Professional Documents
Culture Documents
India's 1st Digital Budget 91st Union Budget 2021+
India's 1st Digital Budget 91st Union Budget 2021+
https://affairscloud.com/indias-1st-digital-budget-91st-union-budget-2021-22/?amp
Hello readers, this is a very important post for upcoming exams. We have
collaborated all information of this year’s Union Budget 2021-22 from
official government websites. We urge you to read each and every point of
the 3rd budget of Narendra Modi led National Democratic Alliance (NDA)
government’s second term.
Total Receipts
(including 34,50,306 cr 34,83,236 cr
borrowings)
6.8% (as % of
Fiscal Deficit 9.5% (as % of GDP) 27%
GDP)
According to the REFY21, the gross borrowing was raised to Rs 12.8 lakh
crore as against the BE of Rs 7.8 lakh crore, registering an increase of
64%.
Amendment to FRBM Act proposed to achieve targeted Fiscal Deficit
levels
The Contingency Fund of India is to be augmented from Rs. 500 crores to
Rs. 30,000
Other than Ministry of Defence are Consumer Affairs, Food and Public
Distribution, (ii) Home Affairs, (iii) Rural Development, and (iv)
Agriculture and Farmers’ Welfare.
Budget allocation of Rs.7524.87 Crore for the year 2021-22 is the highest
ever for the Tribal Affairs Ministry
Documents
Before heading toward the complete highlights of the Union Budget let’s
take a look on the below list of documents that are presented to the
Parliament, besides the Finance Minister’s Budget Speech:
9. Expenditure Profile
10. Budget at a Glance
11. Memorandum Explaining the Provisions in the Finance Bill
The budget is divided into two parts viz. Part-A & Part-B.
Part A: 6 Pillars
Support for 17,788 rural and 11,024 urban Health and Wellness Centres.
Strengthening of the National Centre for Disease Control (NCDC), its 5
regional branches and 20 metropolitan health surveillance units.
Setting up of a national institution for One Health, a Regional Research
Platform for WHO South East Asia Region, 9 Bio-Safety Level III
laboratories and 4 regional National Institutes for Virology.
Vaccines:
Universal water supply in 4,378 Urban Local Bodies with 2.86 crore
household tap connections,
Liquid waste management in 500 AMRUT cities.
It will be implemented over 5 years.
Scheme allocation in 2021-22 (Rs crore)
Change
(Annualised)
Name of the Actuals Budgeted Revised Budgeted
(Actuals 2019-
Scheme 2019-20
2020-21
2020-21
2021-22
20 to BE 2021-
22)
Jal Jeevan
10,030 11,500 11,000 50,011 123%
Mission*
Clean Air – Allocated 2,217 crores for 42 urban centres with a million-plus.
Vehicle Scrapping policy was announced to phase out old and unfit
vehicles w.e.f April 1, 2022.
Change
Name of the Actuals Budgeted Revised Budgeted (Annualised)
Scheme 2019-20
2020-21
2020-21
2021-22
(Actuals 2019-20
to BE 2021-22)
National Health
35,155 34,115 35,554 37,130 3%
Mission
Production Linked Incentive scheme (PLI) with 1.97 lakh crore in next 5
years starting FY 2021-22.
Measures are taken in three thrust areas to increase funding for NIP:-
Oil and Gas Pipelines of GAIL, IOCL and HPCL, AAI Airports in Tier II
and III cities,
Other Railway Infrastructure Assets,
Warehousing Assets of CPSEs such as Central Warehousing Corporation
and NAFED, and Sports Stadiums.
Under the 5.35 lakh crore Bharatmala Pariyojana project, more than
13,000 km length of roads worth Rs. 3.3 lakh crore awarded for
construction.
3,800 km have already been constructed
Another 8,500 km to be awarded for construction by March 2022
2019-20 to BE
2021-22)
Pradhan
Mantri Gram
Sadak
Yojana(road 14,017 19,500 13,706 15,000 3%
connection to
unconnected
Village)
Railway Infrastructure:
1,10,055 crores for Railways of which Rs. 1,07,100 crores is for capital
expenditure.
National Rail Plan for India – 2030 to create a ‘future ready’ Railway
system by 2030.
Western Dedicated Freight Corridor (DFC) and Eastern DFC will be
commissioned by June 2022 to enable ‘Make in India’ strategy.
Proposed passenger convenience and safety measures are:
Urban Infrastructure:
18,000 crores new scheme will be launched for augment public bus
transport services.
MetroLite’ and ‘MetroNeo’ ,new technologies will be deployed to
provide metro rail systems at much lesser cost with same experience,
convenience and safety in Tier-2 cities and peripheral areas of Tier-1
cities.
