Finance Minister Nirmala Sitharaman has presented the Union Budget 2021-22 in Parliament. She has made significant changes to the taxation process. The new budget has scrapped income tax for senior citizens, removed double taxation for NRIs, and reduced the time period of tax assessments.
Sitharaman said that India's fiscal deficit will jump 9.5% of GDP in 2021. This is 3.5% higher than what was projected in the budget estimates. The finance minister announced that Rs 2 lakh crores were spent on healthcare. Rs. 35,000 crore were spent on Covid-19 vaccine development and inoculation.
The Finance Minister announced a push to the textile industry by adding a hike in customs duty on cotton and raw silk. There will also be a new cess on agriculture development. Petrol will be sold Rs 2.5 per litre and diesel will be sold Rs 4 per litre.
Kerala, Tamil Nadu, Assam, and West Bengal – will see significant spending on highway road expansion. The Ministry of Home Affairs (MHA) has been allocated in excess of Rs 1.66 lakh crore. Rs 1,03,802 crore is allocated to police forces and organisations. Rs 9,715 crore from that will be capital expenditure.