Budget 2021 Key Takeaways: Spending boost to lift pandemic-hit economy, new cess to finance agri infra – The Economic Times

!1 New UpdateClick here for latest updates

Budget 2021 at a glance:

  • New agri infra cess to be applicable from February 2, 2021
  • The first Budget of the decade leaves direct taxes unchanged
  • The FM proposes extension of tax holiday for start-ups by one more year
  • Govt to extend eligibility of erstwhile tax sop on home loan up to FY22
  • Govt to notify rules to eliminate double tax for NRIs on foreign retirement funds
  • Pensioners over 75 years of age are exempt from filing returns
  • Govt to privatise 2 PSU banks, one general insurance company in FY22
  • Divestment target for FY22 at Rs 1.75 lakh cr, FM says
  • Government to now allow one-person companies
  • Government to amend Insurance Act to allow higher FDI
  • FY22 fiscal deficit seen at 6.8%.
  • Providing Rs 1.15 lk cr for Railways, privatizing airports
  • Highway infra work proposed include building 8,500-km of highways by March 2022
  • FY22 capital expenditure up +34.5% (Vs FY21 BE) at Rs 5.54 lakh crore
  • Govt to set-up a DFI, capitalised with Rs 20,000 crore
  • Rs 1.41 lakh crore for Urban Clean India Mission
  • FM lays out a Rs 64,180 crore spending plan for healthcare over the next six years

The country has faced an unprecedented event with COVID-19 pandemic, which warranted tough policy measures while walking the fiscal tightrope. In this light, the government has done a commendable job through its investment push.

– Shishir Baijal, Chairman and Managing Director, Knight Frank India

Budget: Increased capex to help India upgrade power transmission and distribution network, say companies

Rs 50K crore allocated for Jal Jeevan Mission

  • Department of Drinking Water and Sanitation allocated Rs 60,030 crore
  • Department of Water Resources, River Development and Ganga Rejuvenation given Rs 9,022.57 crore

By the most conservative estimates, PSU banks will need USD15bn at the very least in additional capital over the next few years, so the government’s decision to privatize two PSU banks and one general insurer is a strong signal to the market that it intends stepping back to allow the private sector to play a more active role in the financial services sector

– Kaushik Shaparia, Chief Country Officer, Deutsche Bank India

Union Budget to give big push to ‘Aatmanirbhar Bharat’

– Gujarat Chief Minister Vijay Rupani

ARC may only give banks respite from toxic debt flood

  • Gross NPAs in Indian banks 7.5% at end-September
  • NPAs could rise to 14.8% central bank has warned
  • Globally bad banks have had mixed success
  • Bad bank aimed at helping India’s privatisation plans
  • More steps needed to revive stressed lenders -sources

Barring PowerGrid, total investments by power PSUs to rise 19 pc to Rs 60k cr in FY22

  • REC Ltd witnessed highest increase of over 69% in investment
  • Power Grid investment for 2021-22 has been reduced to Rs 7,500
  • NTPC’s increased to Rs 23,736
  • Hydro power giant NHPC investment is hiked to Rs 8,057.44 crore
  • Total expenditure pegged slightly higher at Rs 15,322 crore

Govt handing over India’s assets to crony capitalists: Rahul Gandhi on Union Budget

I won’t comment on the Budget in a hurry. I will speak later. But from what I have heard (about Budgetary provisions) so far, the Budget should be for the country and not for elections. This is the budget of the country and not of polls

– Maharashtra Chief Minister Uddhav Thackeray

This is a forward looking Budget and over five lakh crore rupees investment in infrastructure is a major initiative that will give a major fillip to employment

– Prakash Javadekar

The budget was largely disappointing for the real estate industry which was expecting a major boost from this budget by way of some major relief in personal income tax or input credit under GST for the real estate projects

– Anuranjan Mohnot Managing Director & CEO, Lumos Alternate Investment Advisors

CII hails 34.5 pc rise budgeted in capital expenditure

The Confederation of Indian Industry (CII) Director-General, Chandrajit Banerjee on Monday welcomed the Union Budget presented by Union Finance Minister Nirmala Sitharaman and said it favoured a major expansion in government spending with a focus on capital expenditure to give a fillip to demand generation and strengthening the recovery momentum.

