Budget 2021 Highlights: Key points of Union Budget 2021-22 aimed at boosting COVID-hit economy

Union Finance Minister Nirmala Sitharaman presented Union Budget 2021-22 in Lok Sabha on Monday (February 1). This budget was special in many ways as it was being presented amidst challenges like coronavirus pandemic. In such a situation, the eyes of common people and special people were set on the announcements. FM Sitharaman announced a package of Rs 27.1 lakh crore to deal with COVID-19 pandemic under Atmanirbhar Package.

This is the ninth Budget under the Modi government and third Budget of FM Sitharaman. The Budget is widely expected to focus on boosting spending on job creation and rural development, generous allocations for development schemes, putting more money in the hands of the average taxpayer and easing rules to attract foreign investments.

Budget 2021: Key highlights of FM Sitharaman's speech

1. Finance Minister Nirmala Sitharaman said the government's Aatmanirbhar packages totalling Rs 27.1 lakh crore to deal with the COVID pandemic, accelerated the pace of structural reforms.

2. In the first ever paperless Union Budget, Sitharaman also proposed the introduction of Aatmanirbhar health programme with an outlay of Rs 64,180 crore. This will be in addition to the national health mission, she said.

3. The finance minister said India has two COVID-19 vaccines (Covaxin and Covishield) and two more will be launched. She noted that the government has stretched its resources for the benefit of the poorest of the poor.

4. Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetised, said FM in Budget for 2021-22.

5. FM Sitharaman provided Rs 35,000 crore towards COVID-19 vaccination in 2021. "I have provided Rs 35,000 crore for COVID-19 vaccine in this year. I'm committed to provide further funds if required. The Budget outlay for health and well being is Rs 2.23 lakh crore in 2021-22 as against BE of Rs 94,452 crore and marks an increase of 137 percent," she said while presenting 2021-22 Budget in the Lok Sabha.

6. Sitharaman announced the much-awaited voluntary vehicle scrapping policy to phase out old and polluting vehicles.

She said that under voluntary vehicle scrapping policy, personal vehicles would undergo fitness test after 20 years while commercial vehicles would require it after completion of 15 years. She said this will promote fuel-efficient and environment friendly vehicles while cutting on India's huge import bills.

7. FM also proposed to increase the capital expenditure to Rs 5.54 lakh crore in the financial year starting April 1, 2021. The Budget estimate of capital expenditure for FY2020-21 was Rs 4.12 lakh crore.

8. FM Sitharaman said the government will launch national monetisation for potential brownfield infrastructure assets. "National monetisation pipeline for potential brownfield infrastructure assets will be launched," Sitharaman said.

9. The government announced a Rs 18,000 crore scheme to augment public transport in urban areas. Sitharaman said there will be 100% electrification of broad gauge rail tracks by December 2023.

She also said a record Rs 1,10,055 crore will be provided for railways, of which Rs 1,07,100 crore will be for capital expenditure in 2021-22.

10. The Centre on Monday said the free cooking gas LPG scheme, Ujjwala will be extended to one crore more beneficiaries.

Sitharaman said fuel supplies were kept running without interruption during COVID-19 lockdown. She further said city gas distribution network of providing CNG to automobiles and piped cooking gas to households will be expanded to 100 more districts.

11. The government proposed Rs 1,500 crore-scheme to promote digital payments in the country. "To give a further boost to digital transactions, I earmark Rs 1,500 crore for a proposed scheme that will provide financial incentive to promote digital mode of payment," the minister said while presenting the Budget for 2021-22.