Finance minister Nirmala Sitaraman presented the first the first-ever digital union budget on February 1st. According to Article 112 of the Indian Constitution, the Union Budget 2021 of a financial year, also referred to as the yearly financial statement, is a statement of the estimated receipts and expenditure of the government for that particular financial year.
Since 1947, there have been a total of 73 annual budgets, 14 interim budgets, and four special budgets, or mini-budgets
Highlights of this year’s budget:
- Agriculture-agricultural fund to be provided to APMC’s for increasing infrastructure.
Five more major fishing hubs to be set up.
- Infrastructure-highway and roadworks were announced in some states.
By 2023, all railways would be electrified.
- Health and sanitation-A New scheme, titled PM Atma Nirbhar Swasthya Bharat Yojana is yet to be launched in the primary, tertiary, and secondary sectors.
Jal Jeevan Mission Urban is also startled to ensure better water supply in the whole country.
- Education-Many more large number Sainik schools are to be set up.
A central university to be set up in Ladakh.
- Tax-custom dutom duty of copper scrap and coal tar pitch reduced.
Customs duties or taxes levied on cotton increased from 0% to 10%
- Economy and finance-scheme to increase FDI limit from 49% to 74%.
Scheme to allow States to raise borrowings to 4% of GSDP this financial year.
- Employment-a portal is yet to be launched to store the information about gig workers and construction workers.
This time the budget focused on the rearrangement of custom duties to promote domestic manufacturing and inculcating the old beliefs and values and now introduced policy Atmanirbhar Bharat.
Finance minister Nirmala Sitharaman also stated that this year’s budget is focused on six pillars- health and wellbeing, physical and financial capital, and infrastructure inclusive development for aspirational India, reinvigorating human capital, innovation, and R&D and minimum government and maximum governance. The minister also stated that this financial year expenditure would be more on capital and infrastructure building and give a major boost to healthcare.
Major allocations of the budget in crores:
|Ministry of Defence||478,196|
|Ministry of Consumer Affairs, Food and Public Distribution||256,948|
|Ministry of Home Affairs||166,547|
|Ministry of Rural Development||133,690|
|Ministry of Agriculture and Farmers’ Welfare||131,531|
|Ministry of Road Transport and Highways||118,101|
|Ministry of Railways||110,055|
|Ministry of Education||93,224|
|Ministry of Health and Family Welfare||73,932|
|Ministry of housing and urban affairs||54,581|
Prime minister Narendra Modi said that the budget was created with keeping “wealth and wellness” in mind and told that India is battling the pandemic at the second-highest speed after the UNITED STATES.
EVERYTHING CONSUMERS NEED TO KNOW ABOUT NEW UNION BUDGET OF FINANCIAL YEAR 2021-22:
- Artificial jewelry would now pinch pockets more as the customs duties or taxes levied on precious synthetic stones have been increased rationally from 10 percent to 15 percent. There would have been a price hike in fake jewelry.
- Customs duties or taxes levied on imported gold and silver have been reduced. For example. if the gold coin was imported before at the rate of rupees 6000 then now it would be imported at the rate of rupees 5,150 which means the price(rupee 850) has reduced in importing of gold and silver.
- Nowadays custom duties on insulated cables have increased, shockproofing your house can empty your pocket more as basic customs duty thereon has increased from 7.5% to 10%.Before imported insulated cables which prevent shocking costed rupees 500 per meter and now costs nearly around rupees 512 per meter.
- Customs duties and taxes levied on marble and travertine have decreased from 44% to 40%, the reason being social welfare. For example, if Tiling the floor of your house with Italian tiles cost rupees 10 lakh before then now it would nearly cost rupees 70,000 which means that nearly 30,000 has reduced.
- Customs duties on imported apples and other fruits have been reduced from 75% to 50%. Imported apples from New Zealand will cost Rs 200 per kg instead of Rs 250 per kg.
- Customs duties or taxes on imported led bulbs have been enlarged by 10% to 15%. For example, if the Imported Philips 6 Watts smart LED lights costing Rs 7,500 may now cost Rs 7,800
- Upgrading your vehicle now with imported accessories would be a costlier affair as import duty taxes on windscreens wipers, defrosters, demisters, and safety glasses have increased from 10%to 15%. For example, if a Bosch windshield wiper costs Rs 3,000 then now the bosch windshield wiper would cost approx. Rs 3,150.
- According to the new union budget for the financial year 2021-22, a toy remote control car would now be more expensive as electronic as duty on parts of electronic toys increases from 5% to 15 %. For example, if the remote control car was priced at rupees 5000 then now it would likely cost 5,200 now.
- Shopping for the daily necessities would now be light on pocket and would be in favor of all the sections of society. customs duty on peas, chickpeas, Kabuli chana, Bengal gram, lentils has reduced from 70% to 40%-60%. Imported chickpeas which are rupees 500 per kg would be priced at rupees 430 in the future which means their price is likely to fall down.
- Sustainability is very expensive nowadays as basic custom duties and taxes have been increased on imported solar inverters from 5% to 20% and solar lamps from 5% to 15 %. For example, if an imported Luminous solar inverter costs Rs 3.5 lakhs then now rupees 50,000 would be added to the value of imported luminous solar inverter.
Household Savings in Budget 2021
The pandemic has hit the savings sector hard, all the savings of people were gone by the year-end. Household savings, which dropped last year, meant people were not ready to invest in long-term savings. The government addressed this in the Union Budget 2021-22 by motivating savings/long-term investments.
Women’s expectations from Budget 2021 The Centre announced steps to motivate the female labor participation rate by broadening the scope of skill development and capitalism programs. Working women are also having high hopes from the government for tax adjustment in Budget 2021.