Budget 2021: Government Fully Prepared To Support And Facilitate The Economy's Reset

The FM in all likelihood has stuck to the pre-budget promise of presenting a never before 100-year budget. After the pandemic hit 2020, the expectations for the government to bring the economy back on track was immensely required.

- Sanjeev Puri

And, the FM has indeed delivered and shown that the government is talking business. The focus has come back on growth and the fiscal deficit has taken a back seat. With huge infrastructure spending, the consumption and job sector is expected to show results soon.

The budget proposals have put growth over fiscal and this move has shown that the government has firmly put itself behind the steering wheel. The necessary push required for the growth in the economy can be seen in various budget proposals. The best thing that has happened is there were no new taxes introduced by the FM. That means, more money remains in the hands of the individual to invest and spend. The consumer sentiment will help in reviving the consumption sector leading to growth in almost every sector of the economy.

Highights:

• No filing of ITR by senior citizens who are above 75 years of age and have only pension and interest income.

• Proposed to tax interest income on PF contributions above Rs 2.5 lakh a year.

• Amend the Insurance Act, 1938 to increase permissible FDI limit from 49% to 74% and allow foreign ownership and control with safeguards.

• PLI schemes to create manufacturing global champions for an AatmaNirbhar Bharat have been announced for 13 sectors.

• In the year 2020, the income tax return filers saw a dramatic increase to 6.48 crore from 3.31 crore in 2014.

• Reforms introduced for the benefit of taxpayers and economy, including slashing of corporate tax rate, abolition of dividend distribution tax, and increasing of rebate for small taxpayers.