Budget 2021 Highlights: FM Nirmala Sitharaman’s get well Budget

Puducherry Chief Minister V Narayanasamy on Tuesday said the union budget has 'totally ignored' the Union Territory as sufficient funds needed for developmental activities here are not provided in it. Addressing reporters, the CM said, "Puducherry is also a poll bound State, but funds have been earmarked for other poll bound states like Kerala, West Bengal and Tamil Nadu in the budget for development of national highways."

Terming as 'unfortunate' the requirements of Puducherry being utterly 'neglected', Narayanasamy said this shows that the NDA government at the Centre pays no attention to the union territory. "The neglect of Puducherry in the budget is more shocking particularly after BJP national president J P Nadda during a public meeting here claimed that the NDA government was interested in ameliorating the lot of industrial workers and that ration shops would be activated in Puducherry," he said.

The Shiv Sena on Tuesday claimed Union Minister Nirmala Sitharaman has announced big packages in the budget for some poll-bound states, and asked how right is it to use the budget as a 'tool' to win elections. Accusing the Centre of setting a new trend of playing 'dirty politics' for votes through the budget, an editorial in Sena mouthpiece 'Saamana' said the allocation of more funds to poll-bound states is a kind of 'bribery'.

It also accused the Centre of ignoring Maharashtra which, it said, contributes highest revenue to the Union government's coffers. Finance Minister Sitharaman presented the 2021-22 Union Budget on Monday. '...what is unfortunate is that the (central) government has set a new trend of playing dirty politics of votes through budget,' the editorial said. (PTI)

BJP MP Jyotiraditya Scindia on Tuesday said allocations made in the Union Budget 2021-22 for various schemes in the Gwalior-Chambal region and Ujjain's famous Mahakaleshwar temple will boost development in these areas in Madhya Pradesh. The annual financial plan was presented in Parliament on Monday by Finance Minister Nirmala Sitharaman.

In a statement, Scindia said he had written a letter to 15th Finance Commission chairman NK Singh seeking funds for the water supply scheme from the Chambal river to Gwalior and Morena, for weavers of Chanderi sarees, and for the maintenance of the Mahakaleshwar temple.

"It is a matter of happiness that in the Union budget, Rs 250 crore is allocated for the water supply scheme from Chambal river to Gwalior and Morena, Rs 75 crore for the the development of the famous Chanderi (sari) weavers and for the tourism of Gwalior-Shivpuri-Chanderi area, and Rs 75 crore for the maintenance of the Mahakaleshwar temple," Scindia said. (PTI)

The budget has focused primarily on clean air in the environment sector – with its objectives spanning across ministries and sectors, from National Clean Air Programme under the Ministry of Environment, Forest and Climate Change to the ministries of Power, New and Renewable Energy and Urban Affairs. Finance Minister Nirmala Sitharaman announced that the government has earmarked Rs 2,217 crore for 42 urban centres with a million-plus population to focus on clean air. The minister had made a similar announcement, with an allocation of Rs 4,400 crore for cities above one million population. But hit by Covid-19, disbursement only started in the later part of this year, say experts.

About a crore old vehicles, currently in circulation, will go off the roads as the Centre on Monday announced a voluntary vehicle scrapping policy in the Budget. Personal vehicles older than 20 years and commercial vehicles older than 15 years will have to undergo fitness tests in automated vehicle fitness testing centres. “This will help in encouraging fuel efficient, environment friendly vehicles, thereby reducing vehicular pollution and oil import bill,” Finance Minister Nirmala Sitharaman said. Following the announcement, Road Transport and Highways Minister Nitin Gadkari said his ministry would be issuing the policy in the next 15 days.

In an interview to DD News, Finance Minister Nirmala Sitharaman said that deductions and exemptions under the personal income-tax regime will be gradually removed but when they are, the government will set attractive rates to make taxation more simple.

The Central Government has accepted a number of key recommendations issued by the 15th Finance Commission, including sharing 41 per cent of the net proceeds of the Union taxes with the states, the creation of a non-lapsable fund for defence in the public account of India, and undertaking a detailed exercise to rationalise and bring down the number of centrally sponsored schemes.