Ind-Ra sees budget numbers more credible, achievable

The fiscal arithmetic in Budget 2021-22 is more convincing than earlier years. At the core of the Budget is the nominal GDP growth of 14.4 per cent which looks plausible with 10 per cent real GDP growth, India Ratings Chief Economist Devendra Pant and Principal Economist Sunil Kumar Sinha said in a note.

Budget 2021 has been very transformational and makes some bold statements. Stability of tax regime, bringing in Dispute Resolution Mechanisms, undertaking bolder reforms such as privatizations, creating an institutional structure for resolution of stressed assets, and big push to Infrastructure & Health care spend have been on the wishlist of every stakeholder

– Manish Aggarwal, Partner and Head – Energy & Infrastructure M&A and Head – Special Situations Group, KPMG in India

Total planned capital expenditure for Railways of over Rs 2 lakh crore is highest ever

In a press release, the Ministry of Railways on Monday stated, “Indian Railways received a record outlay of Rs 1,10,055 crore, of which Rs 1,07,100 crore is for capital expenditure in the Union Budget 2021-22 presented in the Parliament today.”

J&K gets a gas pipeline project

  • Rs 30,757 crore provisioned to Jammu and Kashmir
  • Rs 5,958 crore allocated to Ladakh

Centre allocates Rs 73,000 crore to MGNREGA

  • 34% less than the revised estimate
  • Rural roads scheme given Rs 15,000 crore
  • National Rural Livelihood Mission allocated Rs 13,677 crore

Outlay of Rs 4071 cr announced for Information and Broadcasting Ministry

  • The allocation to Prasar Bharati has been reduced to Rs 2640.11 crore from Rs 2889.36 crore
  • PCI getting Rs 20 crore this time
  • FTII getting Rs 58.58 crore
  • For IIMC, the government has earmarked Rs 65 crore

Delhi government accuses Centre of giving step motherly treatment to national capital in Union Budget 2021-22, and claims budget is aimed at benefitting few big companies

Allocation to Svamitva scheme more than doubled

  • Panchayati Raj Ministry budget increased by 32% to Rs 913.43 crore
  • Svamitva scheme allocated Rs 200 crore
  • Rashtriya Gram Swaraj Abhiyaan given Rs 593 crore

The need for augmenting healthcare infrastructure has never been more compelling, and in response the budget has earmarked INR 64,180 crore over six years to develop capacities of primary, secondary and tertiary healthcare systems and to improve existing institutions, apart from enhanced spends for the healthcare programmes.

– Elias George, Partner and Infrastructure, Government and Healthcare, KPMG in India

The Budget has rightly envisaged a substantial jump in capital expenditure that has a strong multiplier impact on the economy. The decision to open up the insurance sector, setting up a DFI and an ARC, privatizing a couple of public sector banks are all positive steps for the financial sector.

– SBI Chairman Dinesh Kumar Khara

Delhi Police gets Rs 8,644.12 crore in Budget

Rs 8,100.20 crore for establishment-related expenditure
Rs 237.92 crore for:

  • upgradation and expansion of communication infrastructure
  • modernisation of equipment
  • installation of traffic signals
  • upgradation of training
  • procurement of vehicles for policing

Rs 306 crore for police infrastructure
Rs 10.14 crore for:

  • Nirbhaya Fund
  • Gender sensitisation activities

India’s electronics sector may see Rs 18,000 cr investment


  • Incremental investment of Rs 1,000 crore
  • Rs 10,000 crore for mobile sector PLI companies
  • Capital investment of Rs 5,000 crore from manufacturing companies
  • Create employment for 25,000 people
  • Investment of Rs 6,000 crore under the EMC scheme

Union Budget is what seems to be the best possible balancing act addressing the need for sustained fiscal support to foster faster recovery, growth and fiscal consolidation to the extent possible

– Mr. Sidharth Rath, MD & CEO, SBM Bank India

Excitement rewards as a Boon from the Government – It is an evidently responsible step from the government to the exemption of filing of income tax returns for senior citizens above 75 who only have a pension and interest income. This is a big relief to senior citizens

