The Union Budget of India is also referred to as the “Annual Financial Statement” in Article 112 of the Constitution of India. It is the statement of estimated receipts and expenditure of the government for the particular year for which the budget is going to announce by the Finance Minister of India. The Government of India presents the budget every year on the 1st of February so that it could be materialized before the beginning of the new financial year.
The first Union budget of independent India was presented by R. K. Shanmukham Chetty on 26 November 1947. Total revenues stood at ₹171.15 crores, and the fiscal deficit was ₹24.59 crore. The total expenditure was estimated at ₹197.29 crores with Defense expenditure at ₹92.74 crores. Smt. Indira Gandhi was the first female Finance Minister of India.
Effect of Budget 2021:
What gets Cheaper?
- Gold and Silver
- Copper Scrap
- Metal Coins
- Nylon Fibre
What gets costlier?
- Petrol And Diesel3
- Mobile Phones
- Power Banks
- Imported Alchohol
- Air Conditioners
- Imported Toys
Other Highlights from Budget 2021-22:
FM said that the Government is committed to the welfare of farmers. The MSP regime has undergone a sea change to assure price that is at least 1.5 times the cost of production across all commodities. The procurement has also continued to increase at a steady pace. This has resulted in an increase in payment to farmers substantially.
In the case of wheat, the total amount paid to farmers in 2013-2014 was Rs. 33,874 crores. In 2019-2020 it was Rs. 62,802 crore. The receipts to cotton farmers have seen a stupendous increase from Rs. 90 crore in 2013-14 to Rs. 25,974 crore (as of 27th January 2021).In an important announcement to boost value addition in agriculture and allied products and their exports, the scope of ‘Operation Green Scheme’ that is presently applicable to tomatoes, onions, and potatoes, will be enlarged to include 22 perishable products.
Around 1.68 crore farmers are registered and Rs. 1.14 lakh crore of trade value has been carried out through e-NAMs.The Agriculture Infrastructure Funds would be made available to APMCs for augmenting their infrastructure facilities.
Provision of Rs 35,000 crore made for Covid-19 vaccine in BE 2021-22. The Pneumococcal Vaccine, a Made in India product, presently limited to only 5 states, will be rolled out across the country aimed at averting 50,000 child deaths annually. there is a substantial increase in investment in Health Infrastructure and the Budget outlay for Health and Wellbeing is Rs 2,23,846 crore in BE 2021-22 as against this year’s BE of Rs 94,452 crore, an increase of 137 percent.
According to the Finance Minister’s speech, for 2021-22 a total amount of Rs 93,224 crore will be allocated for the Ministry of Education. This consists of Rs 54,874 crore for the Department of School Education and Literacy and Rs 38,350 crore for the Department of Higher Education. The allocation for 2021-22 in respect to Education is 6.13% less than the allocation made by the Union Government in 2020-21. In 2020-21, the budgeted estimate for the Ministry of Education was Rs 99,312 crore, which was revised to Rs 85,089 crore (Revised Estimate). Govt slashes allocation for education by 6.13% The Union Finance Minister announced a total expenditure estimate of Rs 93,224 crore for education in 2021-22.
Live Updates of Budget 2021-22:
- Athmanirbhar Package-> 27.1 Lakh Crore (13% of GDP)
- More preference will be given to the health ministry. It will 137% more than last year’s health budget. The health budget will be 2.23 lakh crore. 17 new health units will be constructed all over the country. More focus on the new health issues which may disturb the country.
- 27% Atmanirbhar Bharat Package will be improved.
- This new budget will give more strength to the woman of India.
- The budget has many proposals for dealing with the Air Pollution of country, announced the 2217 crore for air pollution problems.
- Scrappage policy will be introduced Commercial vehicles will be going on automotive fitness test after 15 years of use while for a personal vehicle this is 20 years after use.
- 1.5 Lakh Jobs for our Youth.
- Ujwala Schemes which has benefited 8 crore houses will be extended to 1 crore more beneficiaries.
- 5.5 Lakh Crore for Capital Expenditure
- Aims to double the farmer’s income
- In India, more than 1000 km metro rail will be developed to start more public transport services for the people. Central fiscal funding for Kochi Metro, Chennai Metro, Bengaluru Metro, Nagpur Metro, and Nashik Metro projects
- The budget is focusing more on the infrastructure development of the country.
- First, of six pillars Aatmanirbhar Yojana in addition to the National Health Mission introduce the Aatmanirbhar Health Yojana with an outlay of Rs 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.
- Increase in FDI Limited in Insurance cost from 49% to 74% (proposed).
- Gas pipeline project to be taken up in Jammu and Kashmir.
- FM announces a hydrogen energy mission for generating hydrogen out of green-powered sources.
- Asset Monetization
- Big push to attract NRI investors.
- 43 Lakh farmers will be benefited from the MSP.
- New education points are introduced. Higher education bodies to be formed.
- 100 Sainik schools will be introduced.
- The top focus of the budget is on health care and road infrastructure.
- The first digital census will be coming. 3768 crore for the digital census.
- Government to bring LIC IPO this year.
- FM says the definition of small companies to be revised by raising the capital base to Rs 2 cr from the current limit of Rs 50 lakh.
- A record sum of ₹ 1,10,055 crore to be provided for Indian Railways, out of which ₹ 1,07,100 is for capital expenditure only
- National Nursing Bill to be introduced.
- MetroLite and Metro New Technologies to be deployed to provide metro rail systems in tier 2 cities and peripheral areas of tier 1 cities, at a much lesser cost, with the same experience, convenience, and safety.
- Government announces direct tax changes. The exemption is only if the income is from the pension.
- The compliance burden is reduced by the government. The government has given relaxation to the senior citizens
- Seniors above 75 don’t need to file returns.
- New law to remove double taxes on NRI’s.
- New Custom duty has been introduced. Most of the things have increased the customs duty.
- There is no change in the Income slab.
- Customs duty on some auto parts to be raised to 15 per cent.
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