Union Budget Summary 2021-22 - ixambee

Union Budget Summary 2021-22

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Introduction

What is the Union Budget?

As per Article 112 of the Indian Constitution, the Union Budget is defined as a statement of the

estimated receipts and expenditure of the government for that particular year. It is also referred to

as the Annual Financial Statement as it details the account of the government finances for the

financial year that starts from 1st April to 31st March.

• Since 2017, the Union Budget is being presented on the first working day of February (before

that it was presented on the last working day of February).

• In 2017, a 92-year-old tradition was broken when the railway budget was merged with the

Union Budget and presented together.

• The Economic Survey of India is released ahead of the presentation of the Budget. This

document is prepared under the guidance of the Chief Economic Advisor and is presented for

discussion in both Houses during the Budget session.

Union Budget 2021-22

• The budget is prepared by Department of Economic Affairs under Ministry of Finance.

• Budget 2021-22 is the first ever digital Union Budget presented

• The budget was presented by Minister of Finance and Corporate Affairs – Ms. Nirmala

Sitharaman on February 01, 2021.

• The Finance Minister 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.”

• It contains budget information of 3 financial years:

I. Budget estimates i.e. estimated receipt and expenditure for FY 2021-22 (for the coming year)

II. Revised estimates of receipt and expenditure for FY 2020-21 (since the FY has not ended

yet)

III. Actual receipt and expenditure of FY 2019-20

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Theme of the Budget 2021-22

The Budget proposals for 2021-2022 rest on 6 pillars.

Pillar 1 - Health and Wellbeing

Total Outlay

BE 2021-22 BE 2020-21 % change 2019-20 (actual)

Rs.2,23,846 crore Rs.94,452 crore 137% Rs.86,259 crore

Key allocations under Health and wellbeing

Allocation for Amount allocated

COVID-19 Vaccine Rs.35000 crore for BE2021-22

PM Atma Nirbhar Swasth Bharat Yojana Rs.64,180 crore outlay over 6 years

Jal Jeevan Mission (Urban) Rs.2,87,000 crore over 5 years

Urban Swachh Bharat Mission 2.0 Rs.1,41,678 crore over 5 years

• Taking a holistic approach to Health, government will focus on strengthening three areas:

o Preventive

o Curative

o Wellbeing

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6 PILLARS OF THE UNION BUDGET 2021-22




• Introduction of National Commission for Allied Healthcare Professionals Bill

Source: indiabudget.gov.in

A. Vaccines

• Rs.35,000 crore in BE 2021-22 for COVID-19 vaccine

• The Made-in-India Pneumococcal Vaccine to be rolled out across the country, from present 5

states – to avert 50,000 child deaths annually

B. Health System

• A new Centrally sponsored scheme announced: - (This is in addition to National Health Mission)

o Name: - PM Atma Nirbhar Swasth Bharat Yojana

o Outlay: - Rs.64,180 crore over 6 years

o 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.

o Key features of scheme:




C. Nutrition

Mission Poshan 2.0 will be launched by merging Supplementary Nutrition Programme and the Poshan

Abhiyan

• To strengthen nutritional content, delivery, outreach, and outcome.

• Government will adopt an intensified strategy to improve nutritional outcomes across 112

Aspirational Districts.

D. Universal Coverage of Water Supply

• The Jal Jeevan Mission (Urban), will be launched

o Total outlay of Rs.2,87,000 crore over 5 years

o It aims at universal water supply in all 4,378 Urban Local Bodies.

o 2.86 crores household tap connections

o Liquid Waste Management in 500 AMRUT cities.

National Institution for One Health

4 regional National Institutes for Virology

17788 Rural and 11024 Urban health and wellness centres

15 Health Emergency Operation Centres + 2

Mobile Hospitals

Integrated public health labs (all

districts) + 9 Bio-safety level III Labs

17 new Public Health units + strengthening exisiting 33 such units

Strenthening National Centre for Disease

Control (NCDC)

Expansion of Integrated Health Information Portal

Regional Resrach Platform for WHO

South East Asia region

Supplementary Nutrition

Programme

Poshan Abhiyan

Mission Poshan

2.0




E. Swachch Bharat, Swasth Bharat

• The Urban Swachh Bharat Mission 2.0

o Total financial allocation of Rs.1,41,678 crore over 5 years

o It will be implemented over a period of 5 years from 2021-2026.

F. Clean Air

• Rs.2,217 crore to tackle air pollution, for 42 urban centers with a million-plus population.

