mishra Posted February 1, 2021 Posted February 1, 2021 https://indianexpress.com/article/explained/explained-what-top-budget-2021-proposals-are-trying-to-do-7169789/ No tax slab for common man though. Then again , rest of world common man is expecting further taxation in their country Quote Finance Minister Nirmala Sitharaman proposed many new measures in the Budget 2021 to prop up the flagging economy amid the Covid-19 pandemic and boost spending across sectors. Here is what the top proposals entail. Production-linked incentive (PLI) scheme push The government aims to spend Rs 1.97 lakh crore on various PLI schemes over the next five years, starting this fiscal. This is in addition to the Rs 40,951 crore announced for the PLI for electronic manufacturing schemes. Why the move: It is likely to attract global players in the Indian manufacturing sector as the government is planning to offer plug-and-play infrastructure to the companies willing to come to India. Health push The government has announced a new central healthcare scheme to strengthen the country’s healthcare infrastructure over the next six years. The Pradhan Mantri Atma Nirbhar Swasthya Bharat Yojana, which will operate in addition to the existing National Health Mission, has been allocated around Rs 64,180 crore. Why the move: This scheme is expected to be used to develop capacities of primary, secondary and tertiary healthcare systems as well as existing national institutions over a period of six years, according to Sitharaman. In addition to this, it would be used towards creating new institutions to cater to the detection and cure of new and emerging diseases. During her budget speech, the minister said that investment on health in this budget has increased “substantially”, with a focus on strengthening preventive care, curative and well-being of the population. Power push The government has decided to create a framework to give consumers alternatives to choose from more than one power distribution company. Why the move: It is aimed at offering competition at operator level and more choice to consumers. Targets better efficiency levels in the distribution sector Divestment push and Bad bank proposal Strategic disinvestment of companies, including BPCL, Air India, Pawan Hans, IDBI Bank, Container Corporation of India, to be completed in 2021-22. Government to ask Niti Aayog to start working on identifying the next list of companies for strategic sale. Announcing its version of the bad bank proposal, the government will set up an Asset Reconstruction and Management Company for Stressed Assets to take over bad loans. Alongside, a Rs 20,000-crore equity infusion has been announced for public sector banks. The FM said it will take up strategic sale of two public sector banks and one general insurance company along with completing the sale of BPCL, Concor, SCI, IDBI and BEML among others in 2021-22. Finance Minister Nirmala Sitharaman with MoS for Finance Anurag Thakur leaves the Finance Ministry for the Parliament to announce the 2021-22 Union Budget in New Delhi Why the move: These measures are expected to strengthen the state-owned banks and hasten the process of clean up of their balance sheet. The divestments will help raise revenue for the government and is expected to improve efficiency and provide momentum to privatisation. It’s more about the principle of separating the good from the bad. It’s about not wasting more good money on bad assets. Former RBI Deputy Governor Viral Acharya has in the past stressed on the need to separate the ‘good’ from the ‘bad’, and to set up a bad bank.The government has been toying for far too long with the idea of a National Asset Reconstruction Company that can hold the bad assets of all state-owned banks. The proposal has gone around in circles between the Finance Ministry, the Niti Aayog and the Prime Minister’s Office. Spooked by Opposition politics earlier, Modi had shied away from being labelled as being pro-corporate. This proposal marks a departure. After almost 70 months since being in power, the BJP-led government has finally taken a call on setting up a Big Bad Bank. Finance Minister Nirmala Sitharaman has announced a new asset reconstruction company and an asset management company to take care of the bad assets of banks, and equip the banks to lend to productive sectors as the economy starts recovering. Why it requires Govt involvement: There are many mechanisms to proceed with how to realise value from the NARC. Though India has over a dozen private ARCs, no state-owned banker in the current environment will