Union Budget 2021-22 LIVE Updates & Key Highlights & Question

Dear All,

Today is the biggest day for the Indian economy. Today i.e. 1st February 2021. The Finance Minister, Smt. Nirmala Sitharaman is presenting the Union Budget for the fiscal year 2021-22 in the Parliament on 1st February 2021 and here we are with the Union Budget 2021-22 Live updates. She is using a ‘made in India’ tablet computer to deliver a paperless Budget address. The Budget assumes great significance as it comes amid the novel coronavirus pandemic, which has led to massive economic disruption not only in India but all over the world.

Union Budget 2021-22 Proposals to Rest on Six Pillars:

1. Health & Well-Being
2. Physical & Financial Capital & Infrastructure
3. Inclusive Development for Aspirational India
4. Reinvigorating Human Capital
5. Innovation and R&D
6. Minimum Government, Maximum Governance

Union Budget 2021-22 LIVE Updates & Key Highlights

1. Nirmala Sitharaman Says This Budget “Provides Every Opportunity For Recovery“.
2. The Budget 2021-22 would provide Rs 35,000 crores for CovidVaccine and a commitment for more: FM
3. A pneumococcal vaccine to be rolled out across the country to avert 50,000 child deaths annually. 35,000 cr for the vaccine has been given and am committed to providing says FM.
4. India has two coronavirus vaccines available and it is safeguarding not only its own citizens but those of at least 100 other countries.
5. The total budget outlay for healthcare is Rs 2.23 lakh crore. This is 137% more than the last year’s budget“, said Union Finance Minister.
6. FM Sitharaman dwells on Scrapping Policy – Initiatives to reduce vehicular pollution. Vehicles to undergo fitness tests
7. TEXTILE PARKS ALONG WITH PLI SCHEME ANNOUNCED; Positive for ALL TEXTILE STOCKS.
8. Finance Minister Sitharaman launches Atmanirbhar Swasth Bharat Yojna.
9. Finance Minister Nirmala Sitharaman Announces Rs 64,180 Crore ‘Pradhan Mantri Swasth Bharat Scheme.
10. Infrastructure investments key for post-COVID revival. As FM presents the Budget Mobilising investments through large-scale privatization of operational assets is key. This could make or break a moment for achieving the dream of a USD 5 trillion economy.
11. Mega investment parks to be launched in addition to the PLI scheme. INR1.97 lakh crores committed for PLI schemes. 
12. Development Financial Institution proposed to be set up to fund #infrastructure development.
13. FM Nirmala Sitharaman announces a record sum of Rs 1.10 lakh crore for Railways. Rs 1,10,055 crores for Railways has been allocated for Railways with 1,07,700 crores for capital expenditure for Railways.
14. This year to see 11000 km more of the highway, says FM.
15. Railways to monetize dedicated freight corridors.
16. FM says Indian Railways has prepared a national rail plan for India. The plan is to create a future-ready railway system by 2030, bringing down a logistic cost.
17. Government introduces a voluntary scrapping policy for vehicles.
18. Capital expenditure increased to Rs 5.54 lakh crores, up 35.4% from last year.
19. Ujwala Scheme extended 100 more districts and 1 crore more users to be targetted: FM
20. PM Atma Nirbhar Swasthya Bharat Yojana To Develop Healthcare.
21. PROPOSAL TO INCREASE IN FDI LIMIT IN INSURANCE FOR 74%.
22. FM announces 100% electrification of broad gauge rail tracks by December 2023.
23. Deposit insurance – had gone up from 1 lakh to 5 lakh for bank depositors. Streamline the provision so that it extends to banks freezing their deposits for some time: FM.
