Summary of the Budget 2021-22 | Indian Economy for State PSC Exams - BPSC (Bihar) PDF Download

Part - A

• Smt Nirmala Sitharaman, Union Minister for Finance & Corporate Affairs,  presented in Parliament the Union Budget 2021-22, which is the first budget of this new decade and a digital one in the context of an unprecedented COVID-19 crisis. 
• Laying a vision for AatmaNirbhar Bharat, she said this is an expression of 130 crore Indians who have full confidence in their capabilities and skills. She said that Budget proposals would further strengthen the Sankalp of Nation First, Doubling Farmer’s Income, Strong Infrastructure, Healthy India, Good Governance, Opportunities for youth, Education for All, Women Empowerment, and Inclusive Development among others. 
• Additionally, also on the path to fast implementation are the 13 promises of Budget 2015-16-which were to materialize during the AmrutMahotsav of 2022, on the 75th year of our Independence. They too resonate with this vision of AatmaNirbharta, she added.

The Budget Proposals for 2021-22 rest 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

Health and Wellbeing

There is a substantial increase in investment in Health Infrastructure and the Budget outlay for Health and Wellbeing is Rs 2,23,846 crore in BE 2021-22 as against this year’s BE of Rs 94,452 crore, an increase of 137 per cent.

The Finance Minister announced that a new centrally sponsored scheme, PM AatmaNirbhar Swasth Bharat Yojana, will be launched with an outlay of about Rs 64, 180 crores over six years. This will develop primary, secondary, and tertiary care Health Systems capacities, strengthen existing national institutions and create new institutions to cater to detection and cure of new and emerging diseases. This will be in addition to the National Health Mission. The primary interventions under the scheme are:

• Support for 17,788 rural and 11,024 urban Health and Wellness Centers
• Setting up integrated public health labs in all districts and 3382 block public health units in 11 states;
• Establishing critical care hospital blocks in 602 districts and 12 central institutions;
• Strengthening of the National Centre for Disease Control (NCDC), its five regional branches and 20 metropolitan health surveillance units;
• Expansion of the Integrated Health Information Portal to all States/UTs to connect all public health labs;
• Operationalisation of 17 new Public Health Units and strengthening of 33 existing Public Health Units at Points of Entry that is at 32 Airports, 11 Seaports and seven land crossings;
• Setting up of 15 Health Emergency Operation Centers and two mobile hospitals; and
• Setting up a national institution for One Health, a Regional Research Platform for WHO South-East Asia Region, 9 Bio-Safety Level III laboratories and four regional National Institutes for Virology.

Vaccines

Provision of Rs 35,000 crore made for Covid-19 vaccine in BE 2021-22.
The Pneumococcal Vaccine, a Made in India product, presently limited to only five states, will be rolled out across the country to averting 50,000 child deaths annually.

Nutrition

To strengthen nutritional content, delivery, outreach, and outcome, the Government will merge the Supplementary Nutrition Programme and the PoshanAbhiyan and launch the Mission Poshan 2.0.
The Government will adopt an intensified strategy to improve nutritional outcomes across 112 Aspirational Districts.

Universal Coverage of Water Supply and Swachch Bharat Mission

• The Finance Minister announced that the JalJeevan Mission (Urban), will be launched for universal water supply in all 4,378 Urban Local Bodies with 2.86 crore household tap connections and liquid waste management in 500 AMRUT cities. 
• It will be implemented over five years, with an outlay of Rs. 2,87,000 crore. Moreover, the Urban Swachh Bharat Mission will be implemented with a total financial allocation of Rs 1,41,678 crore over five years from 2021-2026. 
• Also to tackle the burgeoning problem of air pollution, the Government proposed to provide an amount of Rs. 2,217 crore for 42 urban centres with a million-plus population in this budget. 
• A voluntary vehicle scrapping policy to phase out old and unfit vehicles was also announced. Fitness tests have been proposed in automated fitness centres after 20 years in personal vehicles and after 15 years in the case of commercial vehicles.

