Nirmala Sitharaman presents Union Budget 2021: Top takeaways

NEW DELHI: Union finance minister Nirmala Sitharaman on Monday presented the Union Budget 2021 with focus on 6 pillars to energise the economy which has been battered by the Covid-19 pandemic.
The six pillars are: Health and Well-Being, Physical and Financial capital and infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, Innovation and R&D, Minimum Government and Maximum Governance.
Budget 2021 live updates
Here are the 10 top takeaways from the Union Budget
137% increase in Budget outlay for health
The government has proposed Rs 2,23,846 crore Budget outlay for health and well being for 2021-22, compared to Rs 94,452 crore in the current fiscal, an increase of 137 per cent. Sitharaman announced a new Centre-sponsored scheme "Prime Minister Atmanirbhar Swasthya Bharat Yojana" with an outlay of Rs 64,180 crore to boost healthcare infrastructure across the country. Under the new scheme, capacity for primary, secondary, and tertiary care health systems in the country will be developed. The main interventions under the scheme will support over 17,000 rural and 11,000 urban wellness centres.

Rs 35,000 crore outlay for Covid-19 vaccines
The government announced an outlay of Rs 35,000 crore for Covid-19 vaccines for the next fiscal and committed to provide more funds if needed. India already has two Covid-19 vaccines and two more are likely to be launched, the FM announced. Sitharaman also announced the rollout of pneumococcal vaccines across the country to help save over 50,000 deaths annually. The pneumococcal vaccine is effective against potentially fatal pneumococcal infections like pneumonia, septicaemia and meningitis.
Relief for senior citizens but no change in income tax slabs
Senior citizens above 75 years with only pension and interest income have been exempted from filing tax returns. The paying bank will deduct the necessary tax from their income. However, there has been no change in the personal income tax slabs. Also, pre-filled income tax returns with details on capital gains from listed securities, dividend income and interest income from banks and post offices would be available soon. Tax department will notify rules to remove hardships of double taxation faced by of non-resident indians (NRIs).
Time limit for reopening of I-T assessment halved to 3 years
The government has reduced the time limit for reopening of income tax assessment cases to three years from the present six years. However, for serious tax fraud cases where concealment of income is Rs 50 lakh or more the time limit would be 10 years. For small taxpayers with taxable income up to Rs 50 lakh, a dispute resolution committee would be set up.

Boost to affordable housing
The government has given a boost to the housing sector and home-buyers. Additional deduction of interest amounting to Rs 1.5 lakh for a loan taken to purchase an affordable house has been extended by one more year to 31st March 2022. Affordable housing projects can avail a tax holiday for one more year till 31st March 2022.
FDI cap in insurance sector increased to 74%
The government has proposed to increase foreign direct investment (FDI) limit in the insurance sector to 74 per cent from the present 49%. The move is aimed at attracting greater overseas capital inflows to help enhance insurance penetration in the country. Under the new structure, the majority of directors on the board and key management persons would be resident Indians, with at least 50 per cent of directors being independent directors, and specified percentage of profits being retained as a general reserve.
8,500 km of highway projects to be awarded in FY22, focus on poll-bound states
Finance minister Nirmala Sitharaman said projects for building 8,500 km of highways will be awarded by March 2022. Bulk of these projects will be in the four poll-bound states. Poll-bound West Bengal will see highway projects worth Rs 25,000 crore. Highway projects worth Rs 65,000 crore will be undertaken in Kerala and Rs 3,400 crore will be allocated for road projects in Assam. Sitharaman also announced an Rs 18,000-crore scheme to augment public transport in urban areas.
Committed to welfare of farmers
Finance Minister Nirmala Sitharaman said the government is committed to the welfare of farmers. The MSP regime has undergone a "sea change" to assure price at least 1.5 times of production cost with sharp increase in procurement of foodgrains and payment to farmers. The procurement of crops like paddy, wheat, pulses and cotton has jumped manifold in the last six years.
FY22 disinvestment target at Rs 1.75 lakh crore
The government has budgeted Rs 1.75 lakh crore from stake sale in public sector companies and financial institutions, including 2 PSU banks and one insurance company, in the next fiscal year. Finance minister Nirmala Sitharaman 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. Strategic sale of IDBI Bank, BPCL, Shipping Corp, Container Corporation, Neelachal Ispat Nigam Ltd, among others, would be completed in 2021-22 fiscal year beginning April 1. Also legislative amendments required for LIC IPO would be brought in 2021-22.
Voluntary vehicle scrapping policy to phase out old vehicles
The government has announced the much-awaited voluntary vehicle scrapping policy to phase out old and polluting vehicles. Sitharaman said that under voluntary vehicle scrapping policy, personal vehicles would undergo fitness test after 20 years while commercial vehicles would require it after completion of 15 years.
Announcement of Bad bank and Rs 20,000 crore recapitalisation for PSBs
The government announced setting up of Asset reconstruction and management company for stressed assets of banks. It also announced infusion of Rs 20,000 crore into public sector banks (PSBs) in 2021-22 to further consolidate financial health of banks.