YK MYK THE PREPARATION OF THE BUDGET WAS UNDERTAKEN IN CIRCUMSTANCES LIKE NEVER BEFORE. ONLY THREE TIMES HAS THE BUDGET FOLLOWED A CONTRACTION IN THE ECONOMY. THIS TIME, UNLIKE BEFORE, THE SITUATION IS DUE TO A GLOBAL PANDEMIC. NIRMALA SITHARAMAN, FINANCE MINISTER Rs. 5 RANCHI TUESDAY, 2 FEB, 2021 PG-12, YEAR—10, ISSUE—268 (RNI NO: JHAENG / 2012 / 44137) WE HAVE TAKEN THE APPROACH OF WIDENING NEW OPPORTUNITIES FOR GROWTH, NEW OPENINGS FOR OUR YOUTH, A NEW HIGH TO HUMAN RESOURCES, DEVELOPING NEW REGIONS FOR INFRASTRUCTURE, WALKING TOWARDS TECHNOLOGY AND BRING NEW REFORMS IN THIS BUDGET. NARENDRA MODI, PRIME MINISTER Morning India UNION BUDGET 2021: NIRMALA SITHARAMAN PRESENTS HER FIRST ‘PAPERLESS’ BUDGET; RAISES EXPECTATIONS ECONOMY GETS VACCINE SHOT INFRASTRUCTURE HEALTH Pradhan Mantri Atma Nirbhar Swasthya Bharat Yojana launched FY22 outlay (budget estimate) for health The FY22 outlay (budget estimate) for health and well-being is up 138%, at Rs 2,23,846 cr. Of this, Rs 35k cr will be spent on the Covid-19 vaccine. Focus on Aatmanirbhar Swastha Bharat Focus on Swacch bharat and swasth bharat. PM Aatmanirbhar Swastha Bharat to be launched with an outlay of 64,180 cr. Govt to launch Mission Poshan 2.0; Jal Jeevan Mission Urban will be launched. NEW DELHI: Centre will go in for a massive spending spree on infrastructure creation, healthcare, education and demand generation to revive India's pandemic-battered economy. In her third budget presentation to the Parliament, Finance Minister Nirmala Sitharaman proposed to unleash the massive fiscal expansion in 2021-22 on the back of high borrowings, fire sales and an agricultural cess. However, no adverse impact is set to come on prices as the Centre made prior duty adjustments before imposing the cess. The first budget after the Covid-19 outbreak even got a thumbs-up from India Inc with the equity markets jumping around 5 per cent in the day's trade. Notably, the biggest take-away from the budget has been Centre's aggressive push to revive the economy via higher outlay for capital expenditure. The FM proposed to increase the Capex by 34 per cent in Budget 2021-22 in comparison to the previous fiscal BE (Budget Estimate). In her Budget speech that lasted for around 1 hour and 45 minutes, she doled out enormous amounts for railways, roadways, healthcare, education as well as the agriculture sector. The Capex alone has been proposed to be increased to Rs 5.54 lakh crore from Rs 4.12 lakh crore spending target in BE FY21. Also, she proposed to institute a 'Land Bank' monetisation company along with an asset management and reconstruction company or a 'Bad Bank' and a Development Financial Institution (DFI) which will fund infra projects. Besides, the finance minister laid out a new import structure along with proposals for a conducive environment to usher in investments into Fintech, insurance and start-ups. Further, the minister set aside Rs 20,000 crore for public sector bank recapitalisation and gave a push to digital payments and research in Artificial Intelligence. She also announced a vehicle scrappage policy, hydrogen energy mission and rationalisation of customs duty structure by eliminating outdated exemptions. On the personal tax front, exemption was proposed from filing income tax returns for senior citizens with age of 75 year and above, and who only have pension and interest income. Rs 1.10 lakh crore outlay for railways Railways to monetize dedicated fright corridor assets for operations and maintenance after commissioning 217 projects worth over Rs 1 lakh crore completed under National Infrastructure Pipeline. AGRICULTURE More economic corridors being planned to boost road infrastructure To complete 11k km of national highway infrastructure this year Allocation to rural infra development increased Voluntary scrapping policy for vehicles Increase in agriculture credit target to Rs 16.5 lakh crore scheme to cover 22 more perishable commodities FM Sitharaman proposes increase in agriculture credit target to Rs 16.5 lakh crore. 