Over the years, presentation of Union Budget in parliament has become an annual event, we Indians been massively obsessed with. A day when everyone tends to become an ‘economist’.

In the course of two terms of PM Modi, as Railway Budget has been done away with, the annual Union Budget has started attracting additional curiosity.

Here’s my take. This year’s digital Union Budget, a first of its kind, is definitely forward-looking growth spurring one. Though still to go through the fine print, not many negatives are visible at first glance.

Key highlights:

• Keeping the tax slabs same, continuity was preferred. Neither any new concessions given nor rumoured ‘Super-Rich’ tax introduced to wade through the Covid19 aftermath. Noticeably, IT return filers number increased to 6.48 crore in 2020 from 3.31 crore in 2014.

• Doing away with filing of ITR for senior citizens above 75 years of age, if their sources are only pension and interest incomes, has also been much appreciated.

• Tax assessment can be re-opened only up to 3 years as compared to the current 6 years limit.

• Raising the investment cap in insurance companies to 74% a big bold step since the party in power had earlier opposed FDI in insurance.

• Proposed mega IPO of LIC later this year is keenly awaited by an already booming stock market.

• Disinvestment target set at Rs 1,75,000 crores in 2021-22. Bharat Petroleum (BPCL), Air India, Shipping Corporation of India (SCI), Container Corporation of India (ConCor), IDBI Bank, Bharat Earth Movers Ltd (BEML), Pawan Hans, Neelachal Ispat Nigam Limited are to be divested this fiscal. One General Insurance company and two public sector banks are also to be privatized.

• Start-ups to get capital gains exemption and claim tax holidays for one more year till 31^st March 2022.

• Agriculture Infrastructure and Development Cess (AIDC) has been introduced, consequently Rs 2.5 / litre on petrol and Rs 4 / litre on diesel imposed. This new cess on petrol and diesel will be offset by excise duty cut of similar amounts respectively.

• A record sum of Rs 1,10,055 crores to be provided for Indian Railways, out of which Rs 1,07,100 crores has been reserved for capital expenditure.

• Highest ever outlay of Rs 1,18,101 crores for Ministry of Road Transport and Highways for roads and highway projects, has been made this year. Shows the importance of better infrastructure for smooth connectivity and to spur growth in different pockets across the country.

• Allocating Rs 1,500 crores to incentivize digital payments, to augment Digital India vision.

• Rs 35,000 crores allocated for Covid19 vaccination program this year, more if needed later and Rs 64,180 crores (spread over 6 years) for ‘Pradhan Mantri Swasth Bharat Scheme’ show healthcare of its citizens is a priority for this government.

• Extending social security benefits to gig workers will directly aid a large segment of new-age workforce. Minimum wages will apply to all categories of workers and they will be covered by the Employees State Insurance Corporation (ESIC).

• Doubling of budget allocation for MSMEs to Rs 15,700 crores is a reflection of the important role small entrepreneurs are going to play in the nation’s growth.

• With an aim to achieve $ 5 trillion economy manufacturing ought to show double digit growth, opines economists and for that, a liberal infusion of Rs 1.97 lakh crores on various Production Linked Incentive (PLI) schemes in 13 sectors over next 5 years has been announced.

• Mega Investment Textiles Parks (MITRA) scheme announced. 7 textile parks each spread over 1,000 acres to be established in next 3 years.

• Old vehicle scrapping policy, that’s coming soon will give a boost to the auto sector (both OEMs & their component suppliers) by generating demand for new vehicles.

• Central University in Leh announced. It will aim to provide easy accessibility to higher education in Ladakh.

• Extension of Ujjwala Scheme to cover 1 crore new beneficiaries shows its nationwide success while aiming to bring more under the scheme.

• Rs 1,000 crore special package for the welfare of tea workers especially women and children in Assam and West Bengal.

• A cause for concern is rather high fiscal deficit that is pegged at 9.5% of GDP in 2021-22 to be subsequently brought down to 6.8% of GDP in FY22 and to a visibly better 4.5% by FY26.

Hope this union budget heralds a new chapter in our nation’s progress as we slowly come out of the pandemic and revert to the world it earlier was.

The author is the Managing Director – Vidatec India. Views expressed here are personal.