Finance Minister Nirmala Sitharaman proposed a sharp increase in capital expenditure and provided Rs 5.54 lakh crores. 'A spike of 34.5% more than the budgetary estimates for 2020-21', FM Nirmala Sitharaman added.
The Finance Minister proposed increasing Foreign Direct Investment (FDI) limit in the insurance sector increase to 74% from 49%. The government has allowed foreign ownership in insurance with safeguards. 'I propose to amend the Insurance Act 1938 to increase the permissible FDI limit from 49% to 74% in insurance companies and allow foreign ownership and control with safeguards,' the FM said.
Finance Minister Nirmala Sitharaman also announced the further recapitalization of Rs 20,000 crore for Public Sector Banks (PSBs) in the Financial Year 2021-22. FM further announced that the proposal to allow depositors of stressed banks to access up to Rs 5 lakh as per DICGC.
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