India Budget 2021-22 Highlights

  • 35,000 Crores allocated for Covid-19 vaccines.

  • Planning to Disinvest 1.75 Lakh Crores in 2021-22. BPCL, Air India, Concor, IDBI disinvestments will be done in FY 2021-22. LIC IPO will be planned in 2021-22 to disinvest.

  • Over 13,000 KM of Roads is planned as part of Bharath Mala. 3,800 Km of road completed and another 8500 KM of Road will be completed by March-2022.

  • Capital Expenditure for FY 2021-22 will be 5.54 lakh crores and it is relatively more compared with previous year.

  • Options will be provided to buy electricity from more than one vendor.

  • West Bengal roads had been given preference as West Bengal elections are there. 95,000 Crores INR for West Bengal Roads.

  • Seven Texttile parks will be constructed in next 3 years of time.

  • In the past to deal with Covid-19, 27.1 Lakh Crores of budget is allocated as part of interim budgets.

  • 2.87 lakh crores for Jal Jeevan Mission i.e to provide water facilities.

  • FDI Limit will be increased from 49% to 74% in insurance sector.

  • Fiscal deficit for FY-2021 is 9.5% of GDP.

  • 20,000 Crores INR for banks recapitalization.

  • 1,10,055 Crores is allocated for Railways relatively good allocation.

  • 15,700 Crores INR for MSME sector almost doubling the budget for MSME sector.

  • Ujjwala scheme that is providing gas cylinders free to another 1 Crore Poor Indians.

  • Target to keep fiscal deficit 4.5% of GDP by FY2026.

  • 63,246 Crores will be allocated to Chennai Metro and 14,788 Crores will be allocated for Bangalore Metro.

  • Tax filing is not needed for senior citizens who are pensioners and having age above 75 years related to pension and interest income earned.

  • 64,180 Crores for Aatma Nirbhar Health Programme.

  • Bank NPA's will be transferred to Bad Bank.

  • Railway freight Corridor between Vijayawada and Kharagpur to transport freight by Railway.

  • No changes in income tax slabs when compared with previous year.

  • Petrol and Diesel prices going to increase in India due to additional Cess introduced.

Overall Budget is good for Banking stocks, Infrastructure stocks related to Roads and Railways.

Actually in Budget, more roads are planned in West Bengal, Tamilnadu, Kerala, Assam with main intention of gaining more seats in elections in respective seats.

 

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