Physical and Financial Capital and Infrastructure

AatmaNirbhar Bharat-Production Linked Incentive Scheme

• Finance Minister said that for a USD 5 trillion economy, our manufacturing sector has to grow in double digits on a sustained basis.
• Our manufacturing companies need to become an integral part of global supply chains, possess core competence and cutting-edge technology.
• To achieve all of the above, PLI schemes to create manufacturing global champions for an AatmaNirbhar Bharat have been announced for 13 sectors. For this, the Government has committed nearly Rs.1.97 lakh crore in the next five years starting FY 2021-22. 
• This initiative will help bring scale and size in critical sectors, create and nurture global champions and provide jobs to our youth.

Textiles

• Similarly, to enable the textile industry to become globally competitive, attract large investments and boost employment generation, a scheme of Mega Investment Textiles Parks (MITRA) will be launched in addition to the PLI scheme.
• This will create a world-class infrastructure with plug and play facilities to enable create global champions in exports. 7 Textile Parks will be established over three years.

Infrastructure

• The National Infrastructure Pipeline (NIP) which the Finance Minister announced in December 2019 is the first-of-its-kind, whole-of-government exercise ever undertaken.
• The NIP was launched with 6835 projects; the project pipeline has now expanded to 7,400 projects. Around 217 projects worth Rs 1.10 lakh crore under some key infrastructure Ministries have been completed.

Infrastructure financing - Development Financial Institution (DFI)

• Dwelling on the infrastructure sector, Smt Sitharaman said that infrastructure needs long term debt financing.
• A professionally managed Development Financial Institution is necessary to act as a provider, enabler and catalyst for infrastructure financing. Accordingly, a Bill to set up a DFI will be introduced.
• Government has provided a sum of Rs 20,000 crore to capitalize this institution, and the ambition is to have a lending portfolio of at least Rs 5 lakh crore for this DFI in three years.

Asset Monetization

• Monetizing operating public infrastructure assets is an effective financing option for new infrastructure construction.
• A “National Monetization Pipeline” of potential Brownfield infrastructure assets will be launched.
• An Asset Monetization dashboard will also be created for tracking the progress and to provide visibility to investors. Some essential measures in the direction of monetization are:
  1. National Highways Authority of India and PGCIL has sponsored one InvIT that will attract international and domestic institutional investors. Five operational roads with an estimated enterprise value of Rs 5,000 crore are being transferred to the NHAIInvIT. Similarly, transmission assets of a value of Rs 7,000 crore will be transferred to the PGCIL InvIT.
  2. Railways will monetize Dedicated Freight Corridor assets for operations and maintenance, after commissioning.
  3. The next lot of Airports will be monetized for operations and management concession.
  4. Other core infrastructure assets that will be rolled out under the Asset Monetization Programme are (i) NHAI Operational Toll Roads (ii) Transmission Assets of PGCIL (iii) Oil and Gas Pipelines of GAIL, IOCL and HPCL (iv) AAI Airports in Tier II and III cities, (v) Other Railway Infrastructure Assets (vi) Warehousing Assets of CPSEs such as Central Warehousing Corporation and NAFED among others and (vii) Sports Stadiums.

Roads and Highways Infrastructure

• Finance Minister announced that more than 13,000 km length of roads, at a cost of Rs 3.3 lakh crore, has already been awarded under the Rs. 5.35 lakh crore Bharatmala Pariyojana project of which 3,800 kms have been constructed.
• By March 2022, Government would be awarding another 8,500 kms and complete an additional 11,000 kms of national highway corridors.
• To further augment road infrastructure, more economic corridors are also being planned. She also provided an enhanced outlay of Rs. 1,18,101 lakh crore for Ministry of Road Transport and Highways, of which Rs.1,08,230 crore is for capital, the highest ever.

Railway Infrastructure

• Indian Railways have prepared a National Rail Plan for India – 2030. The Plan is to create a ‘future-ready’ Railway system by 2030.
• Bringing down the logistic costs for our industry is at the core of our strategy to enable ‘Make in India’.
• It is expected that Western Dedicated Freight Corridor (DFC) and Eastern DFC will be commissioned by June 2022.

