Mrunal’s Budget summary in 5 Minutes for competitive exams (#clickbait #farziwaada)

Disclaimer & Prerequisites

1) Target audience: officer rank competitive exam aspirants. ✋CA-Exam, ✋Clerical exam.
2) Some of the factoids may be half-correct / wrong- because of haste in making 5 Minutes #clickbait #farziwaada video😰
3) Assuming You’ve Self studied: Indian Polity by Laxmikanth ch.22 parliament,ch.45 FC, ch.51: CAG
4) Tamilnadu Class12 Economics Ch.9- Direct vs indirect taxes, Union vs State Taxes , fiscal deficit formulas etc [OR
Alternatively attended Mrunal's Full Length Economy Course. (🔖unlock code "Mrunal.org")]
5) Assuming You’ve seen atleast last 5 years topic wise previous years question papers
6) 5 minute can’t give justice to everything. Stay tuned for Win21CSP Series lecture, PPT & Handouts for more

PAUSE video &

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 Budget 2021 → Revenue → Reciept → Tax Reciept ( )

22lcr 2021-22 (amt in Lakh Crores)

6.3
5.61 5.47

3.35

1.36

GST Income Tax Corporation Tax Excise Customs

Gross Tax revenue 22l Minus State’s share (FC) - Disaster fund
= NET tax revenue 15Lcr. ( )
Cess ( ) =Tax on (Tax + surcharge) .

10% Surcharge 4% CESS (on जो

50000
on tax (=50000 tax+surcharge=
Income Tax
ka 10%=5k) 55000 ka 4%) भी है

CFI Public Account

CFI

CFI: Consolidated Fund of India ( ) ref: Laxmikanth ch22

 Budget → Revenue → Reciept → Tax Reciept ( )

Gross 22lcr ( )
NET 15 ( )
Existing (continued from past)
•Direct Taxes pe 4% Health Education Cess
•Imports: Customs pe 10% Social Welfare Surcharge
•Imported Medical Devices pe 5% Health Cess for building
hospitals in backward (=aspirational districts)
New Budget-2021: Agri Infrastructure & Development
Cess (AIDC )
•[1) Petrol diesel ke excise pe AIDC,
•[2) selected Agricultural commodities, fertilizer, precious metal,
coal-lignite ke customs duty pe AIDC
•% varies depending on products.
 Budget 2021: Tax Reforms

• Corporation Tax: 🤩 some benefits to

Startups, affordable housing, IFSC-Gift
City etc
• ⏬tax terrorism: ⏫Audit limits for
small companies, Faceless assessment
appeal etc, dispute resolution
Committee, relief to charitable trusts

Direct Taxes Corporation CGT, DDT

Income Tax
( ) Tax / MAT & a few

Indirect Taxes Excise on Petrol,

Customs on
( ) GST Diesel etc 5
import/export
hydrocarbons
 Budget 2021: Tax Reforms
Income Tax Slabs Unchanged:
•IT = 5-20-30% [depending on taxable income]
•(Optional) 5-10-15-20-25-30 (if claim no
deduction- beneficial to upper middle class**)
Income Tax (New)
•senior citizen 75/> age – if only pension +
interest income then ✋ITR🤩
•Few modification in PPF, Home Loans etc CA-
NOTIMP-for competition exams
Direct Taxes Corporation
Tax / MAT
Income Tax
CGT, DDT
& a few
Rates ⏫/⏬ to
( )
boost domestic
mfg & export
Indirect Taxes Excise on Petrol,
GST Diesel etc 5
Customs on (apply Common
( ) import/export
hydrocarbons sense in MCQ)
 Pause the video: peacefully look at graph
22.** Lcr gross
tax revenue

222.** Lcr nominal

GDP (without
adjusting with
inflation)

Corporation
Direct Taxes Income Tax CGT & a few
Tax / MAT 9.9%
Total
Tax to GDP
Excise on Petrol, 22 lcr
Indirect Taxes GST Diesel etc 5
Customs on 2021 😰
import/export
hydrocarbons
 Mrunal’s Budget-2021 summary: Revenue → Non-Tax receipt ( )

Gross 22lcr ( ) Rail Reforms

NET 15 ( ) • ‘MetroLite’ and ‘MetroNeo’
₹2.4lCr Technology for low cost
metro system in small cities
• 2022: Dedicated Freight
Corridor (DFC)
• 2023: 100% electrification
of Broad-Gauge routes
• 2030: National Rail Plan for
India
• ✋New train routes not
asked in officer exams
• Rail safety ki bolbachchan
 Budget 2021→ Revenue → Expenditure ( )

Gross 22lcr ( ) • 👻😷2020: Corona Atma-

-29 lcr Nirbhar= subsidy was
NET 15 ( )
₹2.4lCr nearly 1.5-2x this amount
😰>₹8lcr
• 💼2021: ⏬⏬ than last yr

