Thread by @gvkreddi

A thread on #UnionBudget2021
Will try to cover as much as possible...

Speech starts amid slogans, Madam Finance Minister goes ahead!
Explaining health crisis (previous 8 mth review of all mini budgets commences)

#BudgetSession

Total estimate of all relief provided in mini budgets = 27.1 lakh crore, ~13% of GDP...(Actual cash outgo is a lot less)

Quote: Rabindranath Tagore (WB elections in focus)
Analogy: Team India's success in Australia - Youth having abundant potential.

Lowest death rates of Covid.

Earlier contractions typical to India, this time, contraction is of a global nature. (Not our problem alone).

But we will still provide relief measures for the economy...

Vision for #AtmaNirbharBharat
- Ancient India: self reliant & epi-center of world
- We are part of G-20, BRICS; will be part of lot of groups as we keep rising.
- made 13 promises & materialized during Amrut Mahotsav.(🤔)
- Buzz words: Innovation, R&D, Min Govt, Max Governance.

FY22 Proposal on 6 pillars - Health & Well being, Inclusive Development, Human Capital, Innovation & R&D.

Health:
- Setup integrated public health units in 11 states
Rs.64,180 cr for Atmanirvhar Health Yojana over 6 yrs
- 17 new public health units; strengthen disease control

Jal Jeevan Mission: Outlay of 2.87 trillion over 5 yrs
Swach Bharat Mission: 1.41 lakh crore over 5 yrs

Scrapping policy: Voluntary, to phase out older vehicles, fitness tests
Covid vaccine provision: 35,000 cr.

2.23 lakh crore - Health Budget.

Mfg sector: Committed to 13 PLI schemes worth 1.97 lakh crore

Textiles: Mega investment textile park scheme to be launched; 7 such parks over 3 yrs

National infra pipeline has expanded to 7400 projects

A professional managed DFI for infrastructure financing. 20,000 cr equity.

Asset monetization: national monetization pipeline to be launched; a dashboard to track progress & provide visibility to investors
NHAI, PGCIL - sponsored 1 INvIT each; to transfer assets
Railways to monetize freight corridor assets; same with airports, coal infra assets.

FY22 Capital expenditure: 5.54 lakh cr (vs. 4.39 lakh cr); up 34.5%

To provide 2 lakh crore to states and autonomous bodies for Capex.

To complete 11,000kms of national corridor.

Allot corridors to West Bengal and Tamil Nadu (election focus) along with Assam, Kerala etc.

- Eastern and western corridors to be completed by Jun 2022
- 1.10 lakh cr for railways of which a large sum is for capex only
- 18,000 cr to augment bus transport service, to operate 20,000 buses

702 conventional metros are operational and rest under construction in 27 cities

100% electrification of broad gauge rail routes by 2023.
1.18 lakh cr to roads ministry

Power sector: Added 139GW of installed capacity, connected 2.9 cr households
Framework for consumers to choose more than 1 distribution Co.
Revamped power distribution scheme to be launched

3 lakh crore for power distribution scheme - Assist Discoms
7 ports to be offered on PPP mode; subsidy for Indian flag ships
1.5 lakh jobs to be generated from port work - ship recycling work

Ujwala scheme to be extended to cover 1 cr more beneficiaries; add 100 more districts.

Launch securities market code
Investor Financial Charter
1000 cr to Solar energy corporation of India
500 cr for IREDA

Amend insurance act: increase FDI limit to 74%, allow ownership with safeguards, 50% independent directors and board in Indian control.

Fintech hub in GIFT city

Recapitalization of 20,000 cr for PSBs

Deposit Insurance: ability to withdraw until the cover from stressed banks

ARC & AMC to be set up and take over bad debt

Raising levels to ease compliance for 2 lakh companies.

Definition of small cos raises from 50 lakh networth to 2 cr

NCLT framework to be strengthened for faster resolution; data analytics, machine learning (other IT buzz words) for compliance and execution.

Disinvestment: 10 Cos to be completed in FY22; IPO of LIC to be done.

Closure of sick or loss making CPSEs to be done; 1.75 lakh crore expected as disinvestment amount.

2 more PSBs and 1 Gen. Insurance Co. to be divested.

