Today, Union Finance Minister announced the much-awaited ‘never seen before’ budget 2021-22. It is the first paperless union budget and a slew of measures for healthcare and infrastructure are announced to encourage the Covid-hit economy. Aatmanirbhar package amounting to ₹27.1 lakh crore has been introduced to deal with the impact of the coronavirus pandemic.
Thanking everyone for supporting the nation amid the pandemic and economic crisis, she started her speech with Rabindranath Tagore’s quote. During the budget session, numerous schemes and plans were announced to uplift the economy and benefitting the lives.
- For Aatmanirbhar Bharat, the Finance Minister proposed boosting the six pillars of economic growth namely, health and wellbeing, capital and infrastructure, inclusive development, reinvigorating human capital, innovation and R&D and minimum government and maximum governance.
- The Government is all set to introduce a Development Financial Institution (DFI) and around Rs 20,000 crore will be issued for capitalizing the new DFI.
- It is planning to amend the Insurance Act for allowing higher FDI and extending its limit in insurance to 74% from 49% and allowing foreign ownership.
- No significant changes are made in the area of income tax.
- Jal Jeevan Mission-Urban is also announced with an outlay of ₹2.87 crore.
- From 49 per cent to 74 per cent, the minister has increased the Foreign Direct Investment (FDI) in the insurance sector.
- Textile parks scheme is announced aiming to create 7 textile parks over the next three years.
- For MSME, the budget has doubled the capital expenditure to ₹15.17 thousand crores as compared to the last year.
- A large number of commonly used items, including refrigerators, mobile phones and more will become more expensive due to the increase in customs duty on imported parts.
The minister announced, “PM Garib Kalyan Yojana and three Atmanirbhar Bharat packages are like 5 mini budgets in themselves.”