With regard to the sharing of Union taxes, the 15th Finance Commission had recommended that 41 per cent of the taxes collected by the Centre be shared with the states, compared to the present 42 per cent. “The Commission felt that financial resources equivalent to 1% of the net proceeds of Union taxes should be retained with the Central Government for financing the requirements of the newly formed Union Territories of Jammu & Kashmir and Ladakh,” according to the Action Taken Report on the Commission’s recommendations, tabled in Parliament by Finance Minister Nirmala Sitharaman.

The capital outlay for the armed forces was increased by nearly 19 per cent and a total of Rs 4.78 lakh crore was allocated for the defence Budget for 2021-22 as against Rs 4.71 lakh crore last year. In 2020-21, the capital expenditure of the Army, Navy and Air Force was nearly Rs 23,500 crore more than what was allocated in the budget estimates last year. Krishn Kaushik report

I specially thank PM& FM for increasing the defence budget to 4.78 lakh cr for FY21-22 which includes capital expenditure worth Rs 1.35 lakh crore. It is nearly19 percent increase in Defence capital expenditure. This is highest ever increase in capital outlay for defence in 15yrs

— Rajnath Singh (@rajnathsingh) February 1, 2021

The Ministry of Women and Child Development has received a 16 per cent increase in its budget allocation this year with a sum of Rs 24,435 crore announced Monday. Finance Minister Nirmala Sitharaman further announced that supplementary nutrition schemes were being merged with the Poshan Abhiyan to launch Mission Poshan 2.0. In 2020-21, the ministry was allocated a sum of Rs 30,007.09 crore, which was revised to Rs 21,008.31 crore. Out of the allocation for the ministry this year, the highest amount has been allocated to Mission Poshan 2.0 and Saksham Anganwadi scheme — Rs 20,105 crore. Esha Roy reports

The Ministry of Home Affairs (MHA) has been allocated in excess of Rs 1.66 lakh crore in the Union Budget for 2021-22, marginally lower than the allocation of Rs 1.67 lakh crore announced in the last Budget. Most key allocations for MHA have more or less remained the same as the last budget.

The lion’s share of this allocation has gone to police forces and organisations — Rs 1,03,802 crore. Of this, Rs 9,715 crore is capital expenditure. Both figures are marginally lower as compared to the last Budget.

Jammu and Kashmir, which on account of having been newly carved out as a Union Territory had been granted Rs 30,757 crore in the last Budget, has received the same allocation this time. Ladakh has been allocated Rs 5,958 crore, same as last time.

R

edrawing the fiscal consolidation roadmap, the government has projected a fiscal deficit of 6.8 per cent of Gross Domestic Product (GDP) for financial year 2021-22, along with setting a glide path to reduce it to 4.5 per cent by financial year 2025-26. The government cited an unprecedented adverse shock to the economy in 2020-21, inflicted by the Covid-19 pandemic, as the reason for changing its fiscal projections, for which the government will now amend the Fiscal Responsibility and Budget Management (FRBM) Act.

This marks a sharp departure from the earlier fiscal deficit projection of 3.3 per cent of GDP for 2021-22. Fiscal deficit for 2020-21, earlier estimated to be 3.5 per cent of GDP, has now been sharply revised upwards to 9.5 per cent of the GDP. Aanchal Magazine report

The topline equity indices on the BSE and National Stock Exchange (NSE) extended their post-budget bull run on Tuesday, rising nearly 3 per cent in early trade led by sharp gains in banking and financial stocks.

The S&P BSE Sensex reclaimed the 50,000-mark in early trade Tuesday, hitting an intraday high of 50,058.85, while the Nifty 50 touched 14,699.80.

At 9:38 am, the Sensex was up 1,288.53 points (2.65 per cent) at 49,889.14, while the broader Nifty was trading at 14,647.55, up 366.35 points (2.57 per cent).

With an aim to push spending and give a thrust to building public infrastructure, the Union government has detailed a three-pronged approach — a sharp increase in capital expenditure to Rs 5.54 lakh crore for 2021-22, creation of a National Monetisation Pipeline of potential brownfield infrastructure assets, and setting up of a Development Financial Institution (DFI) with a sum of Rs 20,000 crore being provisioned in the Budget to capitalise the institution.

Presenting the Union Budget on Monday, Finance Minister Nirmala Sitharaman said that the National Infrastructure Pipeline (NIP) was launched in December 2019 with 6,835 projects, and has now been expanded to 7,400 projects.

