Union Finance Minister, Nirmala Sitharaman , tabled the Union Budget for 2021-22. This was the first digital or Paperless budget after independence.

  • This section deals with proposals related to the Physical and Financial Capital.

Highlights

  • Financial Capital
    • A single Securities Markets Code to be evolved.
    • To develop an investor charter as a right of all financial investors.
    • A new permanent institutional framework to help in development of the Bond market.
    • Setting up a system of Regulated Gold Exchanges (RGE).
      • Securities and Exchange Board of India to be notified as a regulator and Warehousing Development and Regulatory Authority to be strengthened.
    • Stressed Asset Resolution (SAR)
      • Asset Reconstruction Company Limited and Asset Management Company (Bad Bank) to be set up.
    • Increasing Foreign Direct Investment in Insurance Sector:
      • To increase the permissible Foreign Direct Investment limit from 49 per cent to 74 per cent and allow foreign ownership and control with safeguards.
    • Deposit Insurance
      • Amendments to the Deposit Insurance and Credit Guarantee Corporation Act of 1961, to help depositors get easy and time-bound access to their deposits to the extent of the deposit insurance cover.
        • Deposit insurance increased from Rupees 1 lakh to Rupees 5 lakh for bank depositors.
      • Minimum loan size eligible for debt recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act of 2002 proposed to be reduced from Rupees 50 lakh to Rupees 20 lakh for NBFCs with minimum asset size of Rupees 100 crore.
  • For Companies and Firms
    • To decriminalize the Limited Liability Partnership (LLP) Act of 2008.
    • Easing Compliance requirement of Small companies by revising their definition under Companies Act of 2013.
    • Promoting start-ups and innovators by incentivizing the incorporation of One Person Companies.
    • To ensure faster resolution of cases by:
      • Strengthening National Company Law Appellate Tribunal framework.
      • To Implementation of e-Courts system.
      • To Introduction of alternate methods of debt resolution and special framework for MSMEs.
  • Disinvestment and Strategic Sale
    • The New policy for Strategic Disinvestment approved; Central Public Sector Enterprises (CPSEs) except in four strategic areas to be privatized.
    • Initial Public Offering of Life Insurance Corporation in 2021-22.
    • The Special Purpose Vehicle in the form of a company to monetize idle land.
    • Introducing a revised mechanism for ensuring timely closure of sick or loss making CPSEs.
  • Government Financial Reforms
    • Treasury Single Account System for Autonomous Bodies to be extended for universal application.
    • Separate Administrative Structure to streamline the Ease of Doing Business for Cooperatives.

Budget 2021 Highlights of Physical and Financial Capital Budget 2021 Highlights of Physical and Financial Capital