24. FM revives definition of ‘small companies’ by increasing threshold of paid-up capital and turnover propose
25. FM proposes setup an ARC for NPA management; Rs 20,000 cr provided for PSB recapitalization.
26. Announcement:* Focus on Urban Jal Jeevan mission.
27. National Health Mission: Introduced the Aatmanirbhar Health Yojana with an outlay of Rs 64, 180 crores over six years.
28. Jal Jeevan Mission: with an outlay of Rs. 2.87 lakh crore to cover houses and to be implemented over five years.
29. Professionally managed development financial institutions (DFI) will be introduced.
30. Decriminalisation under limited liability partnerships to be taken up.
31. 702 km of metro rail already operation; 1,016 km in under construction.
32. FM says: to inncentivise incorporation of one-person companies without any restriction on paid-up capital.
33. Swachh Bharat & Swasth Bharat: Urban Swachh Bharat 2.0 will be rolled out with an outlay of Rs 1.48,000 Cr. over 5 years.
34. I am providing a record sum of Rs 1,10,055 crores for Railways of which Rs 1,07,100 crores is for Capital Expenditure only: FM Nirmala Sitharaman.
35. Centre to provide Rs 18,000 crore for public buses, announces FM Nirmala Sitharaman.
36. The MSP has undergone sea-change. Prices across commodities have gone up nearly 1.5 times: FM.
37. Wheat: A total of Rs 75,060 crores was paid to farmers in 2020-21 for procuring wheat.
38. Union Budget 2021: Govt says MSP procurement to continue at a steady pace.
39. Government allots Rs 20,000 crore for bank recapitalisation.
40. In 2021-22 we would also bring the IPO of LIC for which I am bringing the requisite amendments in this session itself: Finance Minister Nirmala Sitharaman.
41. The finance minister finally announced a Bad Bank. A new asset reconstruction and #assetmanagement company announced.
42. Govt says MSP procurement to continue at a steady pace. The total amount paid to paddy farmers surged to Rs 1.72 lakh crore in 2020-21: FM.
43. 5 fishing hubs to be developed: FM
44. Rights to property owners in villages – to cover all states and UTs: FM
45. Union Budget 2021: Social security benefits to be extended to gig and platform workers for the first time.
46. MSME: Rs 15,700 crores to be provided for MSME this year. This is more than double that of last year: FM.
47. One nation one ration card being implemented. The remaining 4 states to be integrated shortly.
48. Over 15,000 schools to be qualitatively strengthened under National Education Policy.
49. FM: Swachh Bharat 2.0 with an outlay of Rs 1.4 crore over 5 years.
50. Ujjwala scheme will be expanded to cover over 1 crore more beneficiaries.
51. One Nation One Ration card scheme’ announced for migrant workers.
52. The 4x increase in the paid-up capital threshold of small companies to Rs 2 crore and turnover by 10x to Rs 20 crore will ease their compliance and procedural burden. The sharp increase in budgetary allocation for roads, highways.
53. Rural infra fund has been increased to Rs 40,000 crore; A multi seaweed park will be set up in Tamil Nadu: FM.
54. FM announces 100 more Sainik schools, minimum wages to all categories of workers, and more in the education and agriculture sectors.
55. Definition of small companies to be amended by increasing the capital limit from Rs 50 lakh to Rs 2 Cr and turnover from Rs 2 Cr to Rs. 20 Cr.
56. I propose to amend the Insurance Act 1938 to increase the permissible FDI limit from 49% to 74% in insurance companies and allow foreign ownership & control with safeguards: FM Sitharaman.
