Home/ Budget / News/  Union Budget 2021 Highlights: FDI in insurance raised to 74% from 49%, says FM

Union Budget 2021 Highlights: FDI in insurance raised to 74% from 49%, says FM

Capital expenditure budget to increase to ₹5.54 lakh cr in FY22 from ₹4.39 lakh cr in RE for FY21
  • 'All divestments announced so far to be completed in FY22. BPCL, CONCOR, Pawan Hans, Air India divestments to be completed in FY22,' says FM
  • 8,500 kms of road, highway projects to be awarded by March 2022 to further augment road infrastructure, says FMPremium
    8,500 kms of road, highway projects to be awarded by March 2022 to further augment road infrastructure, says FM

    Finance Minister Nirmala Sitharaman on Monday began her Budget 2021 speech by saying that the coronavirus pandemic "is the dawn of a new era, one in which India is poised to be a land of new hope".

    Here are the highlights from Sitharaman's speech:

    • During the lockdown last year, PM Modi announced the Pradhan Mantri Gareeb Kalyan Yojna worth 2.76 lakh crore for the poor and the needy, says FM.
    • The risk of not having a lockdown was far too high, says FM.
    • The Aatmanirbhar packages introduced by the government were like 5 mini budgets themselves, says FM.
    • Today, India has two vaccines available and has begun safeguarding not only its citizens but also those from hundreds of other countries, says FM.
    • "The preparation of this budget was undertaken in circumstances like never before, in view of calamities that have affected a country or a region within a country. But what we have endured with Covid-19 to 2020 is sui generis."
    • Only 3 times in the past the budget has followed a contraction in Indian economy. This time it's because of a global pandemic like in other countries. The government is fully prepared to support and facilitate the economic reset, says Sitharaman.
    • FM Sitharaman quotes Rabindranath Tagore in Budget speech: 'Faith is the bird that feels the light when the dawn is still dark'
    • The total financial impact of all Aatmanirbhar Bharat packages, including measures taken by RBI, was about 27.1 lakh crore, more than 13% of GDP: FM.
    • Since the presentation of last budget on 1 Feb, 2020 there have been five mini-budgets in the form of stimulus packages, says FM.
    • 64,180 crore will be invested over 6 years to improve primary, secondary and tertiary healthcare. This is in addition to National Health Mission, announces Sitharaman.
    • The government stretched its resources for the benefit of the poorest of the poor, says FM.
    • Union Budget 2021: Health outlay to be used to establish critical care units and hospital blocks, says Sitharaman.
    • Finance Minister announces outlay of 2.87 lakh crore for Jal Jeevan Mission.
    • Sitharaman proposes 2,217 crore outlay for 42 urban centres to tackle air pollution.
    • FM announces 35,400 crore for Covid-19 vaccines and said government is committed to provide more if required.
    • Sitharaman announces new scrappage policy - 20 years in case of personal vehicles and 15 years in case of commercial vehicles.
    • FM says 217 projects worth over 1 lakh crore completed under National Infrastructure Pipeline.
    • Seven textile parks to come up over three years, says FM.
    • Govt will introduce a bill to set-up a development finance institution, capitalised with 20,000 crore. A professionally managed DFI is needed for infrastructure financing. A bill will be passed to set up the DFI with a target lending portfolio of 5 lakh crore in 3 years, says FM.
    • The manufacturing sector needs to grow in double digits on a sustained basis, says FM.
    • FY22 outlay (budget estimate) for health & well-being up 138% at 2,23,846 crore.
    • Government to award 8,500-km of highways by March 2022. 11,000-km of national highway corridor to be completed, says FM. Highway works proposed by the Centre include 3,500 km corridor in Tamil Nadu, 1,100 km in Kerala at an investment of 65,000 crore, 675 km in West Bengal at cost of 95,000 crore and 1,300 km in Assam in the next 3 years.
    • Will work towards raising the share of public transport with an outlay of 18,000 crore, says FM.
    • Metrolite and Metroneo technologies will be deployed in Tier-2 cities and along the periphery of Tier-1 cities: FM.
    • Hydrogen energy mission to be launched by the Indian govt in 2021-22, says FM.
    • Scheme to assist Discoms will be launched with an outlay of over 3 lakh crore: FM.
    • Record 1,10,055 crore provided for railways, of which 1,07,100 cr for capital expenditure in 2021-22: FM.
    • FM proposes sharp increase in capital expenditure for next fiscal. Capital expenditure budget to increase to 5.54 lakh cr in FY22 from 4.39 lakh cr in RE for FY21.
    • Govt to provide 2 lakh cr to states and autonomous bodies to meet capital expenditure: FM.
    • Railway to monetise dedicated freight corridors, says FM Sitharaman in her Budget speech on monetisation of assets.
    • Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetised, says FM in Budget for 2021-22.
    • PLI scheme with outlay of 1.97 lakh crore for 5 years starting this fiscal: FM.
    • Swachh Bharat 2.0 will be implemented with outlay of 1,41,678 crore over 5 years: FM.
    • Framework will be put in place to allow electricity consumers to choose from more than one distribution company: FM.
    • FM announces 7 port projects worth more than 2,000 crore via PPA mode.
    • Finance Minister says 100% electrification of broad gauge rail tracks will happen by December 2023.
    • Power sector seen many reforms in last six years, 138 GW of installed capacity added, says FM Nirmala Sitharaman.
    • Govt proposes further recapitalisation of state-owned banks, earmarks 20,000 crore: FM.
    • Free cooking gas LPG scheme Ujjwala to be extended to 1 crore more beneficiaries: FM.
    • Govt proposes investor charter across financial products: Sitharaman.
    • FDI in insurance increased to 74% from 49%: FM.
    • Asset reconstruction and management company to be set up for stressed assets of banks: FM.
    • FM announces transport system operator (TSO) for regulating common carrier capacity in gas pipelines to boost gas-based economy.
    • In 2021-22 we would bring the IPO of LIC for which I am bringing the requisite amendments in this session itself: FM.
    • FY22 farm credit target at 16.5 lakh crore. Additional allocations for rural infrastructure and irrigation.
    • All divestments announced so far to be completed in FY22. BPCL, CONCOR, Pawan Hans, Air India divestments to be completed in FY22.
    • Amount paid to farmers for wheat procurement was increased. 75,060 crore paid to farmers for wheat procurement in 2020-21: FM.
    • Agri procurement has increased steadily, benefiting farmers, says FM amid opposition slogan shouting against three farm laws.
    • 43.36 lakh wheat growing farmers benefited from govt procurement under MSP as against 35.57 lakh previously: FM
    • FM says NITI Aayog to be asked to work on next list of central public sector companies for disinvestment.
    • For accessible higher education in Ladakh. I propose to set up a central university in Leh: Finance Minister Nirmala Sitharaman.
    • The forthcoming census would be the first digital census in the history of India. For this monumental task, I have allocated 3,768 crores in this year 2021-22
    • The tax system has to be transparent. Should not burden taxpayers
    • Relief to the senior citizen for tax: Senior citizens with pension income and interest income are exempted from tax payment.
    • Serious tax offenses of concealment of income of over 50 lakh can be reopened after 10 years.
    • I propose to reduce the time limit for reopening of assessments (tax assessments) to 3 years from the present 6 years.
    • A dispute resolution committee will be constituted to reduce litigation for small taxpayers
    • Anyone with a taxable income up to 50 Lakhs & disputed income up to 10 Lakhs eligible to approach committee
    • Every possible step will be taken to smoothen GST collection

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    Updated: 01 Feb 2021, 12:53 PM IST
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