KEY HIGHLIGHTS OF UNION BUDGET 2021-22

Presenting the first ever digital Union Budget, Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman stated that India’s fight against COVID-19 continues into 2021 and that this moment in history, when the political, economic, and strategic relations in the post-COVID world are changing, is the dawn of a new era – one in which India is well-poised to truly be the land of promise and hope.The key highlights of the Union Budget 2021-22 are as follows:6 pillars of the Union Budget 2021-22:Health and WellbeingPhysical & Financial Capital, and InfrastructureInclusive Development for Aspirational IndiaReinvigorating Human CapitalInnovation and R&DMinimum Government and Maximum Governance#Health and #Wellbeing Rs. 2,23,846 crore outlay for Health and Wellbeing in BE 2021-22 as against Rs. 94,452 crore in BE 2020-21 – an increase of 137%Focus on strengthening three areas: Preventive, Curative, and WellbeingSteps being taken for improving health and wellbeing:#VaccinesRs. 35,000 crore for COVID-19 vaccine in BE 2021-22The Made-in-India Pneumococcal Vaccine to be rolled out across the country, from present 5 states – to avert 50,000 child deaths annually#HealthSystems Rs. 64,180 crore outlay over 6 years for PM AatmaNirbhar Swasth Bharat Yojana – a new centrally sponsored scheme to be launched, in addition to NHMMain interventions under PM AatmaNirbhar Swasth Bharat Yojana:National Institution for One Health17,788 rural and 11,024 urban Health and Wellness Centers4 regional National Institutes for Virology15 Health Emergency Operation Centers and 2 mobile hospitalsIntegrated public health labs in all districts and 3382 block public health units in 11 statesCritical care hospital blocks in 602 districts and 12 central institutionsStrengthening of the National Centre for Disease Control (NCDC), its 5 regional branches and 20 metropolitan health surveillance unitsExpansion of the Integrated Health Information Portal to all States/UTs to connect all public health labs17 new Public Health Units and strengthening of 33 existing Public Health UnitsRegional Research Platform for WHO South-East Asia Region9 Bio-Safety Level III laboratories#Nutrition Mission Poshan 2.0 to be launched:To strengthen nutritional content, delivery, outreach, and outcomeMerging the Supplementary Nutrition Programme and the Poshan AbhiyanIntensified strategy to be adopted to improve nutritional outcomes across 112 Aspirational Districts#UniversalCoverage of #WaterSupplyRs. 2,87,000 crore over 5 years for Jal Jeevan Mission (Urban) – to be launched with an aim to provide:2.86 crore household tap connectionsUniversal water supply in all 4,378 Urban Local BodiesLiquid waste management in 500 AMRUT cities#SwachchBharat, #SwasthBharatRs. 1,41,678 crore over 5 years for Urban Swachh Bharat Mission 2.0Main interventions under Swachh Bharat Mission (Urban) 2.0:Complete faecal sludge management and waste water treatmentSource segregation of garbageReduction in single-use plasticReduction in air pollution by effectively managing waste from construction-and-demolition activitiesBio-remediation of all legacy dump sites#CleanAirRs. 2,217 crore to tackle air pollution, for 42 urban centers with a million-plus population#ScrappingPolicyVoluntary vehicle scrapping policy to phase out old and unfit vehiclesFitness tests in automated fitness centres:After 20 years in case of personal vehiclesAfter 15 years in case of commercial vehicles#Physical and #Financial Capital and Infrastructure#Production Linked #Incentive scheme (PLI)Rs. 1.97 lakh crore in next 5 years for PLI schemes in 13 SectorsTo create and nurture manufacturing global champions for an AatmaNirbhar BharatTo help manufacturing companies become an integral part of global supply chains, possess core competence and cutting-edge technologyTo bring scale and size in key sectorsTo provide jobs to the youth#TextilesMega Investment Textiles Parks (MITRA) scheme, in addition to PLI:7 Textile Parks to be established over 3 yearsTextile industry to become globally competitive, attract large investments and boost employment generation & exports#InfrastructureNational Infrastructure Pipeline (NIP) expanded to 7,400 projects:Around 217 projects worth Rs. 1.10 lakh crore completedMeasures in three thrust areas to increase funding for NIP:Creation of institutional structuresBig thrust on monetizing assetsEnhancing the share of capital expenditureCreation of institutional structures: Infrastructure FinancingRs. 