Who gets what in Finance Minister’s Budget? Here’s the fine print
- Government to spend Rs 64,180 crore on healthcare over six years
- Government sets aside Rs 35,000 crore for Covid-19 vaccine in FY22
- To spend Rs 1.41 lakh crore for Urban Clean India Mission
- Proposes voluntary Vehicle Scrappage Policy
- Outlay of Rs 1.18 lakh crore for Ministry of Road Transport and Highways
- India to spend Rs 1.1 lakh crore for Railways in FY22
Market clocks in best single-day gain In 10 months: Sensex soars 1400 points, Nifty tops 14,000 and D-Street celebrates FM’s expansionary budget
The first Budget of the decade leaves direct taxes unchanged. These are the tax incentives announced.
- Advance tax liability on dividend income to arise only after payment of dividend
- Compliance for taxpayers eased, details of salary income, tax payment and TDS are prefilled currently
- Details of capital gains from listed securities, dividend income, and interest income to also be pre-filled in tax forms
- Eligibility of provision for additional deduction of Rs 1.5 lakh extended
Nirmala Sitharaman proposes to review more than 400 old exemptions in customs this year. To put into place new customs duty structure by Oct-1, 2021.
- Revoking ADD and CVD on certain steel products.
- Reducing duties on copper scrap from 5% to 2.5%.
- Some parts of mobiles to move from NIL to 2.5% rate.
- Cutting duty on copper scrap 2.5% from 5%.
- Exempting duty on steel scrap for a specified period.
Finance Minister Nirmala Sitharaman said the government will borrow Rs 80,000 crore in the remaining two months to meet FY21 expenditure.
“Govt to borrow about Rs 12 lakh cr in FY22; expenditure pegged at Rs 34.83 lakh cr, including Rs 5.54 lakh cr of capital spending,” Sitharaman said.
Budget 2021 Live updates: The FM proposes extension of tax holiday for start-ups by one more year.
Income tax return filers increased to 6.48 cr in 2020 from 3.31 cr in 2014, says FM.
Government to provide tax exemption for relocating funds to IFSC
Aviation gets a boost, Sitharaman gives tax holiday for aircraft leasing business in Gift city
Govt to extend eligibility of erstwhile tax sop on home loan up to FY22; propose that affordable housing projects can avail tax holiday for one more year
Govt proposes to extend exemption available for the purchase of affordable houses & to provide tax exemption for affordable rental housing projects12:36 PM
Boost to NRIs in Sitharaman’s Budget: Government to notify rules to eliminate double tax for NRIs on foreign retirement funds
Budget 2021 Live updates: Tax tricks in Sitharaman’s Budget
- For ease of compliance, dividend payment for REIT and InVIT exempted from tax.
- Govt proposes to increase threshold for tax audit to Rs.10 crore vs Rs. 5crore (for those transacting 95% digitally)
- Govt to set-up a faceless dispute resolution mechanism for small taxpayers.
- Advance tax liability on dividend to arise only after declaration.
- FPI to get deduction of tax on dividend at lower treaty rate.
- Tax exemption for aircraft leasing companies.
Finance Minister allocates Rs 3,726 crore for forthcoming Census. This will be the first digital census, Sitharaman said.
Budget 2021 Live updates: FM reduces tax burden on senior citizens above 75 years. Pensioners over 75 years of age are exempt from filing returns .
To reduce time limit for reopening of tax records to three years from six years.12:28 PM
The pandemic necessitated deviation from glide path to achieve fiscal deficit target under FRBM Act.
Hope to get to back to fiscal consolidation path by FY26. Fiscal deficit will reach below 4.5% by FY26, says Sitharaman.
Airport management cos rise as govt announces monetising more airports
Price as on 01 Feb, 2021 12:23 PM, Click on company names for their live prices.12:22 PM
Union Budget 2021 live: FY21 fiscal deficit at 9.5% of GDP
- FY21 gross expenditure seen at Rs 34.5 lakh crore
- FY21 capital expenditure seen at Rs 4.39 lakh crore
- FY21 fiscal deficit pegged at 9.5% of GDP
- FY22 fiscal deficit target at 6.8% of GDP
- FY22 gross expenditure seen at Rs 34.83 lakh crore
- FY22 capital expenditure seen at 5.54 lakh crore
- Market borrowing in FY22 seen at 12 lakh crore
Market Watch: Sensex gains over 650 points, Nifty crosses 13,800
India to launch Deep Ocean Mission, with allocation of Rs 4,000 crore over 4 years.
Union Budget 2021 live: Government announces multi-state co-operative for ease of doing business
Minimum wages to now apply to all categories of workers. Social security benefits will be extended to gig and platform workers.