G. Scrapping Policy

Voluntary vehicle scrapping policy:

o To phase out old and unfit vehicles.

o Vehicles would undergo fitness tests in automated fitness centers:

I. After 20 years in case of personal vehicles.

II. After 15 years in case of commercial vehicles.




Pillar 2 - Physical & Financial Capital, and Infrastructure

A. AtmaNirbhar Bharat – Production Linked Incentive scheme (PLI)

• PLI schemes to create manufacturing global champions for an Atma Nirbhar Bharat have been

announced for 13 sectors.

• Government has committed nearly Rs.1.97 lakh crores, over 5 years starting FY 2021-22.

B. Textiles

• Mega Investment Textiles Parks (MITRA) will be launched in addition to the PLI scheme.

• 7 Textile Parks will be established over 3 years.

C. Infrastructure

• The National Infrastructure Pipeline (NIP) was launched with 6835 projects; the project pipeline

has now expanded to 7,400 projects.

• Around 217 projects worth Rs.1.10 lakh crore have been completed.

• Measures in three thrust areas to increase funding for NIP: -




D. Roads and Highways Infrastructure

• Total outlay, for Ministry of Road Transport and Highways = Rs.1,18,101 lakh crore, of which

Rs.1,08,230 crore is for capital

• Under the Rs.5.35 lakh crore Bharatmala Pariyojana:-

o More than 13,000 km length of roads, at a cost of 3.3 lakh crore, has already been awarded.

o 3,800 kms have been constructed.

o By March 2022, government to award 8,500 kms for construction and complete an additional

11,000 kms of national highway corridors.

• Economic corridors being planned: -

• Flagship corridors/expressways: -

• Advanced Traffic management system in all new 4 and 6-lane highways –speed radars,

variable message signboards and GPS enabled recovery vans to be installed

Tamil Nadu

Rs. 1.03 Lakh Crore

3500 Km of NH

Kerela

Rs. 65,000 Crore

Rs. 1,100 Km of NH

West Bengal

Rs.25,000 crore

675 km of NH

Assam

Rs. 34,000 crore for 1300 km in 3 years

Rs.19000 crore worth in progress already

Delhi-Mumbai Expressway

Bengaluru-Chennai

Expressway

Kanpur-Lucknow Expressway

Delhi-Dehradun economic corridor

Raipur-Vishakhapatnam

Chennai-Salem corridor

Amritsar-Jamnagar

Delhi-Katra




E. Railway Infrastructure

• Government provided a record sum of Rs.1,10,055 crore, for Railways of which Rs.1,07,100

crore is for capital expenditure.

• National Rail Plan for India – 2030 - ‘future ready’ Railway system by 2030

• 100% electrification of Broad-Gauge routes by December, 2023 – 72% by end of Dec 2021

• Western Dedicated Freight Corridor (DFC) and Eastern DFC - by June 2022

o The Sonnagar – Gomoh section of Eastern DFC under PPP mode in 2021-22

o East Coast corridor from Kharagpur to Vijayawada

o East-West Corridor from Bhusaval to Kharagpur to Dankuni.

o North-South corridor from Itarsi to Vijayawada.

• Passenger Safety Measures: -

o Vista Dome LHB coach on tourist routes – better travel experience

o Indigenously developed automatic train protection system – eliminate train collision

due to human error

F. Urban Infrastructure

• A new scheme to augment public bus transport - cost of Rs.18,000 crore (PPP model,

20000 buses)

• Metro Services and new technologies: -

o A total of 702 km of conventional metro is operational and another 1,016 km of metro and

RRTS is under construction in 27 cities.

o Two new technologies i.e., ‘MetroLite’ and ‘MetroNeo’ to provide metro rail systems in

Tier-2 cities and peripheral areas of Tier-1 cities

• Central funding will be provided to: -

Kochi Metro

Rs.1957.05 Crore

Chennai Metro

Rs.63,246 Crore

Bengaluru Metro

Rs.14,788 Crore

Nagpur Metro

Rs.5976 Crore

Nashik Metro

Rs.2092 Crore




G. Power Infrastructure

• development in past 6 years:

• Other features:

H. Ports, Shipping, Waterways

• Rs.2,000 crore worth 7 projects to be offered in PPP-mode in FY21-22 for operation of major

ports

• An amount of Rs.1624 crore will be provided over 5 years to promote flagging of

merchant ships in India will be launched by providing subsidy support to Indian shipping

companies.

• Double the recycling capacity of around 4.5 Million Light Displacement Tonne (LDT) by 2024.

