Union Budget presented by Finance Minister Nirmala Sitharaman didn’t have much for middle class people as no changes were made to the personal income tax slab. However, senior citizens who are above the age of 75 were offered benefit, they will not have to file Income Tax (I-T) returns.
Also, no increases in direct or indirect taxes were made by Finance Minister, except petrol and diesel, which may be seen negative as it would lead to increase in transportation costs and could add to inflation.
Next, Finance Minister Sitharaman announced a “Vehicle Scrapping Policy” to control pollution and to improve air quality. Vehicles will undergo a fitness test in Automated Fitness Centres. In case of personal vehicles, it’s 20 years and in case of commercial vehicles, it’s 15 years.
In her Budget speech, FM Sitharaman revealed government’s plan for selling minority stake in large entities like LIC. The aim behind partially privatising these PSUs is to boost its finances and to raise resources.
FM also proposed the plan of privatising two more public sector banks (PSBs), other than IDBI Bank, and one insurance company (other than LIC) in the fiscal year 2021-22. It’s a big positive side for these PSBs as it could result in bringing additional funds.