{"id":24067,"date":"2021-01-13T14:37:11","date_gmt":"2021-01-13T09:07:11","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=24067"},"modified":"2021-01-13T17:19:46","modified_gmt":"2021-01-13T11:49:46","slug":"expectations-from-government-under-union-budget-2021-22","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/expectations-from-government-under-union-budget-2021-22\/","title":{"rendered":"Expectations from Government under Union Budget 2021-22"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Article 112 of the Indian Constitution deals with the Union Budget, the\nFinance Minister presenting it on the first day of the month of February every\nyear, so that it can be implemented before the start of the new financial year\nin April.<\/p>\n\n\n\n<p>In the present scenario, the biggest challenges facing the Indian economy\nare rising poverty, falling health parameters, worsening educational outcomes,\ninadequate housing, and widespread unemployment due to the pandemic effect of\nCovid-19. As India seems to be recovering from the disastrous Covid-19 pandemic,\nso this time people have high expectation from the Union Budget 2021-22<\/p>\n\n\n\n<p>A few days ago, the Finance Minister promised that the Union Budget 2021-22 would be &#8220;never before&#8221;, expressing that the government is ready to take the necessary strict steps to boost the devastated economy.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Expectations.png\" alt=\"Expectations from Government\" class=\"wp-image-24070\" width=\"467\" height=\"473\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Expectations.png 985w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Expectations-296x300.png 296w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/01\/Expectations-768x780.png 768w\" sizes=\"(max-width: 467px) 100vw, 467px\" \/><\/figure><\/div>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/expectations-from-government-under-union-budget-2021-22\/#Union_Budget_2021-22_Expectations_for_MSMEs_and_Startups\" >Union Budget 2021-22\nExpectations for MSMEs and Startups<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/expectations-from-government-under-union-budget-2021-22\/#Growth_Recovery_of_Indias_Economy\" >Growth &amp; Recovery of India\u2019s\nEconomy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/expectations-from-government-under-union-budget-2021-22\/#Focus_on_Agriculture_will_Boost_the_Economy\" >Focus on Agriculture will Boost\nthe Economy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/expectations-from-government-under-union-budget-2021-22\/#Easing_FEMA_Legislation_and_Outflows_for_Foreign_Exchange_Funds_outside_India\" >Easing FEMA Legislation and Outflows for Foreign Exchange Funds outside\nIndia<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/expectations-from-government-under-union-budget-2021-22\/#Union_Budget_2021_will_Committed_to_Raise_Healthcare_Expenditure\" >Union Budget 2021 will Committed\nto Raise Healthcare Expenditure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/expectations-from-government-under-union-budget-2021-22\/#LTCG_Taxes_on_Unlisted_Shares_Dividend_Taxes_and_Additional_Surcharge\" >LTCG Taxes on Unlisted Shares, Dividend Taxes and Additional Surcharge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/expectations-from-government-under-union-budget-2021-22\/#Simplification_of_GST_Labor_Laws\" >Simplification of GST &amp;\nLabor Laws<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/corpbiz.io\/learning\/expectations-from-government-under-union-budget-2021-22\/#Concluding_Remark\" >Concluding Remark<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Union_Budget_2021-22_Expectations_for_MSMEs_and_Startups\"><\/span>Union Budget 2021-22\nExpectations for MSMEs and Startups<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Finance Minister has increased the Union Budget 2021-22 expectations, by\nsaying that this budget will be unlike anything in the last 100 years. However,\nthere are still some real pains points that MSMEs and startups are expected to\naddress immediately in the Union Budget 2021-22.<\/p>\n\n\n\n<p>According to information initiated by the Ministry of MSME, India has closed approx 6.8 million <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSMEs registered<\/strong><\/a> under Udyog Adhaar. MSME-linked traders accounted for 49.81% of total exports made in the entire Financial Year 2019-20 and the region employed 110 million people in India.<\/p>\n\n\n\n<p>Currently, there are an estimated 30 unicorn Indian startups, and 18 out\nof 30 unicorns are the main foreign direct investment. According to the\nCommerce Ministry of India, there was a reported $ 73 billion FDI in the entire\nfiscal year 2019-20. <\/p>\n\n\n\n<p>According to the Startup India portal, there are more than 40,000 DPIIT\nincorporated startups in India. These numbers represent the extent of\nimportance and impact on the Indian economic system and the importance of FDI\nfor building unilateral startups in India.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Growth_Recovery_of_Indias_Economy\"><\/span>Growth &amp; Recovery of India\u2019s\nEconomy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The biggest concern in this contemporary phase is the contraction in the\nGDP of the nation. The first\nadvance estimates of growth released signify that the GDP will contract\n7.7% in FY 2020-21.<\/p>\n\n\n\n<p>The Finance Minister has quoted that revitalizing development, providing\nsupport to pandemic-affected areas and those affected financially in 2020 will\nbe the top priority of the government.<\/p>\n\n\n\n<p>This is a signal that the government will focus on expanding the areas of\ndevelopment, taking adequate measures to fill the gaps left behind by the\npandemic effect of Covid 19. Development and recovery may become the main\nsubject of this budget as the government is expected to invest more in local\ninfrastructure, skill development, and manufacturing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Focus_on_Agriculture_will_Boost_the_Economy\"><\/span>Focus on Agriculture will Boost\nthe Economy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The government has several reasons for focusing on agriculture at this\ntime. Agriculture was one of the few areas that performed strongly during the\npandemic.<\/p>\n\n\n\n<p>And with the ongoing farmer movement in New Delhi, the government\nsupposes to send a positive message to the farmers in the country. Therefore,\nfarmer welfare may also be the main subject of union budget 2021-22.<\/p>\n\n\n\n<p>The three agricultural laws introduced by the government were part of\nefforts to double up the farmers\u2019 incomes, but farmers are demanding to\nwithdraw the bill. To stop the protest by farmers against the law passed by the\ngovernment of India, the government may announce the union budget 2021-22 in\nfavor of farmers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Easing_FEMA_Legislation_and_Outflows_for_Foreign_Exchange_Funds_outside_India\"><\/span>Easing FEMA Legislation and Outflows for Foreign Exchange Funds outside\nIndia<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All inflows and outflow of funds within and outside India should be done through rigorous <strong>RBI<\/strong><sup><a href=\"https:\/\/www.rbi.org.in\/\"><strong>[1]<\/strong><\/a><\/sup> scrutiny, reporting, and limitations. They become a deterrent to foreign investment in India because investors not only have concerns about existing compliance during inflows, but also when returning money in the original investment amount, interest, or dividend. Institutional investors and other investors still have resources at their disposal to make it at least for small investors impacting MSMEs\/ Startups.<\/p>\n\n\n\n<p>The overall perspective of the said system of foreign exchange inflows\nand outflows is necessary to ensure that Indian MSMEs and startups can work\nsmoothly with worldwide customers, suppliers, investors, and other stakeholders\nand can compete worldwide widely.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Union_Budget_2021_will_Committed_to_Raise_Healthcare_Expenditure\"><\/span>Union Budget 2021 will Committed\nto Raise Healthcare Expenditure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Covid 19 pandemic highlighted gaps in India&#8217;s health system, which\nwas devastated by the rapid increase of infection in the country. The corona\nvirus pandemic killed about 1.5 million people in the nation and many of them\ndied because they did not get medical care in time.<\/p>\n\n\n\n<p>The shortage of beds and ventilators during the pandemic-hit 2020 and\nbecome the headline of every news. Therefore, this year&#8217;s budget is widely\nexpected to focus on improving the country&#8217;s health system, particularly in the\nrural belt.<\/p>\n\n\n\n<p>Many experts have called for an increase in public health expenditure in\nthis year&#8217;s budget and an industry position for the healthcare sector. More\nexpenditure is also expected for pharmacy research and disease surveillance in\nthe wake of the pandemic.<\/p>\n\n\n\n<p>Union Budget 2021-22 will focus primarily on growth and recovery, besides\nstrengthening key sectors such as health and agriculture. It is unlikely that\nthe government will provide any benefit on the income tax front amid low\nrevenue collection in 2020.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"LTCG_Taxes_on_Unlisted_Shares_Dividend_Taxes_and_Additional_Surcharge\"><\/span>LTCG Taxes on Unlisted Shares, Dividend Taxes and Additional Surcharge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Companies, businesses (counting branches) and\nindividuals pay income tax on their income. Many global trading centers do not\nhave capital gains and dividend taxes at all.<\/li><li>India has a high rate of capital gains taxes and\ndividend taxes. Resident individuals and HUFs end up paying dividend tax at the\neffective rate of 35.88% and for non-residents at 23.9%. <\/li><li>Long-term capital gains tax also attracts an\neffective rate of 28.50% tax for the high-income group and short-term capital\ngains tax at 42.74 percent.<\/li><li>These high taxes either induce domestic or\nforeign investors not to invest in Indian businesses or they force Indian\nbusinesses to move into a structure in which intellectual property (IP) and\nother main ownership are some other lower taxes. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Simplification_of_GST_Labor_Laws\"><\/span>Simplification of GST &amp;\nLabor Laws<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>With each passing day, GST laws are becoming more stringent rather than simplified.<\/li><li>According to the latest government notification, if the monthly taxable sales exceed Rs 50 lakh, it has been made mandatory to pay 1% cash (with some exceptions) of GST liability and not allowed to set-off against input tax credit.<\/li><li>The time limit for <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a> permission has also been extended with the need of physical verification of the office address by the GST officer. GST officers have also been granted additional powers to cancel GST registration in some instances.<\/li><li>Many state governments are also coming up with audit and investigation of GST department as per the respective state GST laws.<\/li><li>These amendments and new needs will not only increase time and compliance costs for MSMEs and startups but will also lead to harassment and corruption.<\/li><li>MSMEs &amp; startups are expecting more simplified and automated taxation laws and not such complex and officer-driven laws.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concluding_Remark\"><\/span>Concluding Remark<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>We believe that the government and its other ministries are working hard to make the Union Budget 20210-22 the best in more than 100 years and lead to a rapid boom in the pandemic-stricken country and economy and the long-run development. This is to make India an economic superpower and a supply chain hub. Kindly assist with the Corpbiz expert to know more about the Union Budget 2021-22.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/farm-bill-2020-is-it-really-shattering-the-belief-and-hopes-of-the-farmers\/\">\n\nFarm Bill 2020: Is it really Shattering the Belief and Hopes of the Farmers?\n\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Article 112 of the Indian Constitution deals with the Union Budget, the Finance Minister presenting it on the first day of the month of February every year, so that it can be implemented before the start of the new financial year in April. In the present scenario, the biggest challenges facing the Indian economy are [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":24131,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[153,176],"tags":[1422],"acf":{"service_id":"71"},"authorName":"Komal Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/processed.jpeg","authorDescription":"Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles &amp; dissertations, which serves her main interest &amp; competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.","postViews":7435,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24067"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=24067"}],"version-history":[{"count":12,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24067\/revisions"}],"predecessor-version":[{"id":24091,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/24067\/revisions\/24091"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/24131"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=24067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=24067"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=24067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}