{"id":2339,"date":"2021-02-03T18:03:48","date_gmt":"2021-02-03T12:33:48","guid":{"rendered":"https:\/\/blog.tickertape.in\/?p=2339"},"modified":"2021-03-24T12:11:29","modified_gmt":"2021-03-24T06:41:29","slug":"talking-points-of-union-budget-2021","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/","title":{"rendered":"Talking points of Union Budget 2021"},"content":{"rendered":"\n<p>Union Budget 2021 is one of its kind. First, it is the first paperless Budget in Indian history. Second, it is more like a prescription to \u201cget well soon\u201d from the impact of the pandemic. Let us look at some of the proposals that can impact individuals and businesses.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/02\/info-01-488x1024.png\" alt=\"This image has an empty alt attribute; its file name is info-01-488x1024.png\"\/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Proposals-impacting-individuals\" title=\"Proposals impacting individuals\">Proposals impacting individuals<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Better-healthcare-facilities\" title=\"Better healthcare facilities\">Better healthcare facilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Affordable-rail-travel\" title=\"Affordable rail travel\">Affordable rail travel<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Suraksha-kavach-for-bank-deposits\" title=\"Suraksha kavach for bank deposits\">Suraksha kavach for bank deposits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Wealth-creation-for-retail-investors\" title=\"Wealth creation for retail investors\">Wealth creation for retail investors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Tiny-steps-to-fight-pollution\" title=\"Tiny\nsteps to fight pollution\">Tiny\nsteps to fight pollution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Because-cleanliness-is-next-to-Godliness\" title=\"Because cleanliness is next to Godliness\">Because cleanliness is next to Godliness<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Shell-out-more-for-mobile-phones\" title=\"Shell out more for mobile phones\">Shell out more for mobile phones<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Kyuki-apna-ghar-apna-hota-hai\" title=\"Kyuki apna ghar apna\nhota hai\">Kyuki apna ghar apna\nhota hai<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#On-the-tax-front\" title=\"On the tax front\">On the tax front<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Proposals-impacting-businesses\" title=\"Proposals impacting businesses:\">Proposals impacting businesses:<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#More-foreign-money-and-control-in-the-insurance-sector\" title=\"More foreign money and control in the insurance sector\">More foreign money and control in the insurance sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Indian-Railways-to-boost-infrastructure\" title=\"Indian Railways to boost infrastructure\">Indian Railways to boost infrastructure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Recapitalisation-of-public-sector-banks\" title=\"Recapitalisation of public sector banks\">Recapitalisation of public sector banks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Increased-income-for-farmers\" title=\"Increased income for farmers\">Increased income for farmers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Double-resources-to-the-MSME-sector\" title=\"Double resources to the MSME sector\">Double resources to the MSME sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Because-infrastructure-development-is-crucial-for-the-economy\" title=\"Because infrastructure development is crucial for the economy\">Because infrastructure development is crucial for the economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.tickertape.in\/blog\/talking-points-of-union-budget-2021\/#Promoting-rural-infrastructure-development\" title=\"Promoting rural infrastructure development\">Promoting rural infrastructure development<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Proposals-impacting-individuals\"><\/span><strong>Proposals impacting individuals<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Better-healthcare-facilities\"><\/span><strong>Better healthcare facilities<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>With a total outlay of Rs 2,23,846 cr as opposed to Rs\n94,452 cr last year, the healthcare sector truly stole the show. Of the total\noutlay, Rs 35,000 cr is expected to be earmarked for COVID-19 vaccines. Well,\nits high time we realise health is wealth! <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Affordable-rail-travel\"><\/span><strong>Affordable rail travel<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Union Budget 2021 has proposed introducing 2 new\ntechnologies: metro lite and metro neo in tier II and tier III cities. If these\nare accepted, you would enjoy relatively cheaper metro services with the same convenience\nand ease.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Suraksha-kavach-for-bank-deposits\"><\/span><strong>Suraksha kavach for bank deposits<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Thanks to the previous bank-related scams, Union Budget 2021\nproposed a measure to protect depositors of funds from default risk. The proposal\nis to offer a cover of up to Rs 5 lakh per depositor on their deposits in stressed\nbanks. In addition, streamlining the provisions may also be on cards so you\nhave timely access to the cover.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Wealth-creation-for-retail-investors\"><\/span><strong>Wealth creation for retail investors<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/www.tickertape.in\/blog\/uncover-lics-ipo-with-harsh-vora\/\">LIC IPO<\/a> has been long overdue now. But the FM has reassured that\nnecessary amendment will be made to the law so as to divest <a href=\"https:\/\/www.tickertape.in\/blog\/lic-ipo-date-price-review-news-application-and-details\/\">LIC<\/a> this year. In\naddition, 2 public sector banks would also be up for divestment during the year.\nIf this happens, retail investors would get an opportunity to participate in\nwealth creation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tiny-steps-to-fight-pollution\"><\/span><strong>Tiny\nsteps to fight pollution<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In a bid to\naddress the pollution, Budget 2021 has proposed a voluntary vehicle scrappage policy.\nAs per this, personal vehicles and commercial vehicles would undergo fitness\ntests after 20 yrs and 15 yrs of usage, respectively. The policy would also spur\nthe demand in the automobiles sector. On taking the year 1990 as the base, approximately\n52 lakh passenger vehicles and 37 lakh commercial vehicles are eligible for\nvoluntary scrappage as of now.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Because-cleanliness-is-next-to-Godliness\"><\/span><strong>Because cleanliness is next to Godliness<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Budget 2021 also proposed \u2018Swachh Bharat 2.0\u2019 campaign for which Rs 1.41 lakh cr has been allocated for 5 yrs from 2021. This mission would focus on wastewater treatment, complete faecal sludge management, reduction in single-use plastics, and segregation of garbage. Ultimately, it would result in a reduction in air pollution.