Right in the middle of a protracted stand-off over farm laws, the Budget Monday proposed a series of radical measures that could set the stage for the next round of political pushback — both on the street and in the corridors of power.

How the Centre does its preparatory groundwork with stakeholders — and the Opposition — holds the key.

More so when it has offered to pause the farm laws for 18 months in the wake of protests and the apex court has waded in as well. Raising the FDI limit in insurance to 74 per cent, LIC going public and privatisation of two public sector banks (PSBs) will need legislative measures and will bring the confrontation to Parliament. Ravish Tiwari reports

Finance Minister Nirmala Sitharaman on Monday announced a slew of measures to ease the tax compliance burden on senior citizens above the age of 75, small companies and improve dispute resolution mechanisms in the Union Budget for 2021-22.

During the Budget presentation, she also announced extension of key provisions allowing startups to claim a tax holiday and individuals to claim an exemption on capital gains if they are invested in startups.

“For senior citizens (who are 75 years of age and above) who only have pension and interest income, I propose exemption from filing their income tax returns. The paying bank will deduct the necessary tax on their income,” the Finance Minister said.

With elections to key states coming up later this year and the government facing farmer protests in the northern states, the Union Budget, while announcing a massive infrastructure push for these poll-bound states, is being projected as pro-farmers, with Prime Minister Modi calling it one framed with “villages and farmers at its heart.”

As it campaigns in West Bengal, Assam, Tamil Nadu and Kerala, the BJP will focus on the measures in the Budget for the farmers. “The highlights of our campaign on the Budget will be the announcements for the farming community. It is very important for the party in view of the farmers’ protests. We have to argue that the government is committed for the welfare of the farmers,” said a BJP leader.

Reported by Dipankar Ghose, Liz Mathew

Finance Minister Nirmala Sitharaman’s Budget announcement of increasing the FDI limit in insurance from 49 per cent to 74 per cent could lead to an unprecedented expansion of the insurance sector, its penetration, its level of competition, and value for customers in terms of better products at lower cost.

Foreign inflows in insurance companies will also enable them to become more effective vehicles for household savings, creating long-term assets in the economy.

“I propose to amend the Insurance Act, 1938 to increase the permissible FDI limit from 49% to 74% in Insurance Companies and allow foreign ownership and control with safeguards,” said Sitharaman. Sandeep Singh, Sunny Verma report

With non-performing assets (NPAs) set to rise in the wake of the economic slowdown induced by the pandemic, Union Finance Minister Nirmala Sitharaman Monday announced the creation of an asset reconstruction company/ asset management company (ARC/AMC) — popularly known as a “bad bank” — to clean up the books of banks. Sitharaman also proposed a development financial institution (DFI) to enable long term funding worth Rs 5 lakh crore in 3 years for infrastructure projects. The purpose of a “bad bank” is to park the bad assets of commercial banks and later sell those assets at a discounted price in the market. This will help clean up the balance sheets of commercial banks. A good chunk of gross NPAs totalling Rs 899,803 crore as of March 2020 is expected to be transferred to the “bad ban.

Read Sunny Verma, George Mathew report, here

With covid infections crossing the 1-crore mark, and claiming nearly 1.54 lakh lives, the Government has allocated
Rs 64,180 crore in the Union Budget presented Monday to upgrade public health care infrastructure under a new flagship PM AtmaNirbhar Swasth Bharat initiative over six years — and unveiled a new expenditure head called “health and well-being”.

Spelling out medium and long term expenditure for the public health care system, which came under severe stress during the initial stages of the pandemic, Union Finance Minister Nirmala Sitharaman pegged the total expenditure for “health and well-being” at Rs 2,23,846 crore — an increase of 137 per cent — including Rs 35,000 crore for immunisation with Covid vaccines.

Kaunain Sheriff M  reports. Read here

With the economy battered by Covid-19 that has taken 1.5 lakh lives and pushed India into a recession, Union Finance Minister Nirmala Sitharaman Monday liberated herself from fiscal restraints to budget for a massive expenditure push to bolster the economy’s nascent recovery. What makes Budget 2021-22 probably the boldest in the last six years is her intent to privatise PSU banks and state insurers — a taboo for all governments — especially at a time when reformist farm laws, facing a backlash, have been put on effective hold.

