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  • Category: Central Government

    India Union Budget 2021-2022 - what are your comments?

    Today, Our Honourable Finance Minister Nirmala Sitaraman has presented the Union budget for 2021-2022. It took about 1 hr 50 minutes to present the budget.

    Have you watched it on TV?
    What interested you more in the budget?
    What are your comments on the Union Budget 2021-2022?
  • #722139
    The budget has nothing to give for the common man but it imposed a lot of taxes. 2.5% Agri cess on all commodities including gold, petrol, and diesel is the gift given by Modi's government to the common man. The exemption given to old people above 75 in filing IT is nothing but fooling people. The government didn't give any benefits to people who drag their lives with a low pension after their retirement or they have not increased interest rates on their deposits for elderly people. Definitely, the cost of living will be worsened with the cess levied on everything. Major allocations are given to the states those are going for elections. This is how BJP all the time showing partiality in funds allocations. A newly formed state like AP which is facing a severe financial crisis has not given any preference to support in budget. There is no hope shown for youth to overcome unemployment.

  • #722141
    I sincerely thank our honourable ME for giving life to this thread by bringing it back to the Forum

    I would say that the budget is good.
    It has given priority to the health sector after the pandemic.
    Agriculture has been taken care of. It gives importance to APMC which the farmers were worried about.
    Senior citizens(above 75 yrs of age)) have been cared a bit by exempting them to file Income Tax returns. It would have been better if they were exempted from paying tax. This is not at all a relief to Senior citizens.
    There is no mention about defence force.
    Nothing to cheer the common man.

    No life without Sun

  • #722143
    Something wrong with this thread. The responses posted are not appearing here. This response is the third response to this thread.

    Update: It is Okay now. The bug has been removed.

    No life without Sun

  • #722160
    For last 2-3 years many improvements were already brought in the budget so I don't think there are any major things left out there for the Govt to incorporate this time. For senior citizens there is nothing done except giving a convenience of not filing IT return but it would had been better if they were give full tax relief. Of course not for all but only those who have only pension income.
    Knowledge is power.

  • #722162
    The budget is Industry and agriculture friendly and the salary class is also addressed. But the fuel cost would be more and that would have the cascading effect on other product prices. Since major push has been given during the Covid pandemic by infusing funds in the economy the FM chose not to elaborate on that matter. The on going agitation seems to have bothered the govt and thus the FM came to the rescue of farmers. Tomorrow we would be knowing more about what the common man would gain and we lose. So we will discuss much more after seeing the reactions of parties.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #722166
    Like all the previous budgets, there were many terms used which are not understood by common men. On one hand, this budget focuses more on Aatmanirbhar Bharat and on the other hand FDI in the insurance sector has been increased to 74% from the present 49%. I fail to understand if we are Aatmanirbhar or self-dependent, why we need to depend on foreign investments for our growth. If there is demand then only people will purchase. If demand in any sector is very less how the investment in that sector is going to help is a big question. Instead of giving relief to the hard-hit common men, they are burdened with a cess on fuel which will increase the cost of everything. I don't think the common men expected this type of budget specially when the economy is battered because of the pandemic situation.

    "Life is easier when you enjoy what you do"

  • #722172
    Generally Govt announces something for the middle class in every budget but this time there is no such thing discernible so far. May be the experts after analysing the whole thing might give us some explanation. Govt has given more emphasis on foreign direct investment and manufacturing processes. After every budget only the middle class is the sufferer as they are the users of all the basic facilities and services and seeing the large number of middle class it is clear that Govt gets some indirect taxes from them by increasing the fuel surcharge etc. By increasing the surcharge generally there is more inflation.
    Thoughts exchanged is knowledge gained.

