JHARKHAND
Union Budget: State likely to receive Rs 3,000 cr less from central share
Jharkhand is staring at a likely loss of Rs 3,000 crore, after Union finance minister Nirmala Sitharaman proposed a reduction in central shares while tabling the Union Budget.
Earlier, state used to get 42% of the total revenues that were collected from the state under different heads from the Centre. After Centre Budget, that share has been reduced by 1%. Naturally, this is going to affect us ahead of the state Budget.
In 2019-20, Jharkhand got Rs 25,900 crore as central share at the rate of 42%. After 1% dip in this year’s Budget, it will be Rs 23,050 crore, which is a shortfall of Rs 2,850 crore.
INTERNATIONAL
UN World Tourism Organization confirms 2020 as ‘worst year on record’
According to the United Nations World Tourism Organization (UNWTO), Global tourism suffered its ‘worst year on record’ in 2020.
In 2020, international arrivals dropped by 74 per cent and destinations worldwide welcomed 1billion fewer international arrivals than in the previous year (2019), .
The latest UNWTO report stated that the collapse in international travel represents an estimated loss of USD 1.3 trillion in export revenues – more than 11 times the loss recorded during the 2009 global economic crisis.
Oxford names Aatmanirbharta as Hindi Word of 2020
After Prime Minister Narendra Modi’s emphasis on Aatmanirbharta in the wake of the novel coronavirus pandemic, this particular word has been named by Oxford Languages as its Hindi Word of the Year 2020.
Aatmanirbharta means self-reliance.
The Oxford Hindi word of the year is a word or expression that is chosen to reflect the ethos, mood, or preoccupations of the passing year, and have lasting potential as a term of cultural significance.
NATIONAL
Union Budget – 2021 2022
The 2021-22 Union budget was proposed during the COVID-19 pandemic on February 1, 2020. Since the 2020 budget, the Indian economy has reduced from a nominal GDP of Rs 22.4 crore to Rs 19.4 crore. The reduction in the size of the economy is due to the slowdown in revenue growth and increased spending in 2020 due to the coronavirus pandemic. The fiscal deficit for 2021-2022 is estimated to be 6.8% of GDP.
Highlights:
There are 6 main supporters for the Union Budget, they are Health and Wellbeing, Physical & Financial Capital, and Infrastructure, Inclusive Development for Aspirational India, Reinvigorating Human Capital, Innovation and R&D, Minimum Government and Maximum Governance.
Tax Disputes: Reduce tax disputes and simplify settlement procedures: The time limit for reopening cases has been reduced from 6 years to 3 years. In serious tax evasion cases, there is evidence to hide rupee income. Reached 5 million or more in one year, and can be reopened for up to 10 years with the approval of the chief commissioner.
Expenditure and deficit: Estimated rupees. The expenditure for 2021-2022 includes 348.03 billion rupees, including rupees. Capital expenditure is 5.54 billion carats, the rest is income expenditure. The fiscal deficit in BE 2021-2022 is estimated to be 6.8% of GDP.
Gold: The Securities and Exchange Commission of India (SEBI), the capital market regulator, will be designated as the regulator of the gold exchange.
Digital economy: Encouraging the digital economy: The turnover ceiling for tax audits is increased to Rs. From 100 million rupees. 50 million euros for entities that execute 95% of transactions digitally.
Labour welfare: The employer’s arrears of the employee’s dues shall not be deducted to the employer.
Startup company: The eligibility for the tax holiday for start-ups is extended for another year. The tax exemption period for capital gains on investment in start-ups is extended to March 31, 2022.
Customs Duty: Tariffs on certain parts of mobile phones increased from “zero” to 2.5%. Tariffs on non-alloy, alloy and stainless steel semi-finished products, flat products and long products are reduced to 7.5%. As of March 31, 2022, customs levied tariffs on steel scrap The basic tariff (BCD) of caprolactam, nylon sheet, nylon fibre and the yarn is reduced to 5%. The tunnel boring machine will now be levied a 7.5% tariff; the tariff for its parts is 2.5%. The tariff on cotton was raised from zero to 10%, and the tariff on raw silk and spun silk was raised from 10% to 15%.
Disinvestment: In the next fiscal year starting on April 1, the sale of shares in public sector companies and financial institutions will raise 17.5 billion rupees, including 2 PSU banks and 1 general insurance company.