57. Minimum wages to apply to all categories of workers. Women to be allowed to work in all shifts, even in the night shift, with adequate protection.
58. FY22 divestment target at Rs 1.75 lakh cr.
59. Gov will set up an institution to address stressed assets in the banking system via the ARC model.
60. Launching a national language mission to make an available wealth of governance in major Indian languages
61. The budget for health and well being would be around Rs. 2 lakh crore: FM.
62. BUDGET 2021-22 UPDATE : FISCAL DEFICIT IS PEGGED AT 9.5%.
63. Union Budget 2021: Rs 1,000 crore for tea workers in Assam and Bengal.
64. Tax assessment cases reduced to 3 years. The tax assessment cases for tax claims can now be re-opened only up to three years in place of six years: FM.
65. Senior citizens exempted from filing income tax returns, the paying bank will deduct the tax on their behalf.
66. Tax Audit limit raised to 10cr if 95% digital payments.
67. Nirmala Sitharaman’s Boost For FDI In Insurance, Agriculture Credit.
68. Re-opening time limit for direct tax assessment reduced to 3 years from the current 6 years.
69. Exemption from audit under Income-tax Act, 1961: proposed to increase tax audit limit from 5 crores to 10 crores.
70. Boost to NRIs in Sitharaman’s Budget: Government to notify rules to eliminate the double tax for NRIs on foreign retirement funds.
71. Govt to set-up a faceless dispute resolution mechanism for small taxpayers.
72. For accessible higher education in Ladakh. I propose to set up a central university in Leh: Finance Minister Nirmala Sitharaman.
73. Finance Minister, NirmalaSitharaman announces version 3 of MCA-21 which will address many flaws of the current system. 
74. Propose to make dividend payments to REIT (estate investment trusts) and Invit’s (Infrastructure investment trusts) exempt from TDS, says FM.
75. Advance tax: on dividends Advance dividends on tax would now be made payable only on receiving dividends.
76. Capital gains & Dividend to be pre-filled in ITRs
77. FM reduces the tax burden on senior citizens above 75 years. Pensioners over 75 years of age are exempt from filing returns.
78. No deduction for Late deposit of PF.
79. No Change in IT rates.
80. FM: We are on the path of fast implementation are our 13 promises made in Budget 2015-16.
81. The forthcoming census would be the first digital census in the history of India. For this monumental task, I have allocated 3,768 crores in this year 2021-22: FM.
82. Customs duties on gold and silver proposed to be rationalised.
83. Customs duty on solar lanterns has been reduced to 5%.
84. The fiscal deficit in BE 2021-22 is estimated to be 6.8% of GDP.
85. Gross Borrowing from the Market for the next year would be around Rs.12 Lakh crore: FM.
86. Tax holiday for startups extended to another year. Tax audit threshold raised to Rs 10 crore.
87. The government is raising custom duties in general on everything from animal feed to auto parts.
88. Customs duty on cotton and auto parts increased to 10% and 15% respectively. However, the customs duty on copper scrap has been reduced to 2.5% by Finance Minister under the budget 2021-22.
89. Solar panels will be expensive as custom duty raised by 20%; Auto parts will be expensive too, as customs duty raised by 15%.
90. To further reduce litigation for small taxpayers I propose to constitute a dispute resolution committee which will be faceless to ensure efficiency, transparency: FM.

