Budget 2021 was presented in the Parliament on Monday. (Express Photo by Partha Paul)Union Budget 2021 Reactions Live: Union Budget 2021 invoked a strong reaction from members of the Congress party who slammed Sitharaman’s budgetary address to be oblivious of economic decline in the country. Asserting that the Union Budget was a “let down like never before”, the Congress on Monday claimed that it will unravel soon, and described the imposition of cess on petrol and diesel in the budget as a “vengeful act” against the thousands of farmers who took out the tractor rally. The opposition party said it was a case of “wrong diagnosis and prescription”, and that Finance Minister Nirmala Sitharaman could have been “brave” by extending help to the poor, but chose to be “timid”.
Congress leader Rahul Gandhi highlighted sectors that the government “must” focus on in their Budget, including the MSME sector. Gandhi also urged on the need to generate employment for the farmers and workers in the country and increase expenditure in the healthcare and defence sectors.
Shortly after it was presented in the parliament, Union Defence Minister Rajnath Singh hailed Budget 2021 as the budget for an AtmaNirbhar Bharat that will strengthen the economy.
Finance Minister Nirmala Sitharaman introduced tax reforms including scrapping income tax for senior citizens under in the Union Budget 2021. Sitharaman also extended social security benefits to platform and gig workers. As part of a newly launched Aaatmanirbhar Swasth Bharat Yojana, Sitharaman allotted Rs 35,000 crore for coronavirus vaccines in the country. A budget of 2 lakh crore was allocated for the healthcare sector.
As it happens, we will bring to you the reactions and responses surrounding this year’s budget. After an estimated 7.7 per cent contraction in 2020-21, the Finance Ministry’s Economic Survey projects that India’s real GDP would record a growth of 11 per cent in 2021-22.
Finance Minister Nirmala Sitharaman along with MoS for Finance Anurag Thakur during the final touches of Union Budget 2021-22, at Finance Ministry in New Delhi, Sunday, Jan. 31, 2021. (PTI Photo/Shahbaz Khan)
Chief Minister Mamata Banerjee on Monday led the Trinamool Congress’ (TMC) criticism of the Union Budget presented by Finance Minister Nirmala Sitharaman, calling it “anti-farmer, anti-people and anti-country”.
Addressing the inaugural ceremony of the Uttar Banga Utsav in Siliguri, Banerjee said, “What kind of budget is this?… Fake budget. Anti-farmer, anti-people and anti-country budget. They have increased the price of petrol and diesel. Cess is taken away by the Central government, the state government gets nothing. Farmers will be affected by this petrol and diesel price hike. They are hiking fuel prices continuously. They promised to give you Rs 15 lakh, they gave nothing.” Read More
The Rajasthan Congress on Monday termed the Union Budget ‘disappointing’, saying that it lacked vision to revive the country’s economy while the BJP said the budget presented by Finance Minister Nirmala Sitharaman addresses all sections of society.
Reacting to the Union Budget, Rajasthan Chief Minister Ashok Gehlot on Monday termed it as ‘anti-poor, anti-farmer, directionless and disappointing.’ Read More
The Rajasthan Congress on Monday termed the Union Budget ‘disappointing’, saying that it lacked vision to revive the country’s economy while the BJP said the budget presented by Finance Minister Nirmala Sitharaman addresses all sections of society. Read More
Some health activists on Monday said they had some expectations from the Union Budget but were disappointed as no growth in healthcare spending was visible for the forthcoming fiscal year. Despite the much touted emphasis on health, the Union Budget has increased only by Rs 7000 crore from Budget Estimates of 2020-21 and declined by 9.8 per cent from Revised Estimates of 2020-21, health activists have said. Read More
THE UNION government has, for the eighth consecutive year, inflicted a body blow to UT Chandigarh in allocation of resources. In the interim budget for the year 2014-15, the UPA government had allocated Rs 813 crore for Chandigarh. However, that was drastically slashed by the NDA government to Rs 570 crore and ever since then, Chandigarh has been denied its due by the Centre. The result is there for everyone to see with an all-round deterioration in the upkeep of the UT. Read More
The Rs 230-crore reduction in the budgetary allocation to the environment ministry has drawn flak from environmentalists who say it may slow down or completely halt green initiatives. Besides the shrunk budget, they also feel that the Centre has not clarified how a separate amount of Rs 2,217 crore, set aside for tackling air pollution in 42 cities with minimum population of one million, will be utilised.
