Finance Minister Nirmala Sitharaman has gotten a thumbs up from industry captains, market gurus and eminent economists alike. The budget, presented on Monday, seeks to bolster an economy badly-hit by the novel coronavirus pandemic and focuses on higher infra spending, healthcare expenditure, boost to transport infra and public sector bank privatisation. Meanwhile, there is no change in the income tax slab which is positive in these times.

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Here is our A to Z of Budget 2021

ATMANIRBHAR Bharat: Finance Minister Nirmala Sitharaman shunned the traditional 'Bahi Khata' to embrace technology as she tabled the first Budget of the decade. However, the stamp of 'Atmanirbhar'ta, the key vanguard of Modi Govt's policies remains intact, with a 'Made In India' tablet.

The long-cherished BAD BANKS dream has taken wings. The FM has proposed setting up a new Asset Reconstruction Company and an AMC to cleanse the NPA mess. The North Block has clarified that the ARC will be 'cash-neutral'.

The government has turned on the CAPEX tap to give a fillip to growth. It has budgeted around Rs 5.5 lakh crore in FY22 for this which is an increase of 34 percent compared to the current fiscal.

Nothwithstanding a lacklustre FY21, the government has pinned its hope on the next fiscal by setting its eyes on a DIVESTMENT kitty of Rs 1.75 lakh crore. This includes a possible divestment of two PSU banks and a general insurance company. Along with this, an IPO of govt's 'crown jewel' LIC will be launched.

Sitharaman also set the ball rolling on a Higher EDUCATION Commission, highlighting plans to seal the legislation this year itself. 15,000 schools would be earmarked to serve as a model for National Education Policy implementation.

With the push for growth and hampered by the pandemic-induced slowdown, the Centre will have to contend with a FISCAL deficit of 9.5 percent of GDP in FY21. The FM has however aimed to bounce back to 6.8 percent next fiscal and to 4.5 percent by FY26.

The GAON Connection: The government, under pressure because of the ongoing farmer protests, has expanded its outlay for agriculture credit to Rs 16.5 lakh crore. The Finance Minister also introduced an agriculture infrastructure development cess on fuel and some other products and clarified that consumers would not have to pay up more.

Now, ontoHEALTHCARE. The pandemic has meant that there has been a record allocation of Rs 2.24 lakh crore, a 137 percent spike from FY21.

Another major talking point has been INFRASTRUCTURE. The sector has been given a renewed thrust with a proposal to set up a 'professionally managed' Development Financing Institution. The FM allocated Rs 20,000 crore towards the exercise, targeting a loan portfolio of Rs 5 lakh crore in three years. The Economic Affairs Secretary has said that a bill to give effect to DFI would be tabled during the Budget Session.

JOBS in rural India have been incentivised during the last few months. However, the budget saw an allocation of Rs 73,000 crore towards MNREGA, the flagship government employment scheme, which is 35 percent lower than the allocation for this fiscal. The Expenditure Secretary has clarified that the additional provision in FY21 was a stimulus, which may not be required in FY22 if the economy improves.

Moving on, Rs 65,000 crore has been allocated to PM-KISAN Samman Nidhi, which Expenditure Secretary TV Somanathan has termed as a 'realistic estimate'. Somanathan clarified that one state has not come on board to implement the scheme.

The Budget has also proposed a Special Purpose Vehicle in the form of a company to aid in monetising surplus LAND lying with govt ministries/departments & PSEs.

The MARKET gave a thumbs up to the Budget, posting its biggest budget day gain. The pause on corporate taxes and securities transaction tax will surely give India Inc a good night's sleep.

There were NO changes in the income tax slabs. Along with that, senior citizens above the age of 75 won't have to file returns as long as pensions are their only source of income.

OLD vehicles have been put on notice. The Government has pressed the accelerator on the voluntary scrappage policy to phase out old and unfit vehicles. Reacting to this, Pawan Goenka of M&M told CNBC-TV18 that while this wasn't exactly what the automakers were expecting, it is the right place to start.

PRIVATISATION, has been another keyword as Finance Minister Nirmala Sitharaman announced her intent to sell stake in two state-owned banks and an insurance company. Banking veteran Uday Kotak lauded the move, saying there is no need of 12 to 14 banks in the public sector.

General insurance companies are expected to QUEUE up for foreign capital, as Centre hiked the FDI limit to 74 percent from 49 percent.

Moving on, RESIDENCY will be tweaked to give tax relief to NRIs stuck in India during the COVID lockdown.

The status quo on key TAX rates is expected to provide succour to the taxpayer reeling from the COVID blow. The Budget has proposed to lay down the blueprint for a National Faceless Income Tax Appellate Tribunal Centre.

URBAN mobility has received a fillip. The Budget has allocated Rs 18,000 crore to augment public bus transport services, proposes to facilitate innovative PPP models to enable private sector players to finance, acquire, operate and maintain over 20,000 buses.

Rs 35,000 crore have earmarked for COVID VACCINES in the Budget. Finance Minister Nirmala Sitharaman further said that she is committed to allocating more money if the need arises.

The Super-Rich can breathe easy. The budget has steered clear off imposing a WEALTH tax, leaves long-term capital gains tax rates untouched.

Now only three letters to go and you must excuse yours truly for being a little lazy. The much-vexed retro tax is still not an eX. This despite suffering setbacks in the Cairn Energy and the Vodafone arbitration case.

One of the schemes from the first term of PM Modi, Skill India, has been granted a budget of Rs 3,000 crore for initiatives for the YOUTH of the country.

And lastly, the Budget has proposed to allow notified infrastructure debt funds to issue ZERO-coupon bonds to raise capital.

(Edited by : Abhishek Jha)

First Published:Feb 1, 2021 10:16 PM IST