Women to be allowed to work in all categories with adequate protection.12:14 PM
MSME allocation to be doubled. Government to set aside Rs 15,700 crore in FY22
Government also proposes to reduce margin money requirement from 25% to 15% for startups.https://economictimes.indiatimes.com/liveblogmidad.cms12:11 PM
Union Budget 2021 live: 69 crore beneficiaries or 86% covered under one-nation, one-ration, says the Finance Minister
Market Update: An hour into the presentation, these are the big winners
|IndusInd Bank Ltd.||930.85||84.60 (10.00%)|
|ICICI Bank Ltd.||570.55||33.55 (6.25%)|
|State Bank of India||292.60||10.55 (3.74%)|
|HDFC Bank Ltd.||1420.00||29.20 (2.10%)|
|Bajaj Finserv Ltd.||9088.20||367.80 (4.22%)|
Price as on 01 Feb, 2021 12:08 PM, Click on company names for their live prices.12:06 PM
Farmers find a way in the bahi khata. FM announces enhanced agri credit target for FY22, gives update on welfare schemes.
- To increase provision to rural infra development fund to Rs 40,000 crore from Rs 30,000 crore
- Five major fishing harbours to be developed as hubs for economic activity
- Micro irrigation corpus doubled to Rs 10,000 cr. Agriculture infra fund will be made available to APMCs.
- 1.54 crore farmers benefited from MSP in paddy and wheat in FY21 vs 1.24 crore YoY
- Amount paid to farmers for wheat in FY21 was Rs 75,060 crore vs Rs 62,802 crore in FY20
- Amount paid to farmers for paddy in FY21 seen at Rs 1.72 crore Rs vs Rs 1.41 lakh crore in FY20
- Amount paid to farmers for pulses in FY21 seen at Rs 10,530 crore vs Rs 8,285 crore in FY20
Government to privatise 2 PSU banks, one general insurance company in FY22: Nirmala Sitharaman
- It will complete the divestments of BPCL, CONCOR and SCI in financial year 2021-22.
- Will bring IPO of LIC in FY22
Stock Check: BPCL, CONCOR, Pawan Hans, Air India divestments to be completed in FY22
|Bharat Petroleum Corporation Ltd.||394.00||10.40 (2.71%)|
|Container Corporation of India Ltd.||446.60||13.10 (3.02%)|
Price as on 01 Feb, 2021 12:03 PM, Click on company names for their live prices.12:01 PM
Divestment target for FY22 at Rs 1.75 lakh cr, FM says
- In FY21, the government had budgeted to raise Rs 2.1 lakh crore through divestments but fell short.
- Some of the big ticket divestments planned last year, like the stake sale in LIC, may conclude this year.
- The government has approved a new public sector enterprises policy, which is intended to drive privatisation.
Fiscal support in FY22 depends on revenue generation from the success of these programmes.
After 30 minutes of Budget speech these are the most traded securities on NSE (in volume terms)
|Vodafone Idea Ltd.||11.25||0.05 (0.45%)|
|Tata Motors Ltd.||107.20||2.75 (2.63%)|
|Tata Motors Ltd.||268.05||5.35 (2.04%)|
|YES Bank Ltd.||15.95||0.20 (1.27%)|
|Steel Authority of India (SAIL) Ltd.||60.05||2.40 (4.16%)|
|IDBI Bank Ltd.||31.70||3.95 (14.23%)|
Price as on 01 Feb, 2021 11:57 AM,
The one man show, Government to now allow one-person companies
- 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
- Allow non-resident Indians to incorporate one-person companies in India
The Finance Minister proposed to revise definition under Companies Act, 2013 for small companies by increasing their threshold for capitalization to not exceeding Rs 50 lakh to not exceeding Rs 2 crore and turnover not exceeding Rs 2 crore to not exceeding Rs 20 crore.
Union Budget 2021 live: Government allots Rs 20,000 crore for bank recapitalisation, as FM emphasizes the need to clean up banks’ books
Sitharaman’s announcement of the addition of 100 cities to the City Gas Distribution network boosts stocks
|Indraprastha Gas Ltd.||524.55||8.75 (1.70%)|
|GAIL (India) Ltd.||126.05||0.75 (0.60%)|
|Mahanagar Gas Ltd.||1052.50||17.40 (1.68%)|
Price as on 01 Feb, 2021 11:50 AM,
Government to amend Insurance Act to allow higher FDI
- FDI limit in insurance increase to 74% from 49%.
- Govt allows foreign ownership in insurance with safeguards.
Finance Minister Nirmala Sitharaman proposes to consolidate provisions of SEBI Act, Depositories Act, Securities Contracts Regulation Act, Government Securities Act
Union Budget 2021 live: Ujjwala Scheme will be extended to cover 1 cr more beneficiaries.
- 100 more districts to be added in the next 3 years for city gas distribution
- An independent gas transport system operator to be set up
Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetised, says FM in Budget for 2021-22
Rail stocks at a high as FM increases spending. FY22 allocation for railways at Rs 1,10,055 cr.
|Larsen & Toubro Ltd.||1377.00||42.30 (3.17%)|
|ITD Cementation India Ltd.||65.30||2.55 (4.06%)|
|NCC Ltd.||63.50||4.55 (7.72%)|
|Siemens Ltd.||1597.50||11.05 (0.70%)|
|KEC International Ltd.||361.50||1.85 (0.51%)|
Price as on 01 Feb, 2021 11:42 AM,
FY22 fiscal deficit seen at 6.8%.