"The total budget allocated for the ministry this year is Rs 2,869.93 crore while last year it was Rs 3,100 crore. This implies that a number of environmental measures could be slowed down or halted," said Avinash Chanchal, a Climate Campaigner for the Greenpeace India.
"The government has allocated Rs 2,217 crore to tackle air pollution in 42 urban cities and introduced a voluntary vehicle scrapping policy. But it isn't clear how these funds would be utilized to resolve the pollution crisis," he said.
In the previous budget, he said, the government had announced Rs 4,400 crore for clean air, but there is no information on public platform on how this fund was utilized. Vikrant Tongad, an environmentalist and the founder of NGO SAFE (Social Action for Forest and Environment), said this reductions may have an adverse impact on environment-friendly initiatives. (PTI)
Uttar Pradesh Chief Minister Yogi Adityanath on Monday said the Union Budget will prove to be a milestone in upgrading India's economy and will ensure development of all sections of society. "The General Budget is in accordance with the expectation of public welfare and Aatma Nirbhar Bharat (self-reliant India).The Budget has taken care of every class including farmers, middle class, poor, women," he said in a series of tweets in Hindi.
It will speed up the economy and financially empower every citizen of the country, he said. "This will prove to be a milestone in upgrading the Indian economy. Through this, all-round development of all sections of society will be ensured," Adityanath said.
"Hearty greetings to Finance Minister Nirmala Sitaramanji for the historical, practical and development-oriented Budget when the global economy is facing a crisis due to the coronavirus pandemic. Undoubtedly, this Budget will meet the financial expectations of all Indians," he said in another tweet.
Kerala Chief Minister Pinarayi Vijayan on Monday said the "pro corporate" union budget had "disappointed" people of the country and it only reiterated the Centre's stand to open the agricultural sector to them,while opposition parties said it has cheated citizens. The budget showed that all the mediation talks with the farmers were just an "eyewash" and the Centre did not intend to withdraw the three contentious laws against which farmers are on an agitation for over two months in Delhi borders, he said in a statement.
"This amounts to challenging the people of the country. The budget reiterates the stand of the central government, opening the agricultural sector to the corporates". The CM said that the union government, through this budget, had decided to divest more Public Sector Undertakings in the country and invite Foreign Direct Investment (FDI). (PTI)
The edible oil industry on Monday welcomed the announcement of agricultural development cess and the increase in import duty of crude palm oil in the Union Budget 2021-22, saying that the measures are expected to protect the interests of mustard farmers. The announcement of agricultural development cess is a welcome move and hopefully the revenue from cess on edible oils would be utilised for augmenting domestic production of oilseeds, Solvent Extractor's Association of India (SEA) President Atul Chaturvedi said in a statement.
"As per our understanding the effective import duty on CPO (crude palm oil) has gone up to 35.75 per cent, while at the same time import duty on soya and sunflower oil has remained unchanged at 38.5 per cent. (PTI)
Tamil Nadu Chief Minister K Palaniswami on Monday welcomed several announcements made in the union budget by Finance Minister Nirmala Sitharaman but sought a review of the cess regime in the interest of states. DMK president M K Stalin lashed out at the Centre, saying it has offered an "illusionary lollipop" to the people of poll-bound Tamil Nadu.