₹>2lcr*

😰₹>3lcr*

₹3.5lcr*

<₹2lcr ++& schemes,

judges salary etc
 Budget 2021→ Revenue → Deficit? ( )
REVENUE Deficit (2021)
-29 =+17.**-29.**
+17 =₹~11.** Lcr (approx.)
+15 😰>₹8lcr
+2
11.** Lcr
5.1%
Of
₹>2lcr* GDP
222.** Lcr
😰₹>3lcr* nominal GDP
Revenue
₹3.5lcr* (without
adjusting Deficit
<₹2lcr & schemes, with inflation) ( )
judges salary etc
 Budget 2021→ Revenue → Deficit?
REVENUE Deficit (2021)
=+17.**-29.**
-29
+17 =₹~11-12 Lcr (approx.)
+15 😰>₹8lcr
= 5.1% GDP
+2
Effective Revenue
Deficit ( )
₹>2lcr* =RD – grants for capital
? Ans 😰₹>3lcr*
assets
=11.**-2.**
₹3.5lcr*
, =₹9Lcr
(data dressing) <₹2lcr & schemes, =4.1% of GDP
judges salary etc
 Budget → Capital → Receipt ( )
Capital Expenditure
~ 5.50lcr (⏫ than last
~₹17lcr year to revive economy)

₹15lcr
Strategic sector mein keep Minimum 1 Govt co, (=fiscal deficit,
& privatize remaining govt cos 6.8% of GDP)

i) Atomic energy, Space and Defence ₹1500cr

ii) Transport and Telecommunications
iii) Power, Petroleum, Coal and other minerals
iv) Banking, Insurance and financial services ~₹15lcr
….
Non-Strategic= privatize all govt cos (
)
Privatization synonym= “strategic disinvestment”
( )
LIC disinvestment via IPO

Disinvestment: 2021: ₹1.75lcr ( )

2020: target not achieved by Corona😰
 Govt Schemes (May have Revenue Expenditure, Capital Expenditure or both)
Budget-2021 new schemes
• 1) PM AtmaNirbhar Swasth Bharat Yojana → Health infrastructure
• 2) Jal Jeevan Mission (Urban): Universal water supply to all cities
• 3) Urban Swachh Bharat Mission 2.0: Additional focus on plastic air pollution
construction waste etc [+ a few more but unable to cover in 5 min-clickbaiting]
A) Central Sector ~₹11lcr
Schemes: e.g Urea Subsidy, PM-KISAN ₹6k/pa
100% Union
B1) Core of the Core:
Schemes MNREGA, SC/ST,
Minorities…
B) Centrally Sponsored
Schemes (State may
have2 contribute) B2) Core Scheme: ~₹1lcr
AMRUT, Smart Cities,
Fasal Bima, PM-JAY 5l
Health insurance
(~₹4lcr)
~₹3lcr
 Deficits
+17lcr -29 -5* 15.** Lcr
+17
+15lcr +2 15
-8 222.** Lcr nominal
GDP (without
adjusting with
inflation)
-3
6.8%
Of GDP
Fiscal
1.75
deficit
Budget Deficit = 17-29+17-5= 0
Fiscal Deficit = Budget deficit + DebtBorrowing = 0+15=15lcr=6.8% of GDP
Primary Deficit = Fiscal deficit – interest on past loans = 15-8=7lcr= 3.1%
 Pause the video & peacefully look at this graph
FRBM: Fiscal responsibility & budget management act
requires the union to F.D to 3% of GDP but
Present circumstance: ⏬4.5% 2025-26😰
Budget 2021– Other Announcements
 Budget 2021– Other Announcements → Infrastructure ( )

NABARD Micro Public Private Partnership in Bus

Irrigation Fund transport, major shipping ports
etc

Agri Infrastructure Fund

ke liye ₹ (via New CESS)
Mega Investment Textiles Parks
(MITRA)
Development Financial
Institution (DFI) via new
law
+ many things
Stay tuned for Mrunal’s Win21CSP
Zero coupon bonds for Series
Infra
😰
 Whether this budget is good or bad ?
? = Opinion NOT IMP4EXAM
•✋✋personal opinion walle qualifier statements not
important for the prelims (mcq) and mains (descriptive).
•✅Factual Qs / salient feature type asked.

Interview prep:
•Keep appreciative tone :
•🤩tax terrorism ⏬, EoD⏫, local mfg⏫, infra⏫ etc.
•😰challenges? Tax:GDP,FD

To download Farzi Powerpoint

💾Mrunal.org/download
💾Telegram.me/MrunalOrg
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newspaper /MrunalOrg
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/theMrunalPatel
 • ✋UPSC Prelims is NOT on 2/feb/2021 morning 6AM
• It’s on week4 of June 2021
• Finish Budget + ES for “Prelim-Cum-Mains POV” one time. Since very
little time for Mains (Sept) after Prelims (June).
• Post-Prelim, I’ll again study from Mains POV= Babu SHONA✋
• To create proper summary in Win21CSP= I’ll need to study 500page ka
Economic Survey, 70 page ki Budget speech & associated docx, 25-30
noted people’s columns= takes time.

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