By admin 24 April 2021 , ,

Union Budget 2021 Highlights by Online Classes for IBPS PO

Union Budget, which is the income and expense statement of the Govt. of India, was presented in the Parliament recently. The announcements made in the budget become the basis for sure-shot General Awareness questions asked in IBPS, SSC, CDS, RBI and various Competitive examinations. It is essential to learn by heart the statistical figures and information provided in the budget.

Being the Institute for Best SSC Online Coaching in English & Hindi, Vidya Guru provides an error-free gist of the Budget every year for the benefit of all Govt. Job aspirants. It is suggested that you include the below mentioned points in the study notes you are preparing for upcoming exams. It will enable you to attempt any budget related GK Question you face.

Highlights of Union Budget 2021-22

The Six Pillars of the Union Budget as envisioned by the Central Govt. are:

(I) Health and Wellbeing

(II) Physical & Financial Capital, and Infrastructure

(III) Inclusive Development for Aspirational India

(IV) Reinvigorating Human Capital

(V) Innovation and R&D

(VI) Minimum Government and Maximum Governance

Key Macroeconomic Data

• GDP Growth (FY 20-21): -7.7%
• GDP Growth (FY 21-22): 11%
• Nominal GDP Growth (FY 21-22): 15.4%
• Agriculture Growth (FY 20-21): 3.4%
• Industry Growth (FY 20-21): -9.6%
• Services Growth (FY 20-21): -8.8%
• Services Sector Contribution: 54 % of India’s GVA
• Revenue Deficit (FY 20-21): 7.5% of Gross Domestic Product (GDP)
• Revenue Deficit (FY 21-22): 5.1% of Gross Domestic Product (GDP)
• Fiscal Deficit (FY 20-21): 9.5% of Gross Domestic Product (GDP)
• Fiscal Deficit (FY 21-22): 6.8% of Gross Domestic Product (GDP)
• Primary Deficit (FY 20-21): 5.9% of Gross Domestic Product (GDP)
• Primary Deficit (FY 21-22): 3.1% of Gross Domestic Product (GDP)
• Current Account Surplus (FY 20-21): 2% of Gross Domestic Product (GDP)
• GVA Growth (FY 20-21): -7.2%

Noteworthy Points

(a) The expected Economic Recovery Curve is: V Shaped

(b) Nominal GDP Growth = Real GDP Growth + Inflation

(c) Revenue Deficit refers to the excess of Revenue Expenditure over Revenue Receipts.

(d) Fiscal Deficit is the Difference between Total Revenue & Total Expenditure of the Govt. It reflects the Total Borrowing Requirement of the Govt.

(e) Primary Deficit is Fiscal Deficit minus Interest Payments.

(f) Current Account Surplus shows that a Country has more Exports than Imports.

(g) India is seeing a Current Account Surplus after 17 Years.

(h) GVA (Gross Value Added) = GDP + Subsidies on Prodts – Taxes on Products

Budget Allocation FY (21-22)

• Ministry of Health & Family Welfare = Rs. 73,932 Crores
• Ministry of Defence = Rs. 4.78 Lakh Crores
• Ministry of Education = Rs. 93,224 Crores
• Ministry of Railways = Rs. 1.1 Lakh Crores
• Ministry of Agriculture & Farmer Welfare = Rs. 131531 Crores (1.31 Lakh Crores)
• Ministry of Road Transport and Highways (MORTH) = Rs. 1.18 Lakh Crores

Scheme-Wise Allocation FY (21-22)

• National Health Mission = Rs. 37,130 Crores
• MGNREGA = Rs. 73,000 Crores
• PM Kisan Scheme = Rs. 65,000 Crores
• National Education Mission = Rs. 34,300 Crores
• Smart Cities Mission and AMRUT (Atal Mission for Rejuvenation & Urban Transformation) = Rs. 13,750 Crores
• Jal Jeevan Mission = Rs. 50,000 Crores
• Outlay for Jal Jeevan Mission (Urban) = Rs. 2.87 Lakh Crores (over 5 Years)
• Total Outlay for Health & Wellbeing = Rs. 2,23,846 Crores
• Outlay for Swachh Bharat Mission (Urban) 2.0 = Rs. 1.41 Lakh Crores (over 5 Years)