Here is the list of New Schemes Announced in Budget 2021-22:

• National Language Translation Mission will be set up to boost regional languages and translation for our regional speakers. This will phenomenally help in increasing the utilization of internet services and augment the vision of digital India!.
• A new centrally sponsored scheme, PM AtmaNirbhar Swasth Bharat Yojana, will be launched with an outlay of about 64,180 crores over 6 years. This will develop capacities of primary, secondary, and tertiary care Health Systems, strengthen existing national institutions and create new institutions, to cater to the detection and cure of new and emerging diseases. This will be in addition to the National Health Mission.
• The Urban Swachh Bharat Mission 2.0 will be implemented with a total financial allocation of 1,41,678 crores over a period of 5 years from 2021-2026.
• The forthcoming Census could be the first digital census in the history of India. For this monumental and milestone-marking task, I have allocated 3,768 crores in the year 2021-2022.
• To launch a portal that will collect relevant information on gig, building, and construction-workers among others. This will help formulate Health, Housing, Skill, Insurance, Credit, and food schemes for migrant workers.
• 100 new Sainik Schools will be set up in partnership with NGOs/ private schools/states.
• For accessible higher education in Ladakh, FM to set up a Central University in Leh.
• The government plans to sell part of its holding in Life Insurance Corporation of India through an initial public offering in the coming year. An amendment to the existing Act to facilitate the public offer.
• To enable the textile industry to become globally competitive, attract large investments and boost employment generation, a scheme of Mega Investment Textiles Parks (MITRA) will be launched in addition to the PLI scheme. This will create world class infrastructure with plug and play facilities to enable create global champions in exports. 7 Textile Parks will be established over 3 years.
• Govt Proposes Agri Infra Cess of 100% on Alcoholic Beverages.
• The Finance Minister proposed to provide Rs. 1,000 crore for the welfare of Tea workers especially women and their children in Assam and West Bengal for which a special scheme will be devised.
• In the 75^th year of independence, the Budget seeks to reduce compliance burden on senior citizens who are of 75 years of age and above.  Such senior citizens having only pension and interest income, will be exempted from filing their income tax return.  The paying Bank will deduct the necessary tax on their income.
• Government of  India will set up 15 Health Emergency Centres.
• Finance Minister Nirmala Sitharaman has announced voluntary vehicle scrapping policy. Vehicles to undergo fitness test – which is 20 years for passenger vehicles and 15 years for commercial vehicles.
• National Infrastructure Pipeline has been expanded to 7,400 projects. Further, projects worth Rs 1.1 lakh crore have been completed under the National Infra Pipeline. The government will also introduce a bill to set up DFI providing Rs 20,000 crore to launch the National Asset Monetisation Pipeline to fund new infra projects.
• The government will allot Rs 1.03 lakh crore for National Highway Projects in Tamil Nadu; Rs 65,000 core for National Highway Projects in Kerala; Rs 25,000 crore for National Highway Projects in West Bengal.
• FDI in insurance sector proposed to be hiked to 74% from 49% now.
• Finance Minister Nirmala Sitharaman announces a new gas pipeline project for Jammu and Kashmir.
• The government has announced an independent gas transport system operator for booking and coordination to ensure for unbiased allocation of natural gas transportation capacity.
• FM puts disinvestment receipts at Rs 1.75 lakh cr for the fiscal year beginning April 1, 2021. Two PSBs and one general insurance company to be divested, legislations amendments to be introduced in this session.
• “Over 15,000 schools to be qualitatively strengthened under the National Education Policy.
• Finance Minister Nirmala Sitharaman earmarks Rs 1,500 crore for promoting a digital mode of payment.
• Finance Minister Nirmala Sitharaman announced an allocation of Rs 300 crore to the state of Goa for celebrating the 60th anniversary of the liberation from Portuguese rule.
• 1,000 more mandis will be integrated with the electronic national market.
• 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.
• Non-resident individuals with entrepreneurial potential are now enabled to set up One Person Companies (OPC) with no paid-up capital and turnover restrictions, reducing registration timeline from 182 days to120 days. Earlier only Indian resident citizens were permitted to set up OPCs.
• NRIs to be spared from double taxation. New rules to be notified. Tax audit limit increased from Rs 5 crore to Rs 10 crore.
• The National Nursing and Midwifery Commission Bill will be introduced by the government for passing.
• To benefit farmers, we are raising customs duty on cotton from nil to 10% and on raw silk and silk yarn from 10% to 15%. We are also withdrawing end-use based concession on denatured ethyl alcohol. Currently, rates are being uniformly calibrated to 15% on items like maize bran, rice bran oil cake, and animal feed additives.
• To build up domestic capacity, we will notify a phased manufacturing plan for solar cells and solar panels. At present, to encourage domestic production, we are raising duty on solar invertors from 5% to 20%, and on solar lanterns from 5% to 15%.
• The Finance minister surprised taxpayers by not announcing any change in income tax slab rates. Some relief in filing ITR for senior citizens above 75. No Covid tax, surcharges on income tax.
• Agri infra cess of 30% on kabuli chana, 10% on peas, 50% on bengal gram/chick peas, 20% on lentil (mosur); 5% on cotton imposed in Budget
• Agri infra cess of 2.5% imposed on gold, silver and dore bars; 35% on apples; 5% on specified fertilizer; 1.5% on coal, lignite and peat
• Agri infra cess of 100 pc imposed on alcoholic beverages
• Agri infra cess of 17.5% on crude palm oil, 20% on crude soyabean, sunflower oil imposed.
• Government has proposed farm cess of Rs 2.5/litre on petrol, Rs 4 on diesel.
• Tax holiday for startups extended by 1 yr; exemption on capital gains on investment in startups extended by 1 yr.
• Rs 1.5 lakh deduction on payment of interest for affordable housing extended by 1 yr.

Questions Based on Union Budget 2021-22