20,000 crore to set up and capitalise a Development Financial Institution(DFI) – to act as a provider, enabler and catalyst for infrastructure financingRs. 5 lakh crore lending portfolio to be created under the proposed DFI in 3 yearsDebt Financing by Foreign Portfolio Investors to be enabled by amending InvITs’ and REITs’ legislations#Big thrust on monetizing assetsNational Monetization Pipeline to be launchedImportant asset monetization measures:5 operational toll roads worth Rs. 5,000 crore being transferred to the NHAIInvITTransmission assets worth Rs. 7,000 crore to be transferred to the PGCILInvITDedicated Freight Corridor assets to be monetized by Railways, for operations and maintenance, after commissioningNext lot of Airports to be monetized for operations and management concessionOther core infrastructure assets to be rolled out under the Asset Monetization Programme:Oil and Gas Pipelines of GAIL, IOCL and HPCLAAI Airports in Tier II and III cities#Other#Railway Infrastructure AssetsWarehousing Assets of CPSEs such as Central Warehousing Corporation and #NAFEDSports StadiumsSharp Increase in #CapitalBudgetRs. 5.54 lakh crore capital expenditure in BE 2021-22 – sharp increase of 34.5% over Rs. 4.12 lakh crore allocated in BE 2020-21 :Over Rs. 2 lakh crore to States and Autonomous Bodies for their Capital Expenditure.Over Rs. 44,000 crore for the Department of Economic Affairs to provide for projects/programmes/departments exhibiting good progress on Capital ExpenditureRoads and Highways InfrastructureRs. 1,18,101 lakh crore, highest ever outlay, for Ministry of Road Transport and Highways – of which Rs. 1,08,230 crore is for capitalUnder the Rs. 5.35 lakh crore Bharatmala Pariyojana, more than 13,000 km length of roads worth Rs. 3.3 lakh crore awarded for construction:3,800 km have already been constructedAnother 8,500 km to be awarded for construction by March 2022Additional 11,000 km of national highway corridors to be completed by March 2022Economic corridors being planned:Rs. 1.03 lakh crore outlay for 3,500 km of NHs in Tamil NaduRs. 65,000 crore investment for 1,100 km of NHs in KeralaRs. 25,000 crore for 675 km of NHs in West BengalOver Rs. 34,000 crore to be allocated for 1300 km of NHs to be undertaken in next 3 years in Assam, in addition to Rs. 19,000 crore works of NHs currently in progress in the StateFlagship Corridors/Expressways:Delhi-Mumbai Expressway – Remaining 260 km to be awarded before 31.3.2021Bengaluru-Chennai Expressway – 278 km to be initiated in the current FY; construction to begin in 2021-22Kanpur-Lucknow Expressway – 63 km expressway providing an alternate route to NH 27 to be initiated in 2021-22Delhi-Dehradun economic corridor – 210 km to be initiated in the current FY; construction to begin in 2021-22Raipur-Vishakhapatnam – 464 km passing through Chhattisgarh, Odisha and North Andhra Pradesh, to be awarded in the current year; construction to start in 2021-22Chennai-Salem corridor – 277 km expressway to be awarded and construction to start in 2021-22Amritsar-Jamnagar – Construction to commence in 2021-22#Delhi–#Katra – Construction will commence in 2021-22Advanced Traffic management system in all new 4 and 6-lane highways:Speed radarsVariable message signboardsGPS enabled recovery vans will be installedRailway InfrastructureRs. 1,10,055 crore for Railways of which Rs. 1,07,100 crore is for capital expenditureNational Rail Plan for India (2030): to create a ‘future ready’ Railway system by 2030100% electrification of Broad-Gauge routes to be completed by December, 2023Broad Gauge Route Kilometers (RKM) electrification to reach 46,000 RKM, i.e. 72% by end of 2021Western Dedicated Freight Corridor (DFC) and Eastern DFC to be commissioned by June 2022, to bring down the logistic costs – enabling Make in India strategyAdditional initiatives proposed:The Sonnagar-Gomoh Section (263.7 km) of Eastern DFC to be taken up in PPP mode in 2021-22Future dedicated freight corridor projects –East Coast corridor from Kharagpur to VijayawadaEast-West Corridor from Bhusaval to Kharagpur to DankuniNorth-South corridor from Itarsi to VijayawadaMeasures for passenger convenience and safety:Aesthetically designed Vista Dome LHB coach on tourist routes for better travelHigh density network and highly utilized network routes to have an indigenously developed automatic train protection system, eliminating train collision due to human error#UrbanInfrastructureRaising the share of public transport in urban areas by expansion of metro rail network and augmentation of city bus serviceRs. 