Palaniswami said the budget has many welcome provisions, especially beneficial to the state. In a statement, he appreciated announcements like the allocation of Rs 35,000 crore for COVID-19 vaccination drive. The implementation of 3,500 km of national highway work in Tamil Nadu will boost the state's economy. (PTI)
Gouri Puri, Partner: “Rationalization of TDS rates for FPIs is a key change to neutralize the impact of Supreme Court’s decision in PILCOM. FPIs are governed by a standalone TDS provision that set a flat TDS rate of 20% on all income earned by an FPI other than capital gains. This meant that even if an FPI was entitled to a lower withholding tax rate under tax treaties, TDS would be deducted at 20%; the FPI would then need to claim a tax refund. This issue became glaring when India shifted from the DDT to classical dividend tax system. Finance Bill has now aligned the TDS rate with tax treaty rates. Liberalization of the conditions that were attached to sovereign wealth fund’s tax exemption on income from specified investments will go a long way in mobilizing foreign government funds into India”
Punjab Chief Minister Amarinder Singh on Monday flayed the Union Budget, saying it reflects the Centre's persistent efforts to sideline non-BJP ruled states. His reaction came hours after Finance Minister Nirmala Sitharaman presented the Union Budget for 2021-22. The Punjab CM claimed that the Budget was reflective of the BJP-led central government's total apathy towards the common man, the middle class and farmers.
Amarinder 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 nad south India with a massive infrastructure development allocation for these regions. "The Budget also manifests the central government's persistent efforts to sideline non-BJP states like ours, as well as its anti-federal mindset," said the CM, pointing to the gap between the fiscal deficit targets fixed for the Union government and states.
Rajesh Uttamchandani, Director, Syska Group: "Finance Minister Nirmala Sitharaman stated that for a 5-trillion-dollar economy, our manufacturing sector has to grow in double digits on a sustained basis. We welcome the measures exercised by the honorable Prime Minister Shri Modi Ji and his government in the Union Budget towards boosting electronic manufacturing in the country. The government led by Modi Ji has pledged an infusion of Rs 1.97 lakh crore on various PLI schemes over the next 5 years, starting this fiscal. This is in addition to the Rs 40,951 crore towards the PLI scheme to help expand and boost exports. Today, India’s manufacturing industry has tremendous potential to place the country on the global manufacturing map, simultaneously boosting several employment opportunities to India’s youth. Our manufacturing companies need to become an integral part of global supply chains. With a budget of Rs 15,700 crore, which is more than two times that of the previous year, this will help strengthen the MSME sector in terms of productivity development, technology adoption, strengthening of infrastructure and more. As a company, Syska has always been aligned with the vision of Atmanirbhar Bharat promoting sustainability through our products and creating new job opportunities. The budget has a positive, expansionary approach towards the manufacturing sector, which is reflected through the incentives and strengthening of the PLI schemes provided by the government."
Kishan Jain, Director at Goldmedal Electricals: “The Union Budget 2021 has provided massive opportunities for companies looking to set up manufacturing facilities in the country. Given our current economic situation across the globe caused by the pandemic, the Finance Minister’s decision to infuse INR 1.97 lakh crore towards various PLI scheme is laudable in addition to the Rs 40,951 crore towards the PLI scheme to help expand and boost exports. As correctly stated by FM Nirmala Sitharaman, our manufacturing companies need to become an integral part of global supply chain. Further, the provision of INR15,700 cr towards the MSME sector, will provide a further fillip to the Government’s flagship Make in India initiative. As a company, Goldmedal Electricals has always been at the forefront of introducing innovative and sustainable solutions that make our planet not only smarter but also sustainable for generations to come and support government’s vision of Atmanirbhar Bharat.”
Warren Harris, CEO & MD: “With a significant outlay on Infrastructure spend and the much-needed Vehicle Scrappage policy, the government of India has finally set the tone for recovery of Auto Sector which has been significantly impacted by the pandemic. This will not only help boost the demand for production of Commercial vehicles but also support the entire transportation ecosystem. Also, while it would have been good to see some more initiatives to promote Electric Vehicles in this budget, we are glad that the government has noted India’s critical role in the global automotive supply chain post COVID 19. Specific initiatives through Production linked schemes, creation of infrastructure for R&D and enabling skill development in new-gen technologies such as artificial intelligence (AI) and Machine Learning (ML) will help drive investment in Engineering and Research”.
