UNION BUDGET 2021 HIGHLIGHTS

On a budget day 2021 Nirmala Sitharaman presented first paper less, Digital budget in the history of the nation. Following are the main highlights of the same.

 

No Tax changes:- There is no changes in the direct tax which was widely apprehended. This is the real good thing which has been given thumps up by the market.

Small Companies: Proposed to revive definition of "Small Companies" under companies modified act 2013 as Capital less than 2 Crores and Turnover Less than 20 Crores. 

Capex up to Rs. 5.54 lakh crore:-  This is what the economy wanted that the capex has to rise as this would directly create jobs at the large scale. The capital expenditure outlay will help the overall economy to grow well.

No corona cess:- There was wide fear that there would be corona cess would come. This is really good thing as this would have burden the common man.

LIC IPO in FY22:-  This is good news from the retail investor as they will be able to apply for the largest financial institutions of India.

Fiscal deficit absorbed by market:- USA has fiscal deficit of 15 % while India is only 9.5 % which is well absorbed by the stock market. Also next year the Fiscal deficit has been kept at 6.8% which is also normal keeping in mind the overall economy situation.

FDI insurance hiked to 74 %:-  This is very positive as more foreign capital will come into the economy and thus more jobs will get created. Currently 10 lakh people work in insurance sector.

PSU banks recap by Rs. 20,000:-   PSU banks have been given small support of Rs. 20,000 crore which may help them slightly make their balance sheet strong.

Affordable housing project gets one year tax holiday:-  The affordable housing projects will get tax benefit and this means that more small budget houses project will be made by the real estate developers.

Agri cess of Rs. 2 on petrol and Rs. 4 on diesel:-  Agriculture has been only silver lining during the COVID 19. This cess will help to reduce the fiscal deficit gap and generate revenue for the government.

Covid-19 Vaccination:- 35,000 Crores allocated for COVID-19 Vaccine

New Health Schemes:-64,180 Crores allocated for new Health Schemes 

Railways:- 1.10 Lakh Crore allocated for Railway Ministry

Road Transports and Highways:- 1.18 Lakh Crore allocated for ministry of road transport and highways