The government had pegged the fiscal deficit at 3.5% for FY21 in the last budget before the onset of the Covid-19 crisis.11:40 AM
FM’s infra boost: Providing Rs 1.15 lk cr for Railways, privatizing airports
- Out of the Rs 1.15 lk cr for Railways, Rs 1.07 lk cr is towards CAPEX
- Indian Railways national rail plan for India to prepare a future-ready railway system by 2030, says the FM.
- Indian Railways have a National Rail Plan for 2030.
- Next lot of airports to be privatized in tier 2 and 3 towns and cities
Market Watch: Nifty climbs above 13,800 as FM Nirmala Sitharaman presents Union Budget 202. Sensex clocks in 700-point gain.
Highway infra work proposed include building 8,500-km of highways by March 2022.
- 3,500 km corridor in Tamil Nadu
- 1,100 km in Kerala at investment of Rs 65,000 cr
- 675 km in West Bengal at a cost of Rs 95,000 cr
- 1,300 km in Assam in the next 3 years
National Monetisation Pipeline for brownfield projects to be launched. NHAI and PGCIL have sponsored one InvIT each.
- 5 operational roads with estimated enterprise value of Rs 5,000 cr being transferred to NHAI InvIT
- Transmission assets worth Rs 7,000 crore to be transferred to PGCIL InvIT
Finance Minister: FY22 capital expenditure up +34.5% (Vs FY21 BE) at Rs 5.54 lakh crore.
- FY21 capital expenditure seen at Rs 4.39 lakh crore
- Rs 44,000 crore under capital expenditure to be given to Department of Economic Affairs in FY22
- Over and above this, Rs 2 lakh crore will be provided to states and autonomous bodies to nudge their expenditure.
Government to set-up a Development Finance Institution (DFI), capitalised with Rs 20,000 crore
- India will introduce bill to set up new Development Financial Institution.
- New DFI aims to have lending portfolio of Rs 5 lakh crore in 3 years
Auto stocks soar after FM’s scrappage policy announcement
|Mahindra & Mahindra Ltd.||765.25||15.65 (2.09%)|
|MRF Ltd.||85783.95||1714.80 (2.04%)|
|Ashok Leyland Ltd.||112.50||1.70 (1.53%)|
|Maruti Suzuki India Ltd.||7316.30||109.65 (1.52%)|
|Bosch Ltd.||15540.70||213.20 (1.39%)|
|Motherson Sumi Systems Ltd.||146.65||1.70 (1.17%)|
|Tata Motors Ltd.||107.15||2.70 (2.58%)|
|Bajaj Auto Ltd.||4045.00||39.20 (0.98%)|
Price as on 01 Feb, 2021 11:27 AM,
Nirmala Sitharaman announces new health infra scheme with higher outlay of Rs 61,000 crore; Nifty Pharma index off lows
Union Budget 2021 Live: Vehicles to undergo fitness tests after 20 yrs for PVs, 15 years for CVs, says FM, announcing a voluntary vehicle scrapping policy.
Rs 1.41 lakh crore for Urban Clean India Mission
- Urban Swachh Bharat 2.0 Mission to be launched at outlay of Rs 1.41 lakh crore over 5 years.
- Jal Jeevan Mission Urban to have an outlay of Rs 2.87 lakh crore.
FM lays out a Rs 64,180 crore spending plan for healthcare over the next six years
- Will be spent on primary, secondary and tertiary healthcare
- In addition to the National Health Mission.
- 17,000 rural and 11,000 urban health and wellness centres to be set up
- Integrated public health labs to be set up in each district
Union Budget 2021 live: India has two COVID-19 vaccines available and we expect two more vaccines soon, the Finance Minister says
India currently also has one of the lowest death rate and active cases in the world.
Union Budget 2021 live: A vision for Atmanirbhar Bharat in part of Sitharaman’s first part. FY22 budget proposals based on six pillars
This is to further strengthen the sankalp of Nation-first. Including,
- Health & Well-being
- Inclusive Development Human Capital
- Innovation and R&D
- Physical & Financial capital and infrastructure
- Minimum government, maximum governance
Union Budget 2021 live: Nirmala Sitharaman recaps policies announced so far. “The government stretched its resources to provide for the most vulnerable,” she said.
The total estimate of all relief measures announced by govt & RBI so far is Rs 27.1 lakh cr (13% of GDP), the Finance Minister says.
Union Budget 2021 Live: Through the past year, the Finance Minister announced a Rs 30-lakh-crore plan, in ‘mini-budgets’ to beat Covid
- AtmaNirbhar Bharat programmes
- Performance-linked incentives
- Boost for domestic manufacturing
- Improved credit access for enterprises
- Moratorium on interest payments
- Thrust on affordable housing
- Booster shots for MNREGA
Global economy, which was slowing down, was pushed into uncertainty due to COVID-19. The risk of not having a lockdown was far more, far too high: FM
Preparation of budget was undertaken in an environment like ‘never before’.
– Nirmala Sitharaman begins11:01 AM