Subhrakant Panda: "The budget is very comprehensive and proposals are well thought through which will provides fiscal support for investment & consumption while also providing a 5 year roadmap to come back to prudent norms. Higher outlays for various sectors augurs well, as does the fact that the quality of expenditure is improving with more thrust on capital expenditure. Setting up of a DFI to fund long gestation projects, and an asset reconstruction cum asset management company to deal with stressed assets are welcome steps. Limiting reopening of assessments and providing for a faceless ITAT will encourage the honest taxpayer. Similarly, several regulations and laws subsiding into a single securities code is a very positive step. Finally, no major changes in the tax structure is a major commitment to provide stability."
Rajan Samuel, Managing Director, Habitat for Humanity India: "It is anticipated that affordable housing will play a key role in boosting the growth of the Indian real estate segment and lay the roadmap for a socially sustainable and vibrant housing ecosystem in India. An important highlight in the budget is the tax exemption on rental housing for migrant workers. The proposal to extend the INR 1.5 lakh benefit on interest paid towards affordable housing loans and extension of tax benefits for affordable housing projects for migrant workers till March 31st, 2022 will help in bringing vulnerable sections of the community within the ambit of formal housing. For low-income communities like migrant workers and daily wage laborers who were affected the most during the COVID-19 pandemic in terms of loss of livelihood and shelter, the tax benefits have come as a huge relief. The tax benefit extensions will offer much-needed respite and time for low-income population groups to complete their homes and provide them access to sustainable sheltering solutions and housing amenities. Beneficiary led construction activities will also greatly benefit from this initiative. These extensions will play a key role in empowering marginalized communities and ensuring resilience and livelihood sustenance for them.”
Manish Sharma, President & CEO, Panasonic India & SA: The Budget presented by the Honorable FM in the background of five mini budgets is continuum of reformative measures to boost the economy to drive – Job, Demand and Spending. I believe the methodical approach of identifying six focus areas where Health and Infrastructure, with significant increase in allocations, sit on the top is in the right direction to revitalize the economy and invest in well-being of people. For manufacturers, Govt re-iterated its commitment to reforms like introduction of Production Linked Incentive (PLI) scheme with a budget outlay of Rs 1.97 lakh crores across 13 sectors which reaffirms their intent to provide impetus to domestic manufacturing, while elevating India's position as a global manufacturing champion. We look forward to implementation details here to participate. The increased spending on infrastructure to improve roads and public transport is also a positive move and will provide easy access to raw material.
From common man perspective, the Govt ensured no new taxes on corporates or individuals but further simplified the norms on Direct Taxes. To ensure fiscal deficit at 6.8%, the Govt. announced a slew of expenditure and measures along with a clear roadmap to raise funds from strategic disinvestment, tax compliance and borrowing. This is re-imagination of a New World Order post pandemic and now key will be in implementation that will define the results.
The Communist Party of India (CPI) on Monday criticised the union budget, claiming it was pro-corporate and big businesses and has nothing for the poor. The budget opened up agriculture, insurance sector and 'everything' for foreign direct investment (FDI), party General Secretary D Raja said, adding a fitting reply would be given for the 'anti-people' budget.
'This budget is the continuation of the aggressive, pro-corporate economic policies the Modi government has been pursuing. It is a pro-corporate, pro-big businesses budget. It is pro-international finance capital, the FDI. So, this budget has nothing for the poor, for the suffering masses,' he told reporters here. The country ranked 116 in the World Banks human capital index and was also home to 'largest number of hungry people' in the world while one in six children was malnourished, Raja claimed, quoting from some international survey. (PTI)
Jeet Marwadi, Director, Marwadi University: “Education Budget 2021 focuses on effective implementation of NEP, International Research Collaboration and setting up of Higher Education Commission. It is also focused on providing opportunities for growth and sustainable development at the grassroot level – with 15000 schools to be strengthened and establishment of schools in tribal areas – these steps will show a positive effect in the long-term effect.
Giving special respite to start-ups and encouragement to R&D will play a major role in promoting exploration of disruptive trends, especially with initiatives for schools where free digital education can be provided to every student. The ed-tech startups are here to stay, with no turning back, owing to what we bring to the table. With these drastic, prevalent changes in the education system, we have high hopes in 2021 from the research sector. We will be able to get a 360-degree view with more clarity for other policies under NEP. Institutes will have better synergy with emphasis on accreditation and regular funding of the Colleges and Universities.
