Union Home Minister Amit Shah has described Budget 2021-22 as promoting economic development. Amit Shah said that this year's budget was definitely a complex task in the backdrop of the Corona pandemic. But under the guidance of Prime Minister Narendra Modi, the Finance Minister Smt. Nirmala Sitaram has presented an all-inclusive budget which paves the way for the Prime Minister's pledge of a self-reliant India, a $ 5 trillion economy and for farmers to double their income. The global economy is in a reset mode after the Corona pandemic and this budget will definitely help India emerge stronger in the global scenario, and in the coming years India will be the fastest growing economy in the world.
The Union Home Minister said that in this difficult period, additional taxation has not been imposed on the people of the country and fiscal prudence has also been maintained. Direct tax is a small part and efforts are on to simplify direct taxation. To accelerate the economic growth of the country, capital expenditure has been increased by 34.5 percent as a result of which it has increased from Rs 4.12 lakh crore in the previous year to Rs 5.54 lakh crore. Apart from this, Rs 2lakh crore will be given to the states and independent bodies and promoting disinvestment is a major step in the reform of the government machinery. All these efforts will have far-reaching consequences and the campaign for Self-reliant India will be strengthened. Apart from this, Start-ups will no longer have to pay tax till 31 March 2022, which will definitely give new entrepreneurs encouragement. A new Custom Duty Policy will be introduced in October 2021, which will be helpful for importers.
Amit Shah said that economic reforms have been the specialty of the Modi government and the reforms made in the last six years were perhaps not even made in the last 70 years. Several provisions have been introduced in this budget to speed up these reforms further, the main ones being: Rationalization of Single Security Market Code by 2022, GIFT world class Fintech hub, Permanent Institutional Framework for Corporate Bond Market, Commodity Market Improvement, reform of the Insurance Act 1938, Asset Reconstruction Company and asset management company etc. The result of these reforms is that foreign investment in the country has increased rapidly and reached $ 24.6 Billion in the last quarter. India is the only major economy where such a large amount of foreign investment has come in during the Corona pandemic. As a part of this, the decision to set up 7 textile parks under the MITRA scheme will also encourage investment.
The Union Home Minister said that for the development of the MSME sector, which is the centre of India's economy, many provisions were brought in the Atmanirbhar Bharat Package. An additional budget of Rs 15,700 crore has been kept for MSMEs in this budget. The proposal to increase the criteria of small companies from Rs. 50 lakh capital base to Rs. 2 crore is a big relief for MSMEs.
The Union Home Minister said that the reform in the Insurance Act 1938, which has been in existence for almost 80 years, is a positive step. Increasing FDI in the insurance sector from 49 percent to 74 percent will lead to large-scale investment in India. The re-capitalisation of Rs 20,000 crore in public sector banks will further strengthen the banking sector. The banks' NPAs will improve with the creation of an Asset Reconstruction Company and an Asset Management Company.
He said that the proposal for the PPP model in the planning of ports, subsidy for merchant shipping, enactment of the Recycling Act 2019 and doubling of recycling capacity by 2024, will give special boost to the shipping industry and increase the possibilities of private and foreign investment in it. Rs.20,000 crore for recapitalisation of public sector banks will further strengthen the banking sector. Apart from this, many such decisions have been taken which will increase liquidity in the market, which will directly impact the availability of credit and investment.
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