1,000 more mandis will be integrated with electronic national market. Operation green FINANCE SOCIAL SECURITY Social Security net for gig workers Rs 1,000 crore for Bengal, Assam tea workers Social security benefits to be extended to gig and platform workers. Union FM announces special scheme for welfare of women and children in Assam and West Bengal. Rs 1,000 crore for Bengal, Assam tea workers. Minimum wages will apply to all categories of workers and will be covered under ESIC. To further extend efforts towards unorganised labour force, proposed to launch a portal to collect relevant information on gig workers, building/construction workers among others. After dilberating on this for years, Finance Minister finally announces a Bad Bank. A new asset reconstruction and asset management company announced It'll help formulate health, housing, skill, insurance credit &food schemes for migrant workers, the minister said. Further infusion of Rs 20,000 crore for public sector banks FM puts disinvestment receipts at KEY HIGHLIGHTS Senior citizens above 75 years of age, having pension and interest income exempted from filing tax returns CMYK 02 www.sanmarglive.com BUDGET 2021-22 Morning India TUESDAY, RANCHI, FEBRUARY 2, 2021 BYTES HIGHLIGHTS OF BUDGET 2021-22 FARMERS, POOR IGNORED: MAMATA Following are the highlights of the 2021-22 Budget presented by Finance Minister Nirmala Sitharaman in Parliament on Monday: West Bengal Chief Minister Mamata Banerjee on Monday vehemently criticised the Union Budget presented by Finance Minister Nirmala Sitharaman in Parliament earlier in the day, saying it would impact farmers and poor people across the country. She said, "it is anti-farmer, antipeople and anti-country budget". "The budget is not in favour of the farmers and poor people of the country. What kind of budget is this? It's a fake budget. Bhekdhari sarkarer fakedari budget (It is a fake budget of the deceptive government," Banerjee said Rs 35,000 cr outlay for COVID vaccine in fiscal beginning April 1 Today India has 2 vaccines available, 2 more vaccines are expected soon Sharp increase in capital expenditure for next fiscal to Rs 5.54 lakh cr, up from Rs 4.39 lakh cr of last fiscal Fiscal deficit for current fiscal at 9.5 pc, against 3.5 pc budgeted Congress leader Rahul Gandhi on Monday slammed the Centre for not providing cash transfers to the poor in the Union Budget, and said the Modi government was planning to give the country's assets to a few capitalists. In a tweet after the Budget, he said, "Forget putting cash in the hands of people, Modi Govt plans to handover India's assets to his crony capitalist friends." The Congress and the opposition came down heavily on the Centre after the Union Budget presentation by Finance Minister Nirmala Sitharaman. BUDGET WILL CREATE JOBS Appreciating the 'first digital budget' of India, Bharatiya Janata Party (BJP) national president JP Nadda on Monday congratulated Finance Minister Nirmala Sitharaman and her team and said the efforts made in the budget will play an important role in creating jobs in the country. "This is the first digital budget. As Prime Minister Narendra Modi said, this budget is making the rules and regulations easier and will increase the ease of living for common people," said the BJP president. ANI Govt upfront with fiscal deficit, we have spent, spent, spent: Sitharaman NEW DELHI: The government has decided to spend big on infrastructure across a wide variety of sectors to give a greater impetus to the economy which is recovering from the impact of COVID-19, Finance Minister Nirmala Sitharaman said on Monday. Addressing the post-budget press conference, the minister said the government has been absolutely upfront with the fiscal deficit which has been pegged at 9.5 per cent of the GDP and so "we have spent, we have spent and we have spent" The minister said big spending on infrastructure would help give the needed demand push to the economy. Sitharaman, who was wearing a red-coloured saree with off-white detailing and gold border when she presented the budget in the morning, wore a yellow and goldencoloured saree during the press conference. "Budget 2021 comes at a time when all of us desire to give greater impetus to the economy, we thought this impetus would be qualitatively spent well and would give the needed demand push if we spend big on infrastructure," she said. The minister said there were two important features of the budget including the steep increase in budget outlay in the health sector. "One we chose to spend big on infrastructure which pans across roads bridges, ports, power generation and so on. The second feature was that we attend to the need of the health sector," she said. She said the government has attended to the needs of the health sector, capacity building in health has been given a big place with focus down to the planning