Central Counterpart funding will be provided to the following:
Kochi Metro Railway Phase-II of 11.5 km at a cost of Rs. 1957.05 crore.
Chennai Metro Railway Phase –II of 118.9 km at a cost of Rs. 63,246
crores.
Bengaluru Metro Railway Project Phase 2A and 2B of 58.19 km at a cost
of Rs. 14,788 crores.
Nagpur Metro Rail Project Phase-II and Nashik Metro at a cost of Rs.
5,976 crore and Rs. 2,092 crores respectively.
Scheme allocation in 2021-22 (Rs crore) in Urban Sector
Change
Name of the Actuals Budgeted Revised Budgeted (Annualised)
Scheme 2019-20
2020-21
2020-21
2021-22
(Actuals 2019-20
to BE 2021-22)
Pradhan
Mantri Awas
Yojana 24,964 27,500 40,500 27,500 5%
(Housing for
all)
AMRUT and
Smart Cities 9,599 13,750 9,850 13,750 20%
Mission
Power Infrastructure:
Rs 2,000 crore will be offered to the seven major ports on Public private
partnership(PPP) mode in FY21-22.
Rs 1624 crore subsidy support scheme proposed to launch in global
tenders floated by Ministries and CPSEs over 5 years.
100 more districts will be added in next 3 years to the City Gas
Distribution network.
Recapitalization of PSBs
Deposit Insurance
Company Matters
Agriculture:
Change
(Annualised)
Name of the Actuals Budgeted Revised Budgeted
(Actuals 2019-
scheme 2019-20
2020-21
2020-21
2021-22
20 to BE 2021-
22)
Pradhan Mantri
Fasal Bima 12,639 15,695 15,307 16,000 13%
Yojana
Green
9,895 13,320 10,474 13,408 16%
Revolution
One Nation One Ration Card plan is implemented by 32 states and UTs
which helps migrant workers to claim rations anywhere.
reaching about 69 crore beneficiaries i.e a total of 86% beneficiaries
covered.
Portal for unorganized labour force, to collect relevant information
on gig, building and construction-workers among others and to
formulate Health, Housing, Skill, Insurance, Credit, and food schemes
for migrant workers.
Implementation of 4 labour codes –
4.Code of Wages.
Change
(Annualised)
Name of the Actuals Budgeted Revised Budgeted
(Actuals
Scheme 2019-20
2020-21
2020-21
2021-22
2019-20 to BE
2021-22)
MGNREGS 71,687 61,500 1,11,500 7 3,000 1%
Stand Up India To facilitate credit flow for SCs, STs, and women under
the scheme, reduce the margin money requirement from 25% to 15%.
Allocated 15,700 crores to MSME sector – more than double of this
year’s BE.
1,000 crores for the welfare of Tea workers especially women and
their children in Assam and West Bengal for which a special scheme will
be formulated.
Education
Change
(Annualised)
Name of the Actuals Budgeted Revised Budgeted
(Actuals
scheme 2019-20
2020-21
2020-21
2021-22
2019-20 to BE
2021-22)
National
33,654 39,161 28,244 34,300 1%
Education Mission
Integrated Child 22,032 28,557 20,038 24,114# 5%
Development
Services
Mid-Day Meal
9,699 11,000 12,900 11,500 9%
Programme
Higher Education
The New Space India Limited (NSIL), a PSU under the Department of
Space will execute the PSLV-CS51 launch, carrying the Amazonia
Satellite from Brazil, along with a few smaller Indian satellites.
As part of the Gaganyaan mission activities, four Indian astronauts are
being trained on Generic Space Flight aspects, in Russia. The first
unmanned launch is slated for December 2021.
4,000 crores over five years for Deep Ocean Mission survey exploration
and conservation of deep-sea biodiversity. Click Here to Read about
Deep Ocean Mission
1,500 crores for proposed scheme to promote digital modes of payment.
3,768 crores allocated in the year 2021-2022 for the forthcoming first
digital census in the history of India.
Proposed Conciliation Mechanism with mandate for quick resolution of
contractual disputes with CPSEs
300 crore grants will be provided to the Government of Goa for the
diamond jubilee celebrations of the state’s liberation from Portuguese
1,000 crores allocated for the welfare of Tea workers especially women
and their children in Assam and West Bengal through a special scheme.
Net borrowing for the states allowed at 4% of GSDP for the year 2021-
2022 as per recommendation of 15th Finance Commission (FC).
Additional borrowing ceiling of 0.5% of GSDP will be provided subject to
conditions.
States expected to reach a fiscal deficit of 3% of GSDP by 2023-24, as
recommended by the 15th Finance Commission.