  • #722178
    The most highlight of this budget is the big push to the infrastructure development that gives immediate employment opportunities and the best connectivity emphasis thus given would help in long term grown for the economy. Now the SEBI would act as the monitoring agency for the gold market and by giving power to the National Agriculture board, the center wants to emphasis that the farm laws would continue. For the opposition there is nothing to cheer about and for the common man the things are going to be costly as the cess on petrol and diesel is going to have cascading effect. But given the Covid aftermath and the govt already infused funds into the system before hand we should get vibrant results for the economy to grow and how far it affects the middle class right and left is yet to be seen.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #722186
    Only the opposition party leaders would criticize the budget, but not the common public. While the prices of luxury items like Air conditioners, Refrigerators, Mobile phone would go high, the gold and silver would be cheaper. We are rising after the pandemic, We should not expect more than this at this juncture. May be the next budget would have things for the common man, especially the tax payers.
    No life without Sun

  • #722191
    The budget announces big plans for the states, including Kerala, which will go to the Assembly Elections in April /May. The development of National Highways in Kerala, Tamil Nadu, Bengal, and Assam is important in this regard. Tamil Nadu has been allocated Rs 1.03 lakh crore, Kerala 65,000 crore, Bengal 1000 crore, and Assam 34000 crore.
    These are all only for the pre-election announcements.

    Lighted to Lighten

  • #722192
    Am sorry I had not seen this thread. Even the most careful reading of the budget will reveal that there is nothing for the common man. For those who are unskilled and unemployed in the villages,the budget has nothing to offer. I would have praised the great FM and PM if they had announced some relief increasing MGREGA to Rs 250 per day for 175 days. Nothing like that has been announced.

    Nothing has been done for the middle class. Well, our dear Members who sing peans of praise about this present Government, will soon go to the petrol bunk and one litre of petrol for Rs110/- and someone will appear in television talking about the "Visionary Budget". The least that should have been done is to increase the Section 80 C benefit to Rs 2 lakh. The BJP under Arun Jaitley and Yashwant Sinha and Jaswanr Singh was a lot more level headed and knew at least a lot more economics. The present bunch is totally inadequate.

    The budget is a jumla. 74% FDI in insurance. Fine. Then why talk about Arma Nirbar? Is there an Indian Google, even today? Is there an Indian Apple Computers? We miss the wood for the trees. And our great "tukde tukde " speaking experts will be back in action after 180 days and talk about NRC. By that time, this jumla budget will be forgotten by even the ruling party!!;

  • #722197
    The budget is as expected. There are no exemptions are benefits to the middle class. I accept this sincerely as there is no income to the government, they can't go for any exemptions. I say thanks to FM and PM for not increasing the tax on income or putting any other cess. I am not clear about the proposal made to Senior Citizens who are above 75%. If the IT is deducted and they have to get the refund means they have to submit the returns. Hence what is the advantage. We should be happy for the allotment made to health care and some benefits to farmers. I am of the opinion that in this times of crisis no government might have come out with a better budget than this. Anyhow different people will look at the budget in different angles. So some will say it is good and some may say it is bad. But I feel we all should welcome the budget and help the country so that the country can overcome the problems.
    always confident

  • #722201
    While it is fine for the middle class to grin and bear it, the entire poor classes will be far poorer now, since there is nothing for them. Dr. Rao Sir, how can you say that the budget is a good budget, when the cess on petrol and diesel has been announced? The great FM has added the Rs.35000 crores to the Financial outlay announced. This is a horrible jumla.

    Sir, the poor also need to live. You and I can still have our head above water. We will at least earn something since we have the qualifications and the skill. But the poor cannot do anything except the erratic agricultural labour. And do you know that the Government wants to slowly involve the Corporates in agriculture and make the farmers even poorer?

    This is the worst ever budget. It is all nothing but some figures being quoted from here and there. There is a total lack of even basic economic knowledge in the BJP. Only God should save this country.

  • #722205
    I would sincerely advise every Member to Google data on the horrible increase in contract labour since this great PM came to power in 2014. It is a classic case of robbing Peter to pay Paul.

    When there is such an uncertainty among the employees, when they are working, how will they be dedicated? They will always look for alternatives and jump ship when they get a higher salary elsewhere.

