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Union Budget 2021: Key takeaways from FM Nirmala Sitharaman's speech

Speed News Desk | Updated on: 1 February 2021, 15:18 IST

Finance Minister Nirmala Sitharaman on Monday presented Union Budget 2021-22 that aims to bolster the Indian economy post coronavirus pandemic.

The Union Budget 2021-22 proposals focus on six pillars:

1) Health and well-being

2) Physical and financial capital and infrastructure

3) Inclusive development for aspirational India

4) Reinvigorating human capital

5) Innovation and R&D

6) Minimum government and maximum governance

Key takeaways from Finance minister’s speech:

1) Fiscal deficit pegged at 9.5% of GDP for FY21 For 2021-’22, fiscal deficit estimated at 6.8% of GDP

2) Rs 15,700 crore provided for MSMEs

3) Divestment target of Rs 1.75 lakh crore for FY 2021-22

4) PM Ujjwala Yojana to be extended from 8 crore households to 1 crore more beneficiaries

5) LIC IPO will be brought in FY22

6) Rs 1.18 lakh crore allocated as revenue deficit grant to states

7) Rs 20,000 crore allocated for recapitalisation of public sector banks

8) Rs 3.05 lakh crore outlay for power sector

9) FDI unit in insurance sector increased from 49 pc to 74 pc

10) Voluntary vehicle scrapping policy announced to phase out old vehicles

11) Rs 1.18 lakh crore allocated for highways and roads ministry

12) New road infrastructure projects in states going to polls (Tamil Nadu, Kerala, West Bengal and Assam)

13) Rs 1,10,055 crore allocated for Railways

14) Capital expenditure outlay of Rs 5.54 lakh crore in FY22 over than 34 pc higher than revised estimate of last fiscal

15) Urban Jal Jeevan Mission to be laughed and implemented over 5 years with an outlay of Rs 2.87 lakh crore

15) Rs 20,000 crore for setting up of a Development Finance Institution for infrastructure projects

16) Rs 1.4 lakh crore for Urban Swachh Bharat scheme

17) Rs 35,000 crore for development of coronavirus vaccines

18) Aatmanirbhar Health Yojana with an outlay of Rs 64,180 crore

19) Senior citizens above 75 years exempted from income tax returns filing

20) Rural infrastructure development allocation increased to Rs 40,000 crore from Rs 30,000 crore 

21) Agriculture credit target raised to Rs 16.5 lakh crore in 2021-22

22) Agri infra fund to be made available to APMCs

23) Insurance Act to be amended to increase FDI limit in insurance to 74 pc from 49 pc with safeguards

Also Read: Union Budget 2021: Nirmala Sitharaman replaces Swadeshi 'bahi khata' with tablet

First published: 1 February 2021, 15:18 IST