Budget 2021 Updates: Nirmala Sitharaman claims govt delivered on healthcare, infra; 'let down like never before,' says Chidambaram

Budget 2021 LATEST Updates

P Chidambaram says Budget a let down like never before

Former finance minister Chidambaram used Nirmala Sitharaman's words to turn it around and criticise what was her third Budget. Sitharaman had claimed days ahead of today's speech that this Budget would be one like never before. Chidambaram, seeking to disagree, claimed it was a monumental let down like never before. He said the government failed on two most important factors, Defence and Healthcare. He said the Budget carried zero propositions for migrant workers, salaried class and the poor who are all struggling due to the pandemic and a bleak economy. 

Budget 2021 LATEST Updates

Maharashtra ministers accuse Centre of leaving state out of Budget allocations

The ruling Shiv Sena on Monday said Maharashtra was ignored in the Union Budget 2021-22 while its ally NCP termed the annual financial plan as "disappointing" and a move towards "privatisation".  "The Budget presented by the Central government is very disappointing. It seems a move towards privatisation. The common man has been neglected in this budget. Similarly, no concrete decision has been made for farmers," state home minister and senior NCP leader Anil Deshmukh told reporters in Nagpur.

NCP's Maharashtra chief spokesperson Mahesh Tapase said Union Finance minister Nirmala Sitharaman "used flowery words" in her Budget speech to hide the "real intention of privatisation". Tapase also said the Budget didn't provide any specific roadmap to tackle unemployment. "Defence found no mention even when China has encroached into our territory. No specific roadmap to tackle unemployment," he alleged.

Shiv Sena MP Sanjay Raut said "Maharashtra is not seen in this Budget".

Budget 2021 LATEST Updates

Miniscule increase in health budget if you take out one-time expense on vaccine: Chidambaram

Congress leader and former finance minister P Chidambaram slammed the Union Budget as decietful and empty. He said that the government has failed to perform on Defence and Healthcare, the two core points that were crucial for India. Dismatling the claim that there has been a 137 percent increase in health spending, Chidambaram said that a one-time investment in COVID vaccine programme cannot be deemed an investment into the healthcare infrastructure. "If you take that one-time expense out, there is very little increase in the health budget," Chidambaram said. 

Budget 2021 LATEST Updates

‘Get Well’ Budget

Nikhil Rungta, Country Manager, India, Verizon Media

This is a 'get well' budget with an expansionary outlook and focused on growth. Given the times it might not be a radical budget, but it is practical and thoughtful, which will propel the the consumption and growth of business. This Budget has also rightly signalled the need for greater inclusion in India's workforce. Women being allowed to work in all sectors and in night-shifts with adequate protection, and social security benefits extended to gig workers will provide an impetus for women to step up their contribution towards Aatmanirbhar Bharat.

Budget 2021 LATEST Updates

Budget 2021 holds out various positives for startups

Kunal Bahl, Co-Founder and CEO, Snapdeal

Budget 2021 holds out various positives for the startup sector. The move towards providing social security benefits for gig workers will add a much-needed safety net that will help this sector grow in a sustainable way and help the many millions that are a part of it. Reducing residency requirements for founders will allow talent to flow and will boost the start-up ecosystem. Extension of tax holiday for start-ups by 1 yr, boost to digital payments, increasing threshold for small businesses to Rs 2 crore are other gains for the startup sector.

Budget 2021 LATEST Updates

Ease in return filing aims to provide more transparency

Kapil Rana, Founder & Chairman, HostBooks

The relief to senior citizens of an age 75 years or more from filing ITR with a pension and interest income only, the period of re-assessment has been reduced to 3 years from six years in some specific cases, this will ease their burden. It will help the department in easing related burdens and will raise confidence within taxpayers allowing future growth rather than worry about past mistakes.

To woo small taxpayers a new committee has been formed known as dispute resolution committee for taxable income up to 50 Lakh and disputed income up to 10 lakh, E-assessment up to ITAT level. For businesses, the turnover limit of Tax Audit has been increased to 10 crores from 5 crores where 95 percent transactions are in digital mode and advance tax liability on dividend income arises after the declaration of dividend. By giving relaxation in Tax Audit (No tax audit up to 10 crores for business having 95 percent digital transactions), the government focuses more on digital payment to curb black money which is an interesting move.

Budget 2021 LATEST Updates

Mamata Banerjee says Budget is 'anti-people'

West Bengal chief minister Mamata Banerjee on Monday slammed the Union Budget as "anti-people" aimed at deceiving the masses and said the BJP talks about nationalism, but in practice, they are the ones who are selling resources of the nation to the private players.

Iterating the demand for withdrawal of the new farm laws, Banerjee wondered if the Centre can waive off NPAs running into crores of rupees then why is it hesitant to write-off farm loans. "They (BJP) lectures others on nationalism, but in practice, they are the ones who are selling the nation. They are selling everything from PSUs, Insurance, railways and ports. This is a budget to deceive the masses. It's an anti-farmer, anti-people and anti-country budget," Banerjee said, while addressing the inaugural ceremony of Uttar Banga Utsav.

Budget 2021 LATEST Updates

'No clue' that Centre had imposed cess on many products, says P Chidambaram

Congress leader and former Union finance minister P Chidambaram on Monday said, "Deceived those listening to the speech, especially the members of parliament who had no clue she [Sitharaman] had imposed cess on large number of products, including petrol and diesel."

Budget 2021 LATEST Updates

Congress claims govt slashed NREGA budget by 45%

Terming the Union Budget as "directionless", the Congress on Monday said it was a case of "wrong diagnosis and prescription",  and Finance Minister Nirmala Sitharaman could have been "brave" by extending help to the poor, but chose to be "timid".

Budget 2021 LATEST Updates

Public infrastructure to benefit from foreign investment

Abhaya K Agarwal, Partner- Strategy and Transaction, Infrastructure & Government and Public Sector, EY India

The infrastructure sector is expected to get a significant boost from reforms to ease foreign investment, particularly participation of the pension funds in the infrastructure sector such as the issuance of zero-coupon bond and relaxation regarding commercial activities. Setting up of a professionally managed Development Finance Institution (DFI) will be critical for speedy launch of the National Asset Monetisation Pipeline and to fund new infrastructure projects, for which the government has allocated Rs 20,000 crore in this Budget.

The government has allocated Rs 5.54 lakh crore for capital creation in the infrastructure sector. The transport sector has received a fair share of allocation in the budget with new economic corridors being planned to boost highways and railways sector. The government has also allocated Rs 1.18 lakh crore for the roads and highways sector and Rs 18,000 crore for the public transport in this year’s budget. About 8,500 km of road and highway projects are being planned to be awarded by March 2022 including the new road corridor projects.

Railways have seen a significant allocation in this year’s Budget with a total allocation of Rs 1.1 lakh crore, mostly on the capital expenditure including the railways corridors. The National Rail Plan 2030 to create a future-ready railways system will be critical for boosting and bringing investment into the Railways sector.

Budget 2021 LATEST Updates

Nirmala Sitharaman’s balanced Budget to help economic growth

Krish Raveshia, CEO, Azlo Realty

The real estate industry was expecting growth measures from the Union Budget. Given the current situation, the Finance Minister has presented a balanced budget. The budget was primarily focused on the infra and healthcare sector. Steps like a 1-year tax holiday for affordable housing projects and a 1-year extension for an additional deduction of interest up to Rs 1.5 lakh on loan for affordable housing will benefit all stakeholders of the industry and boost investments. Relief on TDS for dividend on REITs and InvITs will boost investment in these instruments.

A development finance institution for the infrastructure sector will facilitate funding, the good part is that it will be professionally managed to ensure seamless execution of operations. The Union government has done its part to help economic growth, it is over to RBI to keep rates low, liquidity at ease to ensure a quick revival of the economy.