    Look at the larger realities. If we can just tinker with the law a bit and allow at least sixty percent of these armies of people to get to regular rolls, there will be a revolution in this country. They will have more money in their hands. They will buy houses and all sorts of things. They may even buy air-conditioners. Since their income is so low, there is nothing that they buy. Bankers keep on prodding even retired employees to take personal loans.

    This game of helping the employers reduce labor costs is counter-productive. After having served in HR for decades, in managerial capacities, I know what works and what does not. The day is not far off when organized labour will come back to the streets and demonstrate. This is bound to happen. Remember, for a man with an empty stomach, food is God.

    We have millions of poor souls now.

  • #722210
    @SuN: Since you have started this thread then it is your responsibility to highlight each point to enlighten us with your understanding the budget.

    Are you an expert in understanding budget? if not, Are you presenting the happy version of main stream media?
    If you are an expert then I hope you will be able to reply all technical questions pertaining to this budget, if any member would like to ask. I am a layman, so I can't say how this budget is good or how this budget is bad.

    I watched Live TV according to which, a survey was conducted by ABP News channel on Twitter. Opinion was collected in two options : Is this budget 2021 good or bad.
    Only 66% people said it is Bad?

  • #722220
    Mr. ABS,
    You are talking about MGREGA to Rs 250 per day for 175 days. It is a system that affected the farming. We must thank god that the government did not scrap MGREGA. In fact it is a wastage of tax payers money spent for nothing. No development has taken place. Under the MGREGA scheme, people go to the site, sit, chat, relax and return. There was a proposal to scrap, but it did not take place.
    I am not an expert but can understand the budget to some extent. Everyone anticipates announcement for the tax payers. If none, they term the budget is bad. We should be happy that the FM has prepared a budget taking care of the health, agriculture and industry. It is a deficit budget. When government has freezed the DA/DR to government employees up to July this year, how can we except the government pay something to the common public while rolling in pandemic? Whatever has been announced is spread over for next five years.

    I am happy that only 66 percent said 'Bad', not 100 percent.

    If you ask me point by point question, I may answer your question as a layman.

    No life without Sun

  • #722223
    I think SuN Sir does not know ground realities. MGREGA has worked very well in so many parts of Tamil Nadu. Am very sure that if it has not worked well, it is your great Govt that is to blame and not the poor labour.

    When there has been no employment for so many months, the least that this Govt should have done (but has not done) is to make some announcements for the very poor. The aim should be to make things better for the poor. This has just not happened at all.

  • #722226
    Mr ABS,
    Just because of MGREGA, we do not get labours to work in our farmland, especially the women labours. Due to this, agriculture suffers. Landowners are not able to do farming. Most of the lands have become uncultivable. I being a small farmer from my village, I am experiencing this, and you being a Chennaite, may not know the reality in villages.

    How much and how long the government can spend on the unemployed common man? Money is not grown on trees to pluck and distribute. Our government has provided free ration during the pandemic. It is destiny, and we must bear it, not to blame the government or the governance. More than the government, all the rich should care for the poor during such pandemics and lockdowns.

    Shobha Wilson,
    We should appreciate the government that has allotted funds to non-BJP ruled states like Tamilnadu, Kerala, and West Bengal. It could be taken as an announcement to win the election. Any government would do it. But it is great that it ignored BJP ruled own states and cared the non BJP states. If it was done for BJP ruled states, the non BJP states would have raised their voice against the budget.

    No life without Sun

  • #722234
    Mr. Arafattuzzafar and my fellow ISCian,

    Since I was asked to enlighten you the budget pointwise, I took the help of my good old friend to prepare a suitable answer for you and the other ISCians. Just have a look at it and understand it.

    We should know that Indian Budget is very complex and even the prominent expert economists are not always correct and failed to interpret the Budget document/speech.

    Having said this, I am mentioning some key aspects of the Budget Speech of 2020-21 presented by our honourable Finance Minister Nirmala sitaraman, purely from a common man's perspective.

    Budget Highlights:
    1. Government's Aatmanirbhar packages totalling Rs. 27.1 lakh crore to deal with the COVID pandemic, accelerated the pace of structural reforms. Introduction of Aatmanirbhar health programme with an outlay of Rs. 64,180 crore has been proposed. This will be in addition to the national health mission.