For Passenger convenience and safety the following measures are proposed:

• The introduction of an aesthetically designed Vista Dome LHB coach on tourist routes gives a better travel experience to passengers.
• The safety measures undertaken in the past few years have borne results. To further strengthen this effort, high-density network and highly utilized network routes of Indian railways will be provided with an indigenously developed automatic train protection system that eliminates train collision due to human error.
• The budget also provided a record sum of Rs. 1,10,055 crore, for Railways of which Rs. 1,07,100 crore is for capital expenditure.

Urban Infrastructure

• The Government will raise the share of public transport in urban areas by expanding the metro rail network and augmentation of city bus service. A new scheme will be launched at a cost of Rs. 18,000 crore to support the augmentation of public bus transport services.
• A total of 702 km of the conventional metro is operational and another 1,016 km of metro and RRTS is under construction in 27 cities.
• Two new technologies i.e., ‘MetroLite’ and ‘MetroNeo’ will be deployed to provide metro rail systems at a much lesser cost with the same experience, convenience and safety in Tier-2 cities and peripheral areas Tier-1 cities.

Power Infrastructure

• The past 6 years have seen many reforms and achievements in the power sector with the addition of 139 Giga Watts of installed capacity, connecting an additional 2.8 crore households and adding 1.41 lakh circuit km of transmission lines.
• Expressing serious concern over Distribution Companies' viability, the Finance Minister proposed launching a revamped reforms-based result-linked power distribution sector scheme with an outlay of Rs. 3,05,984 crore over 5 years.
• The scheme will assist DISCOMS for Infrastructure creation including pre-paid smart metering and feeder separation, up-gradation of systems, etc., tied to financial improvements.

Ports, Shipping, Waterways

• Major Ports will be moving from managing their operational services on their own to a model where a private partner will manage it for them. For this purpose, the budget proposes to offer more than Rs. 2,000 crore by Major Ports on Public-Private Partnership mode in FY21-22.
• A scheme to promote flagging of merchant ships in India will be launched by providing subsidy support to Indian shipping companies in global tenders floated by Ministries and CPSEs. An amount of Rs. 1624 crore will be provided over 5 years. This initiative will enable greater training and employment opportunities for Indian seafarers besides enhancing Indian companies' global shipping share.

Petroleum & Natural Gas

Smt Sitharaman said that the Government has kept fuel supplies running across the country without interruption during the COVID-19 lockdown period. Taking note of the crucial nature of this sector in people’s lives, the following key initiatives are being announced:

• Ujjwala Scheme which has benefited 8 crore households will be extended to cover 1 crore more beneficiaries.
• The government will add 100 more districts in the next 3 years to the City Gas Distribution network.
• A gas pipeline project will be taken up in the Union Territory of Jammu & Kashmir.
  An independent Gas Transport System Operator will be set up to facilitate and coordinate the booking of standard carrier capacity in all-natural gas pipelines on a non-discriminatory open access basis.

Financial Capital

The Finance Minister proposed consolidating the provisions of SEBI Act, 1992, Depositories Act, 1996, Securities Contracts (Regulation) Act, 1956 and Government Securities Act, 2007 into a rationalized single Securities Markets Code. The Government would support the development of a world-class Fin-Tech hub at the GIFT-IFSC.

Increasing FDI in Insurance Sector

• She also proposed to amend the Insurance Act, 1938 to increase the permissible FDI limit from 49% to 74% and allow foreign ownership and control with safeguards.
• Under the new structure, most Directors on the Board and key management persons would be resident Indians, with at least 50% of Directors being Independent Directors, and a specified percentage of profits being retained as a general reserve.

Disinvestment and Strategic Sale

• Despite COVID-19, Government has kept working towards strategic disinvestment. The Finance Minister said several transactions: BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, NeelachalIspat Nigam limited others would be completed in 2021-22.
• Other than IDBI Bank, the Government proposes taking up the privatization of two Public Sector Banks and one General Insurance company in the year 2021-22.

In 2021-22, Government would also bring the LIC IPO for which the requisite amendments will be made in this Session itself.