Read our lead story by  P Vaidyanathan Iyer and Anil Sasi 

The Agriculture Ministry did not spend its full budget during 2020-21, leading to a reduction in the allocation in the revised estimates (RE) for the current financial year and a lower outlay for the next one.

In Union Budget 2021-22, the two departments—Department of Agriculture, Cooperation and Farmers’ Welfare and Department of Agricultural Research and Education— under the Agriculture Ministry have been allocated a total amount of Rs 1,31,531.19 crore, lower than the current financial year’s budget estimates (BE) of Rs 1,42,762.35 crore, but a little higher than RE of Rs 1,24,520.3 crore. Read More

A loan of close to Rs 80,000 crore from the Finance Ministry saved Indian Railways this year and helped it manage its finances when passenger train operations remained halted for months, and the national transporter was staring at a massive financial shortfall.

The Rs 79,398 crore loan enabled the largest employer of the government to meet this year’s pension liability of Rs 51,000 cror and make up the revenue shortfall that the transporter had started this financial year with. Shown in the books as “Special loan for COVID-related resource gap”, the amount will have to be repaid in two years. Around Rs 29,000 of that loan carries an interest. Read More

The capital outlay for the armed forces was increased by nearly 19 per cent and a total of Rs 4.78 lakh crore was allocated for the defence Budget for 2021-22 as against Rs 4.71 lakh crore last year.

In 2020-21, the capital expenditure of the Army, Navy and Air Force was nearly Rs 23,500 crore more than what was allocated in the budget estimates last year. Read More

India is poor but doesn’t have to be. Changing any status quo is not like switching on a lightbulb but a gentle sunrise, not the labour of an individual but a team’s, and not a frenzied outburst of emotion but a persistent pursuit of strategy over years. Yesterday’s budget is another shrankhala (Rs 34.8 lakh crore expenditure) after a series of mini-budgets (Rs 27 lakh crore, including RBI measures) to handle the substantial difficulties for the economy and government finances created by the COVID invasion. More importantly, the budget balances the next quarter and quarter-century by continuing the structural transformation that catalyses higher productivity for India’s citizens, firms and regions and empowers them to take advantage of a global shift in economic gravity to Asia. Read More

The Union Budget 2021-22 reflects the Centre's “persistent efforts to sideline” non-BJP ruled states, Punjab Chief Minister Capt Amarinder Singh Monday said. His Cabinet colleague and state Finance Minister Manpreet Singh Badal on claimed that the “entire north India” was ignored in the Budget, which was also silent on agricultural unrest, unemployment and problems of the middle class.

“The Budget is reflective of the BJP-led central government's total apathy towards the common man, the middle class and farmers. It also manifests the central government's persistent efforts to sideline non-BJP states like ours, as well as its anti-federal mindset,” said Amarinder, pointing to the gap between the fiscal deficit targets fixed for the Union government and states.

He criticised the Centre for the “stepmotherly” treatment meted out to Punjab and other northern states, claiming that it was "designed" to cater to the poll-bound states of West Bengal and south India with a massive infrastructure development allocation for these regions.

Aimed at promoting the interests of a few corporates at the cost of the needs and aspirations of the remaining population, the Budget has failed to address the growing problem of unemployment, which the Covid pandemic had exacerbated, he said. Read more

Finance Minister Nirmala Sitharaman on Monday hit back at Rahul Gandhi's claim that the Budget favours certain crony capitalists, saying Congress-ruled Kerala-government in the past had handed over a port in the state to the same businessman on invitation basis. Soon after the Budget presentation, Congress leader Gandhi alleged that the Narendra Modi government plans to hand over India's assets to crony capitalists through stake sale in public sector companies and financial institutions, including two PSU banks and an insurance company, in the next fiscal. "Forget putting cash in the hands of people, Modi government plans to handover India's assets to his crony capitalist friends," he said after the presentation of the Union Budget.

Responding to the comment of Gandhi, the Finance Minister said he repeats this particular question every 15 days. "The party which even today does not know to explain if I take one example of Kerala under Congress giving away sea port development on invitation basis to one of the crony capitalists that he is talking about," she questioned. She referred to Congress-led Kerala government inviting Adani Group, who Gandhi referred to as crony capitalist friends of Modi government, to Vizhinjam Port in the state. Adani Ports and Special Economic Zone Ltd, (APSEZ), India's largest port developer and part of the Adani Group in December 2015 formally began development of international transhipment project in Vizhinjam, Kerala.