    2. India has two COVID-19 vaccines (Covaxin and Covishield) and two more will be launched. Rs. 35,000 crore has been allocated towards COVID-19 vaccination in 2021-22 fiscal.

    3. Pipelines of GAIL (India) Ltd, Indian Oil Corp (IOC) and HPCL will be monetised.

    4. The FM announced the much-awaited voluntary vehicle scrapping policy to phase out old and polluting vehicles. 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. This will promote fuel-efficient and environment friendly vehicles and reduce India's huge import bills.

    5. The 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.

    6. The Government will launch national monetisation for potential brownfield infrastructure assets. National monetisation pipeline for potential brownfield infrastructure assets will be launched,

    7. The Government has announced a Rs. 18,000 crore scheme to augment public transport in urban areas. There will be 100% electrification of broad gauge rail tracks by December 2023.

    8. 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.

    9. The free cooking gas LPG scheme, Ujjwala, will be extended to one crore more beneficiaries. The FM said fuel supplies were kept running without interruption during COVID-19 lockdown. The city gas distribution network of providing CNG to automobiles and piped cooking gas to households will be expanded to 100 more districts.

    10. Rs. 1,500 crore has been proposed to promote digital payments in the country.
    Personal Finance:

    As a common man, I always try to analyse the budget in respect of personal finance issues. The major impact on personal finance by the proposed budget will be in the following areas:
    1. Senior citizens need not file income-tax returns: Filing tax returns will not be required for those of 75 years of age or above as pension and interest income is the only source of income for them.

    2. Deposit insurance cover to be better structured: A better policy framework will be devised by the Government and the Reserve Bank of India for bank depositors to claim the deposit insurance cover when the banks get into trouble.

    3. Social security benefits extended to more workers: Social Security Benefits will be extended to gig and platform workers. E-commerce workers will now be brought under Employees' State Insurance Scheme, Employees' Provident Fund and the minimum wage rule. Women will be allowed to work in all categories in night shifts.

    4. Faceless assessment gets a boost: Budget 2021 has given a push to faceless assessment and aims to make it more robust. A (faceless) dispute resolution committee will be set up. Anyone with a taxable income of up to Rs 50 lakh and disputed income upto Rs. 10 lakh can approach the faceless committee.

    5. Investment charter for financial products: In order to reduce mis-selling of financial products, the FM announced the setting up of an investment charter. This charter would pertain to investors of all products across the financial sector. The charter is expected to make all current financial products' grievance resolution mechanisms more robust.
    6. Faster tax resolutions: The timeline for reopening of assessment under income tax returns will now go down to three years from the present six years. The FM announced that apart from tax deduction at source, now details of capital gains and interests from banks and post offices would be pre-filled. Pre-filled forms improve tax compliance.

    7. Deduction on home loan interest extended: Affordable housing gets a boost. The benefits available to those who avail deduction for buying an affordable home will now be extended to those who take a housing loan until March 31, 2022.

    8. Tax-efficient zero-coupon bonds for infrastructure: In order to encourage infrastructure growth, it is announced that infrastructure debt funds would now be able to raise funds by issuing tax-efficient zero-coupon bonds.

    9. For defence. Rs. 20,776 crore has been allocated additionally for emergency procurement. This is due to LAC stand off.

    Two areas of dissatisfaction:
    we were expecting some income tax benefits after the pandemic period. But that hasn't happened. Further, the cess on petrol, diesel, gold and some imported agricultural products is not liked by many.

    Conclusion about the Budget 2021-2022:
    I am happy to state that this is the best budget considering the trying time the world including our country has been passing through due to pandemic and lockdown.

    We hope to see an excellent budget for 2022-2023. Untill then, let us be satisfied with what has been provided to us in this grand budget.