Important Announcements

1. Disinvestment Target for the Fiscal Year (2021-2022) is Rs. 1.75 Lakh Crores.
2. FDI Limit in Insurance sector has been hiked to 74%.
3. Govt. has proposed the Disinvestment of 2 Public Sector Banks and 1 General Insurer.
4. Govt. has ensured an MSP (Minimum Support Price) for all Agri Commodities worth 1.5 Times the Production Cost.
5. Asset Reconstruction Company / Asset Management Company (Bad Bank) is going to be created for NPA Resolution in Public Sector Banks.
6. MITRA (Mega Investment Textiles Parks) scheme is going to be launched for making Indian Textile Industry Globally Competitive.
7. The outlay for PM AtmaNirbhar Swasth Bharat Yojana is going to be Rs. 64180 Crores (over 6 Years)
8. Pneumococcal Vaccine is going to be rolled out across India.
9. Supplementary Nutrition Programme & Poshan Abhiyan are going to merge into Mission Poshan 2.0.
10. The outlay for PLI (Production Linked Incentive) scheme has been kept at (Rs. 1.97 Lakh Crores over 5 Years)
11. Production Linked Incentive Scheme has been launched for 13 Sectors.
12. ‘Operation Green’ has now been extended to 22 Perishable Products.
13. New Central University is going to come up in Leh (Ladakh).
14. The Post Matric Scholarship Scheme announced for Scheduled Castes will benefit 4 Crore students.
15. The Turnover Limit for Tax Audit has been hiked to Rs. 10 Crores for companies undertaking 95% Digital transactions.
16. The provision for providing additional Rs.1.5 Lakh Deduction on Home Loan Interest has been extended till 31st March, 2022.
17. Capital Gains Exemption (Tax Exemption) for Investment in Start-ups has been extended till 31st March, 2022.
18. Govt. is going to set up a Rs. 20,000 Crores Development Finance Institution (DFI) for Infrastructure Financing.
19. The Development Finance Institution (DFI) for Infrastructure Financing is projected to lend Rs. 5 Lakh Crores (over 3 Years).
20. New Metro Technologies MetroLite & MetroNeo are going to be launched for Tier-2 Cities and Peripherals of Tier-1 Cities.
21. 100 New Sainik Schools are going to be set up.
22. 750 Eklavya Schools will be set up in Tribal Areas.
23. India is going to partner with UAE and Japan in the field of Skill Development and Recognition.
24. Govt. is going to come up with a Single Securities Markets Code. The code will rationalize the provisions of the following acts: (I) Sebi Act (II) Depositories Act, (III) Securities Contracts (Regulation) Act (IV) Government Securities Act
25. A new Gas Pipeline Project is going to come up in Jammu & Kashmir
26. SEBI has been appointed as the Regulator of Gold Exchanges.
27. Rs. 20,000 Crores will be invested in Recapitalization of Public Sector Banks.
28. Net Borrowing for States FY (21-22) has been allowed up to 4% of GSDP (Gross State Domestic Product).
29. ITR filing has been exempted for individuals aged 75 Years and above, if their sources of income are Pension and Interest.
30. LIC of India is going to come up with its IPO issue in FY 2021-22.
31. Govt. is going in for Strategic Sale / Disinvestment of the following PSUs: (I) IDBI Bank (II) BPCL (III) Shipping Corp (IV) BEML (V) Container Corporation (VI) Neelachal Ispat Nigam Ltd. (VII) Pawan Hans (VIII) Air India

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Summary

The highlights of the Union Budget 2021-22 have been presented in this blog update. The information has been carefully selected and verified so as to benefit all Govt. Job aspirants in their exam preparation.