The whole of the country glued their eyes on the television screen as Finance Minister Nirmala Sitharaman presented the Union Budget 2021-22 in the Parliament. The new budget shows significant changes to the tax process. Not only this, but the Finance Minister also announced the scrapping of income tax for senior citizens under certain conditions. The new rules for removal of double taxation for the Non Residents of India (NRIs) and a reduction in the time period of tax assessments are among other measures.
There is also a piece of good news for the startups, as they will be getting an extension in their tax holidays for an additional year. Sitharaman also declared that, after the declaration of the payment of the dividend, the advance tax liability for dividend income would arise. During the conclusion of her speech, the Sensex was at 47451.62, up 1165.85 points.
In her speech, while presenting the Union Budget 2021-22, Sitharaman announced that as per Revised Estimates, India's fiscal deficit is expected to jump to 9.5 percent of Gross Domestic Product (GDP) in 2020-21.
A dip in government revenue amid the on-going health crisis has led to a steep rise in deficit and market borrowing. As for the health care section, Nirmala Sitharaman has announced a total expenditure of around Rs 2 lakh crore with Rs 35,000 crore on vaccine development and innoculation.
In her speech, Nirmala Sitharaman also announced a push for the textile industry, an increase in customs duties on cotton and raw silk, and a new cess on the development of agriculture- Rs 2.5 per litre on petrol and Rs 4 per litre on the diesel-a central university in Leh, an emphasis on seaweed farming with a new facility in Tamil Nadu and a new vehicle scrapping strategy aimed at boosting the auto sector, among other announcements.
The Finance Minister also announced that an additional 1 crore families will now be reaping benefits under the government’s Ujjwala scheme. The four poll-bound states of India- Kerala, Tamil Nadu, Assam, and West Bengal – will see significant spending on highway road expansion.
In context to the Union Budget 2021, Prime Minister Narendra Modi called it “all-round development.” From reforms related to the health crisis to Atmanirbhar resolve, they have moved ahead with this mantra in the Budget 2021. PM Modi quoted the Budget 2021 as ‘an active and not a reactive budget’.
This year’s Union Budget unlike the traditional budget wasn't presented as paper-work. In fact, it is the first time in Indian history that a paperless budget was presented by a Finance Minister in the Parliament.
As per the new budget, a few essentials are going to get cheaper and dearer for the citizens to access. On the other hand, a few other things are going to see a hike in their prices.
The products whose price will be rising are electronic items including- Mobile, mobile charger, leather shoe, Kabuli chana, etc.
The things that will get cheaper are iron and steel, nylon clothes, copper items, Insurance, Electricity, steel utensils, and gems.