Union Budget 2021: Here's a quick look at the highlights | Mint
Active Stocks
Wed Feb 28 2024 15:47:02
  1. Tata Motors share price
  2. 957.75 -0.52%
  1. Tata Steel share price
  2. 140.75 -2.36%
  1. HDFC Bank share price
  2. 1,408.15 -0.87%
  1. Power Grid Corporation Of India share price
  2. 279.55 -4.43%
  1. ITC share price
  2. 408.60 -0.62%
Business News/ Budget / News/  Union Budget 2021: Here's a quick look at the highlights

Union Budget 2021: Here's a quick look at the highlights

Govt unveiled a massive spending plan focused on healthcare and infrastructure on Monday, as the government sought to boost a coronavirus-ravaged economy

Finance Minister Nirmala Sitharaman.Premium
Finance Minister Nirmala Sitharaman.

Union Finance Minister Nirmala Sitharaman on Monday presented the Budget 2021-22 that aims to shore up an economy badly-hit by the novel coronavirus pandemic. During her third budget speech in Lok Sabha, Sitharaman said that the government is committed to the welfare of farmers and the Minimum Support Price (MSP) regime has undergone a change.

The economy is projected to contract 7.7% in the current fiscal year, although the government forecasts growth of 11% for the coming fiscal year, after a massive COVID-19 vaccination drive and a rebound in consumer demand and investments.

Budget 2021 Highlights

  • We are ready to discuss the three farm reform bills -- clause by clause. I still believe that dialogue is the only solution: FM.
  • Defence Budget consists of three component - revenue, pension & capital component. The Budget allocation (for the capital component) in 2020-21 was 1,13,734 crores. It has gone to 1,35,060 crores which is an increase of 20%: TV Somanathan, Secretary, Expenditure.
  • Accounting of government expenditure and revenue statements are now a lot more transparent and open: Finance Minister Nirmala Sitharaman.
  • Our fiscal deficit which started at 3.5% during Feb 2020 has increased to 9.5% of GDP, so we have spent, we have spent and we have spent. At the same time, we have given a clear glide path for deficit management: Finance Minister Nirmala Sitharaman.
  • As a second feature, I tend to the need of the healthcare sector and even there, capacities for better health management had to be brought in in light of what we had gone through last year: Finance Minister Nirmala Sitharaman.
  • In no categories will the consumer pay more with respect to agriculture infra cess: FM.
  • If there are two important features of this Budget, it is that we chose to spend big on infrastructure which spans across roads, power generation, bridges, ports & so on: Finance Minister Nirmala Sitharaman.
  • This Budget comes at a time when all of us decided to give impetus to the economy & that impetus, we thought, would be qualitatively spent & give necessary demand push if we choose to spend big on infrastructure: Finance Minister Nirmala Sitharaman.
  • This Budget will boost economy: FM Sitharaman.
  • "For imported spirits and wines with alcoholic strength less than 80%, Basic Customs Duty has been reduced from 150% to 50% while Agriculture Infrastructure and Development Cess (AIDC) is being imposed @ 100% on the same value. The net effective rate of import duties remains at 150% and there will be no adverse impact on the industry, "Darshan Bora, Partner, ELP.
  • "Hats off to the FM for sticking to her promise of a budget that will be remembered for 100 years . A budget with no changes in Direct taxes will certainly be remembered for years to come . Equity market will be enthused with no tinkering in capital gains taxes or STT or any form of Covid tax," Krishna Kumar Karwa, Managing Director - Emkay Global Financial Services.
  • Defence Budget increased to 4,78,195 crore from 4,71,378 crore.
  • Government has proposed farm cess of 2.5/litre on petrol, 4 on diesel. Govt has reduced basic excise duty and special additional excise duty. No direct impact on consumers.
  • Budget 2021 Highlights: Financial moves

Govt to set up a Development Financial Institution

NHAI and PGCIL to set up INVITs to attract global funds

Proposal for New Rationalised Securities Markets Code

Govt allots 20,000 crore for bank recapitalisation

  • Budget 2021 Highlights: Infrastructure

To spend 1.41 lakh crore for Urban Clean India Mission

Proposes voluntary Vehicle Scrappage Policy

Outlay of 1.18 lakh crore for Ministry of Road Transport and Highways

India to spend 1.1 lakh crore for Railways in FY22

  • Budget 2021 Highlights: Healthcare

Govt to spend 64,180 crore on healthcare over six years

Govt sets aside 35,000 crore for Covid-19 vaccine in FY22

  • Budget 2021 Highlights: Minimum government, maximum governance

FM proposes to modify 'Small Companies' definition

Increase the permissible limit for Foreign Direct Investment for insurance companies to 74% from 49%.

