From Agriculture To Defence: Sector-Wise Highlights Of Finance Minister's Budget 2021
- Healthcare: Finance Minister Nirmala Sitharaman on Monday proposed more than doubling the healthcare spending to Rs 2.2 lakh crore. Out of this, an amount of ₹ 35,000 crore has been allocated for developing COVID-19 vaccines. (Also Read: Budget: Focus On Health, Farmers, Polls; Relief For Seniors Above 75 )
- Agriculture: The government increased the target for agricultural credit to Rs 16.5 lakh crores to ensure the availability of higher credit to farmers and for animal husbandry, dairy and fisheries sector. The allocation for rural infrastructure development fund is proposed to be increased to Rs 40,000 crore by 2021-22
- Automobile: The government introduced a new voluntary vehicle scrappage policy to replace old vehicles in order to boost demand for newer and less polluting vehicles. The basic customs duty rate of certain auto components is increased from 10 per cent to 15 per cent
- Defence: The Finance Minister allocated a sum of Rs 1,35,060 crore of capital expenditure and Rs 2,12,027 crore of revenue expenditure for the defence sector. In Budget 2021, there is an increase of 18.75 per cent in capital defense expenditure over last year's budget.Â
- Infrastructure: The government increased capital expenditure for 2021-22 by 34.5 per cent to Rs 5.5 lakh crore to push growth through infrastructure creation. Budget 2021 allocated Rs 1.1 lakh crore for Indian Railways. The government also proposed setting up the development financial institution with an allocation of Rs 20,000 crores for funding infrastructure projects
- Real Estate: The Finance Minister introduced a tax holiday for notified affordable rental housing projects. The affordable housing projects has been approved up to March 31, 2022, which was earlier March 31, 2021, and is eligible for a tax holiday
- Technology: The government announced an allocation of Rs 1,500 crores to promote digital payments. The government also announced zero-rating benefits in case of supplies made to SEZ units where supplies used for authorized operations.
- Finance: The Finance Minister announced an increase in foreign direct investment (FDI) limit in insurance sector from 49 per cent to 74 per cent with additional control and safeguard. Ms Sithraman announced that compliance burden will be reduced for citizens aged 75 years and above. Senior citizens with only one pension and interest scheme are exempted from filing income tax returns.
- Banking: The government announced allocated a sum of Rs 20,000 crore for public sector banks (PSBs) in 2021-22 to meet regulatory norms. For the current financial year, the government had made a provision of Rs 20,000 crore for recapitalisation. Â
- Startups: The government increased the turnover threshold for tax audit of account from Rs 5 crores to Rs 10 crores, where 95 per cent of receipts and payments are executed through digital modes. The eligibility period for incorporating an eligible start-up has been extended by one more year, subject to other conditions. A startup incorporated on or before 1 April 2022 can now claim income tax holiday.Â
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
