Budget 2021-22 is unusually less complicated and transparent in figures.
It is despite we had a very harsh year 2020 due to COVID-19, are in the midst of assembly elections in five state/UT in the coming four-five months.
The budget proposals cover all section of society, provide for urban infrastructure, rural infrastructure- road construction and highways; start-ups, small scale industry, charitable and religious trusts, agriculture, rural developments and farmers.
- Assumes growth rate of 14.44 percent; planned Revenue Deficit of 7.5% and 5.1% for 2020-21 (RE) and 2021-22 respectively. The corresponding percentages for Fiscal Deficit are 9.3 and 6.8.
- Encourages investment in white capital goods manufactured in India allowing deduction for income tax as per certain norms. Similarly, medical insurance expense has been pegged by Rs. 50,000. Additional Rs1.5 lakh of interest expense is allowed on additional housing loan.
- As regards roads construction, by March 2022, about 8,500 kms will be completed and an additional 11,000 kms of national highway contracts.
- Income tax processing time is reduced from six years at present to three years except in cases not having serious pending cases
- Senior Citizens above 75 years with income from pension and interest will be exempt for the requirement of filing of IT Return.
- Under Companies Act 2013, definition of Small companies is proposed to be revised with threshold of paid-up capital to be increased from Rs. 50 lakh to Rs. 2 crore and turnover from Rs. 2 crore to Rs, 20 Crore, This will benefit two lakh companies regarding compliance requirements.
- Relief for Small trusts involved in education and medical care has been increased for those having annual receipts from Rs. 5. Crore to Rs. 10 crore
- As part of government resources, Government has come out with a progressive disinvestment plan of Rs. 175,000 crore for 21-22; LIC is planned to be brought under Indian Companies Act and Its IPO is planned for 2021.with some option for small investors and policy holders; Two commercial banks and one general insurance company are planned to be privatized; Rs. 20,000 crore will be infused in the public sector banks; Many PSUs are on the anvil of disinvestment and sick PSUs are planned to be privatized; PSU in four strategic areas are also planned to be included for disinvestment; FDI investment in insurance is increased to 74% from 49% at present
- Alternate mechanism, of debt resolution of banks is planned by setting up of Bad Bank.
- Higher Education Commission of India is to be set up; 15 00 scholls have to be strengthened and 100 Sanik schools have to be set-up
- MSP is assured is at least 1.5 times of cost of production; Towards unorganised labour force migrant workers, a portal is proposed to be launched to collect relevant information to formulate Health, Housing, Skill, Insurance, Credit, and food schemes; Rural Infrastructure Development Fund to be increased from `30,000 crores to `40,000 crores; One Nation One Card.
Points for consideration are the implementation of the above proposals; demand generation; to have more employment opportunities and control of inflation.
Receipts & Payments are as under:
|2021 (RE) BE||2022 (BE) Rs. Cr|
|CAPITAL(Borrowings)||1895,152 (1848,655)||1694,812 (1506,812)|
|REVENUE(of Which Interest)||3011,142 (692,900)||2929,000(809,701)|
|Rupee COMES From||Rupee Goes to|
|Taxation :Corp Tax 13IT 14Custom 3Excise 8GST 15|
|Interest Payment Defence Subsidies Pension States: Share of Taxes 16 Finance Commission 10Central Sponsored Schemes 9||20 8 9 5|
|Capital Receipts ( Non-Debt)||5||Central Schemes||13|
Prof. Nand Dhameja