I. Petroleum & Natural Gas

• Ujjwala Scheme (scheme of providing LPG to women in BPL families) which has benefited 8

crore households will be extended to cover 1 crore more beneficiary.

• add 100 more districts to City Gas distribution in next 3 years

• A gas pipeline project will be taken up in Union Territory of Jammu & Kashmir

• independent Gas Transport System Operator – for booking of common carrier capacity in all-

natural gas pipeline

Installed capacity =

139 Gigawatt

Household connected =

2.8 crore

Transmission lines =

1.41 lakh circuit Km

Consumer to get

alternatives to choose

distribution company

Power Distribution Sector

scheme = Rs.305,984 crore

for 5 years (assistance to

DISCOMS for better

infrastructure)

National Hydrogen

Energy Mission 2021-22

to generate hydrogen from

green power sources




J. Financial Capital

• A single Securities Markets Code

• Support the development of a world class Fin-Tech hub at the GIFT-IFSC.

• A permanent institutional framework proposed:

o To instill confidence amongst the participants in the Corporate Bond Market during times of

stress and to generally enhance secondary market liquidity.

• Setting up a system of Regulated Gold Exchanges:

o SEBI to be notified as a regulator and

o Warehousing Development and Regulatory Authority to be strengthened

• To develop an investor charter as a right of all financial investors

• Capital infusion of

o Rs.1,000 crore to Solar Energy Corporation of India and

o Rs.1,500 crore to Indian Renewable Energy Development Agency

K. Increasing FDI in Insurance Sector

• Government proposes to amend the Insurance Act, 1938 to

increase the FDI limit in Insurance companies

o Majority of Directors on the Board and key

management persons would be resident Indians.

o At least 50% of Directors being Independent Directors, and specified percentage of profits

being retained as general reserve.

L. Stressed Asset Resolution by setting up a New Structure

• An Asset Reconstruction Company Limited and Asset Management Company would be set up.

M. Recapitalization of PSBs

• Rs.20,000 crore in 2021-22 to further consolidate the financial capacity of PSBs.

SEBI Act, 1992

Depositories Act,

1996

Securities contract

(Reg) Act, 1956

Govt. Securities Act, 2007

A Single Securities

Market Code

49%74%




N. Deposit Insurance

• Amendments to the DICGC Act, 1961, to help depositors get an easy and time-bound access to

their deposits to the extent of the deposit insurance cover.

• Minimum loan size eligible for debt recovery under the Securitization and Reconstruction

of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 proposed

to be reduced from Rs. 50 lakhs to Rs. 20 lakhs for NBFCs with minimum asset size of Rs.

100 crores.

O. Company Matters

• Decriminalization of the Limited Liability Partnership (LLP) Act, 2008.

• Easing compliance requirements: -

o To revise the definition under the Companies, Act, 2013 for Small Companies by

increasing their thresholds for Paid up capital from “not exceeding `50 Lakh” to “not

exceeding `2 Crore” and turnover from “not exceeding `2 Crore” to “not exceeding `20

Crore”.

• One Person Companies (OPCs)

o To incentivize the incorporation of One Person Companies (OPCs) by allowing OPCs to grow

without any restrictions on paid up capital and turnover.

o Allowing their conversion into any other type of company at any time.

o Reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days.

o Allowing Non-Resident Indians (NRIs) to incorporate OPCs in India.

• Special framework for MSMEs will be introduced.

• Launch of data analytics, artificial intelligence, machine learning driven MCA21 Version 3.0

in 2021-22.

P. Disinvestment and Strategic Sale

• Rs. 1,75,000 crore estimated receipts from disinvestment in BE 2020-21.

• Strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container

Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited etc. to

be completed in 2021-22.




• Other than IDBI Bank, two Public Sector Banks and one General Insurance company to be

privatized.

• IPO of LIC in 2021-22 will be launched.

• New policy for Strategic Disinvestment approved; CPSEs except in four strategic areas to be

privatized.

• Incentivizing States for disinvestment of their Public Sector Companies, using central funds.

• Special Purpose Vehicle in the form of a company to monetize idle land.

Q. Government Financial Reforms

• Treasury Single Account (TSA) System for Autonomous Bodies to be extended for universal

application.

• Separate Administrative Structure to streamline the “Ease of Doing Business‟ for Cooperatives.

Pillar 3 - Inclusive Development for Aspirational India

A. Agriculture

• The MSP regime has assured price that is at least 1.5 times the cost of production across all

commodities.