  • This is a budget for 'Aatmanirbhar Bharat', will strengthen economy: Senior BJP leader Rajnath Singh.
  • "In a time of unprecedented economic stress, the Govt’s responsibility was to spend enough to revive the economy or else face enormous human suffering. So I had one expectation from this budget: that we should be very liberal in terms of the targeted fiscal deficit. Box ticked," Anand Mahindra on Budget 2021.
  • We are withdrawing exemption on certain kind of leather imports: FM.
  • Dalal Street is loving the Budget 2021. Sensex and Nifty now up near 2.5%. Sensex climbs 1,601.66 points, Nifty tops 14,000.
  • Govt withdraws exceptions on tunnel boring machines.
  • "To give a further boost to digital transactions, I earmark 1,500 crore for a proposed scheme that will provide financial incentive to promote digital mode of payment," the minister said while presenting the Budget for 2021-22.
  • I-T return forms to now be pre-filled with Capital Gains and Bank Interest details: FM.
  • The FM proposes extension of tax holiday for start-ups by one more year.
  • Govt proposes to make income tax appellate tribunals faceless; to set up national income tax appellate tribunal centre: FM.
  • Exemption from tax audit limit doubled to 10 cr turnover for companies doing most of their business through digital modes: FM.
  • Advance tax liability on dividend income shall arise only after payment of dividend: FM.
  • Dividend payment by REITs and InvITs not subject to TDS: FM.
  • Sitharaman announces tax holiday for aircraft leasing business in Gift city.
  • Government to provide tax exemption for relocating funds to IFSC.
  • Income tax return filers increased to 6.48 cr in 2020 from 3.31 cr in 2014: FM.
  • FM announces tax exemption for rental housing projects.
  • Government to notify rules to eliminate double tax for NRIs on foreign retirement funds.
  • World is facing serious challenge of pandemic and its after shocks: FM.
  • Dispute resolution scheme for small taxpayers through special committee: FM.
  • Time limit for reopening tax returns reduced to 3 years, from present 6. Even in serious fraud, only if tax concealed has evidence of over 50 lakh, can the term go beyond: FM
  • Senior citizens above 75 yrs of age with only pension income exempted from filing tax returns: FM.
  • FM allocates 3,726 cr for forthcoming Census which will be the first digital census.
  • Govt proposes to introduce National Nursing and Midwifery Commission Bill.
  • We need 80,000 crore from the markets in last two months of FY21: FM.
  • Govt needs 12 lakh crore in gross borrowings: FM.
  • Fiscal deficit for FY22 pegged at 6.8%: FM.
  • Fiscal deficit for FY21 pegged at 9.5%: FM.
  • Maintained quality of expenditure: FM.
  • Govt proposes national language translation initiative.
  • Govt proposes deep ocean mission with outlay of more than 4,000 cr over five years: FM.
  • 1,000 crore to be provided for welfare of tea workers: FM.
  • Union Budget 2021 live: "Discoms are monopolies. There is a need to provide a choice to customers to choose service provider (distribution company). A framework will be put in place to provide an alternative," said Sitharaman in her Budget speech in the Lok Sabha.
  • 69 crore beneficiaries or 86% covered under one-nation, one-ration, says the Finance Minister.
  • 43.36 lakh wheat-growing farmers benefited from govt procurement under MSP as against 35.57 lakh previously: FM.
  • Farmers paid 75,100 cr on wheat MSP in FY21: FM.
  • Social security benefits to be extended to gig and platform workers for the first time. Minimum wages will apply to all categories of workers: FM.
  • Agri procurement has increased steadily, benefiting farmers, says FM amid opposition slogan shouting against three farm laws.
  • Govt committed to welfare of farmers, says FM Sitharaman.
  • Barring four strategic areas, PSUs in other sectors will be divested, says FM announcing new disinvestment policy.
  • Agriculture credit target at 16.5 lakh crore: FM.
  • "In 2021-22 we would also bring the IPO of LIC for which I am bringing the requisite amendments in this session itself," Nirmala Sitharaman says.
  • Government allots 20,000 crore for bank recapitalisation: FM.
  • FDI in insurance increased to 74 pc from 49 pc: FM.
  • Govt proposes investor charter across financial products: FM.
  • Scheme for promoting flagging of merchant ships in India will be launched by providing subsidy support: FM.
  • Govt proposes to launch hydrogen energy mission next fiscal for generating hydrogen from green power sources: FM.
  • The government on Monday announced the Jal Jeevan mission with an outlay of 2.87 lakh crore for 4,378 urban local bodies.
  • Centre to provide 18,000 crore for public buses, announces FM Nirmala Sithraman.
  • City gas distribution network of providing CNG to automobiles and piped cooking gas to households in 100 more districts: FM.
  • Fuel supplies were kept running without interruption during Covid-19 lockdown: FM
  • For a 5-trillion dollar economy, our manufacturing sector has to grow in double digits on a sustained basis. Our manufacturing companies need to become an integral part of global supply chains: Finance Minister Nirmala Sitharaman.
  • FM announces 7 port projects worth more than 2,000 cr via PPA mode.
  • Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetised: FM.
  • Framework will be put in place to allow electricity consumers to choose from more than one distribution company: FM.
  • Finance Minister says 100 pc electrification of broad gauge rail tracks by December 2023.
  • Ujjwala Scheme will be extended to cover 1 cr more beneficiaries. Will add 100 more districts in the next 3 years for city gas distribution: FM
  • Nifty climbs above 13,800 as FM Nirmala Sitharaman presents Union Budget 2021. Sensex up 700-points.
  • NHAI has sponsored one InVit to attract investors. Thus 5 operational roads with 5,000 crore value being transferred to NHAI InVit. NHAI operational roll roads are to be monetised: FM.
  • Meanwhile, Railways will monetise dedicated freight corridor after commissioning. The next lot of airports will also be monetised for operations and management. AAI airports in tier-2,3 cities and other railway assets are to be monetised: FM.
  • Indian Railways has prepared a national railways plan by 2030. It will bring down the logistics cost: FM Sitharaman.
  • National Infrastructure Pipeline has been expanded to 7,400 projects. Futher, projects worth 1.1 lakh crore have been completed under the National Infra Pipeline. We will also introduce bill to set up DFI providing 20,000 crore to launch the National Asset Monetisation Pipeline to fund new infra projects: FM Sitharaman.
  • Highway infra work proposed include building 8,500-km of highways by March 2022.