18,000 crore for a new scheme, to augment public bus transport:Innovative PPP models to run more than 20,000 busesTo boost automobile sector, provide fillip to economic growth, create employment opportunities for our youthA total of 702 km of conventional metro is operational and another 1,016 km of metro and RRTS is under construction in 27 cities‘MetroLite’ and ‘MetroNeo’ technologies to provide metro rail systems at much lesser cost with similar experience in Tier-2 cities and peripheral areas of Tier-1 cities. Central counterpart funding to:Kochi Metro Railway Phase-II of 11.5 km at a cost of Rs. 1957.05 croreChennai Metro Railway Phase –II of 118.9 km at a cost of Rs. 63,246 croreBengaluru Metro Railway Project Phase 2A and 2B of 58.19 km at a cost of Rs. 14,788 croreNagpur Metro Rail Project Phase-II and Nashik Metro at a cost of Rs. 5,976 crore and Rs. 2,092 crore respectively.#PowerInfrastructure139 Giga Watts of installed capacity and 1.41 lakh circuit km of transmission lines added, and additional 2.8 crore households connected in past 6 yearsConsumers to have alternatives to choose the Distribution Company for enhancing competitivenessRs. 3,05,984 crore over 5 years for a revamped, reforms-based and result-linked new power distribution sector schemeA comprehensive National Hydrogen Energy Mission 2021-22 to be launched#Ports, #Shipping, #WaterwaysRs. 2,000 crore worth 7 projects to be offered in PPP-mode in FY21-22 for operation of major portsIndian shipping companies to get Rs. 1624 crore worth subsidy support over 5 years in global tenders of Ministries and CPSEsTo double the recycling capacity of around 4.5 Million Light Displacement Tonne (LDT) by 2024; to generate an additional 1.5 lakh jobs#Petroleum & #Natural GasExtention of Ujjwala Scheme to cover 1 crore more beneficiariesTo add 100 more districts to the City Gas Distribution network in next 3 yearsA new gas pipeline project in J&KAn independent Gas Transport System Operator to be set up for facilitation and coordination of booking of common carrier capacity in all-natural gas pipelines on a non-discriminatory open access basis#FinancialCapitalA single Securities Markets Code to be evolvedSupport for development of a world class Fin-Tech hub at the GIFT-IFSCA new permanent institutional framework to help in development of Bond market by purchasing investment grade debt securities both in stressed and normal timesSetting up a system of Regulated Gold Exchanges: SEBI to be notified as a regulator and Warehousing Development and Regulatory Authority to be strengthenedTo develop an investor charter as a right of all financial investorsCapital infusion of Rs. 1,000 crore to Solar Energy Corporation of India and Rs. 1,500 crore to Indian Renewable Energy Development Agency#Increasing #FDI in Insurance SectorTo increase the permissible FDI limit from 49% to 74% and allow foreign ownership and control with safeguards#Stressed Asset ResolutionAsset Reconstruction Company Limited and Asset Management Company to be set up#Recapitalization of #PSBsRs. 20,000 crore in 2021-22 to further consolidate the financial capacity of PSBsDeposit InsuranceAmendments to the DICGC Act, 1961, to help depositors get an easy and time-bound access to their deposits to the extent of the deposit insurance coverMinimum loan size eligible for debt recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 proposed to be reduced from Rs. 50 lakh to Rs. 20 lakh for NBFCs with minimum asset size of Rs. 100 crore#CompanyMattersTo decriminalize the Limited Liability Partnership (LLP) Act, 2008Easing Compliance requirement of Small companies by revising their definition under Companies Act, 2013 by increasing their thresholds for Paid up capital from “not exceeding Rs. 50 Lakh” to “not exceeding Rs. 2 Crore” and turnover from “not exceeding Rs. 2 Crore” to “not exceeding Rs. 20 Cr”.Promoting start-ups and innovators by incentivizing the incorporation of One Person Companies (OPCs):Allowing their growth without any restrictions on paid up capital and turnoverAllowing their conversion into any other type of company at any time,Reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days andAllowing Non Resident Indians (NRIs) to incorporate OPCs in India.To ensure faster resolution of cases by:Strengthening NCLT frameworkImplementation of e-Courts systemIntroduction of alternate methods of debt resolution and special framework for MSMEsLaunch of data analytics, artificial intelligence, machine learning driven MCA21 Version 3.0 in 2021-22Disinvestment and Strategic SaleRs. 