Finance Minister Nirmala Sitharaman had promised a pandemic-ravaged nation that Budget 2021 could be like “never before”. Coming within the backdrop of an unprecedented well being disaster, the Budget centered on facilitating progress, rising spending on the healthcare sector and ramping up infrastructure improvement, and averted pitfalls similar to a Covid cess and improve in taxes.
Here are 10 highlights of Budget 2021 offered by Finance Minister Nirmala Sitharaman on February 1
Doubling Outlay For Healthcare
Finance Minister Nirmala Sitharaman accorded particular consideration to the healthcare sector by asserting doubling in healthcare spending to Rs 2,23,846 crore and setting apart Rs 35,000 crore for improvement of two Covid vaccines, along with Covishield and Covaxin.
Focus On Infra Spending
Nirmala Sitharaman unveiled a slew of initiatives to rejuvenate the infra sector. These initiatives included mountaineering the capital expenditure to Rs 5.54 lakh crore in monetary yr 2022, increasing the National Infrastructure Pipeline to cowl 7,400 initiatives by 2025 and making a improvement finance establishment.
The authorities will begin privatizing two public sector banks within the forthcoming monetary yr, the Finance Minister stated in her funds speech, with out divulging the names of the banks involved. The authorities may both promote all the stake to non-public homeowners or scale back its stake beneath 51 per cent.
Hike In FDI Limit In Insurance
The Budget proposed a rise within the international direct funding (FDI) restrict for insurance coverage firms to 74 per cent from the prevailing 49 per cent.
Recapitalisation Of Public Sector Banks
An quantity of Rs 20,000 crore could be infused into public sector banks (PSBs) in 2021-22 to fulfill regulatory norms. This is along with the recapitalization provision of Rs 20,000 crore within the present monetary yr.
Voluntary Vehicle Scrapping Policy
Nirmala Sitharaman unveiled a voluntary automobile scrapping coverage to part out previous and polluting automobiles. Under the coverage, private automobiles will endure health assessments on completion of 20 years and industrial automobiles would require such testing after 15 years.
Life Insurance Corporation IPO In FY22
The preliminary public providing (IPO) of Life Insurance Corporation will happen within the subsequent monetary yr starting April, Nirmala Sitharaman introduced in her Budget speech on Monday. The authorities presently owns 100 per cent within the insurance coverage behemoth.
Higher Allocation For Defence
The authorities has elevated the allocation for defence expenditure to Rs 4,78,195 crore from Rs 4,71,378 crore to strengthen the preparedness of armed forces in mild of an more and more hostile exterior atmosphere.
Scrapping Income Tax For Senior Citizens
Ms Sitharaman introduced the scrapping of earnings tax for senior residents (aged above 75 years) underneath sure situations. Senior residents whose earnings consists of solely pension or curiosity can be exempted from submitting earnings tax returns.
Unified Securities Markets Code
The authorities has proposed a Unified Securities Markets Code with a purpose to enhance the monetary markets within the nation. The plan envisages consolidating the provisions of 4 key securities acts right into a rationalized single Securities Markets Code.