be courageous enough to sell his bad assets to these at a discount, for fear of prosecution by state investigative agencies at a later date. And private ARCs will ask for a massive haircut from banks. It’s here that a national ARC can inspire confidence amongst banks. People in Kolkata watching the Budget presentation FDI limit hiked in insurance The Finance Minister announced to hike the FDI limit in Insurance from 49% to 74%. She, however, said that majority directors on board and Key management personnels will be Indians. Why the move: The move will help increase capital inflow in insurance companies and enhance their expansion and growth. Development Financial Institution reborn Given that there is a lack of finance for infrastructure and long gestation projects, Finance Minister Nirmala Sitharaman has announced the setting up of a Development Financial Institution (DFI). The DFI will have statutory backing and Rs 27,000 crore capital. To differentiate it from DFIs that existed in the past, she said the DFI will be professionally managed. What will be its focus? The proposed DFI will be used to finance both social and economic infrastructure projects identified under the National Infrastructure Pipeline (NIP), according to finance ministry sources. Scrapping policy The government has introduced the scrapping policy to remove unfit vehicles on a voluntary basis. All private vehicles beyond 20 years and commercial vehicles older than 15 years old will have to undergo a fitness test. Why the move: The proposal is expected to offer a boost to the auto sector, both for commercial and private vehicles. Auto shares surged after the announcement. Coronavirus Explained A year with Covid-19: peak behind India J&J single-shot vaccine found 66% effective; what this means New research: Data from 221 countries suggest Covid-19 is seasonal Click here for more FM Nirmala Sitharaman and President Kovind (Image: Twitter/@Rashtapatibhvn) Bad debt resolution The government plans to further strengthen the NCLT framework and continue with the e-court system for faster resolution of bad debts. A separate framework for MSMEs will also be made by the government. Why the move: With the government-imposed moratorium on admission of new cases likely to end by March 31, a number of MSMEs, which have not been able to earn enough during the fiscal are likely to be taken to insolvency by their creditors. The separate framework may help MSME owners avoid losing their company while continuing to pay the debt. Gas transport The government has announced an independent gas transport system operator for booking and coordination to ensure for unbiased allocation of natural gas transportation capacity. Why the move: The government aims to address concerns of bias in the allocation of gas transportation capacity by players such as GAIL involved in both the supply and transportation of natural gas. Ujjawala push The government has announced the extension of benefits of the Ujjawala scheme to an additional 1 crore people. Why the move: The scheme, which provides LPG connections with financial assistance from the central government and currently benefits 12 crore households, will be extended further to provide clean cheap cooking fuel. Real McCoy 1
mishra Posted February 1, 2021 Author Posted February 1, 2021 Quote Anuj Puri, Chairman at ANAROCK Property Consultants reacts on Budget 2021: "As expected, healthcare got the highest priority in resource allocation and policy support including Rs 64,180 crore outlay under PM Aatmanirbhar Swastha Bharat scheme. It bodes well for healthcare facilities and wellness-oriented real estate. Further, FY 2021-22 capital expenditure outlay at Rs 5.54 lakh crore to ensure that the target of becoming a USD 5 trillion economy by 2025 is well on track. This will positively impact infrastructure, connectivity of Tier II cities, and job creation for SMEs and MSMEs – thereby benefitting the target customers of affordable housing. For the ‘Aam Aadmi,’ personal tax relief by way of tax rate cuts or favourably readjusted tax slabs topped demand and the FM failed to deliver on it. An upward revision in the deduction limit under Section 80C (at INR 1.5 lakh a year) was long overdue and increasing this limit would have increased disposable incomes, inevitably pushing up consumption. It would have also helped improve consumer sentiments across sectors – the real need of the hour. As anticipated, affordable housing and rental housing got a big boost with the govt. extending the period for extra deduction of Rs 1.5 lakh available for loans up