• In a very important announcement, the Finance Minister said that in the AtmaNirbhar Package, she had announced to come out with a policy of strategic disinvestment of public sector enterprises and said that the Government has approved the said policy.
• The policy provides a clear roadmap for disinvestment in all non-strategic and strategic sectors.
• Government has kept four areas that are strategic where bare minimum CPSEs will be maintained and the rest privatized. In the non-strategic sectors, CPSEs will be privatized, otherwise shall be closed.
  She said that to fast forward the disinvestment policy, NITI Aayog will work out on the next list of Central Public Sector companies that would be taken up for strategic disinvestment. Government has estimated Rs. 1,75,000 crore as receipts from disinvestment in BE 2020-21.

Inclusive Development for Aspirational India

Under the pillar of Inclusive Development for Aspirational India, the Finance Minister announced to cover Agriculture and Allied sectors, farmers' welfare and rural India, migrant workers and labour, and financial inclusion.

Agriculture

Dwelling on agriculture, she said that the Government is committed to the welfare of farmers. The MSP regime has undergone a sea change to assure price that is at least 1.5 times the cost of production across all commodities. The procurement has also continued to increase at a steady pace. This has increased payment to farmers substantially.

• In wheat, the total amount paid to farmers in 2013-2014 was Rs. 33,874 crores. In 2019-2020 it was Rs. 62,802 crores, and even better, in 2020-2021, this amount, paid to farmers, was Rs. 75,060 crore. The number of wheat growing farmers that were benefitted increased in 2020-21 to 43.36 lakhs compared to 35.57 lakhs in 2019-20.
• For paddy, the amount paid in 2013-14 was Rs. 63,928 crores. In 2019-2020, this increased to Rs.1,41,930 crore. Even better, in 2020-2021, this is further estimated to increase to Rs. 172,752 crore. The farmers benefitted increased from 1.24 crore in 2019-20 to 1.54 crore in 2020-21.
• In the same vein, in pulses, the amount paid in 2013-2014 was ` 236 crore. In 2019-20 it increased to Rs. 8,285 crore. In 2020-2021, it was at Rs.10,530 crore; a more than 40 times increase from 2013-14.
• The receipts to cotton farmers have seen an astonishing increase from Rs. 90 crore in 2013-14 to Rs. 25,974 crore (as of 27th January 2021).
• Early this year, the Honourable Prime Minister had launched SWAMITVA Scheme. Under this, a record of rights is being given to property owners in villages. Up till now, about 1.80 lakh property-owners in 1,241 villages have been provided cards, and the Finance Minister proposed during FY21-22 to extend this to cover all states/UTs.
• To provide adequate credit to our farmers, the Government has enhanced the agricultural credit target to Rs. 16.5 lakh crore in FY22. Similarly, the allocation to the Rural Infrastructure Development Fund increased from Rs. 30,000 crore to Rs. 40,000 crore. With a corpus of Rs.5,000 crore, the Micro Irrigation Fund has been created under NABARD will be doubled.
• In an important announcement to boost value addition in agriculture and allied products and their exports, the scope of 'Operation Green Scheme' that is presently applicable to tomatoes, onions, and potatoes, will be enlarged to include 22 perishable products.
• Around 1.68 crore farmers are registered and Rs. 1.14 lakh crore of trade value has been carried out through e-NAMs. Keeping in view the transparency and competitiveness that e-NAM has brought into the agricultural market, 1,000 more mandis will be integrated with e-NAM. The Agriculture Infrastructure Funds would be made available to APMCs for augmenting their infrastructure facilities.

Fisheries

Finance Minister proposed substantial investments in the development of modern fishing harbours and fish landing centres. To start with, five principal fishing harbours – Kochi, Chennai, Visakhapatnam, Paradip, and Petuaghat – will be developed as hubs of economic activity.

Migrant Workers and Labourers

• The government has launched the One Nation One Ration Card scheme through which beneficiaries can claim their rations anywhere in the country. One Nation, One Ration Card plan, is under implementation by 32 states and UTs, reaching about 69 crore beneficiaries – that's a total of 86% beneficiaries covered. The remaining four states and UTs will be integrated in the next few months.
• The Government proposes to conclude a process that began 20 years ago, with the four labour codes' implementation. For the first time globally, social security benefits will extend to gig and platform workers.
• Minimum wages will apply to all workers' categories, and they will all be covered by the Employees State Insurance Corporation. Women will be allowed to work in all categories and also in the night shifts with adequate protection. Simultaneously, the compliance burden on employers will be reduced with a single registration and licensing, and online returns.