    No life without Sun

  • #722236
    This is probably the first year when I did not spend even a minute in front of TV or radio to listen to Central government Budget presentation. The main reason was I had to go outstation and returned only in the afternoon. By that time I could see the headlines and highlights in the news sites in mobile phone. They did not enthuse me and so I did not bother about the budget at all. Even today morning also I just glanced on the headlines in the newspapers.

    I am not interested to go in detail or make a review on it. I frankly feel that I am now outside the purview of the government's concern and attention and my bounden duty is to pay taxes and bear the brunt of price rise all around, suffer income loss( reduced interest on my small retirement savings).

    The BJP ruled central government had cultivated new vote blocks and the helpless middle class is no longer their vote bank and concern. This budget clearly reflects that.

    All parties have betrayed the middle class and BJP is the last or latest one inthat.

  • #722239
    @SuN #722141, you start saying the budget as good and end up with saying "This is not at all a relief to Senior citizens.There is no mention about defence force.Nothing to cheer the common man."
    Then for whom the budget is good? Are you not a common man?

    You say "Senior citizens(above 75 yrs of age)) have been cared a bit by exempting them to file Income Tax returns. " But what is the real benefit? Just Two hundred rupees, as a Tax prepare will file your IT return for that fees.
    This government has been resorting to just gimmicks and verbose as far as the honest tax paying middle class is concerned.In Tamil we say it as " Vaaipandal". Declaring some virtual benefits on one side and taking away real money by another side.

    When lakhs and lakhs of crores is earmarked to various sectors and purposes, a small benefit could have been given to the middle class. The middle class is helpless as they have to choose one among the devils around.

  • #722244
    What I posted was immediately after the presentation of the budget. It was a quick reaction and comment. My further responses are after a second thought. Still I say that the budget is good, not bad. I know, there is no use of exempting senior citizens(above 75) from filing tax returns.
    While the government has freezed the DA/DR to the government employees, how can they care the common man?
    The income tax slab has no change. For the middle class, the new regime of income tax slab is fit and perfect.
    An excuse can be considered for the Government due to unexpected Pandemic. This budget is good. Let us hope for a better or best budget in the coming years.

    No life without Sun

  • #722251
    Many people are complaining that there is nothing in the budget this time for the common man. So my feeling is that even if there is nothing as compared to earlier years, we will soon find it in the price rise or price stabilisation which now follows the budget and if prices do not rise significantly then this budget is favourable to the common men. Let us wait and this would be known to all.
    Thoughts exchanged is knowledge gained.

  • #722252
    There were wide expectations from this budget to every section of the society. But Govt. has incurred heavy expenditure during last one year pandemic period along with last year's budgeted expenses. Hence if the expended portion added with current year's budget, that should be the picture. So planned capital activities is the only aim of the budget. Otherwise not such extraordinary item is there. And it is a paperless budget. Thanks.
    Believe in the existence of God the super power.

  • #722253
    I am not able to understand what we mean by a common man. Is middle class is a common man or the lower middle class is the common man. If we talk of the Income tax then I will like to categorise the population of our country in the following nine categories -
    Super rich, very rich, rich, upper middle class, middle class, lower middle class, poor class, very poor class, destitute or orphans or beggars. Now when we discuss that some people are not benefited by this budget than which class / classes out of above we are talking of. Is it upper middle class? If yes, then why they should be benefited, they are already in a comfortable zone.

    Knowledge is power.

  • #722272
    the bank interests are now practically negative. Net of inflation and tax thereon the earning is actually negative. There is a sizable number of people who depend on this meagre interest income. While they have to pay all the expenses as per the regular and consistent cost escalation,they do not get income to sufficiently meet the inflation and escalating costs. This section being vocally and physically weak and cannot assert as a vote bank, the government and political parties one after another ignore them. They are simply exploited by the medical and medical insurance sector too. Though govt has many plans and schemes to help poor and certain classes or category of people, the helpless middle class who otherwise also do not get any concession or consideration from governments are consistently neglected. These law abiding section are thus always betrayed by all.