of blocklevel requirements. She said agriculture has been given emphasis and allocation for credit flow through NABARD has been increased. "We are bringing in Agriculture Infrastructure Development Cess through restructuring without consumers having to pay more. In no category has the consumer ended up Union Minister for Finance and Corporate Affairs Nirmala Sitharaman addressing a Post Budget Press Conference, in New Delhi on Monday. ANI paying more after this cess. That we have done only because we wanted to be sure that in order to improve agricultural infrastructure, we have a dedicated amount coming out of the budget rather than that going it to the consolidated fund. It might still go but we know what is going to be used for agriculture infrastructure," Sitharaman stated. The Minister emphasised that budget has introduced various reforms in the financial sector including IPO of LIC and increase in FDI in the insurance sector. "We have come up with a formulation to clean up NPAs in banks. Development Financial Institution is being brought in to fund infrastructure requirements. This DFI will be used to raise about Rs 5 lakh crore in the next 3-5 years. We also see a future for private sector DFIs," she said. Sitharaman said that government has made government accounts more transparent, and is absolutely upfront with the fiscal deficit. "We ensured repeated review of capital expenditure and ensured that spending was encouraged and not WE ARE BRINGING IN AGRICULTURE INFRASTRUCTURE DEVELOPMENT CESS THROUGH RESTRUCTURING WITHOUT CONSUMERS HAVING TO PAY MORE. IN NO CATEGORY HAS THE CONSUMER ENDED UP PAYING MORE AFTER THIS CESS. THAT WE HAVE DONE ONLY BECAUSE WE WANTED TO BE SURE THAT IN ORDER TO IMPROVE AGRICULTURAL INFRASTRUCTURE. delayed. Our fiscal deficit which started at 3.5 per cent during February 2020 has increased to 9.5 per cent of GDP, so we have spent, we have spent and we have spent. At the same time, we have given a clear glide path for deficit management. We have made brave decisions to keep government accounts open and transparent," she said The Finance minister added that provision for extra-budgetary resources in Budget 2021 is zero, and for unidentified contingency, it is Rs 30,000 crore. Meanwhile the government has decided to spend big on infrastructure across a wide variety of sectors to give a greater impetus to the economy which is recovering from the impact of COVID-19, Finance Minister Nirmala Sitharaman said on Monday. Addressing the post-budget press conference, the minister said the government has been absolutely upfront with the fiscal deficit which has been pegged at 9.5 per cent of the GDP and so "we have spent, we have spent and we have spent" The minister said big spending on infrastructure would help give the needed demand push to the economy. Sitharaman, who was wearing a red-coloured saree with off-white detailing and gold border when she presented the budget in the morning, wore a yellow and goldencoloured saree during the press conference. "Budget 2021 comes at a time when all of us desire to give greater impetus to the economy, we thought this impetus would be qualitatively spent well and would give the needed demand push if we spend big on infrastructure," she said. The minister said there were two important features of the budget including the steep increase in budget outlay in the health sector. "One we chose to spend big on infrastructure which pans across roads bridges, ports, power generation and so on. The second feature was that we attend to the need of the health sector," she said. She said the government has attended to the needs of the health sector, capacity building in health has been given a big place with focus down to the planning of blocklevel requirements. She said agriculture has been given emphasis and allocation for credit flow through NABARD has been increased. Fiscal deficit for next fiscal pegged at 6.8 pc, government to borrow Rs 12 lakh crore FDI limit in Insurance Sector increased from 49 per cent to 74 per cent Committed to bring down fiscal deficit below 4.5 pc of GDP by 2025-26 TAX PROPOSALS: ITR filing not mandatory for senior citizens above 75 years, banks to deduct TDS Time bar for reopening I-T assessment cases halved to 3 years, for serious frauds it is 10 years Income tax return filers increased to 6.48 cr in 2020 from 3.31 cr in 2014. Agri infra cess of 2.5 pc on gold, silver and dore bars; 35 pc on apples Agri infra