Part B: Taxation
Part B has started with a famous kural from Tamil language text,
Thirukkural, which consisting of 1,330 short couplets of seven words each,
or kurals,
The total number of GSTR-3B Returns filed for the month of December
up to January 31, 2021 is 90 lakhs.
Achievements
Corporate tax rate slashed to make it among the lowest in the world.
Small taxpayers burden on taxation eased by increasing rebates.
Return filers almost doubled to 6.48 crore in 2020 from 3.31 crore in
2014.
Faceless Assessment and Faceless Appeal
Senior citizens who are of 75 years of age and above having only
pension and interest income will be exempted from filing their income
tax return.
The paying bank will deduct the necessary tax on their income.
Over 1 lakh taxpayers opted to settle tax disputes of over Rs. 85,000
crores through
Faceless ITAT
Relaxation to NRI
The limit for tax audit increased to 10 crores from 5 crores for those
persons who carry out 95% of their transactions digitally.
Tax holiday for Affordable Housing projects extended till March 2022.
Tax exemption allowed for notified Affordable Rental Housing Projects.
Pre-filling of Returns
Details of salary income, tax payments, TDS, etc. already come pre-filled
in income tax returns.
Labour Welfare
Indirect Taxes
GST:
Textiles
Basic Customs Duty (BCD) on caprolactam, nylon chips and nylon fiber
& yarn reduced to 5%.
Chemicals
Renewable Energy
Capital Equipment
Tunnel boring machine to now attract a customs duty of 7.5%; and its
parts a duty of 2.5%.
MSME Products
Prawn feed to attract customs duty of 15% from earlier rate of 5%.
Exemption on import of duty-free items rationalized to incentivize
exporters of garments, leather, and handicraft items.
Exemption on imports of certain kind of leathers withdrawn.
Customs duty on cotton increased from nil to 10% and on raw silk and
silk yarn from 10% to 15%.
Other Proposals:
Under the Article 112 of the Constitution of India, Union Budget is aka
Annual financial statement is the annual budget of India. The budget is
presented by means of the Financial bill and Appropriation bill which
has to be passed by Lok Shaba. Union Budget comes into effect from April
1.
PMGKY, three ANB packages (ANB 1.0, 2.0, and 3.0), and announcements
made later were like 5 mini-budgets 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:
Nation First
Doubling Farmer’s Income
Strong Infrastructure
Healthy India
Good Governance
Inclusive Development
13 promises made in the Union Budget 2015-16, and resonating with the
vision of AatmaNirbharta, to materialise during the AmrutMahotsav of
2022 – on the 75th year of our independence
Nominal GDP:
Nominal GDP (or “Current GDP”) is a face value of output, without any
inflation adjustment, Nominal GDP always higher than the Real GDP of the
country
Real GDP:
Real GDP (or “Constant GDP”) is a value of output adjusted for inflation or
deflation. Real GDP is used to calculate GDP growth.
Inflation:
Inflation refers to the rise in the prices of most goods and services of daily
or common use, such as food, clothing, housing, recreation, transport, etc
Deflation:
Deflation refers to fall in the prices of daily or commonly used goods and
services
Fiscal Deficit:
*Non-debt receipts are those which do not incur any future repayment
burden for the government.
Revenue Expenditure
Capital Expenditure
Revenue Receipts
Government receipts which neither create asset nor reduce any liability are
called Revenue Receipts. Revenue Receipts are further classified into tax
revenue and non-tax revenue.
Capital Receipts
Capital receipts are receipts that create liabilities or reduce financial assets.
They also refer to incoming cash flows. Capital receipts can be both non-
debt and debt receipts. Loans from the general public, foreign governments
and the Reserve Bank of India (RBI) form a crucial part of capital receipts.
Revenue Deficit is the excess of its total revenue expenditure to its total
revenue receipts.
Capital Deficit is the excess of its total capital expenditure to its total
capital receipts
Primary Deficit
Primary deficit refers to the difference between the current year’s fiscal
deficit and interest payment on previous borrowings. primary deficit shows
the borrowing requirements needed for meeting the expenditure of the
government.
Green Tax
Green Tax on transport vehicles older than 8 years charged at the rate of
10-25% of road tax.
Personal vehicles to be charged at the time of renewal of Registration
Certification after 15 years
Higher Green Tax of up to 50% of road tax for vehicles being registered
in highly polluted cities like Delhi-NCR
Zero-Coupon Bond, also known as the pure discount bond or deep discount
bond, is purchased at a discounted price and does not pay any coupons or
periodic interests to the fundholders. The Zero-Coupon bonds generally
come with a time horizon of 10 to 15 years.
Tax Holiday
Penned By-
Editor
Sowba, Cheif