Agriculture:
To set up separate administrative structure for co-operatives
Govt offering MSP at at least 1.5X production cost
Amount paid to farmers at 75,000 crore vs. 52,000 crore
Wheat growing farmers benefitted quite a lot in last 1 yr
62,802 cr in FY20 vs. 33,874 cr In FY14

Increasing agri credit target to 16.5 lakh cr

Rural infra dev fund from 30,000 cr to 40,000 cr
Micro irrigation fund up 5,000 cr

22 perishable crops to be included in e-NAM; 1.68 cr farmers registered; 1000 more mandis to be integrated

5 major fishing harbors to be developed

32 States implementing One Nation, One Ration Card scheme
New Portal for gig workers for benefits to migrant workers
Implementation of labor codes soon
Min. wages to be applicable to all categories of labor
Women can work, with proper protection
Stand up India: Margin money ⬇️

Human Capital:
100 Sainik schools to be set up with NGO partnership
Central University in Leh, Ladakh
15,000 schools to be strengthened as per national education policy
Skilling: Enhance National Apprenticeship scheme, 3000 cr to be provided
UAE partnership to benchmark skills.

Ekalavya schools allocation at 40 cr vs 38 cr
50,000 cr on National Research Foundation in 5 yrs
Deep Ocean Mission outlay 4000 cr over 5 yrs.

1500 cr for financial incentives to promote digital payments
4 Indians to be trained for space mission (at Russia)

National Nursing and Midwife commission to be set up
A conciliation mechanism of contractual disputes
Upcoming census to be digital, allocating 3768 cr in 21-22
Goa getting 300 cr for celebration of liberation
3000 cr for welfare of women and (?) workers

Fiscal position:

FY21 fiscal deficit at 9.5% of GDP; Need 80,000 cr more needed from market; 12 lakh cr is gross borrowing

Revised expenditure target at 34.5 lakh cr

FY22: Estimate deficit at 6.8% of GDP; will continue on path of consolidation.

Will reach <4.8 by FY26

Will reach <4.5 by FY26
NSSF loans to FCI are discontinued;
FRBM path deviated due to Covid; amendment proposed
Revenue deficit grants of 72,340 cr of 17 states

Part B: to start.

New World Order post pandemic with India leading
Direct tax:
Return filers increased after corporate tax reduction

Senior citizens: reduce compliance burden for >75 yrs; only pension & interest income exempt from filing ITRs
Reduction in IT proceedings for reopening to 3 yrs

Dispute resolution committee set up; 1.10 lakh tax payers settled disputes of 85,000 cr.

A committee for small tax payers also to be setup

Faceless IT assessment done; National Faceless Appellate Tribunal to be set up.

Rules for removing double taxation

< 10 cr no tax audit.

Dividend Payment and estimation: Advance tax liability on dividend income shall arise only after declaration of payment of dividend; tax on dividend at lower rates for foreigners.

Relaxation in conditions relating to pvt funding, restriction on commercial activities.

Affordable housing & rental housing:

Extending eligibility of home loans for affordable housing to 31 Mar 2022.
Affordable housing projects to avail tax incentives.

Tax exemption for notified rental housing projects.

Tax holiday for capital gains of aircraft lease etc..

Compliance: pre-filled ITRs with details of capital gains, dividends, interest income etc frm now

Employer not to get deduction for late payment of PF.

Capital gains exemption for investment in start ups for 1 more yr.

(Nothing for Ind. tax payers I suppose, no thank u also).

GST: steps to smoothen further
Custom duty rationalization; removing 400 old exemptions & revised structure by 1 Oct 2021
Withdrawing exemptions on mobile mfg;
MSMEs hit by sharp rise in steel, so reducing customs duty to flat 7.5% and reducing duty on steel scrap. Revoking CVD

Cutting duty on copper scrap, naptha to 2.5%
Rationalizing customs duty on gold and silver
Raising duty on solar lanterns from 5% to 20%
Withdraw exemptions on tunnel boring m/cs, raising duty on certain auto parts
Increasing duty on steel screws and plastic ware & many things🙄

Proposing an agri infra development cess on some items

and some more increase in duties, rationalization etc..

The end!🙏

#UnionBudget2021 #Budget2021 #economy #India