Online Courses (English)

State PCS

Daily Updates

Indian Economy

Budget 2021 Highlights: Minimum Government, Maximum Governance and Fiscal Position

  • 03 Feb 2021
  • 3 min read

Why in News

Recently, the Minister of Finance presented the Union Budget 2021-22. This was the first digital budget.

  • This section deals with the theme ‘Minimum Government, Maximum Governance’ and Fiscal Position of the government.

Key Points

  • Minimum Government, Maximum Governance:
    • National Commission for Allied Healthcare Professionals already introduced to ensure transparent and efficient regulation of the 56 allied healthcare professions.
    • The National Nursing and Midwifery Commission Bill introduced for the same in the nursing profession.
    • Proposed Conciliation Mechanism with mandate for quick resolution of contractual disputes with Central Public Sector Enterprises (CPSEs).
    • Rs. 3,768 crore allocated for first digital census in the history of India.
    • Rs. 300 crore grant to the Government of Goa for the diamond jubilee celebrations of the state’s liberation from Portuguese.
    • Rs. 1,000 crore for the welfare of Tea workers especially women and their children in Assam and West Bengal through a special scheme.
  • Fiscal Position:

  • Recommendations of Fifteenth Finance Commission:
    • The final report covering 2021-26 was submitted to the President, retaining vertical shares of states at 41%.
    • Funds to UTs of Jammu and Kashmir and Ladakh would be provided by the Centre.
    • On the Commission’s recommendation, Rs. 1,18,452 crore have been provided as Revenue Deficit Grant to 17 states in 2021-22, as against Rs. 74,340 crore to 14 states in 2020-21.
  • Tax Proposals:
    • No exemption on interest, if Provident Fund PF contribution is more than Rs. 2.5 lakh.
    • Exemption from filing tax returns for senior citizens over 75 years of age and having only pension and interest income; tax to be deducted by paying the bank.
    • Income Tax settlement commission abolished.
    • Higher Tax Collection at Source rate for non-filers.
    • Reducing time to file belated returns.
    • Agriculture Infrastructure and Development Cess (AIDC) on a small number of items.
    • Dispute Resolution Committee to be set up for taxpayers with taxable income up to Rs. 50 lakh and disputed income up to Rs. 10 lakh.
    • National Faceless Income Tax Appellate Tribunal Centre to be established.

Source:PIB

SMS Alerts
Share Page