General Budget 2021 Highlights in easy world for common man. Finance Minister Nirmala Sitharaman presented General Budget 2021 in parliament today. She projected this budget for farmers and middle before presenting in house. However nothing offered to middle class and farmers during the General Budget 2021 speech in parliament. Both middle class and farmers are disappointed and find this as capitalist budget.
Many opposition leaders and finance expert believe that his is a Great Indian Sale of PM Narendra Modi Government. They are planning to sell remaining key assets to few crony capitalist. The General Budget 2021 has not offered any relief to struggling Indian Citizen due to corona pandemic, job loss and recession. Although government has added tax on tax in the form of agricultural cess of Rs 2.50 on petrol and Rs 4 on diesel. This will directly impact the price rise of essential goods.
Key positive highlights of General Budget 2021 for common man and industries
1. Major announced for banking Sector in General Budget 2021
Finance Minister Nirmala Sitharaman announced relief for common man in banking sector. Now if bank sinks then the account holders will get Rs 5 lakh as relief. Earlier this limit was only 1 lakh rupees in such scenario. This is the good initiative from the government for people has less than five lakh in their bank account. What will happened to people had higher money in their bank account when bank sinks. She don’t clarified what will happened to remaining money lost by the account holder. She has also announced the privatisation of two public sector banks in the new financial year.
2. Higher allocation of funds for agriculture sector for farmers support
Nirmala Sitharaman announced to allocate Rs 16.5 lakh crore for the agriculture sector. Lats year agriculture sector allocation was just Rs 15 lakh crore. She also Highlights how government has disbursed double the amount as MSP for government purchase since 2014. Sitaraman tried to clarify how government supporting farmers by paying MSP. But she did not clarify that only 6-7% of crop purchased by the government on MSP in India.
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3. Gold silver and leather goods will be cheaper for common man
The government has reduced the custom duty from gold and silver. This means that gold and silver will be cheaper now. Finance Minister announced a huge cut in import duty on gold and silver in this budget. The import duty on gold and silver reduced by 5 percent. Currently gold and silver has 12.5 percent import duty which will reduce to 7.5 percent after the budget. The customer duty has reduced on leather products as well. Now this will make leather products cheaper. But the million dollar question is, who buys gold and lather product in India.
4. Sixty Four Thousand Crore allocated for Atmanirbhar Swasth Bharat Yojna
The finance Minister Nirmala Sitharaman announced the 64 thousand crore allocation for Atmanirbhar Swasth Bharat Yojna. Government believe that this budget will help in improving government health infrastructure. This will drive more people to avail cheaper health facility in government hospitals and PHCs. It is a positive move and government should assure to utilise the allocated find in this sector in due time.
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5. Thirty Five Thousand crore allocated for corona vaccine in General Budget 2021
Government announcement of 35000 crores for the Corona vaccine. The fund will help and encourage Indian medicine companies to enhance their healthcare infrastructure and research. Companies will be encouraged and incentivise to discover new corona vaccine. This will reduce the cost of vaccine and optimise the reach of vaccine to every indian. Many differ to this move a believe that this fund allocation is not required when corona is fading their impact in the world now.
Key highlights of setback for common man in this General Budget 2021
1. Tax on tax for already struggled common man in this budget
Nirmala Sitharaman as announced tax on tax in this General Budget 2021. Government has increased cess on diesel petrol prices and imposed agricultural cess of Rs 2.50 on petrol and Rs 4 on diesel. However this will not impact the consumers at the beginning. But this will definitely impact after sometime when people will forget the restructuring. You must know that the government have made tons of money during the pandemic through sales of petroleum products. Now government eyeing more money making in this tough time through addition cess.
2. No relief for tax payers when people lost jobs and struggle to run their home
Government has not offered any relief to Indian Tax payer in this General Budget 2021. India tax payers were expected to get some exemption in this tough time of corona pandemic. There is nothing for them neither any additional tax exemption nor any change in the tax slab for middle class and salaried person. It is interesting to know that Modi Government has larger support from middle and salaried class in India.
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3. Mobile Phone will be more expensive for common man after this budget
Government has increased the customer duty for mobile phone and accessories by 2.5 percent. This will increase the price for all mobile phone in Indian. Let me tell you that many parts and accessories import in India. Even most of Indian manufacture just assemble the mobile phone. They don’t produce mobile parts and they are fully dependent on import. The Modi government has increase import duty around 10% in last 4 years on mobile phone and accessories.
4. No strategy for job creation and employment mentioned in General Budget 2021
No strategy for job creation and employment mentioned in General Budget 2021. Modi government has only announced infrastructure and road project for West Bengal and Assam aimed upcoming assembly election. These projects may generate some employment for the election states but what rest of Indian will do was not included in the budget. Nirmala Sitharaman failed to speak about employment generation nor she mention concrete roadmap for job creation in India.
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5. Nothing for farmers announced in this budget for direct benefit
Indian farmers are shocked after General Budget 2021. Nothing offered for them in this budget apart from Nirmala Sitharaman quote for doubling the government purchase since 2014. Everyone expected some relief for farmers in this budget amid ongoing farmers agitation on Delhi Borders. Many experts thought that Modi Government will increase direct farmers benefit of Rs 6000 to 12000 under PM Kisna Yojna. Farmers and people related to agriculture are very disappointed with this budget.
What Modi Government planning to sell in India in this budget
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Privatisation in Insurance Sector for Foreign Direct Investment
Modi government has decided to increase Foreign Direct Investment (FDI) in Indian Insurance sector. Nirmala Sitharaman said that the FDI limit in the insurance sector will now be 74 percent. Although they have made some change in companies structure by introducing major directors of Indian Origin. But increasing FDI limit in insurance sector is not appreciated by many finance experts.
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2. Disinvestment in LIC through IP to generate funds for government projects
Modi government is planning to sell a portion of India’s most valuable company, LIC. They are planning to launch a IPO to generate funds for their projects. The Finance Minister announced the launch of LIC’s IPO in the new financial year. This move from government already criticised by experts. They are saying that Modi Government don’t have concrete plan to generate funds rather they are selling profit making government ventures for personal gain.
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3. Sales of defence, railways and other government land
Modi government also planning to sell unused land with Indian railways, Armed Forces and other government enterprise. This will generate significant fund for government in easy way. But this move from government already criticised by finance experts. They are saying that this is organise loot to offer cheap or free land to selective corporate for political gain. You must know that Modi government has already gave six Key airports to Adani Infrastructure which doesn’t have any experts to manage airports.
4. Sale of petroleum companies announced in General Budget 2021
The modi government also has a plan to sell key petroleum companies to prove sector in this General Budget 2021. The sale of BPCL is already under the fire from quite some times. Many are asking question why government selling petroleum company when both government and oil companies making huge. Money in India.
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5. Disinvestment in other government companies for infrastructure in General Budget 2021
Finance Minister Nirmala Sitharaman also announced the sale of other PSUs to generate funds for infrastructure in General Budget 2021. She has not named the companies but it is expected that government will announce to sell many government enterprise. Many asking question why government selling PSUs and borrowing loan when not much development work visible in country.