to 31st March 2022. This will keep demand buoyant for affordable housing in 2021 as well. Further, the extension of the tax holiday for affordable housing projects for one more year will help bring in more new supply within this segment. As per ANAROCK Research, affordable housing already accounts for more than 35% of the supply across the top 7 cities in the country. Infrastructure got a major push. Infra works proposed include building 8,500-km of highways by March 2022. There were big infra sops announced for poll-bound states including West Bengal, Tamil Nadu, Kerala and Assam. The govt. also announced the Bill to set up Development Finance Institution (DFI) providing Rs 20,000 crore to boost infrastructure projects. The Modi government has not lost sight of its USP of infra creation, which will help connect more areas and thus open them up for real estate development. Customs duty on steel reduced to 7.5% will create some space to real estate developers who may not be in a position to increase prices immediately. The announcement to set up 7 mega textile parks with plug-and-play facility in 3 years will unlock the potential of new markets for development and provide an impetus to real estate assets, including logistics and warehousing. Post the pandemic, the chances of NPAs growing are significantly high. The Budget announced the setting up of ARCs to help banks to cushion the impact of the pandemic. Besides the setting up the long-awaited bad bank, the government will also infuse INR 20,000 crore into public sector banks as part of its recapitalisation plan. All in all, the budget was broad-based with special emphasis on building robust healthcare infrastructure, physical infrastructure and affordable housing. It will result in job creation in the informal sector, which was severely impacted by the pandemic. Creating buoyancy in the job market will benefit the Indian economy in the long run. The focus on rural job creation will also give a boost to affordable housing, which will help increase housing demand in tier 2 & 3 cities."
Real McCoy Posted February 1, 2021 Posted February 1, 2021 some mindless jibbijabba for the common man. Here's a snippet from the article Quote Development Financial Institution reborn Given that there is a lack of finance for infrastructure and long gestation projects, Finance Minister Nirmala Sitharaman has announced the setting up of a Development Financial Institution (DFI). The DFI will have statutory backing and Rs 27,000 crore capital. To differentiate it from DFIs that existed in the past, she said the DFI will be professionally managed. What will be its focus? The proposed DFI will be used to finance both social and economic infrastructure projects identified under the National Infrastructure Pipeline (NIP), according to finance ministry sources. Scrapping policy The government has introduced the scrapping policy to remove unfit vehicles on a voluntary basis. All private vehicles beyond 20 years and commercial vehicles older than 15 years old will have to undergo a fitness test. Why the move: The proposal is expected to offer a boost to the auto sector, both for commercial and private vehicles. Auto shares surged after the announcement. Coronavirus Explained A year with Covid-19: peak behind India J&J single-shot vaccine found 66% effective; what this means New research: Data from 221 countries suggest Covid-19 is seasonal Click here for more FM Nirmala Sitharaman and President Kovind (Image: Twitter/@Rashtapatibhvn) Just use a fancy name DFI for the bad thing they are doing for the common man. How does the scrapping policy help the common man. Now you can't even use a 20 yr vehicle unless it passes a test which will be designed to make the vehicle fail. More junkyard vehicles that will go into the auto industry for spare parts. How does it help the common man. It only helps the big business interests such as the auto industry. MechEng and mishra 2
rkt.india Posted February 1, 2021 Posted February 1, 2021 44 minutes ago, Real McCoy said: some mindless jibbijabba for the common man. Here's a snippet from the article Just use a fancy name DFI for the bad thing they are doing for the common man. How does the scrapping policy help the common man. Now you can't even use a 20 yr vehicle unless it passes a test which will be designed to make the vehicle fail. More junkyard vehicles that will go into the auto industry for spare parts. How does it help the common man. It only helps the big business interests such as the auto industry. Common man works and employed in auto industry as well.