cess of 30 pc on Kabuli chana, 10 pc on peas, 50 pc on Bengal gram/chickpeas, 20 pc on lentil (mosur); 5 pc on cotton Rs 15,700 crore budget allocation to MSME Sector, more than double of this year's BE Rs 2.5 per litre agri infra cess on petrol, Rs 4 on diesel New Agri Infra Development Cess to be applicable from February 2 Tax deptt to notify rules to remove hardships of double taxation faced by NRIs Tax holiday for startups, capital gains exemption extended by 1 yr Discounts on mobilephone parts decreased, mobile phones will be expensive. Mobile chargers will be expensive. Gemstones will be expensive. Tax exemption for aircraft leasing cos; tax exemption for notified affordable housing for migrant workers. Rs 1.5 lakh tax deduction on payment of interest for affordable housing extended by 1 yr Exemption from tax audit limit doubled to Rs 10 cr turnover for companies doing most of their business through digital modes Shoes will be expensive. Proposes review of over 400 customs duty exemptions; to begin extensive consultation from October 2021 Customs duty on certain auto parts, solar equipment raised ALLOCATION AND REFORMS: FDI in insurance increased to 74 pc from 49 pc Disinvestment target for FY2022 at Rs 1.75 lakh cr Government to bring LIC IPO this year The Central Government will facilitate a worldclass fintech hub at Gift city THESE ITEMS BECAME EXPENSIVE: FISCAL POSITION, HEALTH OUTLAY: Spending on healthcare hiked by 137 pc to over Rs 2.23 lakh crore People watch the Union Budget 2021-22 presented by Union Finance Minister Nirmala Sitharaman, in Prayagraj on Monday. MODI PLANS TO GIVE ASSETS TO CRONY CAPITALIST FRIENDS: RAHUL For transparent tax appellate mechanism, it is proposed to make the Income Tax Appellate Tribunal faceless and jurisdictionless Rs 1.75 lakh cr for fiscal year beginning April 1, 2021. Leather items will be expensive. Imported clothing. Electronic equipment. Parts of trains. Solar inverter, equipment from solar. Cotton. Disinvestment target pegged at Rs 1.75 lakh crore BPCL, IDBI Bank, two more PSU banks, one insurance company to be privatised among others Budget stresses on six pillars of Indian economy NEW DELHI: After a Covid hit year, six pillars of health, physical and financial capital and infrastructure, inclusive development, human capital, innovation and minimum government and maximum governance have been identified as the cornerstones to build a new economy in a New India. Presenting the Union Budget 2021-22 on Monday, Finance Minister Nirmala Sitharaman said that the Budget rests on these six pillars. There is substantial increase in investment in health infrastructure and the Budget outlay for health and wellbeing is Rs 2.23 lakh crore, as against this year's budget estimates of Rs 94,452 crore, an increase of 137 per cent. The Finance Minister announced that a new centrally sponsored scheme, 'PM AatmaNirbhar Swasth Bharat Yojana', will be launched with an outlay of about Rs 64,180 crore over six years. For vaccines, there is a provision of Rs 35,000 crore. The pneumococcal vaccine, a Made in India product presently limited to just five states, will be rolled out across the country, aimed at averting 50,000 child deaths annually. The Budget also put emphasis on universal coverage of water supply and the Swachh Bharat Mission. The Finance Minister announced that the Jal Jeevan Mission (Urban) will be launched for universal water supply in all the 4,378 urban local bodies with 2.86 crore household tap connections, as well as liquid waste management in 500 AMRUT cities. It will be implemented over five years with an outlay of Rs 2.87 lakh crore. Moreover, the urban Swachh Bharat Mission will be implemented with a total financial allocation of Rs 1.41 lakh crore over a period of five years from 2021-2026. The second pillar of physical and financial capital and infrastructure has several key areas, including the Aatmanirbhar Bharat-Production Linked Incentive Scheme. Sitharaman said that to boost manufacturing, PLI schemes for an Aatmanirbhar Bharat have been announced for 13 sectors. For this, the government has committed nearly Rs 1.97 lakh crore in the next five years starting FY 2021-22. This initiative will help bring scale and size in key sectors, create and nurture global champions and provide jobs to the youth. For textiles, to enable the textile industry to become globally competitive, attract large investments and boost employment generation, a