Budget 2021: Key Takeaways From Nirmala Sitharaman's Speech

Finance Minister Nirmala Sitharaman on Monday delivered her third Budget speech and India's first digital Budget in the Parliament, stating that this Budget will be “like never before”.

The Government raised hopes in economic revival by focusing on sectors grossly impacted by the COVID-19-induced restrictions, with a special focus on six pillars — healthcare, financial capital and infrastructure, inclusive development, human capital, innovation and research and development and the rural economy.

The preparation of this Budget was undertaken in circumstances like never before, in view of calamities that have affected a country or a region within a country. But what we have endured with COVID-19 to 2020 is Sui generis: FM #NirmalaSitharaman#Budget2021

— GoNewsIndia (@GoNews_India) February 1, 2021

Here are the key takeaways from the Finance Minister's Budget speech:

• Fiscal deficit pegged at 9.5% of GDP for FY21. For 2021-’22, fiscal deficit estimated at 6.8% of GDP
• Rs 15,700 crore provided for MSME sector
• Divestment target of Rs 1.75 lakh crore for financial year 2021-22
• Pradhan Mantri Ujjwala Yojana to be extended from 8 crore households to 1 crore more beneficiaries
• LIC IPO will be brought in FY22
• Rs 1.18 lakh crore allocated as revenue deficit grant to states
• Rs 20,000 crore allocated for recapitalisation of public sector banks
• Rs 3.05 lakh crore outlay for power sector
• Foreign Direct Investment unit in insurance sector raised from 49% to 74%
• Voluntary vehicle scrapping policy announced to phase out old vehicles
• Rs 1.18 lakh crore allocated for highways and roads ministry
• New road infrastructure projects in states going to elections — Tamil Nadu, Kerala, West Bengal and Assam
• Rs 1,10,055 crore allocated for Railways
• Capital expenditure outlay of Rs 5.54 lakh crore in FY22 over than 34% higher than revised estimate of last fiscal
• Urban Jal Jeevan Mission to be laughed and implemented over 5 years with an outlay of Rs 2.87 lakh crore
• Rs 20,000 crore for setting up of a Development Finance Institution for infrastructure projects
• Rs 1.4 lakh crore for Urban Swachh Bharat scheme
• Rs 35,000 crore for development of COVID vaccines
• Aatmanirbhar Health Yojana with an outlay of Rs 64,180 crore
• Senior citizens above 75 years exempted from income tax returns filing
• Rural infrastructure development allocation raised to Rs 40,000 crore from Rs 30,000 crore in FY21
• Agriculture credit target raised to Rs 16.5 lakh crore in 2021-22
• Agri infra fund to be made available to APMCs
• Insurance Act to be amended to increase FDI limit in insurance to 74% from 49% with safeguards