Budget 2021 LATEST Updates

Nirmala Sitharaman’s Budget worthy of upgrading India to AAA 

Budget 2021 LATEST Updates

Budget 2021 proposals tax-efficient

Makarand Joshi, partner, MMJC and Associates LLP

The Budget has proposed no restriction on paid-up capital and turnover, to incentivise incorporation of one-person companies; conversion of one-person company to any other kind, reducing residency limit from 182 days to 120 days and allows non-resident Indians to incorporate one-person companies in India.

The Budget proposal is tax-efficient for all those individuals who pay taxes as high as 42 percent, while the corporate tax is not more than 25 percent. So far, the ceiling on maximum turnover and paid-up capital was making it unviable to shift their individual balance sheet to one person company structure. Now with this proposed change, 17 percent saving in tax is going to be a big motivator.

The Budget proposal augurs well as Decriminalisation leads to (1) no prosecution and (2) penalty levying power vested with Registrar of Companies, and hence there won’t be any prosecution. But on the other side enforcement will be extremely strong with Version 3 of MCA 21 (e-governance portal of Ministry of Corporate Affairs), as levying penalty may get automated and therefore any form of non-compliance will lead to a severe monetary penalty.

Budget 2021 LATEST Updates

Govt efforts on garnering resources without increasing tax rates commendable

Pratik Jain, Partner and Leader Indirect Tax, PwC India

On indirect tax, it’s encouraging that the Government continues the efforts of garnering resources through technology-led administration, without necessarily increasing the tax rates or imposing new taxes, except agriculture/ infrastructure cess on few imported items.

On customs duty, the proposal of wider consultation for rationalization of duty exemptions is a welcome step along with a series of duty rate changes to address the inverted duty structure and incentivizing domestic manufacturing. Having a sunset period for customs duty exemptions going forward and a reduced timeline for completion of proceedings would bring in more certainty for businesses.

Intention to address the inverted duty structure under GST, as indicated in the speech, is welcome as well. On GST, few important legislative changes have been proposed (as recommended by the GST council) which further tighten the regulations around claiming input credit and put greater onus on businesses by way of self-certification of annual statements.

Budget 2021 LATEST Updates

No mention of National Logistics Policy 

Sonesh Jain, EIR, WheelsEye

Budget 2021 is a pro-transportation, pro-development budget. While the 34.5 percent increment in capital expenditure will drive demand upwards, the reinforced focus on improving road infrastructure will help in delivering a faster, safer, and reliable supply chain. The mention of the National Logistics Policy was completely missing. While the Budget has emphasised enough on building better road infra by announcing targets of adding 12 percent to national highways and adding 30 percent to the budget allocation of the Ministry of Roads, it focuses little on empowering small and medium commercial vehicle owners.

Budget 2021 LATEST Updates

A sigh of relief for higher-income bracket taxpayers

Ranen Banerjee, Leader - Economic Advisory Services, PwC India

The finance minister has responded to the calls from the economists for a fiscal stimulus pegging the fiscal deficit at 6.8 percent for FY 2022. She has also signallled that the fiscal policy support of the economy will continue for at least 3 years with the deficit being brought under 4.5 percent by FY 2025-26. This is possibly a more realistic glide path as the economy will take time to recover fully from the aftereffects of the pandemic as well as socio-political demands that will be incumbent on the government. Though the small taxpayers could be disappointed with no tax sops for them, the higher income bracket taxpayers will have a sigh of relief with no additional tax imposition on them. The limited fiscal headroom and the need for spending has constrained the hands of the FM towards providing additional tax sops.

Budget 2021 LATEST Updates

'100% visionless Budget': TMC

The Trinamool Congress lashed out at the Centre, terming the Union Budget "a 100 percent visionless" document, and said that its theme was "sell India."

"India's first paperless budget is also a 100 percent visionless budget. Theme of the fake budget is Sell India!" TMC spokesperson Derek O'Brien said. "Railways: sold, Airports: sold, Ports: sold, Insurance: sold PSUs: 23 sold!"

O'Brien claimed common people and farmers were ignored, adding that the Budget would make the rich richer and the poor poorer, while the middle class got "nothing".

Budget 2021 LATEST Updates

Budget 2021 give wings to dream of 50% enrolment ratio in education

Shishir Kumar is the Director General at ImaginXP

The Budget gives a runway to the dream of reaching a 50% gross enrolment ratio in India. We are at 25 percent today, and online degree programmes, focus on embedded courses in university and enabling colleges to work on their own curriculum are great accelerators. It helps a university in India focus on research-based learning. The Budget is a 4 percent increase over last year and the innovative idea to use retired teachers as mentors will take us a long way. The cream of the cake is in the implementation of the NEP 2020 and the Budget sets the right direction over expenditure.

Budget 2021 LATEST Updates

Major boost for Fintech ecosystem

Kumar Abhishek, CEO and  Founder, ToneTag

The support extended by the government to GIFT city is a crucial development for the Fintech ecosystem, especially startups. The availability of customised support and tools will not only expedite the processes and development but also create an environment conducive to ideas and innovations. Also, the investment to promote digital payment will definitely uplift and establish infrastructure throughout the country, especially in Tier 2 and Tier 3 cities. Fintech companies will have better access to different locations and adequate incentives for growth.

Budget 2021 LATEST Updates

Budget lacked coverage of wider farm issues

Ajay Kakra, Leader - Food and Agriculture, PwC India

The Budget announcement for the agriculture sector maintained the reform momentum but lacked coverage of wider issues. Some announcements such as the the extension of farm credit provision to farmers, commodity expansion to operation green and extension of AIF to APMC did hit the target.

Budget 2021 LATEST Updates

Firms waiting to enter India get a chance

Joydeep K Roy, Partner and Leader - Insurance, PwC India

An increase of FDI in Insurance to 74 percent which is proposed with safeguards will possibly bring in more capital, and more importantly fresh capital from companies which have been waiting to enter India. However, apart from that, the important considerations like IFRS17 accounting principles, Deferred Acquisition Costs, Solvency II measures, Risk-Based Capital introduction, etc., have to be accelerated at the regulatory and policy levels to bring India at par with the world is actually inviting and encouraging FDI. Along with that, further sweeping reforms in distribution to encourage insurance-selling for all channels will then complete the loop and contribute towards Nation Building by increasing penetration very significantly.

Budget 2021 LATEST Updates

Our govt made budget and spending transparent

"We have made government accounts more transparent. We are absolutely upfront with fiscal deficit. We not only ensured repeated review of capital expenditure and ensured that spending was encouraged and not delayed," said Sitharaman insisting that accounting of government expenditure and revenue statements are now a lot more transparent and open. 

Budget 2021 LATEST Updates

'Govt's policies have destroyed economy', says Congress

Slamming the Union government for its handling of the economy, the Congress said in a tweet on its official handle, "Due to the Modi government's policies, government borrowings have seen a consistent rise. The government's policies have destroyed the country's economy."

Budget 2021 LATEST Updates

Can't say govt paused spending during pandemic: Sitharaman

"Our fiscal deficit which started at 3.5 percent during February 2020 has increased to 9.5 percent of GDP, so we have spent, we have spent and we have spent. At the same time, we have given a clear glide path for deficit management," the finance minsiter said.

Budget 2021 LATEST Updates

A bold and transformative budget

Naveen Aggarwal, Partner, Tax, KPMG in India

Precise and immediate actionable measures to put India back on in its growth trajectory through rebuilding and reordering development priorities with a focus on going full throttle on capital expenditure, infrastructure development and ease of compliance. 

Budget 2021 LATEST Updates

Directionally a good Budget

Himanshu Parekh, Partner and Head, Corporate and International Tax, KPMG in India

The proposed hike of FDI in the the insurance sector to 74 percent from 49 percent will give a significant boost to the sector. A slew of tax proposals were announced with a view to ease the compliance burden and bring in transparency. These include reducing the time frame for reopening of assessments from 6 years to 3 years, waiving off withholding tax on dividend payment to ReIT and InvIT and granting benefit of tax treaty rates the for dividend to FPIs.