Financial Inclusion

To further facilitate credit flow under the scheme of Stand Up India for SCs, STs, and women, the Finance Minister proposed reducing the margin money requirement from 25% to 15% and including loans for activities allied to agriculture. Moreover, several steps were taken to support the MSME sector, and in this Budget, the Government has provided Rs. 15,700 crore to this sector – more than double of this year's BE.

Reinvigorating Human Capital

• The Finance Minister said that the National Education Policy (NEP) announced recently has had good reception while adding that more than 15,000 schools will be qualitatively strengthened to include all National Education Policy components.
• She also announced that 100 new Sainik Schools would be set up in partnership with NGOs/private schools/states.
• She also proposed setting up a Higher Education Commission of India, as an umbrella body with four different vehicles for standard-setting, accreditation, regulation, and funding.
• For accessible higher education in Ladakh, the Government proposed to set up a Central University in Leh.

Scheduled Castes and Scheduled Tribes Welfare

• The Government has set a target of establishing 750 Eklavya model residential schools in tribal areas with an increase in each school's unit cost from Rs. 20 crore to Rs. 38 crore, and for hilly and challenging areas, to Rs. 48 crore.
• Similarly, under the revamped Post Matric Scholarship Scheme for Scheduled Castes' welfare, the Central Assistance was enhanced and allocated Rs. 35,219 crore for six years till 2025-2026, to benefit four crore SC students.

Skilling

• In partnership with the United Arab Emirates (UAE), an initiative is underway to benchmark skill qualifications, assessment, and certification, accompanied by certified workforce deployment.
• The Government also has a collaborative Training Inter Training Programme (TITP) between India and Japan to facilitate Japanese industrial and vocational skills, techniques, and knowledge. The same would be taken forward with many more countries.

Innovation and R&D

• In her Budget Speech of July 2019, the Finance Minister said that she had announced the National Research Foundation and added that the NRF outlay would be Rs. 50,000 crore, over five years. It will ensure that the country's overall research ecosystem is strengthened, focusing on identified national-priority thrust areas.
• The Government will undertake a new initiative – National Language Translation Mission (NTLM). This will enable the wealth of governance-and-policy related knowledge on the Internet to be made available in major Indian languages.
• The New Space India Limited (NSIL), a PSU under the Department of Space will execute the PSLV-CS51 launch, carrying the Amazonia Satellite from Brazil and a few smaller Indian satellites.
• As part of the Gaganyaan mission activities, four Indian astronauts are trained on Generic Space Flight aspects, in Russia. The first unmanned launch is slated for December 2021.

Minimum Government, Maximum Governance

• Dwelling on the last of the six pillars of the Budget, the Finance Minister proposed to take several steps to bring reforms in Tribunals in the last few years for the speedy delivery of justice and proposes to take further measures to rationalized the functioning of Tribunals.
• The government has introduced the National Commission for Allied Healthcare Professionals Bill in Parliament, intending to ensure transparent and efficient regulation of the 56 allied healthcare professions.
• She also announced that the forthcoming Census could be the first digital Census in India's history and its monumental and milestone-marking task, Rs. 3,768 crore allocated in the year 2021-2022.

On Fiscal position, she underlined that the pandemic's impact on the economy resulted in a weak revenue inflow. Once the health situation stabilized, and the lockdown was being slowly lifted, Government spending was ramped up to revive domestic demand. As a result, against an original BE expenditure of Rs. 30.42 lakh crore for 2020-2021, RE estimates are Rs. 34.50 lakh crore and quality of expenditure were maintained. The capital expenditure, estimated in RE is Rs. 4.39 lakh crore in 2020-2021 as against Rs. 4.12 lakh crore in BE 2020-21.

