10 major announcements of the Modi government’s budget 

New Delhi, February 1, 2021: Taxpayers expected that the government would take some steps towards tax reform and the tax slab would change but to no avail. However, the government exempted people above 75 years of age from paying income tax. 

In the budget, Finance Minister Nirmala Sitharaman said that there are two vaccines in India and two more will be launched soon. In addition, the government said that for the first time in the country, there will be a digital census. 

The following are the 10 major announcements of the Modi government’s budget.

 1. Relief to taxpayers over 75 years of age

The government has given relief to taxpayers over 75 years of age. Sitharaman also announced in his budget speech for FY 2021-22 that there would be no need to file income tax returns for senior citizens above 75 years of age with pension and interest income. Banks paying interest will deduct tax on their behalf. In addition, Finance Minister Nirmala Sitharaman on Monday reduced the time limit for reopening of income tax assessment cases from six years to three years. He said that the timeframe for reducing the uncertainty in the minds of taxpayers regarding the reopening of assessment cases would be three years. The Finance Minister said that the tax department will notify the rules to remove double taxation difficulties of NRIs.

2. Proposal for a plan of Rs 1500 crore for promoting digital payments. 

The Central Government today proposed a plan of Rs. 1500 crore for promoting digital payments in the country. Finance Minister Nirmala Sitharaman said that digital payments have increased manifold in the recent past. Presenting the budget of ‘22, he said, “Digital lane. In order to further increase the debt, I propose a plan of Rs 1500 crores, which will give financial incentives for promoting digital payments.”

3. Gold and silver will be cheaper, mobile expensive

The government’s budget has shocked those who wish to purchase a mobile phone. Finance Minister Nirmala Sitharaman announced an increase in customs duty on mobile devices. He said that the customs duty on mobile devices will now be up to 2.5 percent. At the same time, custom duty has been reduced in copper and steel. Custom duty has also been reduced on gold and silver. This means that gold and silver will now be cheaper and mobile more expensive.

4. Digital Census in the country for the first time

Finance Minister Nirmala Sitharaman said on Monday that the government has allocated Rs 3,726 crore for the upcoming census and for the first time there will be a digital census in the country. While presenting the general budget for 2021-22, the Finance Minister said that the government is also working on a national language translation initiative. Sitharaman also announced the operation of the deep ocean mission with an outlay of over Rs 4,000 crore in five years. He said that the government has established a system of reconciliation for the speedy resolution of contractual disputes.

5. Diesel and petrol cess increases, no change in tax slab

Finance Minister Nirmala Sitharaman announced the imposition of an agricultural cess of Rs 2.50 on petrol and Rs 4 on diesel. However, it is being said that it will not affect consumers. It is believed that these cess companies will have to pay. Also, the income taxpayers did not get any relief from this budget. Finance Minister Nirmala Sitharaman did not make any changes in the tax slab this time. In this way, middle-class people have to follow the tax rules as before. People over the age of just 75 see some ease. 

6. One crore more beneficiaries will be included in the Ujjwala scheme 

The government said on Monday that the free LPG scheme (Ujjwala) will be expanded and one crore more beneficiaries will be brought under its purview. Finance Minister Nirmala Sitamaran announced this on Monday. Presenting the General Budget for 2021-22, the Finance Minister said that an uninterrupted supply of fuel was continued during the Covid-19 pandemic. He said that the city gas distribution network of delivering gas through pipes to households and providing CNG to vehicles would be expanded to cover 100 more districts. He also announced the Transport System Operator (TSO) for the regulation of general carrying capacity to promote a gas-based economy.

7. Announcing Rs 35000 crore for Corona vaccine

While presenting the general budget for 2021-22, Nirmala Sitharaman said, “I have made a provision of Rs 35,000 crore for Covid-19 vaccines for 2021-22. I commit to give more money when needed.” She said that India has already approved the use of two vaccines of Covid-19 and that two more vaccines could soon be included in the vaccination campaign in the country.

8. Approximately Rs 2000 crore announced for seven port projects 

The government announced seven port projects with an investment of over Rs 2000 crore. Finance Minister Nirmala Sitharaman said in her budget speech that these projects would be implemented under Public-Private Partnership (PPP). Presenting the first paperless general budget in the Lok Sabha, Finance Minister Sitamaran said that he has proposed seven port projects with an investment of more than Rs 2000 crore through PPP mode. There are currently 12 major ports in India that are under the control of the Central Government. These include Deendayal (formerly Kandla), Mumbai, JNPT, New Mangalore, Kochi, Chennai, Paradip, Kolkata (including Haldia).

9. Government proposes to increase the FDI limit in the insurance sector from 49 to 74 percent

The government has proposed to increase the FDI limit in the insurance sector to 74 percent. The move is aimed at attracting foreign companies for investment. Finance Minister Nirmala Sitharaman, while presenting the paperless budget for the first time on Monday, said that an investor charter will be introduced for all financial products. This will be the right of all financial investors. He proposed an amendment in the Insurance Act-1938 to increase the FDI limit in the insurance sector from 49 percent to 74 percent and to allow foreign participation and control with safeguards. Presenting the General Budget 2021-22, Sitharaman said that under the new structure, most of the directors and officers of the board and management level would be resident Indians. At least 50 percent of the directors will be independent directors. In addition, a certain percentage of the profits will be kept as a general reserve fund.

10. What did the railways get?

Sitharaman has proposed a record one lakh 10 thousand 55 crore rupees for the railway department, out of which one lakh seven thousand one hundred crore rupees will be spent on infrastructure. He said that by December 2023, all broad gauge rail lines in the country will be electrified. 

Finance Minister Sitharaman said that the government’s Rs 27.1 lakh crore self-reliant India package to counter the Covid-19 epidemic has given impetus to structural reforms.

More than 15,000 schools to include all components of the National Education Policy will be qualitatively strengthened; to enable them to emerge as exemplar schools in their regions, handhold and mentor other schools to achieve the ideals Policy. This was stated by Union Minister for Finance and Corporate Affairs, Sitharaman while presenting the budget 2021-22 in Parliament today. She also stated that 100 new Sainik Schools will be set up in partnership with NGOs/private schools/states.

Higher education

The Finance Minister also proposed to set up a Higher Education Commission of India as an umbrella body having 4 separate vehicles for standard-setting, accreditation, regulation, and funding.

“Many of our cities have various research institutions, universities, and colleges supported by the Government of India. Hyderabad for example has about 40 such major institutions. In 9 such cities, we will create formal umbrella structures so that these institutes can have better synergy, while also retaining their autonomy. A glue grant will be set aside for this purpose”, said Sitharaman.

Central University in Leh

She also proposed to set up a Central University in Leh for accessible higher education in Ladakh.