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Shell-out-more-for-mobile-phones\"><\/span><strong>Shell out more for mobile phones<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Budget 2021 has proposed to increase the customs duty on mobile\nphone parts from 0 to 2.5% and that of a battery charger from 10% to 15%. Although\nmobile phones would get costlier, the move would create opportunities for domestic\nmanufacturers and promote the Make in India campaign.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Kyuki-apna-ghar-apna-hota-hai\"><\/span><strong>Kyuki apna ghar apna\nhota hai<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Budget 2021 has proposed to extend the tax <a href=\"https:\/\/www.tickertape.in\/blog\/tips-to-not-overspend\/\">holiday<\/a> on affordable\nhousing projects for a year more till 31<sup>st<\/sup> Mar 2022. Similarly,<strong> <\/strong>the additional tax deduction of Rs\n1.5 lakh on home loans availed up till 31<sup>st<\/sup> Mar 2022 to buy a house\nunder the affordable housing scheme would also be extended up till 31<sup>st<\/sup>\nMar 2022. This will spur demand for housing\nand aid the related sectors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"On-the-tax-front\"><\/span><strong>On the tax front<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Budget 2021 has exempted those aged 75 and above earning only pension income from filing returns, reducing the burden of senior citizens. Further, individual taxpayers are also relieved as the <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax\/\">income tax<\/a> rates are unchanged, if not reduced. What\u2019s more, the Budget 2021 has also proposed a faceless dispute resolution system to fast-track the process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Proposals-impacting-businesses\"><\/span><strong>Proposals impacting <\/strong><strong>businesses:<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"More-foreign-money-and-control-in-the-insurance-sector\"><\/span><strong>More foreign money and control in the insurance sector<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Budget 2021 increased the FDI limit in the insurance sector from 49% to 74%. This proposal would not only attract more capital inflow into the sector but also aid the growth of the entire economy. It would also encourage new insurers to step into the market and create competition. Thanks to this, you may get access to new, innovative, and better insurance products.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Indian-Railways-to-boost-infrastructure\"><\/span><strong>Indian Railways to boost infrastructure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>\u20b9 1.1 lakh cr is proposed to be allocated for the Indian Railways. Not only will this boost the railway sector, but also enhance the infrastructure. Further, 100% electrification of broad gauge route by December 2023 is also proposed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recapitalisation-of-public-sector-banks\"><\/span><strong>Recapitalisation of public sector banks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Union Budget also proposed to infuse Rs 20,000 cr in public sector\nbanks in the FY 2022. This move would replenish their capitals and enhance\ntheir lending capability. Further, the creation of Asset Management Companies to\ntake over bad loans is also a welcome move for banks as it will improve the health\nof the overall sector.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Increased-income-for-farmers\"><\/span><strong>Increased income for farmers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Budget 2021 proposes a change in the MSP (minimum support\nprice) regime to assure that the price of commodities is at least 1.5 times the\ncost of their production, thus increasing farmers\u2019 income.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Double-resources-to-the-MSME-sector\"><\/span><strong>Double resources to the MSME sector<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Union Budget 2021\nhas doubled the allocation to MSMEs to Rs 15,700 cr for FY 2022.\nThe allocations are proposed to be made to the Emergency Credit Line Guarantee\nScheme, entrepreneurship and skill development programmes, and the launch of new\ntechnology centres for the MSME units. These proposals are directed to aid the MSME\nsector\u2019s revival, which was severely impacted by the pandemic.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Because-infrastructure-development-is-crucial-for-the-economy\"><\/span><strong>Because infrastructure development is crucial for the economy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Union Budget has proposed setting up a separate Development Financial Institution (DFI) to exclusively fund infra projects and help create required resources via <a href=\"https:\/\/economictimes.indiatimes.com\/definition\/infrastructure-investment-trusts#:~:text=Definition%20of%20&#039;Infrastructure%20Investment%20Trusts,of%20the%20income%20as%20return.\" target=\"_blank\" rel=\"noreferrer noopener nofollow\" aria-label=\" (opens in a new tab)\">InvIts<\/a> and REITs. In addition, the National Infrastructure Pipeline has also been expanded to 7,400 projects. Further, the capital expenditure target for FY 2022 is set at Rs 5.54 lakh cr, a sharp increase from last year to boost the infrastructure sector and fuel the growth of the economy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Promoting-rural-infrastructure-development\"><\/span><strong>Promoting rural infrastructure development<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Thanks to the Union Budget, the allocation to rural infrastructure development has been hiked from Rs 30,000 cr to Rs 40,000 cr for the next financial year. Further, 1,000 more mandis will be linked to the electronic national market. And just like how a DFI would fund infrastructure projects, an agriculture infrastructure fund will be launched to fund APMCs and enhance infrastructure facilities.<\/p>\n\n\n\n<p>Let us know what you think of the Union Budget 2021 in the comments section below \ud83d\ude42<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Union Budget 2021 is more like a prescription to \u201cget well soon\u201d from the impact of the pandemic. Here are some proposals that can impact individuals and businesses<\/p>\n","protected":false},"author":27,"featured_media":2348,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[10,1744],"tags":[],"acf":[],"modified_by":"Manonmayi","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/02\/budget.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2339"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=2339"}],"version-history":[{"count":8,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2339\/revisions"}],"predecessor-version":[{"id":2353,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/2339\/revisions\/2353"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/2348"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=2339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=2339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=2339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}