SNIPPETS OF THE UNION BUDGET 2021-2022
ACCOUNTABLE AND EFFICIENT TAX DISPUTE RESOLUTION
- Setting up a Dispute Resolution Committee has been proposed for taxpayers with a taxable income up to Rs. 50 lakh and disputed income up to Rs. 10 lakh to ensure efficiency, transparency and accountability.
- Faceless ITAT- Establish a National Faceless Income Tax Appellate Tribunal Centre, all communication between the Tribunal and the appellant shall be electronic, where personal hearing is needed, it shall be done through video-conferencing.
- To ensure faster disposal of cases, replacing the Authority for Advance Rulings with a Board for Advance Rulings and provide appeal against the order of such Board to the High Court has been proposed.
- The SWAMITVA Scheme that provides a record of rights to property owners in villages will now cover all States/ UTs.
- Scope of Operation Green Scheme to be extended to 22 perishable products, to boost value addition in agriculture and allied products.
- Agriculture Infrastructure Funds to be made available to APMCs for augmenting infrastructure facilities.
- 1,000 more mandis to be integrated with e-NAM.
- To double the Micro Irrigation Fund to Rs. 10,000 crores.
BUILDING WORLD CLASS URBAN INFRASTRUCTURE
- New Scheme of Rs. 18,000 crores to be launched to support the augmentation of public bus transport bus service.
- Two new technologies – ‘MetroLite’ and ‘MetroNeo’ – to be deployed to provide metro rail systems at a much lesser cost in Tier-2 cities and peripheral areas of Tier-1 cities.
- Central counterpart funding for the coming phases of Metro Railways in Kochi, Chennai, Bengaluru, Nashik and Nagpur.
- Easing Compliance requirement of Small Companies by revising their definition under Companies Act, 2013 by increasing their threshold for Paid-up capital from “not exceeding Rs. 50 Lakh” to “not exceeding Rs. 2 Crore” and turnover from “not exceeding Rs. 2 Crore” to “not exceeding Rs. 20 Cr”
- Promoting start-ups and innovators by incentivizing the incorporation of One Person Companies (OPCs)”
- Allowing their growth without any restrictions on paid-up capital and turnover
- Allowing their conversion into any other type of company at any time
- Reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days and Allowing Non-Resident (NRIs) to incorporate OPCs in India
- To decriminalize the Limited Liability Partnership (LLP) Act, 2008.
- To ensure faster resolution of cases by: Strengthening NCLT framework, Implementation of e-Courts system, Introduction of alternate methods of debt resolution and special framework for MSME
- Launch of data analytics, artificial intelligence, machine learning driven MCA21 Version 3.0 in 2021-22. It will provide automated approvals for incorporation related applications and near real-time grievance redressal by using chatbots, virtual assistants, automatic ticket categorization and speedy resolution of complaints. It will also facilitate e-Consultation, e-Adjudication, compliance management system and re-engineered enforcement & official liquidator modules for front office and back-office users.
DISINVESTMENT AND STRATEGIC SALE
- Strategic disinvestment of Bharat Petroleum Corporation Limited (BPCL), Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, Bharat Earth Moves Limited (BEML), Pawan Hans, Neelchal Ispal Nigam Limited (NINL), etc. to be completed in 2021-22.
- Other than IDBI Bank, two Public Sector Banks and one General Insurance company to be privatized.
- IPO of LIC has been proposed in 2021-22.
- New policy for Strategic Disinvestment approved; Central Public Sector Enterprises (CPSEs) except in four strategic areas to be privatized.
- Special Purpose Vehicle in the form of a company to monetize idle land.
- Higher Education Commission of India for standard-setting, accreditation, regulation and funding.
- Glue grant in 9 cities for umbrella structure for better synergy amongst various research institutions, universities, and colleges of a city supported by Govt.
- Central University in Leh to be set up for accessible higher education.
- National Professional Standards for Teachers to be implemented.
- Unique indigenous toy-based pedagogy for all levels for school education.
- A Single Securities Markets Code to be evolved.
- Support for development of a world class Fin-Tech hub at the GIFT-IFSC.
- A new permanent institutional framework to help in the development of Bond market by purchasing investment-grade debt securities both in stressed and normal times.
- Setting up a system of Regulated Gold Exchanges.