However, from the budget presentation more clarity was expected in terms of cash outlay on Research & Development, relaxation on GST for Higher educational Institutions (HEI), subsidizing education loans, incentives to Edu-tech and skill tech sectors that would have given a bigger picture on the actual budget allocation in higher education.”
Arvind Hali, MD & CEO, Motilal Oswal Home Finance Ltd: “Budget FY22 has tried to bring back what the pandemic in FY21 took away - “Demand” - from Housing and Housing Finance Industry. Today’s Union Budget has hit the right nerve holistically towards both Demand and Supply side. The extension in date of claiming additional interest deduction of Rs. 1.5 L by 1 year from Mar-21 to Mar-22 shall provide the necessary impetus to boost demand as well as create much-required positivity in the overall ecosystem. Buyers shall have more left in their hands and thus can pre-empt their decisions that were put in the cold bag. The announcement shall awaken the ones who had delayed property purchase as well as pull-up the new demand to own a house. The upper limit capping at Rs. 45 L property to claim additional deduction towards loan interest brings the apt focus i.e. affordable housing finance and affordable properties. Similarly, on supply-side intervention, the Budget extended the tax holidays, by one year, on profits earned by developers in affordable housing projects approved by March 21. Other points like keeping the tax regime unchanged shall bring cheers to the LIG & MIG segments of the society which form the customer base of affordable housing finance & properties; Clear push on Infra development generates employment as well as makes affordable housing projects more accessible which are usually at the periphery of cities, and TDS exemption on dividend payment in REITs shall make them exciting investment option leading to impetus in real estate development - most of which is in the affordable segment. It is a practical budget - a booster shot for housing & allied industry aligned to the PMAY’s Mission of Housing for All by 2022.”
Home Minister Amit Shah on Monday termed the Budget 2021-22 a guide to "self-reliant India" and said it has strengthened Prime Minister Narendra Modi's efforts towards doubling farmers' income and making India the fastest growing economy in the world.
In a series of tweets in Hindi, Shah lauded the budget presented by Finance Minister Nirmala Sitharaman and said the "all-inclusive budget" was prepared under the guidance of the Prime Minister amidst the coronavirus pandemic. "This will pave the way for a self-reliant India, a USD 5 trillion economy and double the income of farmers," he said.
He thanked the Prime Minister for earmarking Rs 35,000 crore for vaccine against coronavirus saying, "Our sensitive Prime Minister @narendramodi has announced Rs 35,000 crore fund for vaccination against coronavirus. This shows Modi's resolve to make India coronavirus free. I thank Modiji for this".
FM Nirmala Sitharaman 'deceived' people, especially poor, working-class, migrants and farmers, said Congress leader P Chidambaram. He added that that the Union Budget is a let down like never before and will unravel like the previous one, sooner than you think.
The lack of immediate support in the Budget has disappointed the tourism and hospitality sector, though measures to strengthen infrastructure may help the beleaguered segment, the industry players said on Monday. The tourism, travel and hospitality industry was looking for immediate and short-term measures for critical revival. This has not happened in the budget announcements, they added.
"Lack of immediate direct support in the Budget has disappointed the Indian travel and tourism industry," Federation of Associations in Indian Tourism and Hospitality (FAITH) Chairman Nakul Anand said. While infrastructure measure announced in the Budget may boost tourism over long-term, the opportunity for immediate support has regretfully been missed out, he added.
The Union Budget has given proposals for enhancing rail, road, ports, metro lite infrastructure and PPP in buses, airports and ports, including vista coaches in tourist routes. These infrastructure measures may boost tourism over a long-term, but only once they are implemented, FAITH said. In a similar vein, Federation of Hotel & Restaurant Associations of India (FHRAI) said the Union Budget 2021 has disappointed the hospitality industry. (PTI)
Prashant Ruia, Director: “Finance Minister Nirmala Sitharaman's Budget 2021 statement attempts to put a medium to long term foundation to the emergency measures undertaken by the government in the first nine months of the pandemic. By all measures, the government has done a fine job at reviving the growth impulses in the economy. This Budget, therefore, attempts to reinforce the health, physical and financial infrastructure so that the economy is never ever caught in a similar situation. What is also truly radical is that the governments has outlined a vision of increasing its focus on strategic investments and monetising government assets at the right time.”
