Union Budget 2021-22 has been presented by the Finance Minister. There were two main focus points on the budget. The first one is to promote domestic enterprises so that people can be stable depending on and creating their resources. The second most important focus point was to include the use of technology in more daily life fields and departments. As the new era is the era of technology and most of the countries in the world are going to be converted into the digital world, this step was very important and was the need of the hour.
The world has already become a global village due to technological advancements. This years’ Union Budget has almost included all the necessary points and steps to improve the economy of the country. If these policies are implemented in the country in the real sense, it will definitely boost up the living standards of the country’s population. Following are some key points of the Union Budget on which the government has emphasized a lot.
Read More:- Budget Highlights 2021 – Income Tax Slab Rates
National Education Policy:
In this project, most of the learning and teaching practices are suggested to be digitalized. It also includes the idea of digitalizing the planning, administration, and recruitment policies of teaching and training institutes.
Use of technology for the improvement of governance and administration:
Technology can be very helpful in maintaining good governance in the country. The project of e-courts can be very helpful in finishing the court procedures fast. Moreover, if the system of income tax collection is digitalized, the collection rate and amount can be increased up to a great level.
This program also includes the establishment of advanced laboratories, biosafety labs, and hospitals in different areas of the country in order to provide the best medical facilities to the people.
Financial rewards worth INR 1.5 billion would be used to encourage digital payment methods.
Ease of doing businesses:
A special focus was placed on making business processes as simple as possible. This would be accomplished by establishing a conciliatory forum for accelerated dispute resolution, expanding the NCLT structure, establishing an electronic judiciary, and establishing an alternative debt settlement process.
Vehicle Scrapping Policy:
All cars shall perform a proficiency test in automatic gyms every 20 years (private vehicles) and every 15 years (public vehicles) to withdraw obsolete and unsuitable vehicles from circulation (commercial vehicles).
A website will be created to collect information about the concert and construction staff. Enable forum and concert staff to be covered by social security. For SCs, STs, and women, the mandatory margin capital for loans through the Stand-up India program has been reduced from 25% to 15%.
The APMC will be given access to an agricultural development fund to help them develop their infrastructure. A total of 1,000 new mandis will be added to the E-NAM market. Chennai, Kochi, and Paradip are among the five major fishing centers that will be built. In Tamil Nadu, a multipurpose seaweed park will be established.
For those over 75 who draw a pension and collect interest on savings, there is no need to file an IT form. This will take up to ten years in extreme cases of tax evasion (Rs 50 lakh or more). Tax holidays will be granted to affordable housing programs for a year. Small trusts with annual revenue of less than Rs. 5 crores will have their compliance pressure eased. The scrap copper tax has been lowered to 2.5 percent. Gold and silver tariffs should be streamlined.
Impact of Budget on Stock Market
The week in which the budget was presented, the market remained volatile. The budget will however impact the whole trading system in the coming days and months.
The 30-share BSE benchmark index fell 2,592.77 points, or 5.30 percent, last week as investors awaited the release of earnings before the Union budget and the national stock market. The Sensex has lost 3,506.35 points, or 7.04 percent, in the last six sessions, while the Nifty has lost 1,010.10 points or 6.89 percent. The market wiped out 11.58 billion rupees in investor wealth during the pre-budget liquidation. On January 20, BSE’s market capitalization was 197.70 billion rupees, but by January 29, it had dropped to 186.12 billion rupees.
The downtrend in equity markets, according to Vinod Nair, Head of Research at Geojit Financial Services: “The market budgets have been severely impacted by the global trend weakening due to speculative concerns and a slowdown in the economic recovery.”
“In this declining national trend, the budget will be key to achieving strength and performance relative to the rest of the world,” he said of the stock market’s reaction to the 2021 budget. The government’s ability to continue the nationalist movement is highly anticipated.” in a difficult pandemic period, and a reformist agenda that maintains mass sentiment, deficit discipline, and growth.”
Before the adjustment, the BSE Sensex nearly doubled from its March 24 trough. Because of the introduction of COVID vaccinations, better-than-expected corporate results in the third quarter of fiscal 21, and sufficient global liquidity, the Sensex exceeded the psychological threshold of 50,000. Experts agree that as the industry begins to rebound, the economy will need to re-establish its attractiveness and that the Union budget will have an excellent forum for this.
Read More:-How to start investing in stock market
Smt Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs proposed the Union budget for 2021-22 in Parliament. This is the first budget of the new decade, and it is also the first digital budget in the light of the COVID-19 crisis, which is unprecedented. She described AatmaNirbhar Bharat as an expression of 130 million Indians who have complete faith in their abilities and skills. She said the budget proposals would, among other things, reinforce Sankalp of Nation First, double farmers’ incomes, build a strong infrastructure, create a stable India, improve governance, provide jobs for youth, provide universal education, empower women, and promote inclusive growth.