scheme of Mega General Budget 2021-22 documents brought in the Parliament House premises under security on Monday. Investment Textiles Parks will be launched in addition to the PLI schemes. This will create world class infrastructure with plug and play facilities to enable to create global champions in exports. As part of this scheme, seven textile parks will be established over three years. Sitharaman said that infra- structure needs long term debt financing. A professionally managed 'Development Financial Institution' (DFI) is necessary to act as a provider, enabler and catalyst for infrastructure financing. Accordingly, a Bill to set up a DFI will be introduced. The government has provided a sum of Rs 20,000 crore to capitalise this institution and the ambition is to have a lending portfolio of at least Rs 5 lakh crore for this DFI in three years' time. Sitharaman also provided an enhanced outlay of Rs 1.18 lakh crore crore for the Ministry of Road Transport and Highways, of which Rs 1.08 lakh crore is for capital, the highest ever. Expressing a serious concern over the viability of distribution companies, the Finance Minister proposed to launch a revamped reforms-based result-linked power distribution sector scheme with an outlay of Rs 3.05 lakh crore over five years. The scheme will provide assistance to DISCOMS for infrastructure creation, including pre-paid smart metering and feeder separation, upgradation of systems etc. For financial capital, Sitharaman proposed to consolidate the provisions of SEBI Act, 1992, Depositories Act, 1996, Securities Contracts (Regulation) Act, 1956 and Government Securities Act, 2007 into a rationalised single Securities Markets Code. In a major move for FDI, she also proposed to amend the Insurance Act, 1938 to increase the permissible FDI limit from 49 per cent to 74 per cent and allow foreign ownership and control with safeguards. Under the new structure, the majority of directors on the board and key management persons would be resident Indians, with at least 50 per cent of directors being independ- THESE ITEMS BECAME CHEAP: CMYK PAGE 2 Polyester fabric is cheap. Union Minister for Finance and Corporate Affairs Nirmala Sitharaman arrives at Parliament House to present the General Budget 2021-22, in New Delhi on Monday. The dividend payments to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) from tax deduction at source (TDS) have been exempted. Apart from exemptions, the budget envisages constitution of a -- Dispute Resolution Committee -- for small taxpayers. In terms of shoring up the Centre's revenues, she proposed an asset monetisation pipeline. She also set a massive divestment target of Rs 1.75 lakh crore. However, Covid-19 prevented the Centre in achieving the FY21 target, with collections only coming in at Rs 19, 499 crore. In FY22, the Centre plans to divest two public sector banks, as well as a state-owned general insurance company. Even the IPO route will be considered Nylon clothes will be cheap. Steel utensils will be cheap. Solar lanterns will be affordable. for LIC to augment falling revenues. Sale of certain projects such as city gas pipelines, roads and ports are expected to give some relief to the Centre. But here as well, the fine print suggests hiving off these assets after their completion. Nonetheless, an -- Agriculture Infrastructure and Development Cess -on excise and customs duties to augment Centre's coffers. Consequently, the fiscal deficit for next year is set at 6.8 per cent from 9.5 per cent for FY21, out of which the Centre plans to borrow Rs 80,000 crore by the end of the current fiscal. She proposed to amend the FRBM act to institute more elasticity and return to a fiscal deficit level below 4.5 per cent of GDP by 2025-2026. The FRBM Act mandates a fiscal Shareholders and brokers show victory signs in the share market amid Union Minister Nirmala Sitharaman presents Union Budget 2021-22, in Kolkata on Monday. deficit of 3 per cent of GDP that needs to be achieved by March 31, 2020-2021. GOVT TO INTRODUCE SPECIAL RESOLUTION FRAMEWORK FOR MSMES As India's insolvency regime grows and evolves, micro, small and medium enterprises (MSME) are set to come under the Insolvency and Bankruptcy Code. Presenting the Union Budget for 2021-22, Finance Minister Nirmala Sitharaman on Monday announced that a special framework for resolution of bankrupt MSMEs will be introduced. She also said that to ensure faster resolution of cases, the NCLT framework Paint will be cheaper. Dry cleaning Gold and silver jewellery will be cheaper. will be strengthened, the e-courts system "To provide relief to metal re-cyclers, shall be implemented and alternate mostly MSMEs, I am exempting duty on methods of debt resolution will be intro- steel scrap for a period up to 31st March, duced. 