infrastructure fund increased to Rs 40,000 crore.

Nirmala Sitharaman announces further infusion of Rs 20,000 crore for public sector banks.
 

* Asset reconstruction and management company to be set up for stressed assets of banks
 

* Finance Minister says the government 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. 
 

* Farm credit target for the financial year 2022 is pegged at Rs 16.5 lakh crore. Additional allocations will be made for rural infrastructure and irrigation. 
 

* Rs 75,060 crore paid to farmers for wheat procurement in 2020-21. The same amount was Rs 62,802 crore in 2019-2020 
 

* More than 10,500 crore rupees has been given as MSP for pulses in the year 2020-21 which is 14 times higher as compared to 2013-14.
 

* 1000 more mandis (APMCs) will be integrated with ENams; 5 major fishing hubs will be developed as hubs for economic activity

Nirmala Sitharaman faces sloganeering in Parliament as she begins talking on farmer welfare and MSP procurement 

Nirmala Sitharaman proposes the strategic divestment of 2 PSU banks and 1 general insurance company.
 

* Divestment target for the Financial Year 2022 at Rs 1.75 lakh crore
 

* Rs 1.97 lakh crore to be spent over 5 years starting this financial year, for production-linked incentive schemes to create manufacturing global champions for an Aatmanirbhar Bharat. This will nurture size and scale and create jobs for youth.
 

* Decriminalisation of Limited Liability Partnerships Act to be undertaken.
 

* Government to bring IPO of LIC in FY22
 

* Govt to announce a policy for the privatisation of state-run cos & to create new list of companies for divestment.
 

* Government to allow for one-person companies.
 

* Propose further recap of Rs 20,000 crore for PSBs in FY21-22.

Nirmala Sitharaman announces that the FDI limit in insurance will be increased to 74% from 49%.
 

Government has allowed foreign ownership in insurance albeit with safeguards.

]Nirmala Sitharaman announces Discom assistance scheme with an outlay of Rs 3 lakh crore.  
 

* Ujjwala scheme to be expanded to over 1 crore more beneficiaries
 

* Independent gas transport system operator to be set up.
 

* Rs 1.18 trillion provided for Ministry of Roads, of which Rs 1.08 trillion will be towards capital expenditure, the highest ever
 

* Hydrogen energy mission to be launched by the Indian govt in 2021-22
 

* Rs 1,10,055 crore funds allocated for Railways in FY22

Nirmala Sitharaman: Consumers to be given a choice of more than one power distribution company.
 

"Share of public transport to be enhanced with an outlay of Rs 18,000 crore."
 

"By March 2022, we would be awarding another 8,500 kms and complete an additional 11,000 kms of National Highway Corridors."
 

"Will work towards raising the share of public transport with an outlay of Rs 18,000 crore."
 

"Indian Railways have a National Rail Plan for 2030. Railways to have record capital expenditure of Rs 2.17 lakh crore."
 

"Another lot of airports to be privatized in tier 2 and 3 towns and cities."

Nirmala Sitharaman: In Financial Year 2022, capital expenditure will go up by 34.5% (compared to earlier finance year) at Rs 5.54 lakh crore.
 

Major national highway projects sanctioned in poll-bound states of Tamil Nadu, Kerala, West Bengal, Assam.
 

These include:
1,100 km in Kerala at an investment of Rs 65,000 crore
3,500 km corridor in Tamil Nadu
1,300 km in Assam in the next 3 years
675 km in West Bengal at a cost of Rs 95,000 crore

Nirmala Sitharaman: Government to introduce a bill to set-up a development finance institution, capitalised with Rs 20,000 crore
 

"Seven textile parks to come up over three years; Rs 1.97 trillion committed to the manufacturing sector over 5 years."
 

"Government is committed to achieving targets laid out under the national infrastructure pipeline. National Infrastructure Pipeline expanded to 7,400 projects."
 

"NHAI and PGCIL will sponsor one InVIT each; Rs 5000 crore to be transferred to NHAI InVIT; Rs 7000 to be transferred to the PGCIL InVIT"
 

"Jal Jeevan Mission will be launched across all urban local bodies. Rs 2.87 lakh crore outlay for Jal Jeevan Mission over 5 years."

Nirmala Sitharaman: FY22 outlay (budget estimate) for health & well-being up 138%, is Rs 2,23,846 crore.
 

"The Urban Swachh Bharat Mission 2.0 will be rolled out with an outlay of Rs 1,48,000 crore over 5 years."
 

Centre allocates Rs 35,000 crores for the COVID 19 vaccination drive. More funds to be diverted if required.
 

