Union Finance Minister Nirmala Sitharaman presented Union Budget 2021-22 in Lok Sabha on Monday (January 1). This budget was special in many ways as it was being presented amidst challenges like coronavirus pandemic. In such a situation, the eyes of common people and special people werre set on the announcements.
Earlier this month, Sitharaman had stated that the budget for the fiscal year beginning April will be “like never before”. This was also the first paperless budget in history of independent India. Sitharaman, in her first budget in 2019, had replaced leather briefcase that had been for decades used for carrying budget documents with a traditional red cloth ‘bahi-khata’. But she replaced 'bahi khata' with a 'Made In India' tab.
Here's a list of what got costly and what got cheaper
Costlier: Electronics item, Mobile, Charger, Leather shoe, Kabuli chana, Pulses, Urea, Auto parts, Gems
Cheaper: Iron, steel, nylon clothes, copper items, insurance, electicity, steel utensils, Dry cleaning,Agricultural equipment
The Finance Minister also announced that the Centre will introduce LIC IPO in 2022 and will complete the divestments of Air India by 2022. "For start ups, we are allowing 1% companies to grow without any restriction on their paid up capital. Other than IDBI we plan to take up 2 more banks for disinvestment. LIC IPO will come in 2022. All divestments announced so far, including Air India, BPCL, CONCOR, Pawan Hans, to be completed by 2022," she said.
The Union Minister also announced that Prime Minister Narendra Modi-led government at the Centre has decided to raise the limit for foreign direct investment (FDI) in insurance sector to 74 percent from 49 percent. "We propose to amend the Insurance Act, 1938 and will launch a new investor charter for investor protection. Will launch a securities market code which will include the SEBI Act, the government Securities Act and the Depositories Act. Asset reconstruction and management company to be set up for stressed assets. In FY22, PSU bank recapitalisation plan is of Rs 20,000 crore. We will allow sale of distressed assets to Alternate Investment Funds (AIFs). The NCLT framework will also be strengthened to implement e-courts. All divestments announced so far, are to be completed in FY22," added Sitharaman.