MSP On 2013-14 2019-20 2020-21

Wheat Rs. 33,874 Rs. 62,802 Rs. 75,060

Rice Rs. 63,928 Rs. 1,41,930 Rs. 172,752

Pulses Rs. 236 Rs. 8,285 Rs. 10,530

• SWAMITVA Scheme (scheme for creating property ownership record of land in villages and

provide property cards to owners) to be extended to all States/UTs, 1.80 lakh property-owners in

1,241 villages have already been provided cards

• Agricultural credit target enhanced to Rs.16.5 lakh crore in FY22 – animal husbandry, dairy,

and fisheries to be the focus areas

• Rural Infrastructure Development Fund to be enhanced to Rs. 40,000 crores from Rs.30,000

crore




• To double the Micro Irrigation Fund to Rs. 10,000 crores

• Operation Green Scheme’ to be extended to 22 perishable products, to boost value addition

in agriculture and allied products

• Around 1.68 crore farmers registered and Rs. 1.14 lakh crore of trade value carried out through e-

NAMs; 1,000 more mandis to be integrated with e-NAM to bring transparency and

competitiveness.

• APMCs to get access to the Agriculture Infrastructure Funds for augmenting infrastructure

facilities

B. Fisheries

• 5 major fishing harbours – Kochi, Chennai, Visakhapatnam,

Paradip, and Petuaghat – will be developed as hubs of economic

activity for modern fishing harbors and fish landing centers.

• Multipurpose Seaweed Park in Tamil Nadu to promote seaweed

cultivation.

C. Migrant Workers and Labourers

• One Nation One Ration Card scheme for beneficiaries to claim rations anywhere in the

country – migrant workers to benefit the most

o Scheme implementation so far covered 86% of beneficiaries across 32 States and UTs

o Remaining 4 states to be integrated in next few months

• Portal to collect information on unorganized labour force, migrant workers especially, to help

formulate schemes for them

• Implementation of 4 labour codes underway

o Social security benefits for gig and platform workers too

o Minimum wages and coverage under the Employees State Insurance Corporation

applicable for all categories of workers

o Women workers allowed in all categories, including night-shifts with adequate

protection

o Compliance burden on employers reduced with single registration and licensing, and

online returns

Kochi

Chennai

Visakhapatnam

Paradip

Petuaghat




D. Financial Inclusion

• Under Stand-Up India Scheme for SCs, STs and women,

o Margin money requirement reduced to 15%

o To also include loans for allied agricultural activities

• Rs. 15,700 crore budget allocation to MSME Sector.

Pillar 4 - Reinvigorating Human Capital

A. School Education

• More than 15,000 schools will be qualitatively strengthened to include all components of the

National Education Policy.

• 100 new Sainik Schools will be set up in partnership with NGOs/private schools/states.

B. Higher Education

• Legislation to set-up of Higher Education Commission of India.

o It will be an umbrella body having 4 separate vehicles for:- standard-setting, accreditation,

regulation, funding

• Creation of formal umbrella structure to cover all Govt. colleges, universities, research institutions

in a city for greater synergy.

• Central University in Leh for higher education in Ladakh

C. Scheduled Castes and Scheduled Tribes Welfare

• 750 Eklavya model residential schools in tribal areas

o Unit cost of each school to be increased to Rs.38 crore

o For hilly and difficult areas, to 48 crore

o Focus on creation of robust infrastructure facilities for tribal students

• Revamped Post Matric Scholarship Scheme for welfare of SCs

o Rs.35,219 crore enhanced Central Assistance for 6 years till 20252026

o 4 crore SC students to benefit.




D. Skilling

• Proposed amendment to Apprenticeship Act to enhance opportunities for youth

• Rs.3000 crore for realignment of existing National Apprenticeship Training Scheme (NATS)

towards post-education apprenticeship, training of graduates and diploma holders in

Engineering

• Initiatives for partnership with other countries in skilling to be taken forward, similar to partnership

with UAE and Japan.

Pillar 5 - Innovation and R&D

• Modalities of National Research Foundation announced in July 2019 –

o Rs. 50,000 crores outlay over 5 years

• Rs. 1,500 crores for proposed scheme to promote digital modes of payment.

• National Language Translation Mission (NTLM) to make governance-and-policy related

knowledge available in major Indian languages.

• PSLV-CS51 to be launched by New Space India Limited (NSIL) carrying Brazil‟s Amazonia

Satellite and some Indian satellites.

• As part of the Gaganyaan mission: -

o 4 Indian astronauts being trained on Generic Space Flight aspects, in Russia

o First unmanned launch is slated for December 2021

• Rs.4,000 crore over five years for Deep Ocean Mission survey exploration and conservation of

deep sea biodiversity.

