Union Finance Minister Nirmala Sitharaman presented Union Budget 2021-22 in Lok Sabha on Monday (February 1). This budget was special in many ways as it was being presented amidst challenges like coronavirus pandemic. In such a situation, the eyes of common people and special people were set on the announcements.
As India is emerging from the COVID-19 crisis, the ninth budget under the Modi government (including an interim one), the Finance Minister’s prime target is to boost spending on job creation and rural development, generous allocations for development schemes and easing rules to attract foreign investments.
No Tax Relief
There were huge expectations from Budget 2021-22 which was presented by Finance Minister Nirmala Sitharaman in Parliament on Monday. However, the salaried class did not get any relief in terms of income tax as the government decided to keep the income tax slabs unchanged.
On the other hand, the government brought a huge relief to senior citizens with the announcements that people aged above 75 years will not have to file their income tax returns.
Cess On Petrol, Diesel
The FM proposed agri cess of Rs 2.5 per litre on petrol and Rs 4 per litre on diesel. Sitharaman made the announcement while presenting Union Budget 2021-22 in Lok Sabha.
However, the cess would not put any additional burden on the consumer overall as Sitharaman also proposed to reduce Basic Customs Duty on petrol and diesel.
The Finance Minister’s prime target is to boost spending on job creation and rural development, generous allocations for development schemes and easing rules to attract foreign investments. She announced that a new centrally sponsored scheme, PM AatmaNirbhar Swasth Bharat Yojana, will be launched with an outlay of about Rs 64,180 crore over 6 years. This will develop capacities of primary, secondary, and tertiary care Health Systems, strengthen existing national institutions and create new institutions, to cater to detection and cure of new and emerging diseases. This will be in addition to the National Health Mission. T
LIC IPO, sale of Air India
Sitharaman announced that the Centre will introduce LIC IPO in 2022 and will complete the divestments of Air India by 2022. “For start ups, we are allowing 1% companies to grow without any restriction on their paid up capital. Other than IDBI we plan to take up 2 more banks for disinvestment. LIC IPO will come in 2022. All divestments announced so far, including Air India, BPCL, CONCOR, Pawan Hans, to be completed by 2022,” she said.
Voluntary scrapping policy
Sitharaman on Monday announced a voluntary vehicle scrapping policy to phase out old and unfit vehicles under which the personal vehicles will undergo a fitness test in automated centres after 20 years while the commercial vehicles will undergo the test after 15 years.
“We are separately announcing a voluntary vehicle scrapping policy to phase out old and unfit vehicles. This will help in encouraging fuel-efficient, environment-friendly vehicles. Thereby, reducing vehicular pollution and oil import bill,” said Sitharaman in the Parliament while presenting the Union Budget 2021-22.
Atmanirbhar Health Yojana
Sitharaman also announced Aatma Nirbhar Health Yojana with an outlay of 64,180 crore. Sitharaman made the announcement while presenting Union Budget 2021-22 in Lok Sabha. “The government will set up 15 health emergency centres. It will strengthen the National Center for Disease Control,” she said.
Rs 35,000 crore towards COVID-19 vaccination
FM Sitharaman provided Rs 35,000 crore towards COVID-19 vaccination. “I have provided Rs 35,000 crore for COVID-19 vaccine. I’m committed to provide further funds if required. The Budget outlay for health and well being is Rs 2.23 lakh crore in 2021-22 as against BE of Rs 94,452 crore and marks an increase of 137 percent,” she said while presenting 2021-22 Budget in the Lok Sabha.