- Capital Infusion of Rs. 1,000 crore to Solar Energy Corporation of India and Rs. 1,500 crore to Indian Renewable Energy Development Agency.
HEALTH CARE AND WELL-BEING
- Budget outlay for Health and Wellbeing increased to Rs. 2, 23,846 crore in BE 2021-22 as against this year’s BE of Rs. 94, 452 crore.
- The Pneumococcal Vaccine, a Made in India product, is currently limited to only 5 states, to be rolled out across the country. This will avert more than 50,000 child deaths annually.
- Rs. 35,000 crore has been provided for the Covid-19 vaccine in BE-2021-22.
- National Nursing and Midwifery Commission Bill to be introduced to bring about transparency, efficiency and governance reforms in the nursing profession.
- To increase the permissible FDI limit from 49% to 74% and allow foreign ownership and control with safeguards. Under the new structure, the majority of Directors on the Board and key management persons would be resident Indians, with at least 50% of Directors being Independent Directors, and a specified percentage of profits being retained as general reserve.
MIGRANT WORKERS AND LABOURERS
- One Nation One Ratio Card scheme for beneficiaries to claim rations anywhere in the country – migrant workers to benefit the most.
- Scheme implementation so far covered 86% of beneficiaries across 32 States and UTs
- Remaining 4 states to be integrated in the next few months
- Implementation of 4 labour codes underway
- Social security benefits for gig and platform workers too.
- Minimum wages and coverage under the Employees State Insurance Corporation applicable for all categories of workers.
- Women workers are allowed in all categories, including night-shifts with adequate protection.
- Compliance burden on employers reduced with a single registration and licensing, and online returns.
PHYSICAL AND FINANCIAL CAPITAL
- National Infrastructure Pipeline (NIP) expanded to 7,400 projects.
- Rs. 20,000 crore to set up and capitalise a Development Financial Institution (DFI) – to act as a provider, enabler and catalyst for infrastructure financing.
- Debt Financing by Foreign Portfolio Investors to be enabled by amending InvITs’ and REITs’ legislations.
- Mega Investment Textiles Parks (MITRA) scheme, in addition to Production Linked Incentive Scheme (PLI) – 7 textile parks to be established over 3 years.
- 139 Giga Watts for installed capacity and 1.41 lakh circuit km of transmission lines added, and additional 2.8 crore households connected in past 6 years.
- A comprehensive National Hydrogen Energy Mission 2021-22 to be launched.
- Consumers to have alternatives to choose the Distribution Company for enhancing competitiveness.
PORTS, SHIPPING, WATERWAYS
- Rs. 2,000 crore worth 7 projects to be offered in PPP-mode in FY2021-22 for the operation of major ports.
- Indian shipping companies to get Rs. 1624 crore worth subsidy support over 5 years in global tenders of Ministries and Central Public Sector Enterprises (CPSEs).
- To double the recycling capacity of around 4.5 Million Light Displacement Tonne (LDT) by 2024; to generate an additional 1.5 lakh jobs.
PETROLEUM AND NATURAL GAS
- Extension of Ujjwala Scheme to cover 1 crore more beneficiaries.
- To add 100 more districts to the City Gas Distribution network in the next 3 years.
- A new gas pipeline project in J&K.
- An independent Gas Transport System Operator to be set up for facilitation and coordination of booking of common carrier capacity in all-natural gas pipelines on a non-discriminatory open access basis.
- Rs. 1,10, 055 crore for Railways of which Rs. 1,07,100 crore is for capital expenditure.
- National Rail Plan for India (2030): to create a ‘future-ready’ Railway System by 2030.
- 100% electrification of Broad-Gauge routes to be completed by December, 2023.
ROADS AND HIGHWAYS INFRASTRUCTURE
- Rs. 1,18, 101 lakh crore, highest ever outlay, for Ministry of Road Transport and Highways – of which Rs. 1,08,230 crore is for capital.
- Under the Rs. 5.35 lakh crore Bharatmala Pariyojana more than 13,000 km length of roads worth Rs. 3.3 lakh crore awarded for construction.
RECAPITALIZATION OF PSBs
- Rs. 20,000 crore in 2021-22 to further consolidate the financial capacity of PSBs.
STRESSED ASSET RESOLUTION
- Asset Reconstruction Company Limited and Asset Management Company to be set up.