Union Budget 2021: Pros & Cons

Union Budget 2021 Impacts

As we all know, Finance Minister Nirmala Sitharaman presented the budget for the financial year 2021-22 on 1 February 2021 in Parliament and amidst the Kovid 19 epidemic, Budget 2021 gave a clear indication that ‘Healthy India’ and The country will move forward only on a ‘strong foundation’.

The way the government has set the target of fiscal deficit, it is clear from this that the Finance Minister did not impose any new tax in the budget 2021 which has a negative impact on the investors, businessmen or taxpayers. This was the reason that the stock market did not see much fluctuation after the budget came this year. But the Modi government did not give any relief to the taxpayers’ pockets

Indian Budget 2021 Pros & Cons

Now let us talk about, how beneficial and harmful is the Union Budget 2021 for the common man inside India

1. 135% increase in health spending

Finance Minister Nirmala Sitharaman proposed to increase the country’s healthcare expenditure to Rs 22000 crore.
So that the public health system can run smoothly and the entire vaccination of 1.3 billion population can be done smoothly after the Kovid 19 epidemic in the country!

2. Government has given half of the country’s agricultural budget to Prime Minister Kisan Yojana

As you all will know, since the arrival of the Agricultural Policy 2020, some farmers organizations of the country are agitating and this 3 new seeking to withdraw the laws, the Modi government has given 5.63 percent to the Ministry of Agriculture and Farmers Welfare, about Rs. 1,31,531 crore more is allocated for this budget session

Five Big announcements for farmers

A. Finance Minister Nirmala Sitharaman said that farmers will be given MSP one and a half times the production price. In FY 2021, Rs 75,100 crore was allocated for MSP.

B. The government has set a target of 16.5 lakh crores of agricultural loans to farmers. APMC will be brought under the purview of the Agri Infra Fund. Efforts are being made to increase the infrastructure in rural areas.

C. The Finance Minister said that 1.68 crore farmers are registered with ENAM. 100 more mandis will be added with ENAM.

D. Government has imposed agriculture cess on petrol and diesel. Big plans can be announced for farmers.

E. The government has talked about adding perishable crops to benefit the farmers under the Operation Green Scheme.

The Union Budget (Union Budget 2021-22) has given a direct message to the farmers that whatever schemes have been made for the farmers will benefit from the three agricultural laws only.
But many farmers’ organizations in the country have ruled the government to withdraw 3 new laws, rejecting these announcements.

3. Tax exemption for senior citizens

The Finance Minister has exempted income tax returns for senior citizens above 75 years of pension this year.
Now senior citizens above 75 years will not bear any more burden and senior citizens above 75 years of pension income will not be required to file tax returns.

4. Increase of FDI in insurance

This year Modi government has given a good opportunity to invest foreign investors in India. The government has proposed to increase the FDI -Foreign direct investment to 74% in the insurance sector. In the General Budget, the Finance Minister announced that the government said that the move is aimed at attracting foreign companies for investment. This will help in increasing the penetration of insurance in the country.

5. Increase in capital expenditure

The central government has proposed to increase the capital expenditure by 34.5 per cent to Rs 5.5 lakh crore in FY 2021-22 to accelerate economic growth through creation of infrastructure. For the current financial year, it has been increased to Rs 4.39 lakh crore from the budget estimate of Rs 4.12 lakh crore.

Union Finance Minister Nirmala Sitharaman said that the capital expenditure has been increased in the financial year 2020-21. We gave Rs 4.12 lakh crore towards capital expenditure. Even after the scarcity of resources, our effort was to increase capital expenditure. We are going to spend about 4.39 lakh crore rupees in this financial year. We have made this provision in the revised budget for 2020-21.

6. Budget disappointment in tourism and hospitality sector

Many celebrities in the industry have said that the budget has disappointed the tourism and hospitality sector. However, measures to strengthen the infrastructure may help. Nakul Anand, president of the Federation of Associations in Indian Tourism and Hospitality (FAITH) said, FAITH had made several recommendations for the tourism sector in the budget from the government. These recommendations included making export income tax-free and exempting income tax on travel in India. The region with a tourism-based economy has suffered heavily due to the Corona epidemic. The tourism sector hoped that with relief from the government in Budget 2021, the outbreak of the epidemic could be overcome.

7. Real estate sector was expecting a lot from this budget, their hopes are expected to be fulfilled.

To provide funds for the infrastructure project, the government has announced the creation of a new Development Finance Institution (DFI) with a capital of Rs 20,000 crore. Infrastructure institutions are expected to get a lot of relief from this effort. Not only this, the government has extended the rebate on purchasing affordable houses for one year more. According to Finance Minister Nirmala Sitharaman, an additional rebate of Rs 1.5 lakh on home loans will continue till March 31 next year.

Conclusion

The Union Budget 2021 has impacted both positively and negatively on the common people in India and there have been some extensive reforms in the Budget 2021 to develop the small businesses and startups of the common people in India.

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Article By : Mayank Aswal

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