Modi government’s first budget in the time of COVID-19 pandemic may not seem very populist, but the balance of spending and savings is definitely visible. Along with health concerns, there is a greater focus on sectors such as auto, textile and real estate, which provide about 17 crore jobs to increase employment. While the new vehicle scrap policy in the auto sector is expected to increase demand in the market, the reduction in customs duty on steel is expected to reduce manufacturing costs as well. While 7 new megaparks have been announced for textiles, the import of raw cotton and yarn has given a boost to the domestic market. Costs will come down as steel imports become cheaper in the real estate sector, while the tax holiday deadline for affordable housing projects has also been extended by a year. However, there is no relief to the middle class. The interest on EPF deposits of more than 2.5 lakhs per annum has also shocked the salaried people by bringing them under the tax net. However, in the difficult times of the economy, not bringing any new tax is like a big relief for the common taxpayer. In order to give a boost to the economy, it has been announced that the limit of FDI in insurance companies will be 74%, while the disinvestment of two more public sector banks has also been decided. In order to improve the quality in the energy sector, this budget provides electricity consumers to choose service providers and distribution companies. Soon it will be outlined.
Now the new vehicle scrap policy will come into effect from April 1. The expiry date for private vehicles will be 20 and that of commercial vehicles will be 15 years. 10 thousand crore rupees can be earned from this. And 50 thousand jobs can be created.
People aged 75 years or older will no longer have to file returns. This waiver will be available only when the bank where the pension arrives, they will have FD. They will also have to declare that they have not FD in any other bank. Apart from this, if there is any other income then the return has to be filled.
100 Sainik Schools will be opened with private sector participation. Higher education clusters will be formed in 9 cities. The National Research Foundation will be formed to promote research. 50 thousand crore rupees for this will be released.
Zero coupon bonds will be introduced to promote foreign investment in the infra sector. The National Infrastructure Pipeline (NIP) launched in 2019 has now expanded from 6835 to 7,400 projects. 20 thousand crores will be released for Development Financial Institution (DFI).
The way shares of companies are bought and sold from the exchange, now gold will also be bought and sold on the same lines. The regulator of this exchange will be SEBI. In the Indian market, gold prices will be clear at any time compared to the international market.
Farming budget has been reduced from 1.42 lakh crore to 1.31 lakh crore. But the government has imposed Agriculture Infrastructure and Development Cess on the custom duty of 12 things. Only the earnings from this cess can strengthen agricultural infrastructure. This cess has also been imposed on excise duty on petrol and diesel at Rs 2.50 and Rs 4 respectively. However, the basic excise duty on petrochemical products has been reduced to the same extent. This will not put any burden on the consumer.