Union Budget 2021: Key highlights of physical, financial capital and infrastructure reforms introduced

India's finance ministerNirmala Sitharamanwhile presenting theUnion Budget2021 in Parliament on Monday said that the government is fully prepared to support and facilitate "economic reset" in India.

Sitharaman said theBudgetrests on six pillars: health and well being, physical and financial capital infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D and minimum government and maximum governance.

Tabling the Union Budget 2021-22, Sitharaman said the total financial impact of all AtmaNirbharBharat packages, including measures taken by RBI, was estimated to be about Rs 27.1 lakh crore, with an amount of more than 13 per cent of GDP.

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Key highlights of Nirmala Sitharaman's infrastructureplan in Union Budget 2021:

• The proposition ofa sharp increase in capital expenditure andRs 5.54 lakh crores allotted, which is 34.5 per centmore than the BE 2020-21.
• FY21 Capital expenditure at Rs 4.39 lakh crore; 3500 kms of national highway works in TamilNadu with an investment of Rs 1.03 lakh crore, 1500 kms of national highway road in Kerala at a cost of Rs 65,000 crore
• An enhanced outlay of Rs 1.18 lakh crore for Ministry of Road Transport andHighway
• 702 km of metro rail already operation in 26 cities 1016 km in the works.
• Eastern and western dedicated freight corridors to be commissioned by June 2022
• Power distribution: Consumers to be given a choice of more than one distribution company; share of public transport to be enhanced with an outlay of Rs 18,000 crore
• The DFI is proposed to be capitalized with Rs 20,000 crore and is expected to have a lending portfolio of at least Rs 5 lakh crores within three years' time
• Ujjwala Scheme will be extended to cover 1 cr more beneficiaries; will add 100 more districts to city gas distribution network
• 7 port projects to be offered in private-public partnership mode; plan to support Indian shipping cos with subsidy
• Allocation of Rs 1,000 cr to Solar Energy Corporation of India
• Corporate bond market: Permanent institutional framework to be put in place to purchase investment-grade papers
• Hydrogen energy mission to be launched for generation using clean sources
• To allow depositors of stressed banks to access up to Rs 5 lakhas per DICGC; small companies threshold for paid-up capital hiked to up to Rs 2 crore

The Indian economy is projected to contract 7.7 per centin the current fiscal year, although the government forecasts growth of 11 per centfor the coming fiscal year, after a massive COVID-19 vaccination drive and a rebound in consumer demand and investments.

The first part of the Budget Session is scheduled to continue till February 15 while the second part of the session will be held from March 8 to April 8. Rajya Sabha will function from 9 am to 2 pm and Lok Sabha from 4 pm to 9 pm with Zero Hour and Question Hour.