Pillar 6 - Minimum Government and Maximum Governance

• Measures being undertaken to bring reforms in Tribunals to ensure speedy justice

• National Commission for Allied Healthcare Professionals already introduced to ensure

transparent and efficient regulation of the 56 allied healthcare professions

• National Nursing and Midwifery Commission Bill introduced for nursing profession

• Proposed Conciliation Mechanism with mandate for quick resolution of contractual disputes with

CPSEs

• Rs.3,768 crore allocated for first digital census in the history of India




• Rs.300 crore grants to the Government of Goa for the diamond jubilee celebrations of the

state’s liberation from Portuguese

• Rs.1,000 crore for the welfare of Tea workers especially women and their children in Assam

and West Bengal through a special scheme.

Budget at a glance – Budget Estimates 2021-22

• Fiscal Deficit is the difference between the Revenue Receipts plus Non-debt Capital Receipts (like receipts

from disinvestment and recovery of loans) and the total expenditure. Fiscal Deficit is reflective of the total

borrowing requirements of Government

• Revenue Deficit refers to the excess of revenue expenditure over revenue receipts. It shows government’s

shortfall over current receipt and current expenditure.

• Effective Revenue Deficit is the difference between Revenue Deficit and Grants for Creation of Capital

Assets.

• Primary Deficit is measured as Fiscal Deficit less interest payments. It tells us how much Government’s

borrowing is going towards meeting expenses other than interest payment (interest payment is the single

largest revenue expenditure of Central Government).




Highlights of Fiscal Positions

• Budget Estimates (BE) of Rs.34.83 lakh crore in 2021-2022 including Rs.5.5 lakh crore as

capital expenditure, an increase of 34.5% to give required push to economy

• 2020-21 Revised Estimates (RE) for expenditure = Rs.34.50 lakh crore as against original BE

expenditure of Rs.30.42 lakh crore

o Quality of expenditure has been maintained as Capital Expenditure estimated as per RE is

Rs.4.39 lakh crore in 2020-2021 (Rs.4.12 lakh crore in BE 2020-21).

• Fiscal Deficit

o BE 2021-2022 is estimated to be 6.8% of GDP.

o The fiscal deficit in RE 2020-21 is pegged at 9.5% of GDP


o Plan to continue on the path of fiscal consolidation, achieving a fiscal deficit level below 4.5%

of GDP by 2025-2026 with a fairly steady decline over the period:

• by increasing the buoyancy of tax revenue through improved compliance, and

• by increased receipts from monetization of assets, including PSEs and land

o Deviation Statement under Sections 4(5) and 7(3) (b) of the FRBM Act tabled necessitated

by this year’s unforeseen and unprecedented circumstances

o Amendment to FRBM Act proposed to achieve targeted Fiscal Deficit levels




• Gross borrowing from the market for the next year = Rs.12 lakh crore

Trend in tax receipts 9as % of GDP):

• Tax receipts are estimated to account for 9.9% of GDP in 2021-22 of which direct taxes are 4.9%

and indirect taxes 5%.


Net borrowing of the States:

• Net borrowing for the states allowed at 4% of GSDP for the year 2021-2022 as per

recommendation of 15th Finance Commission.

o Part of this earmarked for incremental capital expenditure

o Additional borrowing ceiling of 0.5% of GSDP - subject to conditions

o States expected to reach a fiscal deficit of 3% of GSDP by 2023-24, as recommended by the 15th Finance Commission.

300

Crore 50,000 Crore Contingency Fund

Increased




Fifteenth Finance Commission:

• The final report covering 2021-26 was submitted to the President, retaining vertical shares

of states at 41%

• Funds to UTs of Jammu and Kashmir and Ladakh would be provided by Centre

• On the Commission’s recommendation, Rs.1,18,452 crore have been provided as Revenue

Deficit Grant to 17 states in 2021-22, as against Rs.74,340 crore to 14 states in 2020-21.