For clean air, Rs 2,217 crore to be allotted to 42 urban centres with million-plus population.
 

"The manufacturing sector needs to grow in double digits on a sustained basis."
 

"We are launching a voluntary vehicle scrapping policy. Vehicles will undergo fitness tests after 20 years for Private Vehicles, 15 years for Commercial Vehicles."

First set of major announcements.
 

Proposals of Part A will strengthen ‘Sankalp of Aatmanirbhar Bharat’. Focus on 6 pillars:
 

1. Health & wellbeing.
2. Financial capital
3. Inclusive growth
4. Human capital
5. Innovation & R&D
6. Minimum interventions 
 

The government is introducing Aatmanirbhar Health Yojana with an outlay of Rs 64,180 crore.
 

A new centrally-funded scheme with an outlay of Rs 180 crore will be launched in addition to the existing schemes to develop primary, secondary and tertiary healthcare.
 

'Govt will support health & wellness centres, setting up labs, critical care facilities'

"Faith is the bird that feels the light and sings when the dawn is still dark"
 

Nirmala Sitharaman quotes Rabindranath Tagore to say that this moment in history is the dawn of a new era, where India is well-poised to be the land of promise and hope

Nirmala Sitharaman: Aatmanirbhar Bharat packages accelerated structural reforms
 

"Today, India has two vaccines, we have begun to safeguard both our citizens as well as 100 or more countries. Two or more vaccines also expected soon."
 

"India has only 3 times had a Budget after a contraction. The government is fully prepared to support the economy to achieve sustainable growth."
 

"Will lay out a vision for Atmanirbhar Bharat in Part-A of the Budget speech."

]Nirmala Sitharaman: The government is fully prepared to support and facilitate economic growth.
 

"Just as it happened after the two World Wars, strategic inter-nation dynamics are changing in the aftermath of the Covid-19 pandemic."
 

"The Government stretched its resources for the benefit of the poorest of the poor."

]Nirmala Sitharaman: Within 48 hours of lockdown PM announced Pradhan Mantri Garib Kalyan Yojana.
 

The government followed it up with 5 mini-budgets in themselves.
 

The FM says that the fight against COVID-19 continues into 2021.

Nirmala Sitharaman: We could not have imagined last year that the global economy would slip into a contraction. 
 

The finance minister hails the contribution of essential service providers in the times of Coronavirus pandemic.
 

"The total estimate of all relief measures announced by govt and RBI so far is Rs 27.1 lakh crore, which is 13% of the GDP."

Nirmala Sitharaman: The preparation of this Budget was undertaken in circumstances like never before.
 

"Global economy, which was slowing down, was pushed into uncertainty due to COVID-19. The risk of not having a lockdown was far more, far too high."

Finance Minister Nirmala Sitharaman begins her budget speech amid Opposition uproar

The Union Cabinet has approved the Budget 2021. 

Finance Minister Nirmala Sitharaman to present the Union Budget shortly.

Congress leader Rahul Gandhi has Tweeted about his Budget 2021 wish-list. He seeks:

-Support MSMEs, farmers and workers to generate employment.

-Increase Healthcare expenditure to save lives.

-Increase Defence expenditure to safeguard borders.

CII President Uday Kotak on Budget 2021 expectations: "Focus on privatization, non-tax sources of revenues should be watched out for in the Budget."

"There is a need for infrastructure financing, long term financing on balance sheets, on the lines of NABARD and SIDBI."

"Incentivize businesses for creating new jobs for salaries up to Rs 50,000 per month."

Union Cabinet's meeting begins ahead of the presentation of Union Budget 2021-22 by Finance Minister Nirmala Sitharaman at the Parliament today.

Prime Minister Narendra Modi has arrived in Parliament for the Cabinet meeting where a customary approval will be given to the Union Budget.

CII Vice President Sanjiv Bajaj on Budget 2021: "We would like to see a balance between livelihood and growth"

Finance Minister Nirmala Sitharaman and MoS Finance & Corporate Affairs Anurag Thakur have arrived at the Parliament. 

The Cabinet meeting will begin shortly where the Union Budget will be approved.

As Finance Minister Nirmala Sitharaman gears up to present the Union Budget 2021 on February 1, the common man has high expectations from her.

Asianet Newsable reached out to people to know what their expectation is from the Budget.

While some people wanted petrol and diesel prices to be slashed others sought financial assistance like stipend to youths in the skilled sector.

A majority of people sought a reduction in tax slabs for regular and higher-income groups. Here's what the common wants

Congress party will respond on the Budget 2021 announcements at 4 pm

In a tweet, former Finance Minister P Chidambaram said he would rate the budget on the 2+10 issues. 