The Finance Minister said the fiscal deficit in RE 2020-21 is pegged at 9.5% of GDP. It has been funded through Government borrowings, multilateral borrowings, Small Saving Funds and short term borrowings. She added that the Government would need another Rs 80,000 crore to approach the markets in these two months. The fiscal deficit in BE 2021-2022 is estimated to be 6.8% of GDP. The gross borrowing from the market for the next year would be around 12 lakh crore.

Smt Sitharaman announced that the Government plan to continue the path of fiscal consolidation, and intend to reach a fiscal deficit level below 4.5% of GDP by 2025-2026 with a fairly steady decline over the period. "We hope to achieve the consolidation by first, increasing the buoyancy of tax revenue through improved compliance, and secondly, by increased receipts from monetization of assets, including Public Sector Enterprises and land", she said.
According to the views of the 15th Finance Commission, the Government allows a normal ceiling of net borrowing for the states at 4% of GSDP for the year 2021-2022.
The FRBM Act mandates a fiscal deficit of 3% of GDP to be achieved by 31st March 2020-2021. The effect of this year's unforeseen and unprecedented circumstances has necessitated the submission of a deviation statement under Sections 4 (5) and 7 (3) (b) of the FRBM Act which the Finance Minister laid on the Table of the House as part of the FRBM Documents.
On 9th December 2020, the 15th Finance Commission submitted its final report, covering 2021-2026 to the Rashtrapatiji. The Government has laid the Commission's report and the explanatory memorandum retaining the states' vertical shares at 41%. On the Commission's recommendation, the Budget provided Rs. 1,18,452 crore as revenue deficit grant to 17 states in 2021-22.

Part - B

In Part B of the Budget Speech, the Union Minister Smt. Nirmala Sitharaman seeks to simplify the Tax Administration, Litigation Management further, and ease Direct Tax Administration compliance. The indirect proposal focuses on custom duty rationalization as well as rationalization of procedures and easing compliance.

Direct Tax Proposals

• The Finance Minister provided relief to senior citizens in filing income tax returns, reduced time limit for income tax proceedings announced setting up of the Dispute Resolution Committee, faceless ITAT, relaxation to NRIs, and an increase in the exemption limit from audit and relief for dividend income. She also announced steps to attract foreign investment into infrastructure, relief to affordable housing and rental housing, tax incentives to IFSC, relief to small charitable trusts, and incentivizing Startups in the country. 
• Smt.Nirmala Sitharaman, in her Budget speech, said that post-pandemic, a new world order seems to be emerging, and India will have a leading role therein. In this scenario, she said our tax system has to be transparent, efficient and should promote investment and employment in the country. The Minister said that at the same time, it should put the minimum burden on our taxpayers. She said that the Government had introduced a series of reforms to benefit taxpayers and the economy, including slashing the corporate tax rate, the abolition of dividend distribution tax, and increasing rebates for small taxpayers. In the year 2020, the income tax return filers saw a dramatic increase to 6.48 crore from 3.31 crore in 2014.
• The Budget seeks to reduce the compliance burden on senior citizens of 75 years of age and above. Such senior citizens having an only pension and interest income will be exempted from filing their income tax returns. The paying Bank will deduct the necessary tax on their income. 
• The Finance Minister proposed extending the eligibility period for a claim of the additional deduction for Rs' interest. 1.5 lakh paid for a loan taken for the purchase of an affordable house to 31st March 2022. To increase affordable houses, she also announced the extension of the eligibility period for claiming tax holidays for affordable housing projects by one more year to 31st March 2022. To promote affordable rental housing for the migrant workers, the Minister announced a new tax exemption for the notified affordable rental housing projects. 
• To incentivize startups in the country, Smt. Sitharaman announced an extension in the eligibility for claiming tax holidays for startups by one more year till 31st March 2022. To incentivize start-ups' funding, she proposed extending the Capital Gains exemption for investment in startups by one more year till 31st March 2022. 
• To incentivize digital transactions and to reduce the compliance burden of the person who is carrying almost all of the transactions digitally, the Budget proposes to increase the limit for tax audit for persons who are undertaking 95 per cent of their transaction digitally from Rs. 5 Crore to Rs. 10 Crore.
• To attract foreign investment into the infrastructure sector, the Budget proposes to relax certain conditions relating to prohibition on private funding, restriction on commercial activities and direct investment in infrastructure. To allow infrastructure funding by the issue of zero-coupon bonds, the Budget proposes to make notified infrastructure debt funds eligible to raise funds by issuing tax-efficient zero-coupon bonds.
• The Budget proposes more tax incentives to promote the International Financial Services Centre (IFSC) in GIFT City. 

