Page 28 - Plastics News February 2021

FeAtures

Budget 2021- Laying Down The Vision for 'Atmanirbhar Bharat’

The government has to encourage plastics’ manufacturing companies to become an integral part of global sup-
ply chains, possess core competence and cutting-edge technology.

he Finance Minister, Ms. Nirmala Sitharaman, Budget Highlights
Tintroduced Budget 2021-22 on February 1, 2021, • Expenditure: The government proposes to spend
amidst the COVID-19 pandemic. 2020-21 was a non- Rs 34,83,236 crore in 2021-22. As per the revised
standard year with respect to the performance of the estimates, the government spent Rs 34,50,305 crore
economy and government finances. in 2020-21, 13% higher than the budget estimate.
After the release of the Economic Survey of India the • Receipts: The receipts (other than borrowings) are
Union Finance Minister tabled the Union Budget in the expected to be Rs 19,76,424 crore in 2021-22, which
Parliament; discussing its key highlights in her Budget is 23% higher than the revised estimates of 2020-21.
Speech. Two themes are likely to affect startups, MSMEs, In 2020-21, revised estimates for receipts were 29%
and research and innovation- first, the increased push lower than budget estimates. Given the impact due
towards Atmanirbhar Bharat (self-reliant India) by to COVID-19, it is useful to see the growth from 2019-
promoting domestic enterprises, and second, the reliance 20, an annual increase of 6%.
• GDP growth: Nominal GDP is expected to grow at of
14.4% (i.e., real growth plus inflation) in 2021-22.
• Deficits: Revenue deficit is targeted at 5.1% of GDP
in 2021-22, which is lower than the revised estimate
of 7.5% in 2020-21 (3.3% in 2019-20). Fiscal deficit is
targeted at 6.8% of GDP in 2021-22, down from the
revised estimate of 9.5% in 2020-21 (4.6% in 2019-
20). The government aims to steadily reduce fiscal
deficit to 4.5% of GDP by 2025-26.
• Ministry allocations: Among the top 13 ministries with
the highest allocations, the highest annual increase
over 2019-20 is observed in the Ministry of Jal Shakti
(64%), followed by the Ministry of Consumer Affairs,
on technology to increase efficiency, access, and quality
across stakeholders. Food and Public Distribution (48%) and the Ministry
of Communications (31%).
The vision of the Union Budget 2021-22 is to extend the
goal of Atmanirbhar Bharat by increasing self-reliance and Main tax proposals in the Finance Bill
India's ability to become a global manufacturing hub across • No changes in income tax rates for individuals and
sectors. The 2022 Union Budget is based on the following corporations.
six pillars: Health and well-being, Physical and capital • Limit on tax-free Income from provident funds: Tax
infrastructure, Inclusive development for Aspirational exemption on the interest income on the employees’
India, Re-invigorating human capital, Innovation and R&D, contributions to provident funds will be limited up to
Minimum government and maximum governance. Rs 2.5 lakh.
The Finance Minister underscored the importance of • Extensions on tax incentives by a year upto the end
'Atmanirbharta' to ensure that India is ideally positioned of fiscal 2021-22. This includes tax deduction upto Rs
to capitalize on the geopolitical and economic shifts taking 1.5 lakh on interest on housing loan, and tax holiday
place post the COVID-19 pandemic. for affordable housing projects, profits of startups,
and investing capital gains in start-ups.
While the fiscal budget is forward looking considering the

Plastics News Februar y 2021 28