In order to provide a boost to the startups, the eligibility for claiming tax holiday is proposed to be extended by one more year. It is also proposed to extthe end benefit of additional deduction of interest n aon affordable home loan up to FY2021-22. In order to ease compliances, it is proposed that the tax return forms will be pre-filled with details of capital gains, dividend and interest income.

Directionally, it was a good Budget aimed at -ump priming the economy, ramping up government expenditure for stimulating growth, reducing compliances and bringing the economy back to pre-COVID level.

Budget 2021 LATEST Updates

Touted as Budget of century, FM has lived up to expectations

Gaurav Taneja, Partner and National Leader, Government and Public sector, EY India

I am very pleased to hear the thrust on public healthcare, particularly around capacity building, creating new institutions and significant allocation to COVID-19 vaccines. The thrust on overall infrastructure sector, i.e. creation of a new development financial institution, continuing work on road building, economic corridors, airports on PPP, railways and metros, and focus on affordable and rental housing, would definitely bring fresh capital to play, create deep economic linkages and generate new employment opportunities.

I would particularly like to compliment the government around the announcement of 7 port projects worth more than Rs 2,000 crore via PPP mode which will provide the necessary fillip to maritime trade. The creation of Asset Reconstruction and Management company is yet another positive move, as it will enable banks to sell their NPA and recapitalise their balance sheets to lend to the private sector, which definitely will be required. The divestment program, asset and land monetisation, bank privatisation, and raising of FDI in the insurance sector are steps in the right direction but execution will be key though. Overall, it’s a growth-oriented budget with a direct impetus to the economy.

Budget 2021 LATEST Updates

Investment in infra will accelarate economy

Alok Mittal, CEO and Founder, Indifi Technologies

Significant investments in the infrastructure sector is a welcome step and is likely to accelerate the revival of the economy in a sustainable fashion. Setting up of a world-class fintech hub in GIFT City is a tremendous opportunity to provide seamless linkage for Indian fintech companies to global financial ecosystems. MSMEs have borne the brunt of COVID-linked disruptions, and more may have to be done outside of the budget announcements to revive that key engine of India's economy.

Budget 2021 LATEST Updates

Big infra spending, impetus to healthcare two biggest takeaways, says Nirmala Sitharaman

Finance Minister Nirmala Sitharaman, in a press briefing post the Budget, said that there were two key takeaways for her from the Budget. 

"If there are two important features of this Budget, it is that we chose to spend big on infrastructure which spans across roads, power generation, bridges, ports & so on. As a second feature, I tend to the need of the healthcare sector and even there, capacities for better health management had to be brought in in light of what we had gone through last year," Sitharaman said. 

Budget 2021 LATEST Updates

'Forward-looking Budget', say BJP leaders

Union Defence Minister Rajnath Singh, BJP leader Jyotiraditya Scindia and party spokesperson Shahnawaz Hussain were among the party members who hailed the Union Budget as one for 'Aatmanirbhar Bharat', and asserted that this will strengthen the economy.

Budget 2021 LATEST Updates

We used Budget as opportunity for creating new openings for youth

We have taken the approach of widening new opportunities for growth, new openings for our youth, a new high to human resources, develop new regions for infrastructure, walking towards technology and bring new reforms with this Budget, the prime minsiter said.

Budget 2021 LATEST Updates

Delivered transparent Budget, didn't burden common man, says Narendra Modi

Many thought we will put the tax burden on the common man. However, we focused on a transparent Budget, said prime minister Narendra Modi. 

Budget 2021 LATEST Updates

Budget focuses on increasing farmers' income, says Narendra Modi

The Budget focuses on increasing farmers' income, several measures have been taken in this direction. Farmers will be able to get loans easily. Provisions have been made to strengthen APMC markets with the help of Agriculture Infrastructure Fund, said Prime Minister Narendra Modi in his post-Budget speech. 

Budget 2021 LATEST Updates

Fintech sector hails proposals to promote digital payments, rise in infra outlay 

Seshadri Kulkarni, CEO, DigitSecure

The development of fintech hub in GIFT City and Rs. 1,500 crores to promote digital payments clearly demonstrate the government’s strong commitment to digital economy.  The RBI’s Payments Infrastructure — Development Fund of Rs. 345 crores to drive merchant acceptance in rural India combined with today’s budget allocation are certain to boost digital payments benefitting all the stakeholders.

The government’s facilitation in setting up ‘world class’ fintech hub will help bring together new technologies such as big data, AI and blockchain to transform the way that financial services are delivered, making them cheaper, more efficient, more convenient and more inclusive. The fintech hub will also help facilitate interaction and collaborative learning between regulators, innovators, investors, startups and established players.

Budget 2021 LATEST Updates

Budget announcement on dividends timely 

Gopal Bohra, Partner – Direct Tax, NA Shah Associates

In order to avoid the difficulty of estimating dividend income for the purpose of payment of advance tax, FM has announced that only that dividend which is declared and distributed at the time of discharging advance tax instalent to be included for such installent. Last year when the dividend distribution tax was abolished and such dividend was made taxable directly in the hands of the shareholders, iand t created amanychallenges to estimateingthe dividend income for the purpose of payment of advance tax instalment. This also resulted in consequent levy of interest under section 234C which will now not be applicable.

Budget 2021 LATEST Updates

Budget 2021 highlight govt’s holistic approach towards healthcare

Rajinish Menon, Founder and CEO, Sukino Healthcare

This year the focus of the world was squarely centred on the healthcare industry. Continuing the trend, the Budget highlighted the government’s holistic approach to healthcare with the allocation of 2.23 lakh crore, a 137 percent increase from last year under the Atmanirbhar Swast Bharat Yojana. By converging multiple fragmented health schemes into the world’s largest medical umbrella, the government has indeed taken a giant step towards healthcare innovation.
In addition to the National Health Mission, pragmatic measures such as the investment of  Rs 64,180 crore over the next 6 years will significantly improve primary, secondary and tertiary healthcare.  The number of free COVID -19 cases treated is remarkable given the challenging economic times faced by the country. An announcement of 35000 crore vaccines will ensure continued uninterrupted healthcare services for more people.  Establishment of healthcare infrastructure in form of critical care units and hospital blocks will also help spur the growth of the domestic market growth and place India as a key player in the global markets.

Budget 2021 LATEST Updates

Faceless tax dispute resolution system will fast-track process

Lalit Keshre, Co-founder and CEO, Groww

The income tax filing exemption granted to senior citizens, who rely on only pension and interest income, will significantly reduce their tax compliance burden. The announcement of a faceless dispute resolution system should help taxpayers by fast-tracking the resolution process. The pre-filled capital gains and interest income in ITRs will make income tax filing easier for retail investors. Overall, these measures announced in the budget will simplify the lives of small taxpayers and are welcome.

Budget 2021 LATEST Updates

A comprehensive, progressive economic document: CAIT

Praveen Khandelwal, Secretary General, Confederation of All India Traders (CAIT)

The Union Budget is a comprehensive and progressive economic document which ensures the development of each sector in a structured way and providing ease of doing business to traders, relieving senior-most citizens from the burden of tax, ensuring robust growth in health sector and services and above all becomes an effective document where no new tax or cess is levied removing all such fears those were circling around since last more than a fortnight across the country.

