Union Finance Minister Nirmala Sitharaman today presented the Seventh Union Budget in Parliament.
In line with the vision of Vikshit Bharat (Indian National Congress), the Budget covered five different aspects as part of the Prime Minister’s policy package – promoting agriculture, skill acquisition and employment, supporting MSMEs, social welfare and digital advancements.
Landmark announcements for startups in the newly elected government’s first budget included the abolition of angel tax, a long-standing demand, and introduction of a Rs 1,000 crore thematic fund for development of the space sector.
“This Budget is an important one for Amrit Kaar. This Budget will also provide a strong foundation for our dream of ‘Bikshit Bharat’,” the Chief Minister told media on Monday.
The budget speech concluded at 12:30 pm on July 23.
12:25 Review of tax rate structure
Under the new tax system, tax rates will be revised and those earning up to Rs 300,000 will be exempt from tax.
12:21 Abolition of angel tax
Government to scrap angel tax to encourage startups and entrepreneurship
12:17 Capital Gains Tax
Short-term gains on certain financial assets are taxed at 20%. Long-term gains on all financial and non-financial assets are taxed at a rate of 12.5%. The tax exemption limit on capital gains on certain financial assets has been increased to Rs 12.5 lakh per annum. Listed financial assets held for more than one year are classified as long-term assets, while unlisted financial assets and all non-financial assets must be held for at least two years before they can be classified as long-term assets.
12:16 Taxation
The Income Tax Act, 1961 has been comprehensively overhauled to make it simple and easy to understand. Withholding tax rates on buyback of units by mutual funds or UTIs have been repealed. Withholding tax on e-commerce operators has been reduced to 0.1%.
12:08 Tariff changes
Basic Customs Duty (BCD) on mobile phones and chargers has been reduced by 15%. A complete exemption from BCD for 25 critical minerals has been announced as a measure to increase supplies in strategic sectors. Three new medicines for cancer treatment have been added to the customs duty exemption list.
12:06 GST to be rolled out to other sectors
The government will further simplify and streamline the tax system and extend it to the remaining sectors.
12:01 Climate change financing
Develop a climate finance taxonomy to increase the availability of capital for climate adaptation and mitigation, helping countries meet their climate commitments and green transition.
12:00 Focus on the Financial Sector
The government will publish a vision and strategy document for the financial sector to prepare the sector in terms of scale, capacity and skills. This will set out the agenda for the next five years and guide the work of government regulators, financial institutions and market participants.
11:57 Labor-related reforms
The government will facilitate services to the workforce for employment and skilling through the portal, which will provide a one-stop solution to cater to the rapidly changing market skill requirements and available jobs, and help connect job seekers with potential employers and skill providers.
11:55 VC fund for space technology development
The government will create mechanisms to foster innovation at commercial scale. A Rs 1,000 crore venture capital fund will be set up to expand the space economy five times over the next decade.
11:46 Infrastructure Support
Capital expenditure this year will be Rs 11.11 trillion, or 3.4 percent of GDP. The government will encourage states to provide similar support for infrastructure development and set aside Rs 1.5 trillion for long-term interest-free loans to states.
11:40 Energy Security
The Prime Minister launched the Surya Ghar Mukht Bijli Yojna for installation of solar panels on rooftops to enable 10 million households to avail up to 300 units of electricity free of cost every month. 1.28 crore registrations and 1.4 million applications have been received so far. Nuclear energy is expected to form a very important part of the energy mix. The Government will partner with the private sector to set up Bharat Small Reactors, research and development in nuclear reactors and study new technologies in nuclear energy.
11:38 Integrated Technology for Insolvency and Bankruptcy Code (IBC)
To improve outcomes under the Insolvency Code, an integrated technology platform will be created, which will provide consistency, transparency, timely processing, and better oversight for all stakeholders.
11:36 DPI Applications Developed by the Private Sector
The government proposed to build a population-wide DPI (Digital Public Infrastructure) app for improving productivity of private sector players in the areas of credit, e-commerce, education, health, law, logistics, MSMEs, service delivery and urban governance.
11:35 Comprehensive internship provision scheme
As part of the Prime Minister’s policy package, a comprehensive scheme will be opened up to provide internship opportunities to 10 million youth with 500 leading companies over the next five years. The scheme will provide up to 12 months’ experience along with a monthly internship allowance of Rs 5,000 and a lump sum of Rs 6,000. Companies will be asked to bear 10% of the training and internship costs.
11:33 E-commerce Export Hub for SMEs
These hubs will provide centralized trade and export-related services for SMEs to sell on e-commerce platforms.
11:29 Special support for labor-intensive small and medium-sized enterprises
Announced a credit guarantee scheme for manufacturing MSMEs to purchase machinery without collateral. Own capital guarantee fund will be provided to each applicant. New assessment model for providing credit to MSMEs. Mudra loan limit will be increased from Rs 1 million to Rs 2 million. SIDBI will open new branches to provide credit to all MSME clusters within three years. 24 new branches will be opened this year.
11:28 Systems that benefit women and girls
The Budget has allocated over Rs 300 billion for schemes benefiting women and girls, demonstrating the government’s commitment to strengthening women’s role in economic development.
11:23 Budget priority number three was inclusive workforce development and social justice
The government will empower eligible people by implementing economic activities under various schemes by artisans, craftsmen, self-help groups, scheduled castes, scheduled tribes, women entrepreneurs and street vendors.
11:20 PM The second priority area of the package is jobs and skills development
As part of the Prime Minister’s policy, three schemes have been announced to encourage new entrants, create manufacturing jobs and provide support to employers. Women’s participation in the workforce will be boosted through upskilling and setting up hostels for women workers. Another scheme has been announced to expand collaboration with state governments and industry to upskill two million youth.
Agriculture Package at 11:15 p.m.
The government will launch a National Cooperative Policy for systematic, orderly and all-round development of the cooperative sector, rapid growth of the rural economy and generation of large-scale employment opportunities. A budget of Rs 1.52 trillion will be allocated to the agriculture and allied sectors.
11:08 Focus on jobs, skills, small business and the middle class: FM
Central government announces five schemes targeting 410 crore youth with an outlay of Rs 2 lakh crore