Rupee comes from:


Tax Revenue from: GST (15%)

→ Income Tax (14%) → Corporation Tax (13%) → Union Excise Duties (8%)

→ Customs (3%)




Rupee goes to:

Major Expenditure items in the Budget


Revenue Expenditure

Interest Payment (20%) Subsidies (8%) Defence (8%) Pension (5%)




Source: pig.gov.in

Ministry-wise budgeted expenditure

Ministry Budgeted expenditure for 2021-22

In Rs. Crore as % of total

budgeted

expenditure

Remarks

Ministry of Finance 13,86,273 39.80%

Ministry of Defence 4,78,196 13.73%

Inclusive of

pensions of

Rs.1.16 Lakh crore

Ministry of Consumer Affairs,

Food and Public Distribution 2,56,948 7.38%

Ministry of Home Affairs 1,66,547 4.78%

Ministry of Rural Development 1,33,690 3.84%

Ministry of Agriculture and Farmers welfare 1,31,531 3.78%




Ministry of Road Transport

and Highways 1,18,101 3.39%

Ministry of Railways 1,10,055 3.16%

Ministry of Education

(erstwhile Ministry of Human Resource

Development)

93,224 2.68%

Ministry of Health and Family Welfare 73,932 2.12%

Ministry of Jal Shakti 69,053 1.98%

Ministry of Housing and Urban affairs 54,581 1.57%

Ministry of Women and Child

Development 24,435 0.70%

Department of Atomic Energy 18,265 0.52%

Ministry of Micro, Small and Medium

Enterprises 15,700 0.45%

Ministry of Power 15322 0.44%

Ministry of Science and Technology 14,794 0.42%

Department of Space 13,949 0.40%

Ministry of Labour and Employment 13,307 0.38%

Ministry of Commerce and Industry 12,768 0.37%

Ministry of Social Justice and

Empowerment 11,689 0.34%

Ministry of Electronics and Information

Technology 9,721 0.28%

Ministry of Tribal Affairs 7,525 0.22%

Ministry of New and Renewable Energy 5,753 0.17%




Ministry of Minority Affairs 4,811 0.14%

Ministry of Fisheries, Animal Husbandry

and Dairying 4,323 0.12%

Ministry of Textiles 3,632 0.10%

Ministry of Law and Justice 3,230 0.09%

Ministry of Ayurveda, Yoga, Naturopathy,

Unani, Siddha and Homeopathy (AYUSH) 2970.3 0.09%

Ministry of Environment, Forests and

Climate Change 2,870 0.08%

Ministry of Skill Development and

Entrepreneurship 2,785 0.08%

Ministry of Development of

North Eastern Region 2,658 0.08%

Ministry of Youth Affairs and Sports 2,596 0.07%

Ministry of Food Processing Industries 1,309 0.04%

Ministry of Panchayati Raj 913 0.03%

Total budgeted expenditure for 21-22 34,83,236 100.00%

Major Schemes - budgeted expenditure

Scheme

Name Brief

2021-22

BE

2020-21

RE

%

change

Agriculture, Irrigation and Allied activities

Pradhan Mantri Kisan

Samman Nidhi (PM

KISAN)

Rs.6000 income support to

farmers 65,000 65,000 0%

PM Fasal Bima

Yojana Crop Insurance Scheme 16,000 15,307 5%




Scheme

Name Brief

2021-22

BE

2020-21

RE

%

change

Interest Subsidy for

Short Term Credit to

Farmers

19,468 19,832 -2%

Green Revolution Various schemes to improve

agriculture productivity 13,408 10,474 28%

Rashtriya Pashudhan

Vikas Yojna (White

Revolution)

Scheme related to Dairy and

Livestock 1,177 1,642 -28%

Blue Revolution Schemes for productivity in aqua-

culture, especially fish production 1015 710 43%

Market Intervention

Scheme and Price

Support Scheme

(MIS-PSS)

Undertake procurement of Oilseed

and Pulses under price support

scheme to provide remunerative

prices to farmers

1,501 996 51%

Agriculture

Infrastructure Fund

(AIF)

AIF is a medium – long term debt

financing facility for investment in

post-harvest management

infrastructure

900 208 333%

Prime Minister Krishi

Sichai Yojna

per drop more crop - provide end

to end solutions in irrigation

supply chain

11,588 7,954 46%

Rural Development

Mahatma Gandhi

National Rural

Employment

Guarantee

(MGNREGA)

min. 100 days of employment 73,000 1,11,500 -35%

Aatmanirbhar Bharat

Rojgar Yojana

susbsidies to employers for hiring

new employees 3,130 1,000 213%




Scheme

Name Brief

2021-22

BE

2020-21

RE

%

change

Pradhan Mantri Gram

Sadak Yojna

(PMGSY)

connecting all habitations with all-

weather road 15,000 13,706 9%

Prime Minister

Saubhagya Yojna

LPG connection to rural poor

women 3,724 -100%

Swachh Bharat

Mission (Urban+rural)

