Presenting the first ever digital Union Budget, Union Minister of Finance and Corporate Affairs Ms. Nirmala Sitharaman stated that India’s fight against COVID-19 continues into 2021 and that this moment in history, when the political, economic, and strategic relations in the post-COVID world are changing, is the dawn of a new era – one in which India is well-poised to truly be the land of promise and hope.
The key highlights of the Union Budget 2021-22 are as follows:
6 pillars of the Union Budget 2021-22:
Universal Coverage of Water Supply
Production Linked Incentive scheme (PLI)
Creation of institutional structures: Infrastructure Financing.
Big thrust on monetizing assets.
Sharp Increase in Capital Budget.
Rs. 5.54 lakh crore (US$ 75.98 billion) capital expenditure in BE 2021-22 – sharp increase of 34.5% over Rs. 4.12 lakh crore (US$ 56.50 billion) allocated in BE 2020-21:
Roads and Highways Infrastructure
Ports, Shipping, Waterways
Petroleum & Natural Gas
Increasing FDI in Insurance Sector
Recapitalization of PSBs
Migrant Workers and Labourers
Innovation and R&D
Minimum Government, Maximum Governance
Relief to Senior Citizens:
Reducing Disputes, Simplifying Settlement:
Relaxation to NRIs:
Incentivising Digital Economy:
Relief for Dividend:
Attracting Foreign Investment for Infrastructure:
Supporting ‘Housing for All’:
Tax incentives to IFSC in GIFT City:
Ease of Filing Taxes:
Relief to Small Trusts:
Electronic and Mobile Phone Industry:
Iron and Steel:
Rationalization of Procedures and Easing of Compliance:
PMGKY, three ANB packages (ANB 1.0, 2.0, and 3.0), and announcements made later were like 5 minibudgets in themselves. Rs. 27.1 lakh crore worth of financial impact of all three ANB packages including RBI’s measures – amounting to more than 13% of GDP. Structural reforms:
Status of India’s fight against COVID-19:
Note: Conversion rate used as on February 1, 2021 is Rs. 1 = US$ 0.014