We disagree with the finance minister that GST has been rationalised rather it has become a more complicated tax system and also deeply regret that no supporting policy has been announced for the retail trade of India which generate an annual turnover of more than Rs 80 lakh crores and providing employment to nearly 40 crore people in the country. We shall be taking up this issue with the Finance Minister Nirmala Sitharaman. In totality, the government has come out with a best possible budget under the backdrop of COVID pandemi

Budget 2021 LATEST Updates

Nirmala Sitharaman’s speech gives strong signal for infra development

Amit Kapur, Joint Managing Partner, J Sagar Associate

The Budget speech expectedly has given a strong signal for infrastructure development focusing on actualizing the ambitious national infrastructure pipeline targeting an investment of Rs111 lakh crores over 5 years. The signal comes from the announced budgetary allocations and decisions:

• (a) central allocation of Rs 5.54 lakh crores
• (b) state allocations of Rs 2 lakh crores, and
• (c) announcement to tap into budgetary resources of PSUs and wide-ranging InVITs monetising assets in highways, power transmission, gas pipelines, dedicated freight corridors, airport.

The above announcements are strengthened by the announcement of establishing Bad Bank in nature of AMC; a development financial institution with a seed investment of Rs 20,000 crores and a target to build a lending portfolio of Rs 5 lakh crores in 3 years; an extensive disinvestment program with target of Rs 1.75 lakh crores; zero-coupon bonds that will help arrange the infra financing. The devil lies in the details and the success in reviving the economy would depend on effective structural reforms in infrastructure sectors removing barriers to growth plus how the government goes about monetising the land bank and assets held by PSUs.

Budget 2021 LATEST Updates

Budget 2021’s big bet on infra to pay-off in long-term 

Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory

It is a pragmatic and forward-looking Budget, at the same time. The estimated, gradual reduction in the fiscal deficit from 9.5 percent to under 4.5 percent by 2024-25 will help boost consumption in the economy. The government’s big bet on infrastructure is bound to pay-off in the long-term and will also catapult desired growth for real estate and the economy. The NPA’s of PSU banks have seen an encouraging reduction from 8.96 to 6.8 trillion by end of fiscal 2020. The setting up of ARC & AMC for banks troubled with bad loans and NPA’s alongside the further recapitalisation of Rs.20,000 crores will help improve the lending capacity of the banking and financial sector. The government’s decision to extend tax holiday for affordable housing projects by another year is a step in the right direction to realise the PM’s dream of ‘Housing For All by 2022’.

Budget 2021 LATEST Updates

Setting up of separate DFI shows clear path for growth

Ravi Singhal, Vice Chairman, GCL Securities

Finance Minister Nirmala Sithraman by announcing that the Modi government will introduce a bill for the development of financial institution has shown a clear path for the growth on financial infrastructure in the Atmanirbhar Bharat. Further, the Modi government's announcement of a sharp increase in Capital Expenditure and thus providing Rs 5.54 lakh crores will develop momentum for financial infrastructure domain. Further, the announcement of the development of investor charter should also be welcome as it will protect the hard-earned money of a number of investors.

Budget 2021 LATEST Updates

No changes in direct taxes, capital gains tax will enthuse markets 

Krishna Kumar Karwa, Managing Director - Emkay Global Financial Services

Hats off to the finance minister for sticking to her promise of a Budget that will be remembered for 100 years. A Budget with no changes in Direct taxes will certainly be remembered for years to come. The equity market will be enthused with no tinkering in capital gains taxes or STT or any form of COVID tax. The proposals to privatise two public sector banks and one general insurance co is noteworthy as increases in FDI limit in insurance to 74 percent. The much-awaited proposal to set up a DFI should boost capex in the coming years. To summarise, the revival in the economy seen in the last 4-5 months will be further enhanced with the various budget proposals. Tax buoyancy, successful divestments and quick monetisation of operating infrastructure assets remain a key to achieving the fiscal deficit target of 6.8 percent for FY2021-22.

Budget 2021 LATEST Updates

Education sector key highlights in Budget

• 100 new Sainik schools will be set up in partnership with the NGOs, private schools and States
• Target to set up 750 Eklavya residential model schools in tribal areas
• Rs 50,000 crore allocated to develop National Research Foundation over 5 years to strengthen overall research ecosystem in the country
• Central university in Leh region of Ladakh
• A total of 15,552 schools will be developed as Adarsh Vidyalayas

Budget 2021 LATEST Updates

Here is a list of key provisions for MSMEs and industries

• Collateral free loans for businesses
• Fund of funds will be set up for
• MSMEs
• PM Garib Kalyan Yojana
• Subordinate debt for MSMEs
• Disallowing global tenders of up to Rs 200 crore
• Change in definition of MSME

Budget 2021 LATEST Updates

Higher outlay for road development in four states to help logistics sector

Budget 2021 LATEST Updates

Progressive Budget from govt; boost to green mobility

Rushi Shenghani, CEO and Founder, Earth Energy EV

We wholeheartedly welcome the progressive Budget by the government this year. The focus on the Atma Nirbhar package will lead to sustained recovery for indigenous brands. We are pleased to know that after keeping Scrappage policy unclear for so long, the government is placing voluntary scrapping policy ahead this year- the industry is going to get a major boost and create demand for energy-efficient vehicles. With the continued government support, Indian OEMs and manufacturers will grow India self-reliant towards green mobility

Budget 2021 LATEST Updates

Setting up of DFI, increased infra spend to boost Make in India, increase FDI in manufacturing

Divam Sharma, Co-Founder, Green Portfolio 

The setting up of Development Financial Institution for lending over Rs 5 lakh crores over the next 3 years to infrastructure sector is a welcome step as infra companies have been continually facing challenges in raising bank debt, high leveraged balance sheets and lesser initial interest of investors in InvITs.

Creation of government entity sponsored InvIT’s for road assets, power assets, railways assets, airports, oil and gas pipeline, warehouses, sports stadiums and then monetising them to investors will generate further interest from FPI’s and domestic institutions and will generate capital for the government to fund the increase in infra spending. This is a welcome move as the higher infra spend creates a high multiplier impact on the GDP and supports the governments initiatives to Make in India and increasing FDI in manufacturing.

Fintech is an important leg for financial inclusion and has also helped India raise a high amount of FDI in recent years. Creation of Fintech hub in GIFT ISFC will help such entities step up their activity, raise more funds, and create more collaborations for growth.

Insurance India is one of the fastest-growing Insurance markets. Insurance tech has also generated high investor interest in recent years with companies like policy bazaar, acko, digit raising high amounts of FDI. Incremental foreign capital will enhance the penetration of Insurance in India and will also gradually help in reducing the insurance cost with higher volumes.

Budget 2021 LATEST Updates

No bad news is good news

Ashok Shah, Founding Partner, NA Shah Associates

The FM has specifically mentioned in her Budget speech that there is no increase in taxes, neither capital gains tax nor a new levy of COVID Tax. This is in sharp contrast to the general market sentiment that a special tax/cess could be levied.  It surely is a welcome move to the already heavily burdened India Inc.

Debt financing for REITs, InvITs to attract investments

Chintan Patel, Partner and Head, Building Construction and Real Estate, KPMG in India

The proposed debt financing for REIT’s and InvIT’s (through a suitable amendment) is expected to provide a major fillip and will attract more investments for the sector. 
 

Budget 2021 LATEST Updates

Separate DFI, additional outlay for infra will take economy to new growth trajectory

Jyoti Prakash Gadia, Managing Director, Resurgent India

To usher in the dawn of a new era with a holistic approach in mind, the FM has announced 3-pronged strategies for development of infrastructure. Proposal for the setting of a separate DFI (development financial situation) exclusively for funding infra projects a massive program for monetisation of completed/ running projects which will help in creating required resources through the instruments like INVITs, which functions in a manner similar to the mutual funds. In addition over a 34 percent increase in direct expenditure to infra with new highway projects in select states is a welcome step to take the economy to a new trajectory of growth.

These steps will have a far-reaching positive impact on growth over the midterm, although some immediate expenditure on construction is also called far. Setting up of a Separate Asset Reconstruction company for dealing with the gigantic problem of NPAs, is a step in the right direction, which will help in better recovery and prompt the banks to boost credit, which is the need of the hour. Recapitalisation of PSBs with Rs 20,000 crore is also a welcome step as this will strengthen the banks to inturn raise credit creation capacity.