Sanjay Palve, Senior Managing Director: “This is a ‘spend big’ budget with clear focus on banking and infrastructure sector which is exactly what the economy needed and in sectors that required it. Especially the manner in which the FM has sought to clean up the balance sheet of banks by creating a bad bank for stressed assets. This will certainly give banks the elbowroom they need to start lending aided by the proposed Development Finance Institution with ? 20,000 cr capital. All these initiatives will spur corporate investments. With this comprehensive approach, the FM has reset the economy for a V shaped recovery.”
Meera Mehta, member NFSSM Alliance and Executive Director of the Center for Water and Sanitation: “Covid-19 has truly highlighted the importance of safe and efficient sanitation and we are happy to see the Budget 2021 take cognizance of the pertinent linkage between universal water and sanitation and universal health. The Swachh Bharat Mission – Urban outlay of Rs. 1,41,678 crore for a period of five years demonstrates an answer to “Toilet ke baad kya?” There will now be a nationwide effort towards complete Faecal Sludge and Septage Management (adoption of NFSSM Policy, 2017) – from ODF to ODF + and ODF++ − source segregation of garbage, reduction of air pollution, reduction in single use plastics, dealing with waste from construction and demolition activities and bio-remediation of all legacy waste dump sites – directly impacting the environment. The launch of the Jal Jeevan Mission (waste water management) with Rs. 2.87 lakh crore will catalyse the movement towards achieving SDG 6 by 2030.”
V. Srinivas Chary, Director, Centre for Energy, Environment, ASCI and member of NFSSM alliance: "It is a game changing budget from the point of view of inclusive sanitation in general and human waste management in particular. The Hon’ble Finance Minister announced Urban Swachh Bharat Mission 2.0 with outlay of Rs. 1,41,678 Crore for complete Fecal Sludge Management, Wastewater Treatment, Source Segregation, Management of Waste from Urban Construction, and Bioremediation of Legacy Dump Sites. It is heartening to see fecal sludge and septage management mentioned in her speech and the inclusion of urban development in the agenda. This budget will positively impact the urban poor. Moreover, what is encouraging is the fact that the emphasis is not only on infrastructure but on treatment to ensure protection of public health and water bodies. This move by the government is fundamental for creating a strengthened ecosystem to further the vision of ‘health for all’.
"This year's budget provides a great philip to the economic growth by clearly laying out strategic moves that not only foster the growth of key industries such as manufacturing but also make India an attractive investment destination. We are thrilled that the government has put an increased emphasis on ease of doing business as is a basic prerequisite for a thriving FDI ecosystem. There is definitely a balanced approach to FDI whether in terms of equity or debt.
The insurance sector has attained great importance in the post-pandemic phase especially life and health. Therefore, the government's move to raise the FDI cap for the insurance sector from 49% to 74% allowing foreign ownership in insurance with safeguards was indeed a much-required step. We appreciate the government's conceited efforts towards cementing India as a preferred investment destination globally."
Puducherry Lt Governor Kiran Bedi on Monday hailed the Union budget for the fiscal 2021-2022 and termed it "a healthy budget on all counts." Welcoming the budget, the former IPS officer in a message said "it removes obstacles and provides considerable ease of living focusing on quality of life socially, economically and environmentally."
Bedi pointed out that a "healthy nation will lead to a wealthy and a creative nation."
Abheek Barua, Chief Economist: A bold budget in many senses. The central intent has been to use expansionary fiscal policy to support growth sidestepping concerns over debt sustainability and sovereign rating. The fiscal deficit is pegged at 6.8% of GDP in FY22 compared to a revised estimate of 9.5% for FY21. The focus has been on increasing capital expenditure both by the centre (+35% y-o-y) as well as states. Moreover, the budget introduced new institutional structures (like the Development Finance Institution, asset reconstruction company) and provided greater detail on asset monetisation to finance infrastructure needs in the economy. In light of the COVID-19 health crisis, the budget’s focus on health and sanitisation with increased allocations and introduction of a new health scheme are also welcome steps.