sanitation facilities to make India

ODF 12,294 7,000 76%

Prime Minister Awas

Yojna (PMAY) Housing for All by 2022 27,500 40,500 -32%

National Livelihood

Mission (Ajeevika)

renamed Deendayal Antodaya

Yojna 14,473 10,005 45%

Jal Jeevan Mission

(JJM)/ National Rural

Drinking Water

Mission

flagship programme which aims at

providing Functional Household

Tap Connection (FHTC) to every

rural household by 2024 + JJM -

urban

50,011 11,000 355%

Kisan Urja Suraksha

evam Utthaan

Mahabhiyan(KUSUM)

for installation of solar pumps and

grid connected solar 776 180 331%

Health, Education, Social Welfare

PMJAY - Ayushman

Bharat

Provides cash less and paper

less benefit cover of Rs.5 lakh

per annum per family on floater

basis in the impanelled hospitals

across India

6,401 3,129 105%

National Health

Mission

transfer to States to address

healthcare 37,130 35,554 4%

needs of population in rural &

urban regions




Scheme

Name Brief

2021-22

BE

2020-21

RE

%

change

Pardhan Mantri

Swasthya Suraksha

Yojana

correcting regional imbalances

in the availability of

affordable/reliable tertiary

healthcare services; setting up

of 6 AIIMS like institutions

7,000 7,517 -7%

National Education

Mission (Samagra

Shiksha Abhiyan)

Sakshar Bharat; Sarva Shiksha

Abhiyan; Rashtriya Madhyamik

Shiskha Abhiyan (RMSA);

Teachers Training

34,300 28,244 21%

National Social

Assistance Program

Core of core scheme that

provides financial assistance to

elderly, widows and persons with

disabilities etc

9,200 42,617 -78%

Infrastructure

AMRUT & Smart cities

Mission

Urban Rejuvenation Mission -

development of 100 Smart Cities 13,750 9,850 40%

FAME - India

Scheme for Faster Adoption and

Manufacturing of (Hybrid and)

Electric Vehicle in India

757 318 138%

Metro Projects

The provisions are for equity,

loans and Pass Through

Assistance to various Metro

Projects

18,998 6,484 193%

National Ganga Plan

and Ghat Works

Provision is for implementing

schemes/projects for the river 600 500 20%

Ganga and its tributaries

Road Works 60,241 52,358 15%

National Highways

Authority of India

(NHAI)

57,350 49,050 17%




Scheme

Name Brief

2021-22

BE

2020-21

RE

%

change

Women and child development

Saksham

Anganwadi and

Poshan 2.0

umbrella scheme covering the

Integrated Child Development

Services (ICDS), Anganwadi

Services, Poshan Abhiyaan,

Scheme For Adolescent Girls

and the National Creche

Scheme

20,105 new

scheme

Mission Shakti for safety of women 3,109 new

scheme

Mission for

Protection and

Empowerment of

Women

launched in 2010 to strengthen

the overall processes that

promote development of women

48 726 -93%

Finance related

Recapitalisation of

RRBs equity for Regional rural banks 1,200 200 500%

Capital to NABARD Share capital 2,000 1000 100%

EXIM bank Share capital 1,500 1300 15%

National Bank for

Financing lnfra and

Development

(NaBFID)

Capital support 20,000

Partial Credit

Guarantee Scheme

(PCGS)

sovereign Guarantee for first loss

of up to 20% for purchase by

PSBs of debt securities issued by

NBFCs/ HFCs/ MFIs

1,000 500 100%

Emergency Credit

Line urantee

Scheme (ECLGS)

100% guarantee coverage to

Banks and NBFCs to enable

them to extend emergency credit

facilities to Business Enterprises /

10,000 new

scheme




Scheme

Name Brief

2021-22

BE

2020-21

RE

%

change

facility to eligible

MSME borrowers

MSMEs /Professionals in view of

COVID-19 to meet their additional

term loan/additional working

capital requirements; overall

ceiling for the scheme at Rs.3

lakh crore

Others

Swadesh Darshan Integrated Development of Tourist

Circuits around specific themes 630 600 5%

Eklavya Model

Residential School

(EMRS)

Scheme for model residential

school for Indian tribals across

India

1,418 1200 18%

Khelo India

youth games held annually at

national level for under-17 years

school students and under-21

college students

658 329 100%

PM Mudra Yojana Loan up to Rs.10 lakh for MSMEs 2500 500 400%

Pradhan Mantri

Kisan Sampada

Yojna

flagship program in food

processing Industry 700 750 -7%

Promotion of

Electronics and IT

HW Manufacturing

(MSIPS, EDF and

Manufacturing

Clusters)

