Thrifty Budget: Massive spending spree proposed to unleash growth
By IANS |
Published on
Mon, Feb 1 2021 22:42 IST |
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Digital Budget: Made in India tablet replaces bahi-khata . Image Source: IANS News
New Delhi, Feb 1 : The Centre will go in for a massive spending spree on infrastructure creation, healthcare, education and demand generation to revive India s pandemic-battered economy.
In her third budget presentation in the Parliament on Monday, Finance Minister Nirmala Sitharaman proposed to unleash massive fiscal expansion in 2021-22 on the back of high borrowings, fire sales and an agricultural cess.
However, no adverse impact is set to come on prices as the Centre made prior duty adjustments before imposing the cess.
February 01, 2021
The FM has also incentivised start-ups by extending eligibility to claim tax holiday by one year - March 31, 2022 - Getty Images/iStockphoto
The FM has also incentivised start-ups by extending eligibility to claim tax holiday by one year - March 31, 2022 - Getty Images/iStockphoto×
One-person companies enjoy low compliance burden
The Budget has proposed to incentivise the incorporation of One Person Companies (OPCs) which is expected to boost the start-up and innovation ecosystem. The move aims to provide total control, lesser compliance burden coupled with limited liability to the company founder. It is also expected to nurture entrepreneurship in Tier 2,3,4 and 5 cities.
NRIs will be allowed to set up one-man companies back home
By: Times News Service
Muscat: Non-resident Indians (NRIs) will be able to set up one-person companies back home soon, following the proposal by Union Minister for Finance and Corporate Affairs to incentivise their incorporation into the Indian economy.
Sitharaman was speaking while presenting the Union Budget 2021 on Monday.
The incorporation of OPCs in India will help the NRIs to enter the domestic market, and will also provide them a livelihood once they return home.
Announcing the scheme, the finance minister said, “Incorporation of OPCs will be incentivised by allowing such companies to grow without restriction on paid-up capital and turnover, allowing conversion into any other type of company at any time, reducing the residency limit for an Indian citizen to set up an OPC from 182 days to 120 days, and allow also non-resident Indians to incorporate OPCs in India.”
A landmark budget for gem & jewellery industry, says GJEPC
By IANS |
Published on
Mon, Feb 1 2021 20:21 IST |
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Jewellery.. Image Source: IANS News
Jaipur, Feb 1 : The Gem Jewellery Export Promotion Council (GJEPC) on Monday welcomed Union Finance Minister Nirmala Sitharaman s visionary budget over reduction of customs duty on raw materials such as gold, silver and platinum to boost jewellery exports.
The import duty on gold and silver has been reduced from 12.5 per cent to 7.5 per cent while import duty on platinum, pallidum etc has been reduced from 12.5 per cent to 10 per cent. The import duty on silver dore bar has been reduced from 11 per cent to 6.1 per cent.
India will look beyond fiscal deficits to get the economy back on its feet. That’s the message conveyed by Finance Minister Nirmala Sitharaman in the annual budget for 2021-22, presented on Monday (February 1, 2021).
India’s spending plan aims to jumpstart the economy that has been going through a protracted slump in 2020-21 fiscal year with the GDP growth projected to contract by 7.8 per cent. That’s hardly surprising since all other major economies have taken the fiscal boost route to revive the flagging economic growth.
Under the current environment, government spending is a significant component to boost production, consumption and job creation. Of course, it has long-term consequences in terms of potential debt overhang, a surge in inflation, huge interest in government borrowings and currency instability and potential payment crisis in the future.