2022. Further, I am also revoking ADD Among other annoucements for and CVD on certain steel products. Also, MSMEs, the minister to provide relief to said that in budget, copper recyclers, I the government has am reducing duty on INDIA SETS provided Rs 15,700 from 5 MASSIVE SPENDING copper scrap2.5 per crore to this sector, per cent to more than double of cent," she said. TARGET TO the previous budget In another UNLEASH GROWTH boost for smallmajor estimate. comNoting that panies, the governMSMEs and other ment has proposed user industries have been severely hit by to revise the definition under the a recent sharp rise in iron and steel Companies Act, 2013 for small compaprices, Sitharaman told the parliament nies by increasing their thresholds for that the government is reducing customs paid up capital from not exceeding Rs 50 duty uniformly to 7.5 per cent on semis, lakh to not exceeding Rs 2 crore and flat, and long products of non-alloy, alloy, turnover from not exceeding Rs 2 crore and stainless steels. to not exceeding Rs 20 crore. ‘Budget envisions self-reliance, will enhance India’s self-confidence’ NEW DELHI: Prime Minister Narendra Modi on Monday hailed the Union Budget 2021-22 and said it will enhance India's selfconfidence amid the coronavirus pandemic while asserting that the budget envisions self-reliance. "The Union Budget 2021-22 has been presented amid unprecedented circumstances.... Amid the situation created by COVID-19. Today's budget will enhance India's self-confidence and will instill self-confidence in the world. The budget has the vision of self-reliance and takes along every section of the society," PM Modi said after the Union Budget was tabled in the Parliament. "We have taken the approach of widening new oppor- tunities for growth, new openings for our youth, a new high to human resources, developing new regions for infrastructure, walking towards technology and bring new reforms in this Budget," the PM said. The Prime Minister lauded Finance Minister Nirmala Sitharaman and her team for the budget. "This budget will bring several positive changes for individuals, investors, industry, and infrastructure sector. I congratulate FM Nirmala Sitharaman Ji and her team on this budget," he said. Speaking further on the budget, he said: "The government, while keeping in sync with fiscal sustainability, stressed on increas- Prime Minister Narendra Modi delivering the Statement after the Union Budget 2021-22, in New Delhi on Monday. ing the budget size, and did not put pressure on the citizens. Our government has always tried to keep the budget transparent." "Many thought we will put the tax burden on the common man. However, we focused on a transparent budget," he added. PM Modi said that the budget focuses on increasing farmers' income, several measures have been taken in this direction. "Farmers will be able to get loans easily. Provisions have been made to strengthen APMC markets with the help of Agriculture Infrastructure Fund," he said. The Prime Minister said that the budget focuses on sectors that are related to both wealth and wellness. "A special focus is also "THIS BUDGET WILL BRING SEVERAL POSITIVE CHANGES FOR INDIVIDUALS, INVESTORS, INDUSTRY, AND INFRASTRUCTURE SECTOR. I CONGRATULATE FM NIRMALA SITHARAMAN JI AND HER TEAM ON THIS BUDGET," HE SAID. on infrastructure and MSME sectors. This budget has categorically made announcements to ease and make lives of women better. Several systematic changes have also been made, which is set to help growth and job creation in the country," he said. Earlier in the day, Finance Minister Nirmala Sitharaman presented the firstever digital Union budget. She announced higher capital expen- diture for the FY 2021-22 and focused on providing a major boost to healthcare and infrastructure building. In her Budget speech, Sitharaman mentioned that this year's budget 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 stated that India's fight against COVID-19 continues into 2021 and that this moment in history, when the political, economic, and strategic relations in the post-COVID world are changing.