"Can he (Gandhi) explain as to how for developing Vinizam port a crony capitalist, I would not call him that but he uses that word, was invited by the Congress party....if he cannot answer that I think Rahul Gandhi should understand either understand nothing what he is speaking about or he is being ill-advised," she said. Unveiling the PSE policy in Budget 2021-22, the Finance Minister said barring four strategic areas, public sector companies in other sectors will be divested. The policy would give a clear roadmap for disinvestment in strategic and non-strategic sectors. --PTI

Haryana Pradesh Congress Committee chief Kumari Selja Monday said that Union Budget had dashed the hopes of people of Haryana, adding that the state had been ignored by the central government.

Selja said, “This budget has also dashed hopes of people of Haryana. BJP-JJP government of Haryana is also responsible for this along with the Union government. This government has been talking about doubling the income of farmers for many years, but the situation of farmers is getting worse. Today farmers are on the roads, but still there is nothing in this budget for farmers. On the contrary, the government has reduced the budget of farming by six percent. This budget is completely anti-farmer. There is nothing in this budget even for the poor class. In times of such a crisis today, it was necessary that people should get directly benefitted through a scheme like NYAY. The poor have also been ignored in this budget. There is nothing in this budget for the scheduled castes and women.” Read more

The Centre on Monday earmarked a sum of Rs 2,217 crore for tackling air pollution in 42 urban centres, even as it shrunk the budgetary allocation for the environment ministry from the last fiscal by nearly eight percent for 2021-22.While it has reduced the amount allocated to the climate change action plan by Rs 10 crore and to Project Tiger by Rs 50 crore, the amount for National Coastal Mission has been almost doubled from Rs 103 crore in the last fiscal to Rs 200 crore in 2021-22.Union Finance Minister Nirmala Sitharaman, in her budget speech, allocated Rs 2869.93 crore for the ministry, out of which Rs 470 crore were allotted to control pollution -- Rs 10 crore more than the last budget.In addition to this amount, the minister also announced a sum of Rs 2,217 crore for combating air pollution in 42 urban centres. --PTI

Leaders of major political parties in Kerala, except the BJP, denounced the union budget presented by Finance Minister Nirmala Sitharaman Monday, saying it has no major proposals to solve the recession in the economy post-pandemic or to put money in the hands of the people.

“As always, this budget is aimed at helping corporates directly and indirectly,” Congress leader Ramesh Chennithala in a statement. “It has given the impression of making some promises for the election-bound states. But it has no announcements for the people facing financial constraints due to the pandemic. There are no proposals to increase the incomes of people or update their skill-sets,” he said. Read more

Dr O P Agarwal, CEO, WRI India, said, "With infrastructure and inclusive development as one of Budget 21-22’s six pillars, public transport has received a fillip. Allocation of Rs.18,000 crore for public buses in urban areas, pushing for 100% electrification of broad gauge rail tracks and bringing down logistics cost for railway by 2030, and the introduction of Metro-lite and Metro-neo for smaller cities, will impact a change in people’s commuting patterns. This will improve our air quality, reduce road congestion and enable an equitable urban infrastructure for the future. Now, there is a need to strengthen the end-to-end connectivity to boost the use of public transport further."

Charu Lata, Lead Electric Mobility and Clean Energy Consultant, India Program, Natural Resources Defense Council, said, 
“The scrappage policy announced by the government is a welcome step. It will not only increase vehicle demand but will also put older polluting vehicles off the road. For effective implementation, the policy can be made mandatory in a few years and regulations can be put in place to ensure that the scrapped vehicles are recycled to reduce environmental impact.”

Vibhuti Garg, Senior Energy Economist, IEEFA, said, “Budget 2021-22 has been a mixed bag for the environment I would say. In the power sector, While the government has announced infusion of funds to SECI and IREDA, increased custom duties on solar lanterns and inverters to boost domestic manufacturing and is also launching National Hydrogen Mission, what is missing is the support for closure of inefficient coal plant. As well as other support like tax holidays, tax incentives, access to finance for giving a fillip to domestic manufacturing.

In the transport sector again, while there is allocation for augmentation of public bus transport services, it doesn’t say whether it will be electric vehicles. 