1,75,000 crore estimated receipts from disinvestment in BE 2020-21Strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited etc. to be completed in 2021-22.Other than IDBI Bank, two Public Sector Banks and one General Insurance company to be privatizedIPO of LIC in 2021-22New policy for Strategic Disinvestment approved; CPSEs except in four strategic areas to be privatizedNITI Aayog to work out on the next list of CPSEs to be taken up for strategic disinvestmentIncentivizing States for disinvestment of their Public Sector Companies, using central fundsSpecial Purpose Vehicle in the form of a company to monetize idle landIntroducing a revised mechanism for ensuring timely closure of sick or loss making CPSEsGovernment Financial ReformsTreasury Single Account (TSA) System for Autonomous Bodies to be extended for universal applicationSeparate Administrative Structure to streamline the ‘Ease of Doing Business’ for CooperativesInclusive Development for Aspirational IndiaAgricultureEnsured MSP at minimum 1.5 times the cost of production across all commodities.With steady increase in the procurement, payment to farmers increased as under: (in Rs. crore)2013-142019-202020-21WheatRs. 33,874Rs. 62,802Rs. 75,060RiceRs. 63,928Rs. 1,41,930Rs. 172,752PulsesRs. 236Rs. 8,285Rs. 10,530SWAMITVA Scheme to be extended to all States/UTs, 1.80 lakh property-owners in 1,241 villages have already been provided cardsAgricultural credit target enhanced to Rs. 16.5 lakh crore in FY22 – animal husbandry, dairy, and fisheries to be the focus areasRural Infrastructure Development Fund to be enhanced to Rs. 40,000 crore from Rs. 30,000 croreTo double the Micro Irrigation Fund to Rs. 10,000 crore‘Operation Green Scheme’ to be extended to 22 perishable products, to boost value addition in agriculture and allied productsAround 1.68 crore farmers registered and Rs. 1.14 lakh crore of trade value carried out through e-NAMs; 1,000 more mandis to be integrated with e-NAM to bring transparency and competitiveness.APMCs to get access to the Agriculture Infrastructure Funds for augmenting infrastructure facilitiesFisheriesInvestments to develop modern fishing harbours and fish landing centres – both marine and inland5 major fishing harbours – Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat to be developed as hubs of economic activityMultipurpose Seaweed Park in Tamil Nadu to promote seaweed cultivationMigrant Workers and LabourersOne Nation One Ration Card scheme for beneficiaries to claim rations anywhere in the country – migrant workers to benefit the mostScheme implementation so far covered 86% of beneficiaries across 32 States and UTsRemaining 4 states to be integrated in next few monthsPortal to collect information on unorganized labour force, migrant workers especially, to help formulate schemes for themImplementation of 4 labour codes underwaySocial security benefits for gig and platform workers toominimum wages and coverage under the Employees State Insurance Corporation applicable for all categories of workersWomen workers allowed in all categories, including night-shifts with adequate protectionCompliance burden on employers reduced with single registration and licensing, and online returnsFinancial InclusionUnder Stand Up India Scheme for SCs, STs and women,Margin money requirement reduced to 15%To also include loans for allied agricultural activitiesRs. 