The common man awaits to hear in the Budget if the govt will ease tax rates, impacting cash in hand. While the interim Budget didn t change income tax slabs, it did address the headache of fiscal deficit, which impacts a country s wallet. Fiscal prudence was prioritised, and the government aims to narrow the budget gap. A higher fiscal deficit leads to higher government debt and higher interest payments. The government stuck to fiscal prudence despite elections, and reduced borrowing may lead to lower interest rates.
Finance Minister Nirmala Sitharaman s interim budget proposed a rooftop solar scheme called Pradhan Mantri Suryodaya Yojana, providing 300 units of free electricity per month to 10 million households. This scheme aims to save households Rs 15,000-18,000 annually and promote solar power generation. It also creates entrepreneurship and employment opportunities. The grid-connected rooftop solar system will reduce burden on electricity distribution companies, lower fossil fuel usage, and contribute to India s renewable energy goals of 500 GW by 2030 and 50% non-fossil fuel power generation capacity.
The interim Budget 2024-25 documents reveal that 63 paise of every rupee in government revenue will come from direct and indirect taxes, 28 paise from borrowings and other liabilities, 7 paise from non-tax revenue, and 1 paise from non-debt capital receipts. Direct taxes, including corporate and individual income tax, will contribute 36 paise, while indirect taxes such as GST, excise duty, and customs levy will account for 26 paise. The remaining 38 paise will be allocated for interest payments, states share of taxes and duties, defence, central sector schemes, centrally-sponsored schemes, Finance Commission and other transfers, subsidies, pension, and other expenditures.
Interim Budget: India has made significant strides in improving its infrastructure capacity, with a major push from government spending. The upcoming budget may not have big announcements, but the focus on infrastructure is expected to continue. The government has spent 23 lakh crore rupees on infrastructure in the past three years, with roads, highways, and railways receiving significant investment. In addition, the government has incentivized states and increased the availability of power, accelerated highway and rural road construction, and improved logistics.
Economic Times | 03 Feb, 2021 | 10.22PM IST
Union Budget 2021 News: MCA amends definition of small companies
MCA amended the Companies Rules to revise the definition of a small company and to allow non-resident Indians (NRIs) to incorporate one person companies (OPCs) in India.
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Overall, the Budget is growth-driven and resisted the urge to fund expenses by increasing taxes, which is a big sigh of relief for the common man and markets alike and is likely to prove the greatest impetus. At the same time, the Budget acknowledges and addresses the expected growth in fiscal deficit which demonstrates administrative prudence. While walking the tight rope between stimulating growth and revival and maintaining fiscal discipline, the budget also manages a dash of colour in the form of proposals for consolidation of fundamental laws regulating the securities markets, establishing the Bad Bank and big bang Healthcare reforms.