The Budget proposes that details of capital gains from listed securities, dividend income and interest from banks, post offices etc. will also be pre-filled to ease filing of returns. Details of salary income, tax payment, TDS etc already come pre-filled in returns. To reduce the compliance burden on the small charitable trust running educational institutions and hospitals, the Budget proposes to increase the limit on annual receipts for these trusts from present Rs.1 Crore to Rs. 5 Crore for non-applicability of various compliances.

Indirect Tax Proposals

• On the issue of Indirect Tax proposals, the Minister said that record GST collections have been made in the last few months. She said several measures have been taken to simplify the GST further. The capacity of the GSTN system has been announced. Deep analytics and artificial intelligence have been deployed to identity tax evaders and fake billers, launching special drives against them. The Finance Minister assured the House that every possible measure shall be taken to further smoothen the GST and remove anomalies such as the inverted duty structure.
• Concerning the custom duty policy, the Finance Minister said that it has the twin objectives of promoting domestic manufacturing and helping India get on to global value change and export better. She said that the thrust now has to be on easy access to raw materials and exports of value-added products. In this regard, she proposed to review 400 old exemptions in the customs duty structure this year. She announced that extensive consultation will be conducted and from 1st October 2021, a revised custom duty structure free of distortions will be put in place. She also proposed that any new custom duty exemptions henceforth will have validity up to the 31st March following 2 years of the date of its issue. 
• The Finance Minister announced the withdrawal of a few exemptions on parts of chargers and sub-parts of mobile phones further some parts of mobiles will move from the "NIL" rate to a moderate 2.5 per cent. She also announced reducing custom duty uniformly to 7.5 per cent on semis, flat, and long non-alloy and stainless steel products.
• She also announced exempting duty on steel scrap for a period up to 31st March 2022. 
• Stressing on the need to rationalize duty on raw material inputs to man-made textile, the
• Finance Minister announced bringing nylon chains on par with polyester and other human-made fibres. Announcing uniform deduction of the BCD rates on Caprolactam, nylon chips and nylon fibre and yarn to 5 per cent, the Minister said this will help the textile industry, MSMEs, and exports. She also announced the calibration of the customs duty rate on the chemical to encourage domestic value addition and remove inversions. The Minister also announced the rationalization of custom duty on gold and silver.
• The Finance Minister said that a phased manufacturing plan for solar cells and solar panels would be notified to build up domestic capacity. She announced raising duty on solar inverters from 5 per cent to 20 per cent and on solar lanterns from 5 per cent to 15 per cent. 

In her Budget speech, the Finance Minister said that there is immense potential in manufacturing heavy capital equipment domestically and the rate structure will be comprehensively reviewed in due course. However, she announced a revision in duty rates on certain items immediately, including tunnel boring machines and certain auto parts. 

The Budget proposes specific changes to benefit MSMEs, including increasing duty on steel screws, plastic builder wares and prawn feed. It also rationalizes exemption on import of duty-free items as an incentive to exporters of garments leather and handicraft items. It also provides an exemption on imports of certain kinds of leather and raises custom duty on finished synthetic gemstones.

The Finance Minister announced raising custom duty on cotton, raw silk and silk yarn to benefit farmers. She also announced withdrawing end-use based concessions on denatured ethyl alcohol. The Minister also proposed an Agriculture Infrastructure and Development Cess on a small number of items. She said "while applying the cess, we have taken care not to put additional burden on consumers on most items. 

Regarding rationalization of procedures and easing of compliance, the Finance Minister proposed some ADD and CVD levies provisions. She also said that to complete a customs investigation, definite timelines are being prescribed. The Minister said that the Turant Custom Initiative rolled out in 2020 has helped put a check on misuse of FTAs.