15,700 crore budget allocation to MSME Sector, more than double of this year’s BEReinvigorating Human CapitalSchool Education15,000 schools to be strengthened by implementing all NEP components. Shall act as exemplar schools in their regions for mentoring others100 new Sainik Schools to be set up in partnership with NGOs/private schools/statesHigher EducationLegislation to be introduced to setup Higher Education Commission of India as an umbrella body with 4 separate vehicles for standard-setting, accreditation, regulation, and fundingCreation of formal umbrella structure to cover all Govt. colleges, universities, research institutions in a city for greater synergy.Glue grant to implement the same across 9 citiesCentral University to come up in Leh for accessibility of higher education in LadakhScheduled Castes and Scheduled Tribes Welfare750 Eklavya model residential schools in tribal areas:Unit cost of each school to be increased to Rs. 38 croreFor hilly and difficult areas, to Rs. 48 croreFocus on creation of robust infrastructure facilities for tribal studentsRevamped Post Matric Scholarship Scheme for welfare of SCsRs. 35,219 crore enhanced Central Assistance for 6 years till 2025-20264 crore SC students to benefitSkillingProposed amendment to Apprenticeship Act to enhance opportunities for youthRs. 3000 crore for realignment of existing National Apprenticeship Training Scheme (NATS) towards post-education apprenticeship, training of graduates and diploma holders in EngineeringInitiatives for partnership with other countries in skilling to be taken forward, similar to partnership:With UAE to benchmark skill qualifications, assessment, certification, and deployment of certified workforceWith Japan for a collaborative Training Inter Training Programme (TITP) to transfer of skills, technique and knowledgeSKILLING.jpgInnovation and R&D· Modalities of National Research Foundation announced in July 2019 –Rs. 50,000 crore outlay over 5 yearsTo strengthen overall research ecosystem with focus on national-priority thrust areasRs. 1,500 crore for proposed scheme to promote digital modes of paymentNational Language Translation Mission (NTLM) to make governance-and-policy related knowledge available in major Indian languages· PSLV-CS51 to be launched by New Space India Limited (NSIL) carrying Brazil’s Amazonia Satellite and some Indian satellitesAs part of the Gaganyaan mission activities:4 Indian astronauts being trained on Generic Space Flight aspects, in RussiaFirst unmanned launch is slated for December 2021Rs. 4,000 crore over five years for Deep Ocean Mission survey exploration and conservation of deep sea biodiversityMinimum Government, Maximum GovernanceMeasures being undertaken to bring reforms in Tribunals to ensure speedy justiceNational Commission for Allied Healthcare Professionals already introduced to ensure transparent and efficient regulation of the 56 allied healthcare professionsThe National Nursing and Midwifery Commission Bill introduced for the same in nursing profession· Proposed Conciliation Mechanism with mandate for quick resolution of contractual disputes with CPSEsRs. 3,768 crore allocated for first digital census in the history of India· Rs. 300 crore grant to the Government of Goa for the diamond jubilee celebrations of the state’s liberation from Portuguese· Rs. 1,000 crore for the welfare of Tea workers especially women and their children in Assam and West Bengal through a special schemeFiscal PositionItemOriginal BE 2020-21RE 2020-21BE 2021-22Expenditure`30.42 lakh crore`34.50 lakh crore`34.83 lakh croreCapital Expenditure`4.12 lakh crore`4.39 lakh crore` 5.5 lakh croreFiscal Deficit (as % of GDP)-9.5%6.8%RE for Expenditure is Rs. 34.50 lakh crore as against original BE expenditure of Rs. 30.42 lakh croreQuality of expenditure has been maintained as Capital Expenditure estimated as per RE is Rs. 4.39 lakh crore in 2020-2021 as against Rs. 4.12 lakh crore in BE 2020-21· Estimates of Rs. 34.83 lakh crore BE for expenditure in 2021-2022 including Rs. 5.5 lakh crore as capital expenditure, an increase of 34.5% to give required push to economy · The fiscal deficit in BE 2021-2022 is estimated to be 6.8% of GDP. The fiscal deficit in RE 2020-21 is pegged at 9.5% of GDP – funded through Government borrowings, multilateral borrowings, Small Saving Funds and short term borrowingsGross borrowing from the market for the next year to be around 12 lakh crore.Plan to continue on the path of fiscal consolidation, achieving a fiscal deficit level below 4.5% of GDP by 2025-2026 with a fairly steady decline over the periodIt will be achieved by increasing the buoyancy of tax revenue through improved compliance, and secondly, by increased receipts from monetisation of assets, including Public Sector Enterprises and landDeviation Statement under Sections 4(5) and 7(3) (b) of the FRBM Act tabled necessitated by this year’s unforeseen and unprecedented circumstancesAmendment to FRBM Act