Budget 2021 LATEST Updates

Hope major part of 100% electrification of Railways is through RE

Somesh Kumar, Partner and Leader, Power and Utilities, EY India

The Union Budget targets 100 percent electrification of broad gauge railways to be achieved by 2023. As of August 2020, 65 percent electrification has been achieved. This is a welcome move by the government as it will reduce dependence on conventional fuels and increase efficiency. It is hoped that a significant part of this will be from renewable energy. Significant focus on asset monetisation including PGCIL and other transmission assets will enable unlocking value and also generate additional revenue for transmission companies that can hopefully be partly shared with consumers to bring down tariffs.

A revamped scheme with an outlay of over Rs 3 lakh crores would be launched for distribution turnaround through infrastructure creation and interventions such as Smart Metering, feeder separation, etc. While providing for this scheme, the Budget also puts additional pressure on DISCOMS to improve by providing the choice of suppliers to consumers through a special framework. This has been pending for a long time and is welcome and will require the separation of carriage and content.

There is an enhanced outlay for the renewable energy sector through SECI and IREDA, which will enable a a larger focus on augmenting renewable energy. In addition, a comprehensive National Hydrogen Mission to be launched to generate hydrogen from renewable sources is a welcome move. Certain initiatives for overall infrastructure sector like setting up of a Development Financial Institution for debt financing and setting up of a central asset management company for taking over stressed assets will benefit the power sector in a big way

Budget 2021 LATEST Updates

Interest earned on PF contributions above Rs 250,000 to be taxable: Budget

The government on Monday said the employers who delay the deposit of workers' share of social security contributions like employees' provident fund will not be able to claim the amount as deduction from their income.

An amendment in this regard is proposed in the Finance Bill 2021, to ensure that firms deposit the social security contributions of their employees like Employees' State Insurance (ESI) well in time.

Besides it is proposed to tax interest earned on annual provident fund contribution of over Rs 2.5 lakh from April 1, 2021. At present there is no tax on interest earned on provident fund deposits.

Budget 2021 LATEST Updates

Govt has spelt out roadmap of fiscal consolidations

Divakar Vijayasarathy, Founder and Managing Partner, DVS Advisors LLP

As expected health has been given a prominent platform and was the first pillar of the Budget speech and has increased in the allocation of around 138 percent is definitely a welcome move. There are other steps which are on the expected line - the increase in FDI limit for insurance companies from 49 percent to 74 percent was overdue. However, the response to this is to be seen since still majority in board and conditions of independent director have been stipulated.

The setting up of FDI is inevitable if the infrastructure target is to be met. Rs 5 lakh crore of debt portfolio has been set over a period of 5 years. The same might have to be increased but it’s a good start. The asset reconstruction company to buy and resolve stressed portfolio is much-needed one especially with stressed assets expected to reach 14 percent. Recapitalisation of Rs 20,000 crores seems to be on the lower side.

Permitting of a one-man company with the flexibility to convention to any other constitution definitely would support ease of doing business. Increase in Capex by around 35 percent to Rs 5.54 lakh crore but as was done in the FY20-21 the spending is expected to be over and above this limit. The fiscal deficit has been much higher than expected at 9.5 percent for 2020-21 but in the ensuing year it is estimated at 6.8 percent. More importantl,y the government has spelt the roadmap of fiscal consolidation and to achieve less than 4.5 percent of GDP by FY25-26.

Budget 2021 LATEST Updates

Step in right direction to use data analytics, AI, ML in corporate governance

Arun Singh, Global Chief Economist, Dun and Bradstreet

Budget 2021 LATEST Updates

Framework soon for electricity consumers to choose service provider, says FM

Budget 2021 LATEST Updates

Budget passed in LS; House adjourned till tomorrow

The Lok Sabha passed the Union Budget 2021-22 with a voice vote. The House has been adjourned till 10 am tomorrow. 

Budget 2021 LATEST Updates

Tax compliance eased for senior citizens above 75 years of age

Nirmala Sitharaman said that senior citizens above 75 years of age, who are only getting pension as a means of income, will not be required to file their ITRs. She said the paying out the pension will deduct the tac on their behalf. 

Budget 2021 LATEST Updates

Key points on Taxation from Union Budget

Finance Minister Nirmala Sitharaman says:

• Proposed to make I-T Appellate Tribunal Faceless
• Tax audit threshold raised to Rs 10,000 crore for digital transactions
• Dividend payment by REITs and InvITs not subject to TDS
• Advance tax liability to arise only after payment of dividends

Consolidation of securities laws important move

Arka Mookerjee, Partner, J Sagar Associates

The consolidation of securities laws, existing decriminalisation of offences under the Companies Act and the proposed decriminalisation under the LLP Act marks an important move towards making Indian corporate legal framework, simpler, business-friendly and ultimately (hopefully) reducing compliance costs.

The securities market code is in line with previous discussions on the NFRA. It marks a step towards streamlining the multiple laws, ordinances, guidelines and regulations. If drafted and executed in a proper manner, it will be helpful to market participants and remove any possible conflicts in the regulatory framework and will provide clarity in policymaking to investors and stakeholders.

Budget 2021 LATEST Updates

Budget 2021 announcements open up opportunities for startups

Padmaja Ruparel, Founding Partner, IAN Fund

Budget 2021 opens up opportunities for startups across health, hygiene, water, clean air, sanitation, etc. The vision of Atmanirbhar Bharat with a focus on good governance and women empowerment will lead to a boost for India.

Budget 2021 LATEST Updates

How markets react to FM's announcements

Sensex jumps 950 points to 47,238.55, Nifty nears 13,900 as Sitharaman makes key budget announcements. 

Budget 2021 LATEST Updates

Hope disinvestment target for FY22 will be implemented on time

Arun Singh, Global Chief Economist, Dun and Bradstreet

Implementation of disinvestment target is a challenge most of the time. Hope disinvestment target for FY22 is well implemented in a timely manner. A separate framework of NCLT for MSMEs is a good initiative and will help companies impacted during COVID-19.

Budget 2021 LATEST Updates

Hike in FDI cap in insurance will have a long-lasting impact

Utkarsh Sinha, Managing Director, Bexley Advisors

The hike in FDI cap in insurance from 49 percent to 74 percent is an initiative that will have a long-lasting impact in broadening insurance coverage in India, while also deepening the penetration of capital markets.

Since insurance companies also serve as LPs to several private equities and VC firms, we can also expect a positive impact on the levels of private investments down the road.

Budget 2021 LATEST Updates

New development financial institution; case of new wine in old bottle?

Shagoofa Rashid Khan, Partner and Head - Project, Investment and Advisory Head - Funds, Investment and Advisory, Cyril Amarchand Mangaldas

A new development financial institution announced to target debt portfolio of 5 lakh crore. Will this be new wine in old bottle or will this be a progression on the learnings of past development finance institutions and IDF experimentation.

The long-awaited ask of aligning SEBI FPI regulations with SEBI InvIt and Reits regulations finally announced. Debt capital to now flow easily from FPIs including ESR focussed funds and financial institutions.

Budget 2021 LATEST Updates

Niramala Sitharaman increases FDI in insurance to 74%

 FDI in insurance companies has been increased from 49 percent to 74 percent, subject to specific compliance, Nirmala Sitharaman said. 

In her 2019 budget speech, Sitharaman had said that the government will explore further easing the foreign direct investment (FDI) limit in insurance. The Insurance Regulatory and Development Authority of India (IRDAI) has also backed an increase in the limit to 74 percent. 