– Archana Sharma, Founder, And MD, Samvedna Senior Care

Social Justice and Empowerment Ministry allocated Rs 11,689 crore

  • An amount of Rs 10,517.62 crore has been allocated for the Department
  • The allocation for the Department of Empowerment of Persons with Disabilities saw an increase of 30.19% to Rs 1,171.77 crore

Govt targets gross tax revenue of Rs 22.17 lakh cr in FY’22

  • 16.67 per cent growth in gross tax revenue in the next fiscal
  • Gross tax revenue for current fiscal pegged at Rs 19 lakh crore
  • Corporate tax collection expected to grow 22.65% at Rs 5.47 lakh
  • Personal income tax to grow 22% to Rs 5.61 lakh crore.

A Budget to remember

I want this budget to be remembered as a budget that actually helped to revive and also give a message to the world. Its like the Indian cricket team in Australia that drive to compete and succeed just needs a little handholding which we are willing to do and we will do that and that is what the Budget will do.

FM on unchanged Income-tax

I have not applied my mind about bringing rates down or increasing the rates because I took that off the table but I can certainly continue with a consistent policy rather than a mercurial one that changes every year

I think there has been immense interest in PLI scehems and they are now being the favourite among the industries as they want schemes for their sectors. It is not going to be subsidies but for every additional export is where you are doing something to help out. I can see the results coming

– FM

I dont see an India without PSBs but to what scale and what size are you going to have even if they are in no position to revive or should they be consolidated?

– FM

In today’s aspirational India, the demand of long term financing for infrastructure, cannot be met with one institution, therefore establishing DFIs not a business on its own but this one will have to compete with the market. The amount that I give will be leveraged against the market

– FM

I am very hopeful that the reconstruction will do very well for the banks

– FM

On bad banks

We have been working together with RBI on this. The govt will be giving a portion of help from our side. RBI and GOI are with them on devising mechanism for asset reconstruction: FM

When there is increase in consumption, greater demand, increased liquidity, there is bound to be inflation. My emphasis is more on growth push

– Nirmala Sitharaman

The infrastructure cess will be used to strengthen the basic infrastructure in the agriculture sector

– MoS Finance & Corporate Affairs Anurag Thakur

Insurance stocks zoom up to 9%

Price as on 01 Feb, 2021 06:52 PM, Click on company names for their live prices.

Deloitte India on Budget 2021

  • Budget 2021 has provided a thrust towards enhancing manufacturing, infrastructure and human capabilities, with Infrastructure forming one of the six key pillars identified by the FM. Several infrastructure projects announced, which is an essential and welcome move.
  • The goal of 5-trillion dollar economy is riding on the back of manufacturing sector. PLI schemes for 13 sectors announced, to provide competitive edge to domestic manufacturing sector in the global market, with the aim to provide steady double-digit growth for the sector. Govt setting aside Rs 1.97lakh crore for creating and nurturing domestic manufacturing companies is a welcome move.

Union Budget’s focus on infra development will boost steel demand

– SAIL Chairperson Soma Mondal

Investors richer by over Rs 6.34 lakh cr as markets give big shout-out to Budget 2021

Fund of Funds for Startups allocated Rs 830 crore

  • Startup India programme: Rs 20.83 crore
  • DPIIT: Rs 7,782.24 crore
  • Dept of commerce: Rs 4,986 crore
  • Export promotion schemes: Rs 2,365 crore

Budget’s best efforts for reviving economy

The government’s decision to further infuse Rs 20,000 crore for public sector banks will help address liquidity issues to a large extent. The proposal to extend the Rs 1.5 lakh benefit on interest paid on affordable housing loans by one year to March 31, 2022 is an exceptional move which will boost the affordable housing segment and help to achieve the Prime Minister’s vision of Housing for All. It will also ensure that more and more homebuyers get to avail this benefit. The reduction in tax burden on senior citizens above 75 years will give a push to the senior-living projects. (By Ashok Mohanani, President – NAREDCO Maharashtra)

We’ve focused on MSME & infrastructure & are going to spend big on healthcare sector. We’ve allocated around Rs 1.10 lakh crores for roadways & railways each. This Budget will bring in a positive change for investors, businesses & general public