2,631 700




Tax proposals

Direct Taxes:

Other benefits

• Details of capital gains from listed securities, dividend income, interest from banks, etc. to be

pre-filled in returns

• Exemption limit of annual receipt revised from ₹1 crore to ₹5 crore for small charitable trusts

running schools and hospitals

• Eligibility for tax holiday claim for start-ups extended by one more year

• Capital gains exemption for investment in start-ups extended till 31st March, 2022

• Infrastructure Debt Funds made eligible to raise funds by issuing Zero Coupon Bonds to attract

foreign investment in infrastructure

• Tax incentives to IFSC in GIFT City

Reliefs

•Exemption from filing tax returns for senior citizens over 75 years age and having only pension and interest income;

•simplify rules for NRIs regarding their foreign retirement accounts

•Limit of turnover for tax auditincreased to Rs. 10 crore from Rs. 5 crore for entities carrying out 95% transactions digitally

•Dividend payment to REIT/ InvIT exempt from TDS

•Deduction of tax on dividend income at lower treaty rate for FPIs

•Additional deduction of interest, up to Rs. 1.5 lakh, for loan taken to buy an affordable house extended for loans taken till March 2022

•Tax exemption for notified Affordable Rental Housing Projects and affordable housing projects

Disputes and settlement related

•Time limit for re-opening cases reduced to 3 years from 6 years

•Serious tax evasion cases (concealment of income of Rs. 50 lakh or more in a year) -reopened up to 10 years with approval of Principal Chief Commissioner

•Dispute Resolution Committee - taxable income up to Rs.50 lakh and disputed income upto Rs.10 lakh

•National Faceless Income Tax Appellate Tribunal Centre

Achievements

•Return filers doubled to 6.48 crore in 2020 from 3.31 crore in 2014

•1 lakh taxpayers opted to settle tax disputes of over Rs. 85,000 crore through Vivad Se Vishwas Scheme until 30th January 2021




Indirect Taxes

• GST and custom duty rationalized and simplified

• Turant Customs initiative, a Faceless, Paperless, and Contactless Customs measures

• Custom duty on gold and silver to be rationalized

• Duty on some parts of mobiles revised to 2.5% from ‘nil’ rate

• Duty on copper scrap reduced from 5% to 2.5%

• Duty on Naptha reduced to 2.5%

• Customs duty reduced uniformly to 7.5% on semis, flat, and long products of non-alloy, alloy and

stainless steel

• Duty on steel scrap exempted up to 31st March, 2022

• Basic Customs Duty (BCD) on caprolactam, nylon chips and nylon fiber & yarn reduced to 5%

• Customs duty on cotton increased from nil to 10% and on raw silk and silk yarn from 10% to 15%.

• Duty on solar invertors raised from 5% to 20%, and on solar lanterns from 5% to 15% to encourage

domestic production

Atma Nirbhar Bharat Summary

Package included:

Stimulus Name Announced on Key highlights Amount

Pradhan Mantri Garik

Kalyan Yojana

(PMGKY)

March 27, 2020

Free food grains, free cooking

gas, cash support Rs.2.76 lakh crore

AatmaNirbhar Bharat

1.0 May 13-17, 2020

ECLGC scheme, support to Agri,

redefining MSME, migrant worker,

structural reforms

11.03 lakh crore

AatmaNirbhar Bharat

2.0 October 12, 2020

LTC Cash Voucher, Special

festive advance, Special

assistance to states, enhanced

budget provisions

Rs.0.73 lakh crore




AatmaNirbhar Bharat

3.0

November 12,

2020

PLI scheme, fertilizer subsidy,

Atmanirbhar Bharat Rojgar

Yojana, PMAY-Urban

Rs.2.65 lakh

crore

Total by Govt. Rs.17.17 lakh

crore

Total financial

impact (incl. RBI’s

measures)

Rs.27.1 lakh

crore

Benefit given under PMGKY

• Free food grain to 80 crore people

• Free cooking gas for 8 crore families

• Direct cash to over 40 crore farmers, women, elderly, the poor and the needy

Structural reforms:

• One Nation One Ration Card

• Agriculture and Labour Reforms

• Redefinition of MSMEs

• Commercialisation of the Mineral Sector

• Privatisation of Public Sector Undertakings

• Production Linked Incentive Schemes

References:

www.indiabudget.gov.in

pib.gov.in


http://www.indiabudget.gov.in/




Documents

Union Budget Summary 2021-22 - ixambee