Budget 2021 LATEST Updates

Massive capital expenditure corpus for infra shows govt’s commitment to sector

Mihir Mehta, Senior Vice President, Ashika Capital

Allotment of a massive capital expenditure corpus in order to enhance and support national highway projects, roads and other ancillary infrastructure shows the continued commitment of the Government to strengthen connectivity across the country which in turn will largely improve supply chain & logistics over the next few years.

Also, allotment of corpus to states and independent bodies will hopefully lead to better utilization of funds across states and ensure that projects that require immediate attention from a financial capital perspective, are taken up on priority.

Budget 2021 LATEST Updates

Budget 2021 LATEST Updates

FM announces Rs 1.03 lakh cr for highway projects, poll-bound states get mammoth share

Finance minister Nirmala Sitharaman's budget comprised of a massive impetus for Highways and Road Transport projects. The minister set aside Rs 1.03 lakh crores from the government exchequer for the sector, of which a mammoth share was allocated to the states which are due for legislative assembly elections this year. Here are the numbers for some of these states:

Assam - Rs 34,000 cr allocated for highway development

West Bengal - Rs 25,000 cr allocated for highway development

Tamil Nadu - 3,500 kilometres of highway corridor in Tamil Nadu

Kerala - Rs 65,000 cr for  highway development

Budget 2021 LATEST Updates

Proposal to complete E-W freight corridors will scale up warehouse business

Abhilash Pillai, Partner Cyril Amarchand Mangaldas

Proposal to complete Eastern and Western Freight corridors by June 2022 will scale up warehouse business. Hope the government will bring up a single-window clearance for setting up more warehouses, which currently takes more than 3 months to have all approvals in place.

Expansion of Phase 2 metro in 5 cities will witness mixed-use development around these metro corridors. This will also help SmartCity missions and create more job opportunities.

Budget 2021 LATEST Updates

Announcement of 7 textile parks shot in the arm for sector

Anuj Mundra, Chairman and MD, Nandani Creation

With a focus on Aatmanirbhar Bharat, the announcement of establishment of seven textile parks by the Narendra Modi government in Budget 2021 should be welcomed with open arms. It's a big boost for the local textile industry. And, this will help India become a world leader in the textile sector.

Finance Minister Nirmala Sitharaman in her Union Budget 2021 has clearly conveyed a message that this government believes in giving a big shot in the arm of textiles and local manufacturing with special focus on 'Vocal for Local'.

Sitharaman announces new scrapping policy for commercial vehicles to reach clean air goal 

Voluntary scrapping policy has been announced for discarding old commercial vehicles, which are constidered a large contributor for air pollution in India. The finance minister said that the scrapping parameters will be based on fitness test - 20 years in a personal vehicle and 15 years for the commercial vehicle. More details to be available soon. 

Budget 2021 LATEST Updates

Govt to launch 7 textile parks in 3 years: Sitharaman

Government has committed Rs 1.97 lakh crore for PLI schemes covering 13 sectors. Further 7 textile parks will be launched over three years. Sitharaman said, " A scheme of ega Investments Textile Park will be launched in addition to PLI Scheme which will create world class infrastructure with plug and play facilities to enable global champions in exports."

Budget 2021 LATEST Updates

137% increase in health allocation, says Sitharaman

Finance minister Nirmala Sitharaman announced ₹2,83,846 lakh crore for health and wellness sector which also includes ₹35,000 crore for Covid-19 vaccines. This amounts to a 137 percent increase in the health allocations from previous FY. 

Budget 2021 LATEST Updates

Budget 2021 rests on 6 development pillars: Sitharaman

The Budget proposals for 2021-12 rest on six pillars — health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D, Minimum Govt and Maximum Governance, finance minister Nirmala Sitharaman said. 

Budget 2021 LATEST Updates

Niramala Sitharaman sets aside Rs 35,000 cr for COVID vaccines

Finance Minister Nirmala Sitharaman said that the government will set aside a mammoth sum of Rs 35,000 crore for the development and distribution of COVID-19 vaccines. She promised to dissipate more funds should the need arise. 

Budget 2021 LATEST Updates

Allow more private players to set up data centre parks

Sunil Gupta, Co-Founder and CEO, Yotta Infrastructure

To incentivise companies to store data in India and reap the benefits of huge revenues from the data centre industry, the government should encourage more and more private players to set up data centre parks in India.

The government should also create a framework to host data on third-party data centres and implement the proposed Data Centre Incentivization Scheme that focuses on the formulation of fiscal and non-fiscal incentives including tax breaks for any data centre facility. The government should enforce compliance, take stringent measures, and devise a governance mechanism for social media platforms to ensure their data is hosted in Indian data centres.

Furthermore, the government should draft a comprehensive policy to ensure any data related to Indian citizens is stored within the country.

Budget 2021 LATEST Updates

Budget 2021 to comprise of 6 pillars of Atmanirbhar Bharat

Three times has a Budget followed contraction in the economy. We will lay out a vision for Aatmanirbhar Bharat in Part-A of the Budget speech. This is not a new India .. ancient india was self reliant as well. 'Aatmanirbharta' consists of doubling farm income and strong infrastructure. It consists of good governance and women empowerment. Proposals for the FY22 Budget rests on 6 pillars.

Budget 2021 LATEST Updates

Atmanirbhar Bharat packages served as 5 mini budgets, says Sitharaman

The total financial impact of all Aatma Nirbhar Bharat packages, including measures taken by the RBI was about Rs 27.1 lakh crore, which is more than 13 percent of GDP, Nirmala Sitharaman said. She also said that the Pradhan Mantri Garib Kalyan Yojana valued at Rs 2.76 lakh crore was also an important pillar of the government's outreach programme to aide the poorest to wase pandemic-induced hardships

Budget 2021 LATEST Updates

Hope FM addresses issue of high import duties on gold

Gaurav Mehta, Founder and CEO, Jaipur Watch Company

As an entrepreneur, I hope this year's Budget prioritises growth-oriented measures and includes incentives for homegrown brands. From a watch industry perspective, considering the hit that we've all taken following the pandemic, tax concessions, reduction in GST rates encouraging consumers to spend more is of utmost priority at the moment.

Especially since the demand for bespoke gold watches are at an all-time low, what with gold prices soaring, we are looking forward to the Budget addressing the issues of high Import/Custom duties on gold and thus helping bring stability to the market. Also, we are hoping the  government comes up with a special mark for "Made in India "products to distinguish them from imported products.

Budget 2021 LATEST Updates

Two or more vaccines expected soon, says FM

Budget 2021 LATEST Updates

Prepared budget in unprecedented circumastances

Presenting the Union Budget in Loksabha, Nirmala Sitharaman said that this Budget was prepared in unprecendeted circumstances. Refering to the pandemic, she said that this year brought unforeseen hardships for the people of India where all government servants, and particularly for frontline workers had to continue with their duties like before but with added anxiety and health risks. 

Budget 2021 LATEST Updates

Allow higher depreciation on indigenous capital goods

V Anbu, Director General & CEO of IMTMA and BIEC

The Union Budget 2021 will be crucial for the revival of the Indian manufacturing sector that is recovering from the impact of the pandemic. We hope the budget addresses some very critical fiscal measures like the reintroduction of ‘Investment Allowance’. Allow a higher depreciation at 25 percent on indigenous capital goods and restore weighted deduction incentives on R and D expenditure. Also important is the reactivation of the ‘Credit-Linked Capital Subsidy Scheme’ with an enhanced limit of Rs. 2 crores and rollout of schemes like MUDRA, to refinance support to banks, MFIs and NBFCs for lending to micro units having loan requirement up to Rs. 5 lakhs for purchase of conventional machines/equipment.

Budget 2021 LATEST Updates

Will Modi govt sell PSUs to raise money for public expenditure? 

The expectation from the finance minister is a 1991-style sweeping reform but it is difficult for Nirmala Sitharaman to pull off anything even remotely of that sort unless she manages to raise money for public expenditure by selling off PSUs, an area where the government has massively underperformed.