3,500 km corridor in Tamil Nadu

1,100 km in Kerala at investment of 65,000 cr

675 km in West Bengal at a cost of 95,000 cr

1,300 km in Assam in the next 3 years

  • For 2021-22, I propose a sharp increase in Capital Expenditure & thus have provided 5.54 lakh crores which is 34.5% more than the BE 2020-21: FM Nirmala Sitharaman.
  • Outlay of 1.18 lakh crore for Ministry Of Road Transport And Highways: FM Sitharaman.
  • Government has committed 1.97 lakh crore for PLI schemes covering 13 sectors. Further 7 textile parks will be launched over three years: FM Sitharaman.
  • Urban Swachh Bharat 2.0 Mission to be launched at outlay of 1.41 lakh crore over 5 years: FM Sitharaman.
  • Finance minister Nirmala Sitharaman announced 35,000 crore for Covid-19 vaccines.
  • Finance minister Nirmala Sitharaman announced 2,83,846 lakh crore for health and wellness sector which also includes 35,000 crore for Covid-19 vaccines.
  • Voluntary scrapping policy announced based on fitness test -- 20 years in a personal vehicle and 15 years for the commercial vehicle. More details to be available soon.
  • We introduce the Aatmanirbhar Health Yojana with an outlay of 64,180 crore over six years. This will strengthen the National Centre for Disease Control. Besides this, the government will also set up 15 Health Emergency Centres:FM.
  • Union Budget 2021 live: India Budget 2021: Six pillars of Budget

Health and wellbeing


Inclusive development

Development of human capital

Research and development

Minimum government, maximum governance

  • Seeing revival in the economy; Govt fully prepared to support & facilitate the economic reset: FM.
  • The Govt stretched its resources for the benefit of the poorest of the poor. The PM Garib Kalyan Yojana, the three AatmaNirbhar Bharat packages and subsequent announcements were like five mini-budgets in themselves: FM Nirmala Sitharaman.
  • I bow my head in respect to every citizen for endurance shown in facing what was an undeniably a tough year for all our physical & mental well-being: FM Sitharaman.
  • Faith is the bird that feels the light when the dawn is still dark, FM quotes Tagore.
  • The total financial impact of all AatmaNirbhar Bharat packages, including measures taken by the RBI was about 27.1 lakh crore, more than 13% of GDP: FM.
  • Today India has 2 vaccines available and has begun safeguarding not only her own citizens against COVID 19 but also those of 100 or more countries. It has added comfort to know that 2 more vaccines are also expected soon: 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: FM Nirmala Sitharaman.
  • Express my gratitude to frontline warriors: FM.
  • Global economy, which was slowing down, was pushed into uncertainty due to COVID-19. The risk of not having a lockdown was far more, far too high: FM
  • FM Nirmala Sitharaman rises to present Union Budget 2021-22.
  • India's factory activity expanded at its strongest pace in three months in January, fuelled by a continued recovery in demand and output, according to a private survey which also showed firms cut jobs at the slowest pace in 10 months.
  • The Cabinet chaired by Prime Minister Narendra Modi has approved Budget for the fiscal year 2021-22.
  • Union Cabinet's meeting begins ahead of the presentation of Union Budget 2021-22 by Finance Minister Nirmala Sitharaman at the Parliament today.
  • Rupee rises 7 paise to 72.89 against US dollar in early trade.
  • Prime Minister Narendra Modi reaches the Parliament.
  • Union Home Minister Amit Shah and Union Health Minister Dr Harsh Vardhan arrive at the Parliament.
  • FM reaches Parliament, Union Cabinet meeting to start at 10.15.
  • Finance Minister Nirmala Sitharaman meets President Ram Nath Kovind ahead of the Budget 2021 presentation. As per established tradition, the Finance Minister met the President at the Rashtrapati Bhawan before heading to Parliament.