proposed to achieve targeted Fiscal Deficit levels· The Contingency Fund of India is to be augmented from Rs. 500 crore to Rs. 30,000 crore through Finance BillNet borrowing of the States:Net borrowing for the states allowed at 4% of GSDP for the year 2021-2022 as per recommendation of 15th FCPart of this earmarked for incremental capital expenditureAdditional borrowing ceiling of 0.5% of GSDP will be provided subject to conditionsStates expected to reach a fiscal deficit of 3% of GSDP by 2023-24, as recommended by the 15th Finance CommissionFifteenth Finance Commission:The final report covering 2021-26 was submitted to the President, retaining vertical shares of states at 41%Funds to UTs of Jammu and Kashmir and Ladakh would be provided by CentreOn the Commission’s recommendation, Rs. 1,18,452 crore have been provided as Revenue Deficit Grant to 17 states in 2021-22, as against Rs. 74,340 crore to 14 states in 2020-21Tax ProposalsVision of a transparent, efficient tax system to promote investments and employment in the country with minimum burden on tax payersDirect TaxesAchievements:Corporate tax rate slashed to make it among the lowest in the worldBurden of taxation on small taxpayers eased by increasing rebatesReturn filers almost doubled to 6.48 crore in 2020 from 3.31 crore in 2014Faceless Assessment and Faceless Appeal introducedRelief to Senior Citizens:Exemption from filing tax returns for senior citizens over 75 years of age and having only pension and interest income; tax to be deducted by paying bankReducing Disputes, Simplifying Settlement:Time limit for re-opening cases reduced to 3 years from 6 yearsSerious tax evasion cases, with evidence of concealment of income of Rs. 50 lakh or more in a year, to be re-opened only up to 10 years, with approval of the Principal Chief CommissionerDispute Resolution Committee to be set up for taxpayers with taxable income up to Rs. 50 lakh and disputed income up to Rs. 10 lakhNational Faceless Income Tax Appellate Tribunal Centre to be establishedOver 1 lakh taxpayers opted to settle tax disputes of over Rs. 85,000 crore through Vivad Se Vishwas Scheme until 30th January 2021Relaxation to NRIs:Rules to be notified for removing hardships faced by NRIs regarding their foreign retirement accountsIncentivising Digital Economy:Limit of turnover for tax audit increased to Rs. 10 crore from Rs. 5 crore for entities carrying out 95% transactions digitallyRelief for Dividend:Dividend payment to REIT/ InvIT exempt from TDSAdvance tax liability on dividend income only after declaration/ payment of dividendDeduction of tax on dividend income at lower treaty rate for Foreign Portfolio InvestorsAttracting Foreign Investment for Infrastructure:Infrastructure Debt Funds made eligible to raise funds by issuing Zero Coupon BondsRelaxation of some conditions relating to prohibition on private funding, restriction on commercial activities, and direct investmentSupporting ‘Housing for All’:Additional deduction of interest, up to Rs. 1.5 lakh, for loan taken to buy an affordable house extended for loans taken till March 2022Tax holiday for Affordable Housing projects extended till March 2022Tax exemption allowed for notified Affordable Rental Housing ProjectsTax incentives to IFSC in GIFT City:Tax holiday for capital gains from incomes of aircraft leasing companiesTax exemptions for aircraft lease rentals paid to foreign lessorsTax incentive for relocating foreign funds in the IFSCTax exemption to investment division of foreign banks located in IFSCEase of Filing Taxes:Details of capital gains from listed securities, dividend income, interest from banks, etc. to be pre-filled in returnsRelief to Small Trusts:Exemption limit of annual receipt revised from ₹1 crore to ₹5 crore for small charitable trusts running schools and hospitalsLabour Welfare:Late deposit of employee’s contribution by the employer not to be allowed as deduction to the employerEligibility for tax holiday claim for start-ups extended by one more yearCapital gains exemption for investment in start-ups extended till 31st March, 2022Indirect TaxesGST:Measures taken till date:Nil return through SMSQuarterly return and monthly payment for small taxpayersElectronic invoice systemValidated input tax statementPre-filled editable GST returnStaggering of returns filingEnhancement of capacity of GSTN systemUse of deep analytics and AI to identify tax