Health: Prime Minister Aatma Nirbhar Swasth Bharat Yojana has increased by Rs 6418.80 crore in 6 years – in addition to the NHM (National Hygiene Mission), a new central sponsorship plan will be launched, And Rs 35,000 crore for Covid vaccination.
Urban Development: Jal Jeevan Mission will be launched in Urban areas, aiming to provide tap water connections to 2.86 million households. Swachh Bharat Mission (Urban) 2.0 will be implemented in 5 years (from 2021 to 2026), with an expenditure of 14.1 crore rupees. Compared with the traditional Metro system, two new Metro technologies, MetroLite and MetroNeo, will be used in the periphery of secondary cities and primary cities.
Vehicles: Scrap policy to eliminate old and used cars. For private cars, all vehicles must be tested for fitness in an automatic fitness centre every 20 years, and for commercial vehicles, fitness tests must be performed on all vehicles every 15 years.
Manufacturing: In the next 5 years, the PLI (Production Related Incentive) program will be implemented in 13 industries with an amount of 19.7 billion kronor to create and cultivate AatmaNirbhar Bharat’s manufacturing global champion. According to the Mega Investment Textile Park (MITRA) plan, 7 textile parks will be established within 3 years.
Infrastructure: Allocate US$200 billion to establish and capitalize a Development Financial Institution (DFI)-acting as a provider, facilitator and catalyst for infrastructure financing.
Railway: Rs 1,10,055 crore was allocated, of which Rs. 1,07100 million for capital expenditure. In 2021-22, the government expects its revenue from railway companies (including passengers, cargo, other passenger cars and other miscellaneous items) to be approximately Rs 2.17 billion, compared with Rs 1.46 billion in 2020-21 (revised estimate).
Green energy: The National Hydrogen Energy Mission will be launched to use green power sources to produce hydrogen.
Insurance: Increase the permitted limit of insurance companies on foreign direct investment from 49% to 74%, and allow foreigners to have ownership and control.
Banking: Emphasis on asset disposal: the establishment of asset restructuring limited companies and asset management companies. PSB’s capital injection: Rs. It will reach 20,000 crores in 2021-22 to further strengthen PSB’s financial capabilities
Company matters: By amending the definition of small companies in the 2013 Companies Act, the paid-up capital threshold for small companies has been raised from “no more than Rs.” to the lowest, thereby reducing the compliance requirements for small companies. 500,000 rupees” to “no more than rupees.” 2 crores” and “not exceeding rupee” turnover. 2 crores” was changed to “not exceeding rupee”. 20 Cr”.
Senior citizens: Relief for senior citizens: tax exemption declaration for senior citizens who are over 75 years old and only have a pension and interest income; pay tax deducted by the bank.
R&D Department: In the next five years, 500 billion rupees will be spent to establish the National Research Foundation (NRF). The foundation is an umbrella organization that is expected to fund research in multiple disciplines ranging from science and technology to the humanities.
Education: The legislation to be introduced will establish the Indian Higher Education Commission as an umbrella institution with 4 independent tools for standard-setting, certification, supervision and funding.
Agriculture: The agricultural credit target was raised to Rs. It will reach 16.5 billion kronor in 2021-22-animal husbandry, dairy and fishery will become key areas. 5 major fishing ports-Kochi, Chennai, Visakhapatnam, Paradip and Petuaghat will be developed into economic activity centres. The State-owned Agricultural Marketing Committee (APMC) can now use the Agricultural Infrastructure Fund (AIF) of Rs 1 billion.
Provident Fund: The income paid by the provident fund exceeds 250,000 rupees per year, and it is usually voluntary tax paid by employees.
Mega Investment Textiles Parks Scheme in 2021 Budget
The government announced the launch of the Mega Investment Textiles Parks (MITRA) scheme in the 2021-22 Union Budget to make the Indian textile industry globally competitive
The goal of the scheme is to make the textile industry globally competitive, attract large amounts of investmenst, and promote job opportunities and exports.
This scheme is a supplement to the PLI scheme.
FM announced that it will establish seven textile parks within three years.
According to data from the National Investment Promotion and Facilitation Agency for Investment in India, by 2024-25, exports of the textile and apparel industry are expected to reach 300 billion U.S. dollars, and India’s market share will triple from 5% to 15%.
It is estimated that by 2025-26, the scale of the industry will double to US$300 billion. For this purpose, 7 mega textile parks have been planned.