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Union Budget 2021 Reaction Live Updates: Budget ‘must’ generate employment for farmers, MSME sector workers, says Rahul Gandhi

Union Budget 2021 Reactions Live:Gandhi also urged on the need to generate employment for the farmers and workers in the country and increase expenditure in the healthcare and defence sectors. 

Union Budget 2021 Reactions Live: Congress leader Rahul Gandhi on Monday highlighted sectors that the government “must” focus on in their Budget, including the MSME sector. Gandhi also urged on the need to generate employment for the farmers and workers in the country and increase expenditure in the healthcare and defence sectors. 

Finance Minister Nirmala Sitharaman has begun presenting the budget in the parliament. Sitharaman said that the budget will have central focus on – Health, Human capital, innovation and R&D Physical infrastructure.

 With the country still reeling from the economic aftershocks of the coronavirus, the budget under the Narendra Modi government is expected to focus on boosting jobs, rural economy, healthcare, agriculture and MSMEs sectors.

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Sitharaman has raised hopes by stating that Budget 2021-22 will “be a Budget like never before.” This would be Sitharaman’s third budget under the National Democratic Alliance (NDA) government. For the first time, this year’s Budget will be unique as it will be paperless.

As it happens, we will bring to you the reactions and responses surrounding this year’s budget. After an estimated 7.7 per cent contraction in 2020-21, the Finance Ministry’s Economic Survey projects that India’s real GDP would record a growth of 11 per cent in 2021-22.

Follow this space for the latest reactions and discussions surrounding the Union Budget 2021. 

Russell Gaitonde, Partner, Deloitte India: The Government’s decision to increase the FDI limit in the insurance sector from 49% to 74% is a welcome move as it was a long standing industry request and will help attract greater foreign investment and strengthen the insurance sector.

 The measures to clean up the NPAs in the banking sector by creation of an ARC and Asset Management Company that will take over the stressed assets and sell to AIFs is also welcomed as it will help improve the health of the banking sector.

Presenting the Union Budget 2021-22 in Parliament Monday, Finance Minister Nirmala Sitharaman allotted Rs 35,000 crore for coronavirus vaccines in the country as part of the newly launched Aaatmanirbhar Swasth Bharat Yojana. 

“A new centrally sponsored scheme PM Atmanirbhar Swasth Bharat Yojana will be launched with an outlay of about 64,180 crores over 6 years,” Finance Minister Sitharaman said. Of this total amount, Sitharman announced that Rs 35,000 crore will be spent on the Covid-19 vaccine alone. She further announced that she was committed to spending more if needed.

Adil Shetty, CEO Bankbazzar.com: India has extremely low insurance penetration. The National Sample Survey Office conducted a survey between 2017 and 2018, sampling 113,823 urban and rural households. The findings indicate that a whopping 85.9 percent of the rural and 80.9 percent of the urban population did not have health insurance.

The survey reported that out-of-pocket expenses for a single hospitalisation in private hospitals costs Rs. 15,937 in rural areas and up to Rs.22,031 in urban areas. Around 79.5 percent of the rural population paid their hospital bills independently, even selling physical assets, while 13.4 percent borrowed. 

It’s clear healthcare problems greatly strain the average Indian’s finances. In urban areas, 83.7 percent of families paid out of their savings, with 8.5 percent relying on loans. Therefore, greater funding of public healthcare – especially in the light of a crippling pandemic – is most welcome. We await the operational details of the scheme now

In her opening remarks for the Union Budget 2021, Finance Minister Nirmala Sithraman said that the 2021 Budget was prepared in unprecedented times and that thanked the frontline workers who served the nation during Covid-19 induced lockdowns.

Congress leader Rahul Gandhi on Monday highlighted sectors that the government “must” focus on in their Budget, including the MSME sector. Gandhi also urged on the need to  generate employment for the farmers and workers in the country and increasing expenditure in the healthcare and defence sectors.  

Finance Minister Nirmala Sitharaman along with MoS for Finance Anurag Thakur during the final touches of Union Budget 2021-22, at Finance Ministry in New Delhi, Sunday, Jan. 31, 2021. (PTI Photo/Shahbaz Khan)

Covid Budget: A to Z of what to expect today

Atmanirbhar Bharat: Some are born atmanirbhar (self-reliant/self-sufficient), some achieve atmanirbharta, and some have atmanirbharta thrust upon them. This is likely to be the dominant theme for different sectors of the economy in the coming Budget.

Behavioural change… of consumers and businesses. One of the most important things to watch out for in the Budget would be the policy tools employed by the FM to change the behaviour of different economic entities in the economy.

Cesses and Surcharges: Of the two certainties of human life — death and taxes — only one can be compounded. When a Central government imposes a new tax on an existing tax, it is referred to as a Cess (if it is for a specific purpose, say, Swachh Bharat Cess) or a surcharge (if purpose not specified). For taxpayers, a tax by any other name would cost just as much.

Budget, monetary policy decisions may put markets through another volatile week

 

Stock markets, which witnessed a roller coaster ride in the last two weeks, are bracing for more volatility on Monday and in the coming days with expectations and worries running high ahead of the keenly awaited Union Budget.

After hitting the 50,000-mark in a non-stop rally recently, the Sensex fell by around 3,800 points to 46,285.77 last week mainly due to selling triggered by foreign portfolio investors (FPIs) who pulled out Rs 12,700 crore in the last five sessions. “Going ahead, markets may continue to remain highly volatile amidst ongoing earnings season and Union Budget 2021 on Monday. Expectations from the Budget are running high. However, the government’s fiscal response in 2020 indicates certain inflexibility and the lack of resources to stimulate the economy,” said Siddhartha Khemka, head—retail research, Motilal Oswal Financial Services.

“We would suggest investors to take opportunity of this fall and accumulate quality stocks on dips while traders should be cautious with stock specific action. Market would also track the RBI’s monetary policy next week along with BoE’s monetary policy for further cues,” he said.

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