evadersCustom Duty Rationalization:Twin objectives: Promoting domestic manufacturing and helping India get onto global value chain and export better80 outdated exemptions already eliminatedRevised, distortion-free customs duty structure to be put in place from 1st October 2021 by reviewing more than 400 old exemptionsNew customs duty exemptions to have validity up to the 31st March following two years from its issue dateElectronic and Mobile Phone Industry:Some exemptions on parts of chargers and sub-parts of mobiles withdrawnDuty on some parts of mobiles revised to 2.5% from ‘nil’ rateIron and Steel:Customs duty reduced uniformly to 7.5% on semis, flat, and long products of non-alloy, alloy, and stainless steelsDuty on steel scrap exempted up to 31st March, 2022Anti-Dumping Duty (ADD) and Counter-Veiling Duty (CVD) revoked on certain steel productsDuty on copper scrap reduced from 5% to 2.5%Textiles:Basic Customs Duty (BCD) on caprolactam, nylon chips and nylon fiber & yarn reduced to 5%Chemicals:Calibrated customs duty rates on chemicals to encourage domestic value addition and to remove inversionsDuty on Naptha reduced to 2.5%Gold and Silver:Custom duty on gold and silver to be rationalizedRenewable Energy:Phased manufacturing plan for solar cells and solar panels to be notifiedDuty on solar invertors raised from 5% to 20%, and on solar lanterns from 5% to 15% to encourage domestic productionCapital Equipment:Tunnel boring machine to now attract a customs duty of 7.5%; and its parts a duty of 2.5%Duty on certain auto parts increased to general rate of 15%MSME Products:Duty on steel screws and plastic builder wares increased to 15%Prawn feed to attract customs duty of 15% from earlier rate of 5%Exemption on import of duty-free items rationalized to incentivize exporters of garments, leather, and handicraft itemsExemption on imports of certain kind of leathers withdrawnCustoms duty on finished synthetic gem stones raised to encourage domestic processingAgriculture Products:Customs duty on cotton increased from nil to 10% and on raw silk and silk yarn from 10% to 15%.Withdrawal of end-use based concession on denatured ethyl alcoholAgriculture Infrastructure and Development Cess (AIDC) on a small number of itemsRationalization of Procedures and Easing of Compliance:Turant Customs initiative, a Faceless, Paperless, and Contactless Customs measuresNew procedure for administration of Rules of OriginAchievements and Milestones during the COVID-19 pandemicPradhan Mantri Garib Kalyan Yojana (PMGKY):Valued at Rs. 2.76 lakh croreFree food grain to 80 crore peopleFree cooking gas for 8 crore familiesDirect cash to over 40 crore farmers, women, elderly, the poor and the needyAatmaNirbhar Bharat package (ANB 1.0):Estimated at Rs. 23 lakh crore – more than 10% of GDPPMGKY, three ANB packages (ANB 1.0, 2.0, and 3.0), and announcements made later were like 5 mini-budgets in themselvesRs. 27.1 lakh crore worth of financial impact of all three ANB packages including RBI’s measures – amounting to more than 13% of GDPStructural reforms:One Nation One Ration CardAgriculture and Labour ReformsRedefinition of MSMEsCommercialisation of the Mineral SectorPrivatisation of Public Sector UndertakingsProduction Linked Incentive SchemesStatus of India’s fight against COVID-19:2 Made-in-India vaccines – medically safeguarding citizens of India and those of 100-plus countries against COVID-192 or more new vaccines expected soonLowest death rate per million and the lowest active cases2021 – Year of milestones for Indian history75th year of India’s independence60 years of Goa’s accession to India50 years of the 1971 India-Pakistan WarYear of the 8th Census of Independent India India’s turn at the BRICS PresidencyYear for Chandrayaan-3 MissionHaridwar MahaKumbhVision for AatmaNirbhar BharatAatmaNirbharta – not a new idea – ancient India was self-reliant and a business epicentre of the worldAtmaNirbhar Bharat – an expression of 130 crore Indians who have full confidence in their capabilities and skillsStrengthening the Sankalp of:Nation FirstDoubling Farmer’s IncomeStrong InfrastructureHealthy IndiaGood GovernanceOpportunities for YouthEducation for AllWomen EmpowermentInclusive Development13 promises made in the Union Budget 2015-16, and resonating with the vision of AatmaNirbharta, to materialise during the AmrutMahotsav of 2022 – on the 75th year of our independence