Real McCoy Posted February 1, 2021 Posted February 1, 2021 1 minute ago, rkt.india said: Common man works and employed in auto industry as well. dude i know your tendency to give the opposing argument but think about it. those who work in auto industry is far lesser than auto buyers. basically you can call this scrapping as an indirect tax on the masses. while the auto workers get a few bread crumbs at a certain point, there is no surety that this will continue but those at the upper echelons of the auto industry can make it like another ambani. I wouldn't be surprised if ambani and other big dogs haven't invested in some auto industry after this budget (if you wanna go into conspiracy theories, there is a high likelihood that they may have done this even before it was released because of inside info) MechEng and Khota 2
coffee_rules Posted February 1, 2021 Posted February 1, 2021 Agree , scrapping policy needs to be scrapped. It is designed to provide a boost to one sector , but penalizes the masses. It is like telling people that they cannot live on homes older than 50 years unless they remodel and build a new one, to give a boost to the housing sector. Off to the red fort! People take your kadai , bartan , chammach, chaaku aur toot pado! Jai madhyamwarg matha! mishra 1
MechEng Posted February 1, 2021 Posted February 1, 2021 Lol, this budget was all about pataofying TN and West Bongal for elections.
MechEng Posted February 1, 2021 Posted February 1, 2021 7 minutes ago, coffee_rules said: Agree , scrapping policy needs to be scrapped. It is designed to provide a boost to one sector , but penalizes the masses. It is like telling people that they cannot live on homes older than 50 years unless they remodel and build a new one, to give a boost to the housing sector. Off to the red fort! People take your kadai , bartan , chammach, chaaku aur toot pado! Jai madhyamwarg matha! Remodel and build a new one only if you have money for that right? Not everyone in India is making six figures Real McCoy 1
Real McCoy Posted February 1, 2021 Posted February 1, 2021 (edited) @coffee_rules You have a sneaky way of inserting your own argument by "agreeing" on certain issues and then move it into the red fort tangent. Well played . But my point is valid in this context no matter how much agreeing or faking agreement you do. jeez you seem to be more involved in chit chat coming from a guy who lives in the states Edited February 1, 2021 by Real McCoy
coffee_rules Posted February 1, 2021 Posted February 1, 2021 42 minutes ago, Real McCoy said: @coffee_rules You have a sneaky way of inserting your own argument by "agreeing" on certain issues and then move it into the red fort tangent. Well played . But my point is valid in this context no matter how much agreeing or faking agreement you do. jeez you seem to be more involved in chit chat coming from a guy who lives in the states Should have put a smiley to show it was in jest. But the agreeing part was genuine. After 40 years working in a bank, my dad could muster money for a used maruthi omni for the family, I remember going to get some kind of emission test certificate , standing in a line for almost a day. Most of middle class can afford second hand vehicles, this will revert back to licence raaj days. But nobody cares for the middle class, so none of what I said will ever going to happen. You are right, the amount of time I spend in CC i, if I put in day trading, I can become richer than @velu, So, keep the insults coming, I might do it.
coffee_rules Posted February 1, 2021 Posted February 1, 2021 51 minutes ago, MechEng said: Remodel and build a new one only if you have money for that right? Not everyone in India is making six figures I said 'like' , hence don't like the scrapping policy.
Real McCoy Posted February 1, 2021 Posted February 1, 2021 1 hour ago, coffee_rules said: Should have put a smiley to show it was in jest. But the agreeing part was genuine. After 40 years working in a bank, my dad could muster money for a used maruthi omni for the family, I remember going to get some kind of emission test certificate , standing in a line for almost a day. Most of middle class can afford second hand vehicles, this will revert back to licence raaj days. But nobody cares for the middle class, so none of what I said will ever going to happen. You are right, the amount of time I spend in CC i, if I put in day trading, I can become richer than @velu, So, keep the insults coming, I might do it. Lol how is that an insult. That was my take on you. you are a touchy dude. Again my assessment but feel free to take offense to that You are right on the used car thing. This new feature will force people trash old ones and get new ones. I don't think this will be feasible to many people. many will go the opposite way of bus, train and this may backfire on the auto industry too.