Reports have emerged that the Centre may announce sale of IDBI Bank and at least 10-15% stake in LIC, but this once again may run into political headwinds.

Sunil Jain of Financial Express suggests selling Rs 15,000-20,000 crore of PSU shares every month in a Systematic Withdrawal Plan (SWP) to mop up some revenue. This alone is unlikely to extend the government's exchequer and we may see increased borrowing by letting the debt burden go up.​ 

Budget 2021 LATEST Updates

Key numbers to watch out for in the Budget for 2021-22

1. COVID-19 spending
2. Fiscal Deficit
3. Borrowing
4. Tax revenue
5. Disinvestment receipts
6. Capital Expenditure

Budget 2021 LATEST Updates

Realty sector wants finance minister to accord long-awaited industry status

The real estate sector is confronting crippling liquidity for a long time. A relaxation in norms for raising capital, tax incentives for home buyers, reduction in housing finance cost through preferred interest rates, continuing subsidies under Pradhan Mantri Awas Yojana (PMAY), and paving the road for the quick availability of Alternate Investment Funds (AIF) are some of the relief measures the sector expects. These initiatives will put more money in buyers’ and developers' hands, stoking the revival in the sector.

Budget 2021 LATEST Updates

Budget proposal to fuel Big Data, AI expected

Gaurav Shinh, Founder and CEO at DAAS Labs

The pandemic has been a huge boost to edtech, agriTech, fintech, HR tech and healthtech startups. So, we expect to see decisions to fuel the growth of cloud data storage, big data and AI technologies in several domains.

The work from home trend due to the pandemic has seen a lot of investment being made in Tier II and Tier III cities and the trend is supposed to continue. Reforms are expected to support and enable these start-ups as they can have a huge long term impact.

Budget 2021 LATEST Updates

Budget 2021 to revive growth vs inequality debate

Budget 2021 LATEST Updates

Broaden MSME umbrella, announce special package for retailers

Pronam Chatterjee CEO, BluePi Consulting Pvt. Ltd.

There are a few things that we expect from the Budget to improve the disposable income in the short-term by reducing the tax burden and thereby spurring demand. The supply side of the value chain also needs to be supported by easing retailers' access to capital.

Ease of doing business and access to capital should be the focus area for the retail sector in this budget. MSME does not cover the retail trading that constitutes a bulk of retailers if they are not manufacturing. On the other hand, the garment manufacturers are considered MSME but without a special package that assists them with working capital, they would also be left high and dry. So we expect the government to broaden the MSME umbrella and announce special packaged for retailers under MSME so that they can tide over these challenging times.

Budget 2021 LATEST Updates

Hope FM raises healthcare spent from 1.2% to 2.5%

Ashwin Sapra, Partner, Cyril Amarchand Mangaldas

COVID-19 has exposed the inadequacies of our healthcare system. From the impending vaccination drive to bettering existing healthcare infrastructure to supporting the healthcare/pharma industry, the expectation is of increased government spending on the healthcare from 1.2 percent of the GDP to 2.5 percent of the GDP. The public expects reduced out of pocket spends and the industry expects reduced taxes/import duties/GST rationalisation/clearer regulation.

Budget 2021 LATEST Updates

Will FM impose the 'politically and morally attractive' wealth tax? 

The chatter around a 'wealth tax' has grown really strong leading up to the Budget day. It is seen not only as an economic imperative — to cushion the economy by taking more from the wealthy and giving it to the poor whose numbers have swelled due to the pandemic — but also as a moral obligation. And from it, flows the political debate.

The finance minister knows that if she refrains from imposing a 'wealth tax', the Opposition will be more forthcoming with the charge that this government favors "crony capitalists", a rhetorical accusation that Opposition leaders such as Rahul Gandhi have leveled all too often. It would seem to be a no-brainer for Nirmala Sitharaman to slap the wealth tax and have her cake and eat it too. However, as economists such as Swaminathan Aiyar have pointed out, wealth taxes hardly ever serve their purpose, and these measures eventually end up hurting the poor — the intended beneficiaries — more because it may trigger an exodus of FIIs, drive down the stock market and swell the parallel economy that runs on black money.

This may further squeeze the governtment's wallet and make it difficult to implement social schemes. Therefore, while politically and morally attractive, wealth taxes are not useful.

Budget 2021 LATEST Updates

Extend credit facilities to MSME, provide new-age tech adoption

Amit Gupta, CEO and Founder, Rapyder

Knowing well that MSMEs are the biggest growth drivers to the economy and the second-largest sector after agriculture, the government should extend credit facilities for them and provide means for new-age technology adoption.

Rigid regulatory compliance and tax burdens should be revised, which can provide an impetus for growth and expansion. This will increase hiring and businesses can largely contribute to the GDP. Revised tax policies, less complex GST structure and relevant policies that provide thrust for digital innovation can incentivise home-grown start-ups and brands. Such a solution can help MSMEs to operate in a more level-playing field which has MNCs and other established players.

Budget 2021 LATEST Updates

GST cut on auto needed

Budget 2021 LATEST Updates

Prime Minister Narendra Modi arrives at Parliament

Prime Minister Narendra Modi has reached the Parliament for a scheduled Cabinet Meetiing that precedes the Budget Presentation. 

Budget 2021 LATEST Updates

Nirmala Sitharaman, Anurag Thakur reach Parliament

Minister of State for Finance Anurag Thakur and Union Finance Minister Nirmala Sitharaman have reached the Parliament building. The Budget Document will now be presented before the Union Cabinet for its approval. 

Budget 2021 LATEST Updates

Centre gets a breather as GST revenue breaches Rs 1 lakh crore mark for fourth month in row

Ahead of the budget day, there was some cheer for the finance minister as the Centre clocked GST revenue for the month of January 2021 at nearly Rs 1.20 lakh crore, the highest since the rollout of the Goods and Services Tax regime and crossing the Rs 1 lakh crore benchmark for the fourth consecutive month. This figure is reportedly higher than months which had the Diwali and Navratri effect as well. While this suggests that the pandemic-hit recovery is slowly recovering, the finance minister's job will be to prioritise the segment that she feels needs immediate government intervention. With slowdown in jobs growth, real income, slump in private investments and collapse in the informal economy, her balancing-act game needs to be top notch. 

Budget 2021 LATEST Updates

Will Nirmala Sitharaman implement 'tax democracy'?

Nirmala Sitharaman has little legroom to play with while delivering the Union budget since the pandemic has ravaged the exchequer. The easier way out for the Union finance minister would be to slap another cess or surcharge on the salaried taxpayers and increase their already overburdened shoulders.

Instead, Sitharaman would do well to take the call and implement what senior journalist Monika Halan calls "tax democracy" by bringing under the income tax net constituents that have escaped paying income tax for decades. One of the starting points could be taxing the super rich segment of farming community but this is sure to be a fair, but politically contentious move. Will the FM bite the bullet? 

Budget 2021 LATEST Updates

Ganesh Subramanian, Chief Financial Officer, Tally Solutions

To realise the potential of the software product industry in an optimal manner, there is a need for a framework to work in synergy and ease in certain taxation issues followed by the software product industry. Presently, under section 194 J of the Income Tax Act, TDS @ 10% is applicable on software purchase. The income tax does not make difference in software product and software service. Software products are classified as Goods. Being a Goods, only software product attracts TDS and there are no other tradeable goods that come under the purview of 10% TDS.

Particularly, for new start up and new ventures, when they are already struggling for working capital, this TDS become additional cash outgo, causing cash crunch to the Industry. We expect that Government either remove this TDS or at least reduce it to 2 percent.

There is big dilemma that exists in the industry about using of HSN/SAC code for software products, especially in case of software products delivered through electronic medium and software as a service (Sass), hosted on cloud platform. The government may clarify the same.

