Union Budget for the FY 2021-22, PART A -3.

Indian Union Budget Details | FY 2021-22 | Nirmala Sitaraman

Hello everyone welcomes to Twinkle Talks In this article we are going to discus about Union Budget for the FY 2021-22.

Please Have a look on Previous Articles here

Part A -1 >>>> FY-2021-22-indian-union-budget-part-a-1.

Part A – 2 >>> FY 2021 -22 Indian Union Budget part a -2

Shipping:

1. A scheme to promote the 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. 
2.  An amount of Rs.1,624/- crores will be provided over five years. This initiative will enable greater training and employment opportunities for Indian seafarers besides enhancing Indian companies’ share in global shipping. 

Petroleum and Natural gas:

1. Ujjwala scheme which has benefited 8 crores households will be extended to cover 2 crores more beneficiaries. 
2. We will add 100 more districts in the next 3 years to the City Gas Distribution network. 
3. A gas pipeline project will be taken up in the Union Territory of Jammu & Kashmir. 

Financial capital:

Ministry of Finance proposed to provide an additional capital infusion of 

1. Rs.1,000/- crores to Solar Energy Corporation of India and
2. Rs.1,500/- crores to Indian Renewable Energy Development Agency.

Insurance Sector: 

1. The Finance Ministry increased the permissible FDI limit from 49% to 74% in insurance companies.
2. Also allowed foreign ownership and control with safeguards.

Recapitalization of PSBs:

Rs.20,000/- crores were proposed to consolidate the financial capacity of PSBs in FY 2021-22.

Deposit Insurance: 

To improve credit discipline while continuing to protect the interest of small borrowers, for NBFCs with a minimum asset size of Rs.100 crores, the minimum loan size eligible for debt recovery under the securitisation and Reconstruction of Financial Assets and Enforcement of security interest (SARFAESI) Act, 2002 is proposed to be reduced from the existing level of Rs.50 lakhs to Rs.20 Lakhs. 

Startups and Innovators:

The finance minister proposed to incentivize the incorporation of One Person Companies (OPC’s) by allowing OPC’s to grow without any restrictions on paid-up capital and turnover, allowing their conversions into any other type of company at any time, reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days and also allow Non-Resident Indians (NRIs) to incorporate OPCs in India. 

Disinvestment and strategic scale:

The government estimated Rs.1,75,000/- crores as receipts from disinvestment of so many sectors like BPCL, Air India, IDBI , BEML, Shipping Corporation of India etc., in BE 2021-22. 

Third Pillar : Inclusive Development for Aspirational India: 

Agriculture:

The MSP regime has undergone a sea change to assure a 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 resulted in an increase in payment to farmers substantially.

The government allocated the fund Rs. 30,000/- crores to Rs. 40,000/- crores for Rural Infrastructure Development.

The government enhanced the agricultural credit target to ₹16.5 lakh crores in FY22.

In this budget, the government provided ₹15,700 crores to this sector, more than double of this year’s BE.

Scheduled Caste and Scheduled Tribes welfare:

1. Government Aims to establish 750 Ekalavya model residential schools in our tribal areas. 

2. Government propose to increase the unit cost of each such school from Rs.20 crores to Rs.38 crores.

3. For hilly and difficult areas, to Rs.48 crores.

4. Government revamped the post-Matric Scholarship Scheme, for the welfare of Scheduled Castes.

5. Government allocated Rs.35,219 crores for 6 years till 2025-2026, to benefit 4 crores SC students.

Innovation and R&D

1. Deep Ocean Mission: The government launched a Deep Ocean Mission with a budget outlay of more than Rs.4,000 crores, over five years.
2. This Mission will cover deep ocean survey exploration and projects for the conservation of deep-sea biodiversity. 

Read More:

1. Indian Union Budget for FY 2020-21

2. For More click here >>>>> Financial Topics