mishra Posted February 1, 2021 Author Posted February 1, 2021 25 minutes ago, Real McCoy said: Lol how is that an insult. That was my take on you. you are a touchy dude. Again my assessment but feel free to take offense to that You are right on the used car thing. This new feature will force people trash old ones and get new ones. I don't think this will be feasible to many people. many will go the opposite way of bus, train and this may backfire on the auto industry too. Its most likely will be equivalent to some environmental/read readiness annual test certificate. A job generation and indirect tax Real McCoy 1
velu Posted February 1, 2021 Posted February 1, 2021 2 hours ago, coffee_rules said: You are right, the amount of time I spend in CC i, if I put in day trading, I can become richer than @velu, So, keep the insults coming, I might do it. turned out to be a bad day for me .. avoided bank nifty and went with nifty .. never thought mkts will fire up like this coffee_rules 1
coffee_rules Posted February 1, 2021 Posted February 1, 2021 1 hour ago, Real McCoy said: Lol how is that an insult. That was my take on you. you are a touchy dude. Again my assessment but feel free to take offense to that You are right on the used car thing. This new feature will force people trash old ones and get new ones. I don't think this will be feasible to many people. many will go the opposite way of bus, train and this may backfire on the auto industry too. I said insults, I didn't say I was offended. It's my way of saying, I agree I spend way too much time here. Didn't she say last year, that because of a Ola and Uber, people are not buying cars and hence the auto sector is not doing well. Opposition pounced on her , saying it was inexperience. But, it is partly true in inner cities, with traffic and parking issues, I rarely used my car to go to busy areas and have used only Ola and Uber. With Zipcar/Zoomcar , people can rent it for a weekend and travel outside. Owning a car is not really needed in big cities. People do it to showoff, like that poor farmer in UP had a fleet of Mahindras.
LordPrabhzy Posted February 1, 2021 Posted February 1, 2021 3 hours ago, coffee_rules said: Opposition pounced on her , saying it was inexperience Coming from an opposition who is used to travel in laal bati cars paid by the tax payers. What she said is true and even applies to a city like London. If you live in central Zone 1 and 2 you will never need a car as there is a good network of underground and bus system. Plus Ubers are available too. 90% of these opposition leaders are gundas and uneducated so its hard to expect them to understand nuances in a debate and counter with appropriate evidence/statistics. coffee_rules 1
ravishingravi Posted February 1, 2021 Posted February 1, 2021 In my life time, this is first time I have witnessed an unequivocally growth oriented budget. f20143g70 and G_B_ 1 1
Tibarn Posted February 2, 2021 Posted February 2, 2021 I don't see how schemes like PLI will be gamechangers in manufacturing. Labour reforms are still the need of the hour. Some of the states already amended their labour laws, but only temporarily. The disinvestment goals are good.
rkt.india Posted February 2, 2021 Posted February 2, 2021 12 hours ago, coffee_rules said: Should have put a smiley to show it was in jest. But the agreeing part was genuine. After 40 years working in a bank, my dad could muster money for a used maruthi omni for the family, I remember going to get some kind of emission test certificate , standing in a line for almost a day. Most of middle class can afford second hand vehicles, this will revert back to licence raaj days. But nobody cares for the middle class, so none of what I said will ever going to happen. You are right, the amount of time I spend in CC i, if I put in day trading, I can become richer than @velu, So, keep the insults coming, I might do it. People hardly use more than 20 year old vehicles anyway
coffee_rules Posted February 2, 2021 Posted February 2, 2021 19 minutes ago, Tibarn said: I don't see how schemes like PLI will be gamechangers in manufacturing. Labour reforms are still the need of the hour. Some of the states already amended their labour laws, but only temporarily. The disinvestment goals are good. previously, their divestment decisions were bad, like LIC taking over SAIL. This time, they are going the IPO way, unless private companies buy stock in bulk in these companies’ stock, it might not fly. ”In her 2021-22 Budget speech, she said strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam Ltd, among others would be completed in 2021-22.” Tibarn 1
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