'Union Budget 2021 most crucial': Congress' message for FM citing India's declining GDP

Ahead of Union Budget 2021 which will be presented by the Union Finance Minister Nirmala Sitharaman in Parliament at 11 am, Congress national spokesperson Manish Tewari said that this year's budget will be the most crucial after 1991 because the 'GDP (Gross Domestic Product) is in the 37th straight month of decline.' 

Congress' Manish Tewari on Union Budget 2021

Hoping that Nirmala Sitharaman will acknowledge the seriousness of the situation, Manish Tewari took a fresh jibe at the Finance Minister and said, "If Economic Survey was anything to go by then all you may get is a Talkthoin of fluff sans any substance."

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Key expectations from Union Budget 2021

Less number of public sector banks

 After the merger of 10 public sector banks into 4 big banks in 2019, there are only 12 public sector banks in the country at present. There is a likelihood of the number of public sector banks being reduced further through more mergers. 

Improving the farm infrastructure

 Amid the ongoing protests by farmers against the three agrarian laws, agriculture is expected to get more focus in the upcoming Budget. There has been a demand for strengthening the existing farmer producer organizations and the addition of more FPOs to ensure improved access to the markets, especially for small farmers. Furthermore, there might be an increased allocation of funds to fast-track projects like rural roads and irrigation and for the development of warehousing facilities. 

Revisiting the divestment target

 For the fiscal year 2020-21, the Centre had set a divestment target of Rs. 2.1 lakh crore. As the privatization of government-owned entities such as Air India, BPCL, etc. remains pending, Sitharaman might announce an increase in the divestment target in this year's Budget. 

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Change in fiscal deficit

 The fiscal deficit, which is the difference between the total revenue and total expenditure for 2020-21, was pegged at 3.5%. The Union Finance Minister had defended not raising the fiscal deficit to a higher level such as 4.5% citing that excess borrowing would have an impact on the Budget as well as the consolidated fund. According to reports, the Centre might follow a relaxed fiscal roadmap to bring down the budget deficit to 4% of GDP by 2025-26. This shall require amendments to the Fiscal Responsibility and Budget Management Act. 

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Focus on healthcare sector:

As the COVID-19 period has underscored the need for better healthcare facilities in the country, the Centre might spend more on the healthcare sector. Reportedly, there can be an extension of tax benefits under Section 35AD. Moreover, an increase in deduction under Section 80D of the mediclaim premium is likely. 

Relief on the Income Tax front

The budget is expected to ensure that people have more dispensable income owing to the fact that several people lost their jobs or suffered a pay cut due to the novel coronavirus-induced lockdown. It is speculated that the basic tax exemption limit for an individual might be raised from Rs.2.5 lakh to Rs.5 lakh for people below 60 years of age. The Union government may also introduce a COVID-19 cess on high-income earners.

Boost for infrastructure and employment

One of the priority areas of the government will be employment generation in the country. Therefore, a special focus is likely on sectors such as infrastructure, textiles, housing, MSME etc. which might help boost employment. Reports suggest that the Centre can liberalise FDI rules in construction apart from allocating a credit-linked subsidy for the home buyers. Additionally, the credit guarantee scheme for the MSMEs might be extended.

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Full time table of Union Budget 2021

Time: 8:30 AM approx
FM will leave her residence for North Block 

Time: 9:00 AM
Photo along with Budget Team when FM Nirmala Sitaraman leaving for Rashtrapati Bhawan

10:00 AM
Photo Shoot when FM entering the Parliament House with Budget Briefcase

10:15 AM
Union Cabinet meeting in Parliament to pass the Budget

11:00 AM 
FM will present Budget

3:00 PM
FM Nirmala Sitaraman will address a Post Budget Press Conference along with Minister of State for Finance and all other Secretaries at Media Center

Time: 4:45 PM
Suneet Sharma, Chairman & CEO, Railway Board along with other Railway Board Members will hold a Press Conference on provisions for Indian Railways in General Budget 2021 in Conference Hall, 2nd Floor, Rail Bhawan, New Delhi.

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