  • Nirmala Sitharaman’s Budget is expected to revolve around the philosophy of “growth with a human touch" and focused on raising farmers’ incomes, generating jobs for the young, improving health care standards and ease of compliance for citizens and businesses, people aware of the development told HT.
  • The BSE benchmark Sensex surged over 443 points and the NSE Nifty advanced 115 points in opening trade ahead of the Union Budget 2021-22 presentation in Parliament.
  • Nirmala Sitharaman's Budget speech 2020 was the longest going by the duration. Her speech lasted for about two hours and 40 minutes. She even felt unwell and had cut her speech short. In 2003, Jaswant Singh made a record of two hours and 15 minutes.
  • After replacing the budget briefcase with a Bahi Khata in 2019, this time the FM will present the Budget through a Made-in-India tab.
  • FM Nirmala Sitharaman, MoS Finance Anurag Thakur and the team have left North Block. FM was seen carrying a 'Bahi Khata'. In all probability, it has a tablet in it.
  • Budget will be in accordance with people's expectations. Govt which functions on mantra of 'Sabka Saath, Sabka Vikas, Sabka Vishwas' gave new direction to India by announcing Aatmanirbhar package, protecting it from pandemic & bringing economy back on track swiftly: Anurag Thakur, MoS Finance
  • Finance Minister Nirmala Sitharaman arrives at the Ministry of Finance.

MoS Finance Anurag Thakur offers prayers at his residence, ahead of the presentation of the Union Budget 2021-22 in the Parliament today.
View Full Image
MoS Finance Anurag Thakur offers prayers at his residence, ahead of the presentation of the Union Budget 2021-22 in the Parliament today.

  • Union Budget 2021 can also be downloaded from the Government of India's official website www.indiabudget.gov.in after the Budget will be tabled in the Parliament.
  • All tax experts were of the view that there some deductions that would be available for medical expenses that many families had to bear due to covid-19. This could be done under Section 80D.
  • Nirmala Sitharaman is likely to increase spending by more than 15% year-on-year in 2021-22 with an emphasis on infrastructure and healthcare.
  • Citigroup expects a 19% year-on-year growth in gross tax revenue next year, with healthier goods and services tax revenue helping boost overall collection. It expects GST to average 1.15 lakh a month next fiscal -- translating into nearly 14 lakh in total for the year.
  • The Union Cabinet will hold a meeting at 10:15 am before the presentation.
  • Ahead of her third Budget presentation, the Finance Minister and her team will meet President Ram Nath Kovind, and will likely be accompanied by her deputy Anurag Thakur and other officials of the Finance Ministry.
  • Finance Minister had launched the "Union Budget Mobile App" for hassle-free access of Budget documents by Members of Parliament (MPs) and the general public using the simplest form of digital convenience.
  • Sitharaman in her first budget in 2019 replaced leather briefcase that had been for decades used for carrying budget documents with a traditional red cloth 'bahi-khata'.
  • If history is a guide, the recent rough ride for Indian stocks will continue after Monday’s budget. Read how Sensex faces Budget hurdle with history as a guide.
  • The stock market tanked almost 40% in March 2020 and bounced back to achieve new all-time high milestones. With that said, investors will be keenly awaiting the budget and the impact it may have on the investment decisions. Here are few expectations retail investors have from Budget 2021.
  • Tax experts expect the government to fix some anomalies in the NPS or National Pension Scheme with regard to income tax benefits. Here are five changes to income tax rules that could be announced in Budget 2021.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 01 Feb 2021, 07:37 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App