– Anurag Thakur, MoS for Finance

Govt depts to add over 1.4 lakh jobs between 2019 and March 1, 2021: Budget

  • The strength of government establishments to increase to 34,14,226
  • 2,207 jobs are estimated to be created between March 2019 and March 2021

2021-22 Budget testimony to India’s commitment to build stronger health system: Healthcare providers

The budget confirms government’s focus on developing infrastructure and skills which will have short and long term benefits to Indian economy and people. From a technology point of view, the incentives for creating digital infrastructure, education and skilling spells out the government’s intent on developing the country’s human capital

– HP India managing director Ketan Patel

Agriculture Ministry gets 5.63 per cent more budget for FY22; half of it for PM-KISAN

Dr Harsh Vardhan on Budget

Housing and Urban Affairs Ministry allocated Rs 54,581 crore

  • Swachh Bharat Mission-Urban: Rs 2,300 crore
  • Projects related to MRTS, Metro services: Rs 23,500 crore
  • Smart Cities Mission budget: Rs 6,450 crore
  • NCR Transport Corporation: Rs 4,472 crore
  • AMRUT scheme: Rs 7,300 crore
  • Metro Lite and Metro Neo to be deployed in Tier-2 and peripheral areas of Tier-1 cities

Budget 2021 again highlighted the government’s resolve towards promoting ‘housing for all’. Measures such as the one-year extension of the Rs 1.5 lakh deduction on payment of interest for affordable housing and on the tax holiday for affordable projects brings in much needed relief for the buyers as well as the developers

– Piyush Bothra, CFO, Square Yards

Tourism ministry budget slashed by 19%

From Rs 2,500 crore in 2020-21 to Rs 2026.77 crore out of which:

  • Rs 1088.03 crore allocated to development of tourism infrastructure
  • Rs 668.72 crore allocated towards promotion and publicity including Rs 524.02 crore for overseas market and Rs 144.70 crore for domestic tourists
  • Rs 138.65 crore for training and skill development

BJP president JP Nadda on Union Budget

The budget 2021 has been presented in an unprecedented situation. It is inclusive and is dedicated to the welfare of all people of India

FM announces New Education Policy:

  • Reduction of curriculum to core concepts
  • Replacement of 10+2 structure of school curricula with a 5+3+3+4 structure
  • Teaching up to at least class 5 in a regional language

Rs 93,224.31 crore allocated to Ministry of Education:

  • 100 new Sainik schools
  • Higher Education Commission of India to be set up
  • Increased collaboration with foreign institutions
  • Central University proposed to be built in Leh

The Finance Minister’s plan to introduce a Bill to set up a DFI (developmental financial institution) for long-term funding infra projects with a capital of Rs 20,000 crore and lending Rs 5 lakh crore in the next 3 years is a great move for India’s sustainable infrastructure

– Sanjay Dutt, MD & CEO, Tata Realty & Infrastructure

Aviation Ministry’s budget allocation reduced by 22%

  • Aviation Ministry allocated Rs 3,224 crore
  • Rs 600 crore allocated to Udan, 14.28% lower than current fiscal
  • Assets of AAI-operated airports to be monetised in tier-2,3 cities

Anshul Singhal, Managing Director, Welspun One Logistics Parks on the Union Budget

  • The government’s focus on capital expenditure and infrastructure development will be a shot in the arm for the warehousing and logistics sector in the country. The proposed Development Finance Institution will act as a provider, enabler, and catalyst for infrastructure financing. Also, the budget has earmarked a sharp increase in capital expenditure at Rs 5.54 lakh crore in 2022, from Rs 4.39 lakh crore in 2021.
  • A planned boost to road infrastructure across the country and seven port projects will aid in job creation and income generation. Overall, the large-scale infrastructure augmentation coupled with asset monetization program of core infrastructure assets will go a long way in realising the national infrastructure pipeline, thereby benefiting the logistics sector.

Congress on Budget 2021

FM ‘deceived’ those listening to her speech, especially MPs, who had no clue she imposed cesses on many products

FM Nirmala Sitharaman ‘deceived’ people, especially poor, working class, migrants and farmers: Congress’ P Chidambaram on Budget

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »