The Union Finance Minister, Nirmala Sitharaman is all set to announce the annual budget 2021 on February 1, 2021 – completely paperless for the first time in the history of India.
In a year where India is hoping to recover from the pandemic, the onus will be on the finance minister to bring much-needed relief for sectors as well as people, while also ensuring that the economy comes on track.
Here are some major changes that could come with the Union Budget 2021.
Deductions in Income Tax
With thousands having lost their jobs, and many more having had to undergo a salary cut across the country due to the COVID-19 pandemic, the finance minister might look at the possible ways to put more income in the hands of people.
According to reports, Budget 2021 might take forward the relief announced with the Atma Nirbhar package with the basic tax exemption limit for an individual being raised to ₹5 lakh from the current ₹2.5 lakh.
Until now, while the government has pushed for a rebate on all payable taxes, the basic tax exemption limit has remained the same.
Bringing back jobs in the market
After a year where thousands of people lost their jobs across the country, another top priority of the government would be to bring back jobs in the market. The budget would likely focus on investments that create jobs.
Healthcare on top priority list
The current global crisis has shown that the country needs better healthcare infrastructure and facilities, it is likely that this sector would be on the top priority list in the upcoming budget.
Massive boost for construction and affordable housing sector
The government may make way for a massive boost for the construction and affordable housing sector. An Indian Express report claimed that the government is likely to liberalize Foreign Direct Investment (FDI) rules in construction and to give a boost to home buyers, an allocation will be made for a credit-linked subsidy in the Budget 2021.