There is a sum allocated to tackle air pollution and on the other hand the government is extending the timeline for compliance of emission norms by power plants, which is a major cause of pollution. There needs to be a holistic approach, whereby pushing clean energy on one hand should not be weakened by pushing dirty fuels along with it.”

Aarti Khosla, Director Climate Trends, said, “There are several key indicators that the budget is in line with global trends. The announcement that India will soon have a policy on green hydrogen is very much welcomed. It is going to be an important element of industrial energy consumption and if done well reflects another good step towards transitioning away from coal. Germany and many other EU countries have already set an ambitious green hydrogen policy. Even countries like UAE and Australia that are traditionally considered as the laggards of climate action have moved towards green hydrogen. 

"Another good indicator was reduced allocation to coal exploration, a reduction of 30% compared to what was allocated in the previous budget. This is clearly in line with market trends. Global investments are moving away from coal and towards renewable energy.” 

Keeping with the tradition of reciting couplets during the budget session, this time too Finance Minister Nirmala Sitharaman invoked legendary poets by including their verses in her Budget speech 2021.

Towards the beginning, Sitharaman read out a couplet by Rabindranath Tagore: “Faith is the bird that feels the light/and sings when the dawn is still dark.” Click here to know more

Why this budget is not an exciting for the agriculture sector? Watch our video.

Budget a let down like never before; will unravel like previous one sooner than you think, said Cong leader P Chidambaram.

Mamata Banerjee Monday slammed the budget announced by Finance Minister Nirmala Sitharaman as "anti-people" aimed at deceiving the masses. She said the BJP talks about nationalism, but in practice, they are the ones who are selling nation's resources to the private players, reported PTI

Reiterating the demand for withdrawal of the new farm laws, the CM wondered if the Centre can waive off NPAs amounting to crores of rupees then why is it hesitant to write off farm loans.

The TMC lashed out at the Centre over the Union Budget on Monday, saying it was 100 per cent "visionless" and its theme was "sell India". The remarks came after Finance Minister Nirmala Sitharaman read out the Union Budget speech in the Lok Sabha. "India's first paperless budget is also a 100% 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". --PTI

"On farm laws, the government is & has always been open to dialogue with farmers. The agriculture minister has been ready to have a clause-by-clause discussion with farmers on the farm laws. Hence we believe that dialogue is the way forward," Finance Minister Nirmala Sitharaman said.

On farm laws, the government is & has always been open to dialogue with farmers. The agriculture minister has been ready to have a clause-by-clause discussion with farmers on the farm laws. Hence we believe that dialogue is the way forward: Finance Minister Nirmala Sitharaman pic.twitter.com/KheKRHmauV

— ANI (@ANI) February 1, 2021

"This budget is not for the development of the country but for its sale. Earlier, they sold Railways, Air India, Bharat Petroleum, & others. This budget is about more such entities that will be sold including gas pipeline, stadium, roadways & warehouses," RJD leader Tejashwi Yadav said.

This budget is not for the development of the country but for its sale. Earlier, they sold Railways, Air India, Bharat Petroleum, & others. This budget is about more such entities that will be sold including gas pipeline, stadium, roadways & warehouses: RJD leader Tejashwi Yadav pic.twitter.com/sSAKywq5TA

— ANI (@ANI) February 1, 2021

Finance Minister Nirmala Sitharaman has presented the Union Budget 2021-22 in Parliament. In significant changes to the taxation process, Sitharaman announced the scrapping of income tax for senior citizens under certain conditions, new rules for removal of double taxation for NRIs, and a reduction in the time period of tax assessments among other measures. Here is the full text of Finance Minister Nirmala Sitharaman’s Union Budget 2021 speech

Accounting of government expenditure and revenue statements are now a lot more transparent and open, says Finance Minister Nirmala Sitharaman. "Our fiscal deficit which started at 3.5% during Feb 2020 has increased to 9.5% 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," she added.

"Decided to give greater impetus to economy in this year's budget. We have taken progressive steps in financial sector. Everything is transparent," says Sitharaman

Finance Minister Nirmala Sitharaman is addressing the media after her Budget presentation ceremony. "We chose to spend big on infrastructure and also to attend to the need of health sector," she said. 

