Ashok Maheshwary & Associates LLP Presents the Highlights of the Indian Union Budget 2021

Published on February 03, 2021

Greetings!

The Indian Finance Minister Nirmala Sitharaman presented her third Budget yesterday. This Budget assumes great significance as it comes amid the novel coronavirus pandemic, which has led to massive economic disruption in India and around the world. The current Fiscal deficit in India stands at 9.5%.

The Budget proposals for 2021-22 that stands on 6 pillars:

1. Health and Wellbeing

2. Physical & Financial Capital, and Infrastructure

3. Inclusive Development for Aspirational India

4. Reinvigorating Human Capital

5. Innovation and R&D

6. Minimum Government and Maximum Governance

The Finance Minister emphasized that the proposals introduced in the Budget would focus on building strong Infrastructure, robust healthcare system, good governance, women empowerment, opportunities for youth and education for all. All these would accelerate India’s growth to a different trajectory.

A few major announcements of this year’s budget were, proposal to divest two more PSBs and a general insurance company, and numerous infrastructure pledges to poll-bound States. We believe that it is a growth-oriented Budget and we are seeing next generation reforms. The budget indeed looks good with no increases in taxes, no cess to cover COVID related expenditure and no additional tax. In nutshell on the tax front there were no negatives surprises.

With the vision of 'Aatmanirbharta' (self-reliance), this year’s budget clearly has many positives including increase in the FDI cap in insurance from 49% to 74%, proposal for higher spending on infrastructure, increased funding for strengthening the public sector R&D and innovation ecosystem.

In addition to this, the Government has taken a bold move by outlaying a total of over INR 2330 Billion (USD 31.07 Billion) for healthcare sector.

Please click on the attached file to read the highlights of this year’s budget containing highlights of the Economic Survey, non-tax announcements, direct and indirect tax proposals.

Amit Maheshwari

Partner | India Tax Leader

Ashok Maheshwary & Associates LLP

Chartered Accountants
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Gurgaon-122018, Haryana, India

T: +91 124 6647500

E: amit@akmglobal.com

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Download Indian Union Budget 2021synopsis By Ashok Maheshwary Associates Llp