Budget 2021 LATEST Updates

Sitharaman to present first-ever paperless Budget today

Breaking from tradition since Independence, the Union Budget will not be printed this year due to COVID-19 pandemic. Last year, the FM had ditched the leather briefcase for a traditional "bahi khaata" — or red, handmade ledger — saying that it was "high time we move on from the British hangover, to do something on our own".

Budget 2021 LATEST Updates

Farm innovation fund needed to support agri-tech solutions, startups, boost innovation

The agriculture sector accounts for close to 16 percent of the country's GDP, uses nearly half the available land, consumes around 80 percent of the freshwater resources, and engages almost 50 percent of the country's workforce. Approximately 70 percent of the rural households still depend primarily on agriculture, with close to 80 percent of farmers being small and marginal. Even though the recent COVID-19 pandemic has posed challenges for most sectors of the Indian economy, agriculture and allied activities demonstrated extraordinary resilience. The available statistics amplify the potential of India’s agriculture sector to aid fiscal growth. However, adherence to a traditional approach and unscientific farming methods still loom large over the agricultural space.

Budget 2021 is a window for the policymakers to actively identify and poise volumetric targets with sustainability while moving up the value chain to enhance farmer and national income.

Agricultural productivity through micro-irrigation

As of 2020, out of the 141 million hectares of cultivated land, 51 percent of the land is under irrigation and within this, only about 16 percent (11 million hectares) have access to modern irrigation technology. The government data suggest that in the year 2019-20, only 11.72 lakh hectares have been covered under micro-irrigation.  The current target is to popularize the use of micro-irrigation technology by covering additional 10 million hectares of land in five years. To achieve this ambitious target and contribute towards making the sector self-reliant, it is imperative that the government places a mechanism to ensure a smooth flow of funds, thereby ensuring adequate utilisation by the end-beneficiary.

Budget 2021 LATEST Updates

Sensex opens 400 points higher, Nifty around 13,750

Indian indices opened nearly a percent higher on Monday as investors kept an eye on the Budget 2021 to be tabled in the parliament by Finance Minister Nirmala Sitharaman later today. 

At 9.18 am, the Sensex was up 458 points at 46,744 while the Nifty rose 115 points to 13,749, CNBC reported.

Broader markets were also in the green but underperformed benchmarks with the midcap index up 0.4 percent and smallcap index up 0.3 percent. On the Nifty50 index, IndusInd Bank, ICICI Bank, Titan, Hero Moto, and IOC were the top gainers while Cipla, UPL, Dr Reddy's, Tech Mahindra and Axis Bank led the losses. Among sectors, The Nifty Bank and Fin Services indices rose the most, up 1.4 percent each while Nifty Auto and Nifty FMCG added 0.8 percent and 0.5 percent, respectively. However, the IT index and pharma index capped some gains. The Nifty IR index fell 0.2 percent while Nifty Pharma was down 1.6 percent.

Budget 2021 LATEST Updates

Finance Ministry team leave North Block

Finance Minister Nirmala Sitharaman and MoS Finance Anurag Thakur leave from Ministry of Finance. She will present the UnionBudget 2021-22 at Parliament on Monday. 

For the first time ever, the Budget will be paperless this year due to COVID-19 pandemic. It will be available for all as a soft copy, online.

Budget 2021 LATEST Updates

A sneak peek to how the day will unfold today:

Here's a rough schedule of how things may unfold on Monday based on the practices so far. However, this is subject to changes due to COVID-19 safety protocols among other factors.

1) Finance Minister Nirmala Sitharaman and her team will leave the North Block
2) The finance ministry team will call on President Ram Nath Kovind at the Rashtrapati Bhavan and brief him about what's in store
3) Sitharaman will then head to Parliament
4) Cabinet will meet to pass the Budget at 10.15 am
5) At 11am, Lok Sabha Speaker Om Birla will convene the House sitting and invite the finance minister to present the Union Budget
6) The finance minister will address the House
7) The House will be adjourned for the day by the Lok Sabha Speaker
8) Prime Minister Narendra Modi may deliver a brief address to the nation and talk about the Budget. This has been the practice for the last few years

Budget 2021 LATEST Updates

After pandemic disruption, time to focus on demand side of economy

Whichever way one may look at, the priority of FY 2022 Union Budget has to be and would be on getting the economy back on track. However, it is easier said than done, given the challenges and disruptions caused by the COVID-19
pandemic.

The FY 2021 Budget was presented well before the COVID-19 related disruption occurred. However, even at that time government finances were constrained and the government used the escape clause available under the Fiscal Responsibility and Budget Management (FRBM) Act to let the fiscal deficit of FY 2020 slip by 50 bp to 3.8 percent of GDP and budgeted the fiscal deficit for FY 2021 at 3.5 percent of GDP.

The budgeted deficit of 3.5 percent for FY 2021 was based on nominal GDP growth of 10.0 percent.

Budget 2021 LATEST Updates

FM aims to revive pandemic-hit economy, raise spending on key sectors

Experts say Nirmala Sitharaman could unveil plans to shift the economy from survival mode to revival to meet projections of 11 percent growth rate in the next financial year that starts April, following a forecasted 7.7 percent contraction in the current fiscal.

Budget 2021 LATEST Updates

Ninth Budget under NDA govt to focus on healthcare and infrastructure

Finance Minister Nirmala Sitharaman had earlier said her government's focus will be on economic growth by raising spending on sectors like healthcare and infrastructure amid the coronavirus pandemic.

The budget, the ninth under the NDA government, is also widely expected to focus on increasing spending on creation of jobs and rural development, generous allocations for development schemes, handing more money to the common man and easing rules to attract foreign investments.

Budget 2021 LATEST Updates

Reintroduce single tax slab structure, raise minimum taxable income to Rs 7.5 lakh

The pandemic and the subsequent Work From Home policy has led to some employers offering allowances and reimbursement to employees. All eyes are on the upcoming budget for the next financial year as India looks to recover from the economic devastation caused by the coronavirus pandemic in 2020-21. It is widely expected that the government will prioritise spending in the next fiscal and ensure a smooth transition into growth territory in 2021-22.

Tax experts shared with Firstpost what they felt the government could announce by way of relief to employees.

Divakar Vijayasarathy, Founder and Managing Partner, DVS Advisors LLP

The salaried class could be disappointed if it’s expecting a reduction in tax rates. In fact, it should brace itself for a COVID cess. However, relief in terms of spending- based deductions, more in line with the alternate mechanisms provided for LTA during the Atmanirbhar Bharat package to improve domestic demand, can be expected. The deductions, unlike the investments based in the past, could be more available on spending. An increase in health insurance deduction and COVID-related hospitalisation can be anticipated. Considering the moratorium provided for 6 months during the pandemic, there could be a retrospective amendment on deductions available on housing loan interest and principal repayment.

Budget 2021 LATEST Updates

When and where to watch the Budget speech

Union Budget 2021 is scheduled to be presented in the Parliament on Monday with the Budget speech most possibly starting at 11 am. The live telecast of the Union Budget 2021 can be viewed on several platforms including Lok Sabha TV, Doordarshan, Rajya Sabha TV and PIB and the YouTube channels of these outlets.

The government has also launched the Budget App for Android and IOS mobile phones which will have all the information about the Budget. Firstpost will also cover live updates on it's special Budget coverage page, along with in-depth sector-wise analysis.

Budget 2021 LATEST Updates

Nirmala Sitharaman to present Budget at 11 am

All eyes are on Finance Minister Nirmala Sitharaman, who will be presenting the Budget in Parliament at 11 am today (Monday). This will be the ninth consecutive annual budget presented before the country by the Narendra Modi government.

In the face of a slew of challenges ranging from a once-in-a-century pandemic, ensuing job losses, resentment among farmers and friction with neighbours, many expect Sitharaman to announce generous public spending but also make tough choices given a mountain of debt.