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From fiscal deficit to capital expenditure: 10 key figures in Union Budget 2021

From fiscal deficit to capital expenditure: 10 key figures in Union Budget 2021

India's Finance Minister Nirmala Sitharaman

Indian Finance Minister Nirmala Sitharaman on Monday unveiled Union Budget 2021, that aims to shore up an economy badly-hit by the novel coronavirus pandemic.

The budgetproposals rested on six pillars: Health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India reinvigorating human capital, innovation and R&D, minimum government and maximum governance.

From fiscal deficit to tax slabs, these are the10 key figures in Union Budget 2021:

  • Government's fiscal deficit to reduce from9.5 per cent to3.5 per cent
  • To raise 2.5 trillion rupees ($34.25 billion) via cash management bills in 2021/22
  • Capital expenditure hiked 34.5 per centto Rs 5.54 lakh crore in FY'22 to push growth
  • Governmentproposes Rs 2.24 lakh cr outlay for healthcarefor 2021-22, compared to Rs 94,452 crore in the current fiscal, an increase of 137 per cent
  • To increase foreign direct investment (FDI) limit in the insurance sector to 74 per cent, a move aimed at attracting overseas players
  • Rs 1.75 lakh crore budgeted from stake sale in public sector companies and financial institutions, including twoPSU banks and one insurance company, in the next fiscal year
  • Rs 18,000 crore scheme to augment public transport in urban areas
  • Rural infra development fund increased to Rs 40,000crore for the next fiscal from Rs 30,000 crore in FY21
  • Under the Public-Private Partnership model,seven port projects worth more than Rs 2,000 crore investment were announced
  • Import duties slashed on MSMEs: Uniform decreaseto 7.5 per cent on semis, flat, and long products of non-alloy, alloy, and stainless steels

Indian bond yields jumped sharply on Monday after the government, in its annual budget presentation, announced plans to raise additional funds from the market over the next two months to bridge a deficit, even as shares rose on promises of reviving economic growth.

The Nifty Auto index climbed 4.6 per cent, while the Nifty PSU Bank index, which tracks state-run lenders, jumped 7.1per centafter Sitharaman saidIndiawould set up an asset reconstruction company to take over toxic assets.

India's economy is seen clocking a robust growth of 11 per centfor the coming fiscal year, after likely contracting 7.7per centin the current fiscal year to March 31, an annual economic survey showed on Friday.