That said, the budget does not adequately address concerns over inequitable growth which has been a worry across the globe due to the pandemic. There has been no specific support for sectors stressed due to the pandemic like the hospitality sector. While the government did not increase any direct taxes, as some sections of the market feared, there has also not been any cushion provided for households – especially in the informal sector that has been hit the most by the pandemic. Therefore, while the budget focusses towards pushing the long term growth potential it does little to prevent a K-shaped growth recovery.
For the bond market, a higher than expected market borrowing estimate (INR 12 trn) in FY22 and additional borrowings of INR 80,000 crores in FY21 are likely to add pressure on borrowing costs. The 10-year yield is up by 16bps since the budget announcement crossing 6%. Over the coming year, higher market borrowings, concerns over inflation and a move towards normalising liquidity conditions by the RBI could maintain pressure on yields. We see the 10 year between 5.95-6.10% by the end of H1 FY22.
Rajat Bose, Partner Shardul Amarchand Mangaldas & Co: The consolidation of securities laws and the proposed decriminalization under the LLP Act marks an important move. On the tax front, providing tax exemption for aircraft leasing companies that are set up in the IFSC has the potential to boost foreign investments. Reducing the timelines for reopening past tax cases will lead to reduced tax litigation however removing the allowability of depreciation on goodwill that had the blessings of India’s Supreme Court will be a major dampener for M&A transactions.' Said Ravi S Raghavan - Tax Counsel from Majmudar & Partners Law Firm.
On expected lines, Customs duties have been increased on certain auto parts, parts of mobile phones and solar panels in order to provide impetus to domestic manufacturing. Levy of Agriculture Cess is an interesting development and its impact needs to be seen on the sector. Reduction in Customs duties on gold and silver should bring some relief to the consumers. Increase in Customs duty on certain iron and steel products may adversely affect the real estate and infrastructure sector.
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". The Rajya Sabha MP also highlighted statistics to show how West Bengal had developed rural roads. (PTI)
Congress spokesperson Manish Tewari alleged that the budget was a "national monetisation plan -- short hand for National Sell out" and there was "no central focus in Budget". Taking to Twitter, Tiwari said, "FM's Talkthorn 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."
Tapati Ghose, Partner: The budget speech had an undertone of the Government’s focus on ease of doing business in India. Towards the FM reiterated that tax systems to be transparent, efficient and promote investments in our country. The tax rates, surcharge, cess etc. have been left untouched. Even the much debated Covid Cess was not brought out. This brings stability and certainty to the tax framework. Definitely a positive move.
Mahesh Jaising, National Leader & Indirect Tax Partner:The customs changes are in line of what was expected with two key focus areas, i.e. Ease of doing business by way of reiteration of streamlining of customs processes and "make in India", by way of increase in duties on those products/ components that there is a push for manufacture in India. These rate changes seem aligned to those sectors where the PLI schemes have been announced, e.g. solar, auto components, mobile parts and steel.”
MS Mani, Senior Director: MS Mani, Senior Director, Deloitte India:“The policy on rationalization of Customs rates and procedures started a few years back has been further moved ahead this year with a plan to review over 400 Customs exemptions and a policy of having future exemptions with a validity period of two years making the review of Customs exemptions an ongoing process in future.”
Bela Sheth Mao, Partner: The budget is to be seen as a sum of many parts of the policies announced in 2020 and carries on with the trend of more similar announcements. Buoyancy in tax collections will be a key factor in the success of implementation of these policies.
Saloni Roy, Senior Director:This year’s budget was in the midst of the pandemic but stayed on the path of Atma Nirbhar Bharat Abhiyan that supplements the Make in India vision of the Government. Total revamp of customs and new customs structure from October 2021 is a surprising element. Exemptions validity being for a limited period can be a concern as there would be lack of predictability. Message is clearly towards increasing domestic manufacturing. While there would be many who believe that India’s policies are becoming more inward focussed, however if implemented well India could achieve a balance and eventually an economic superpower
Serum Institute of India CEO Adar Poonawalla has welcomed the Rs 64,180 crore outlay on health infrastructure and Rs 35,000 crore for Covid-19 vaccines in the Union Budget. “We welcome the move for vaccines as it will encourage more manufacturers to take up vaccine production and build India’s capacity. Any investment in health is also welcome and pays us many times over because a healthy individual can perform and disruptions to the economy can be reduced,” Poonawalla told The Indian Express. (Read Anuradha Mascarenhas's piece here)
Senior Congress leader Shashi Tharoor took a dig at the Centre over the budget, saying "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'."