"My colleagues and I will address a press conference at 4.30 pm today," he said.

Finance Minister Nirmala Sitharaman will read out the Union Budget 2021-22 at the Parliament using a tablet, instead of the traditional 'Bahi Khata'.

Finance Minister Nirmala Sitharaman at the Rashtrapati Bhavan.

This will be followed by a cabinet meeting over the Budget at 10.15 am.

The Budget presentation will begin at 11 am. 

The duration of the budget speech usually ranges from 90 to 120 minutes.

Market opens in the green ahead of Union Budget 2021 presentation

Among the top gainers are ICICI Bank, IOC & IndusInd Bank gain in opening trade
 

Ahead of the Budget presentation, Minister of State for Finance Anurag Thakur says that Union Budget 2021 will be as with people's expectations. 

"The government which functions on the mantra of 'Sabka Saath, Sabka Vikas, Sabka Vishwas' gave new direction to India by announcing Aatmanirbhar package, protecting it from the pandemic and bringing the economy back on track swiftly," he told news agency ANI

Finance Minister Nirmala Sitharaman has reached the North Block. Also at the North Block is Minister of State Anurag Thakur.

This will be the ninth consecutive annual budget presented before the country by the Narendra Modi government.
 

Meanwhile, good news coming in before the Budget presentation.

The gross GST revenue collected in the month of January 2021 till 6 PM on January 31 is Rs 1,19,847 crore of which CGST is Rs 21,923 crore, SGST is Rs 29,014 crore, IGST is Rs 60,288 crore (including Rs 27,424 crore collected on import of goods) and Cess is Rs 8,622 crore (including Rs 883crore collected on import of goods). 

The total number of GSTR-3B Returns filed for the month of December up to January 31, 2021, is 90 lakhs.

The total revenue earned by the central government and the state governments after regular settlement in the month of January 2021 is Rs 46,454 crore for CGST and Rs 48,385 crore for the SGST.

According to Principal Economic Adviser Sanjeev Sanyal, the Government of India's focus has been on ramping up capital expenditure to stimulate economic growth in the country amidst the pandemic

Watch this video

 

Mr. Sanjeev Sanyal outlines Govt. of India's focus on ramping up capital expenditure to stimulate economic growth in the country amidst the pandemic!

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— Invest India (@investindia)

 

ASSOCHAM Secretary General Deepak Sood says "a significant increase in the public expenditure is inevitable." 

"The pandemic has taught us there are no choices other than large scale public investment in building primary health centres, hospitals at the district, state capital level. Even in metro cities, scaling up infrastructure in state-run hospitals is required; even as we need to spend more on crediting and upgrading medical education and research facilities." 

"As has been stated in the Economic Survey, there is a strong feeling within the government to raise public expenditure on healthcare three-fold from 1 per cent of GDP to 3 three per cent of GDP," he said.

By now, you would have come to know that Union Budget 2021 would not be like earlier years. If you haven't, well it is just that this year's budget will be the first in independent India to be delivered in a paperless form. To access the Budget 2021, you would need the Union Budget Mobile App.

Read more: How To Download and use the Budget App

Here's what the FICCI expects from Nirmala Sitharaman's budget

* Fast-tracking National infrastructure pipeline projects

* Import duty rationalisation for raw materials of medical equipment to encourage indigenous manufacturing.

* Measures to stimulate demand even at the cost of temporarily relaxing fiscal deficit norms

* Bold measures to support both investment and consumption

* Need of the hour to push capital formation & capital expenditure

The ASSOCHAM-Primus Partners' survey also noted that 79.3 per cent respondents said they would like a cut in personal income tax rates, especially in the wake of pressure on their earnings in the pandemic-hit economy.
 
While Corporate tax rates have been reduced, individuals pay taxes at higher rates. 

ASSOCHAM says that rationalising taxes for the individuals is critical as reducing the tax burden on individuals would enable further spending. This much-needed push to demand would help in creating a multiplier effect in the economy.

The healthcare sector is likely to get by far the maximum attention of the government in Finance Minister Nirmala Sitharaman's Budget for 2021-22, an ASSOCHAM-Primus Partners' survey has noted.
 
In a survey covering more than 550 participants, 39.7 per cent respondents said healthcare would get the highest priority in resource allocation and policy support, in the face of the country braving the once-in-a-century global pandemic.

Finance Minister Nirmala Sitharaman will present the Union Budget 2021-22 in the Parliament on Monday at 11 AM.

 

Union Minister of Finance and Corporate Affairs Smt. will present Union Budget 2021-22 in the Parliament tomorrow at 11 AM.

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