The 3rd Union Budget by Nirmala Sitharaman has been declared on 1st February 1, 2021. In the face of a pandemic, when the nation is still fighting the ravages of an ailing economy, the budget for 2020-21 was a much-awaited thrust to spike up demands.
Here we shall bring your attention to some of the key factors of the current budget.
· Income Tax Slab
The personal income tax slab did not exhibit any such change, hence the budget for 2021-22 does not have much in the bag for the common people. However, NRIs and senior citizens have the chance to benefit big. Those above 75 would not have to file IT returns.
· Agri-infra Cess
An Agriculture Infrastructure and Development Cess (AIDC) has been declared by FM Nirmala Sitharaman. She has mentioned that there is an urgent need in improving the agricultural infrastructure of the country in order to boost production within the country that would help cut down the export of certain materials in the future. This cess would be levied on some selected goods.
“There is an immediate need to improve agricultural infrastructure so that we produce more, while also conserving and processing agricultural output efficiently. This will ensure enhanced remuneration for our farmers”, said Sitharaman.
However, this would not affect the costs of commodities for the common buyers.
· Health Allocation in the Budget
The health care sector was a major focus of the budget this year. The health sector has been allocated ₹69,000 crores. There have been proposals to build hospitals in the tier-2 and tier-3 cities with private sectors using PPP. By 2025, the Jan Ashudhi scheme is aimed to cover all hospitals under Ayushman Bharat. ₹12,300 crores have been allotted for Swachh Bharat.
· Disinvestment target at Rs. 1.75 lakh crore, 2 PSBs and one insurer to be divested
The disinvestment target has been set to ₹1.75 lakh crore. 2 PSBs and one insurer has been planned to be divested.
· Initial Public Offering for LIC soon
The Initial Public Offer (IPO) of Life Insurance Corporation (LIC) has been planned to be initiated within this year.
· Fiscal deficit at 9.5% this year
With the promise of a quick and sharp rise in the capital expenditure of the government, the fiscal deficit of India has been estimated to be lowered up to 4.5% by the Financial Year 2025-26. The fiscal deficit of this year has been anchored at 9.5% which has increased from last financial year, which was 6.8%.
· Poll-bound States to get new roads, more infrastructure
Poll-bound states, Assam, Kerala, Tamil Nadu and West Bengal have received a huge boost for infrastructural developments. New welfare schemes have been signed for Assam and West Bengal tea workers. The upcoming assembly elections hold a crucial position for the BJP party in these states where it is hoping to make new spaces.