The Union Budget invoked a strong reaction from members of the Congress party who slammed Sitharaman’s speech to be oblivious of declining GDP. Taking a dig at the Centre, Congress leader Anand Sharma said that the “nation needed a bold budget and more direct transfers to the weaker sections to revive demand, restart job creation."
The Delhi Government on Monday mocked the Centre soon after the Union Budget was presented for its increased private investment in public sectors like railways, airports among others. The Aam Aadmi party on their Twitter handle mocked the government for selling roads, airports, electricity, crops as well as warehouses.
In the Union Budget 2021-22, Government allocates Rs 73,000 cr for NREGS against Rs 1,11,500 in the revised estimates of 2020-21.
Shortly after it was presented in the parliament, Union Defence Minister Rajnath Singh hailed Budget 2021 as the budget for an AtmaNirbhar Bharat that will strengthen the economy.
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 policy making to investors and stakeholders.
Tapati Ghose, Partner, Deloitte India: Non-resident individuals with entrepreneurial potential are now enabled to set up One Person Companies (OPC) with no paid up capital and turnover restrictions, reducing registration timeline from 182 days to120 days. Earlier only Indian resident citizens were permitted to set up OPCs. This would be attractive to the Indian Diaspora.
Russell Gaitonde, Partner, Deloitte India: The Government’s decision to increase the FDI limit in the insurance sector from 49% to 74% is a welcome move as it was a long standing industry request and will help attract greater foreign investment and strengthen the insurance sector.
The measures to clean up the NPAs in the banking sector by creation of an ARC and Asset Management Company that will take over the stressed assets and sell to AIFs is also welcomed as it will help improve the health of the banking sector.
Presenting the Union Budget 2021-22 in Parliament Monday, Finance Minister Nirmala Sitharaman allotted Rs 35,000 crore for coronavirus vaccines in the country as part of the newly launched Aaatmanirbhar Swasth Bharat Yojana.
“A new centrally sponsored scheme PM Atmanirbhar Swasth Bharat Yojana will be launched with an outlay of about 64,180 crores over 6 years,” Finance Minister Sitharaman said. Of this total amount, Sitharman announced that Rs 35,000 crore will be spent on the Covid-19 vaccine alone. She further announced that she was committed to spending more if needed.
Adil Shetty, CEO Bankbazzar.com: India has extremely low insurance penetration. The National Sample Survey Office conducted a survey between 2017 and 2018, sampling 113,823 urban and rural households. The findings indicate that a whopping 85.9 percent of the rural and 80.9 percent of the urban population did not have health insurance.
The survey reported that out-of-pocket expenses for a single hospitalisation in private hospitals costs Rs. 15,937 in rural areas and up to Rs.22,031 in urban areas. Around 79.5 percent of the rural population paid their hospital bills independently, even selling physical assets, while 13.4 percent borrowed.
It's clear healthcare problems greatly strain the average Indian's finances. In urban areas, 83.7 percent of families paid out of their savings, with 8.5 percent relying on loans. Therefore, greater funding of public healthcare - especially in the light of a crippling pandemic - is most welcome. We await the operational details of the scheme now
In her opening remarks for the Union Budget 2021, Finance Minister Nirmala Sithraman said that the 2021 Budget was prepared in unprecedented times and that thanked the frontline workers who served the nation during Covid-19 induced lockdowns.
Congress leader Rahul Gandhi on Monday highlighted sectors that the government "must" focus on in their Budget, including the MSME sector. Gandhi also urged on the need to generate employment for the farmers and workers in the country and increasing expenditure in the healthcare and defence sectors.