"Many thought we will put the tax burden on the common man. However, we focused on a transparent Budge. 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 & bring new reforms with this Budget," PM Modi said. 

"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," PM Narendra Modi said.

Addressing the nation after the Budget, Modi said it speaks of "all-round development." "From Covid-related reforms to Atmanirbhar resolve, we moved ahead with this mantra in Budget 2021. It's an active and not a reactive budget," he added, congratulated the Finance Ministry team

"Union Budget 2021-22 has been presented amid unprecedented circumstances. Today’s budget will enhance India’s self," said PM Modi

"Today's Budget is a vision of "Atmanirbhar Bharat and provides new opportunities. The Budget 2021 will spur growth and will give  a boost to India's self-reliance. This has focused on strengthening ease of living," Prime Minister Narendra Modi said. 

Wilson presented his budget on February 18, 1860. He introduced three kinds of taxes- income tax, license tax and tobacco duty. However, only the first one went through, as the other two were dropped on the demand of the governor-general of India, Charles Canning. Read more

The Union Budget has imposed an Agriculture Infrastructure and Development Cess (AIDC) of Rs 2.5 per litre on petrol and Rs 4 per litre on diesel. But thankfully, these will not result in any additional burden on consumers. The reason for it is that unbranded petrol was earlier attracting a basic excise duty (BED) of Rs 2.98 and a special additional excise duty (SAED) of Rs 12 per litre. These have now been reduced to Rs 1.4 and Rs 11 per litre, respectively. Similarly, the BED on unbranded diesel has been cut from Rs 4.83 to Rs 1.8 and the SAEC on it from Rs 9 to Rs 8 per litre. So, the overall excise incidence on petrol (BED+SAEC+AIDC) will now be Rs 14.9/litre, which was previously Rs 14.98, while that on diesel is Rs 13.8 (earlier Rs 13.83).

The TMC lashed out at the Centre over the Union Budget on Monday, saying it was 100 per cent "visionless" and its theme was "sell India." The remarks came after Finance Minister Nirmala Sitharaman read out the Union Budget speech in the Lok Sabha. "India's first paperless budget is also a 100% 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".

Congress spokesperson Jaiveer Shergill said the budget has left the middle class "bruised and wounded" by not changing tax slabs, not increasing deductions, not making new deduction slots like home loans, not bringing fuel under GST, not sharing Rs 19 Lakh crore gain from fuel taxes, not reducing GST rates. "After promising a century, FM is out hit wicket at Zero !! Instead of calling it as 'budget of the century' it will be remembered as 'blunder of the century' by BJP Govt #Budget2021," he tweeted.

Congress spokesperson Manish Tewari also alleged that the budget was a "national monetisation plan -- short hand for National Sell out" and there was "no central focus in Budget". "FM's Talkthorn (sic) oblivious that growth rate of GDP is in a record 37th month decline.Worst Crisis since 1991. Except for a National Monetisation Plan - short hand for National Sell out no Central Focus in Budget. Bottom line-Will not grow economy but sell the family silver," he tweeted.

"The FM could have been brave but chose to be timid. The nation needed a bold budget and more direct transfers to the weaker sections to revive demand, restart job creation," senior Congress leader and Deputy leader of Opposition in Rajya Sabha Anand Sharma tweeted The budget is "disappointing" and without a roadmap for accelerating growth and revival of consumer demand, he said.

AAP attacks Modi govt over Budget 2021

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— AAP (@AamAadmiParty) February 1, 2021

• Agri infra cess of 30% on kabuli chana, 10% on peas, 50% on bengal gram/chick peas, 20% on lentil (mosur); 5% on cotton imposed in Budget
• Agri infra cess of 2.5% imposed on gold, silver and dore bars; 35% on apples; 5% on specified fertilizer; 1.5% on coal, lignite and peat
• Agri infra cess of 100 pc imposed on alcoholic beverages
• Agri infra cess of 17.5% on crude palm oil, 20% on crude soyabean, sunflower oil imposed

Congress leader Shashi Tharoor slams Budget

This BJP government reminds me of the garage mechanic who told his client, “I couldn’t fix your brakes, so I made your horn louder.” #Budget2021

— Shashi Tharoor (@ShashiTharoor) February 1, 2021

Government has proposed farm cess of Rs 2.5/litre on petrol, Rs 4 on diesel