    The irony is that the present BJP government came to power mainly by getting support from this unorganised silent middle class. If they are betrayed consistently they may show their anger silently as a last resort in some coming elections. LPG cooking gas cylinder prices are galloping and there is no subsidy. But the same time the govt had made sure a vote bank by giving free LPG supply. So the govt can simply ignore the middle class who do not come as a vote block.

  • #722273
    Do you think showering grants and grandiose in lakhs of crores just because of compulsions of election is a solid economic position? What happened to grants to Kerala till last year? It is not a sound economic principle to give budgetary doles just to sway elections. It is equal to bribing and getting votes. This is very clear.

    The irony is that Kerala is given unexpected dole. But not given what they wanted and expected.

    So the budget is election bribery to Kerala ,TN ,West Bengal etc. There is only little economics remaining.

    There is another irony. While there is controversy about the state initiative for resource mobilisation KIIFB, central govt is also thinking on same lines to fund its schemes, a euphemism for market borrowing without falling under normal audits and controls.
    The govt is finding resources by 'selling the seeds"-selling even profit making public sector companies and banks. It is scaring us to think what they will sell next day.

  • #722289
    In this budget, there are no plans for the development of women. As well as, no proper funds allocated for the existing projects. The fund allocation for women decreased this year. In the last year, it was 6%. In the 2019-20 budget, it was 4.7%. In this budget, it is only 4.4%. In this financial year in which the revenue shortfall and job losses due to Covid-19 have not been resolved, the fund allocated for the development of women is very disappointing.

    There has been no significant increase in widows pension for two years. When Rs 1 lakh crore was set aside for the Mahatma Gandhi National Employment Guarantee Scheme last year, this time only Rs 73000 crore.
    The allocation for school lunches is lower than last year. This can adversely affect children and women in many states. The allocation for school lunches is only 11,500 crore. It was 12,900 crore in the last budget.

    Lighted to Lighten

  • #722290
    Mr.Umesh, Middle class are the people who have to lead their life with minimum economic resources available with them. Any changes occurring in cost of living will affect them. Within these there may be families with above average middle class and below average middle class. There way of living will be the same in this category. These people do not get any support from government in the form of ration or concessions. Poor or very poor will come below this category which are heavily supported by Central and state governments by way of ration supply, free education, concessions on various public utilities, pensions etc. Sometimes life of these people will be more good than the middle class category. Common man include both middle class and poor category. Richer category can manage any situation. Any how Congress budgets are middle class and poor people oriented. They used to give concessions for these people in their budgets while BJP encourages corporates in their budgets.

  • #722300
    Sobha Wilson,
    As a good citizen of India, we should also remember that we had faced pandemic and heavy losses to the person and the government. Therefore, it won't be possible for our government to care for each and every citizen of our country. A reduction in the budget allocation compared to the previous years should be acceptable to us. Despite the hardship faced by the country, the budget has been prepared well. The budget cares about the country's development which provides employment opportunities. Nothing to grip about.

    Please remember that corporates provide employment opportunity to the common man than the government. Therefore, nothing wrong if the budget favours the corporates. As we discussed in a thread, corporates help many families to survive. While the government can provide jobs for only a very few lakhs, the corporates take care of many crores with employment. I am not in favour of the corporates, but revealing the fact about the corporates and employment.

    No life without Sun

  • #722325
    Many members have commented that common man who have lost their jobs due to pandemic and lockdown should have been cared by distributing cash to them. I am asking those members.

    1.What should be the sum transacted to the affected people?
    2. How many are jobless people?
    3. How to account for them?
    4. The central government will have to care for the jobless Indians from the whole of India.

    Supposing the sum recommended is Rs. 10,000/- per head/family, there would be a minimum of 10 crore families. The amount the government would need is 10,000 x 10,00,00,000 = 1000000000000 (One lakh crores)
    Will just a one-time grant of Rs. 10,000/- make up for the job loss and to manage their family?
    From where will the government earn One lakh crores rupees to give as freebies? It is the responsibility of state governments. Tamilnadu has provided Rs. 2500/- to each ration card holder as Pongal gift. Is it not a peanut cash to a big elephant like family?

    No life without Sun

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