Presenting the Union Budget for 2020-21, Finance Minister Nirmala Sitharaman said, “In May 2019, Prime Minister Narendra Modi received a massive mandate to form the government again. People of India have unequivocally given their janaadesh for not just political stability, but have also reposed their faith in our economic policy. This is a budget to boost their income and enhance their purchasing power.”
The highlights of this year’s budget:
- A new tax regime has been announced. Those who want to be in the old regime with exemptions, can continue to pay at the old rates.
Between ₹5 lakh and ₹7.5 lakh
Reduced to 10% from the current 20%
Between ₹7.5 lakh to ₹10 lakh
Reduced to 15% from the current 20%
Between ₹10 lakh to ₹12.5 lakh
Reduced to 20% from the current 30%
Between ₹12.5 lakh to ₹15 lakh
Reduced to 25% from the current 30%
Above ₹15 lakh
Continue at 30%, but without exemptions
- Over 70 deductions have been removed.
- Companies will no longer be required to pay Dividend Distribution Tax (DDT).
- Aadhaar-based verification for GST compliance to be introduced.
- Aadhaar-based quick issuance of PAN announced.
Economy and Finance:
- Bank deposit insurance cover had been increased from ₹1 lakh to ₹5 lakh per depositor.
- Government plans to amend the Companies Act to decriminalise civil offences.
- Government to sell part of its stake in LIC via public offering.
- A budget allocation of ₹2.83 lakh crore for the sector comprising agriculture and allied activities.
- Doubling farmers incomes by 2022.
- Agri-credit availability set at ₹15 lakh crore for 2020-21.
- Comprehensive measures for 100 water stressed districts.
- Provide 20 lakh farmers to set up standalone solar pumps. Help another 15 lakh farmers to solarise their power grid.
- Village storage scheme proposed to be run by women SHGs.
- Indian Railways to have refrigerated coaches capability in ‘kisan trains’ to carry perishables and milk.
- Krishi UDAN on international and national routes.
Health and Sanitation:
- An allocation of ₹69,000 crore for the health sector.
- ₹12,300 crore for Swachh Bharat this year.
- Proposal to set up hospitals in Tier-II and Tier-III cities with the private sector using PPP.
- Expand Jan Aushadhi scheme to provide for all hospitals under Ayushman Bharat by 2025.
- ₹99,300 crore for education sector in 2021 and about ₹3,000 crore for skill development.
- Urban local bodies to provide internship to young engineers for a year.
- Degree-level full-fledged online education programmes by institutions ranked in top 100 in NIRF rankings, especially to benefit underprivileged students.
- A national police university and a national forensic science university is proposed to be setup.
- IND SAT exam for students of Asia and Africa to promote “study in India” programme.
- Budget proposes to provide ₹1.7 lakh crore for transport infrastructure in 2021
- National Logistics Policy to be released soon.
- Chennai-Bengaluru Expressway to be started.
- Aim to achieve electrification of 27,000 km of lines.
- Plan to have a large solar power capacity for Indian Railways.
- The government also proposes a Bengaluru suburban rail project at a cost of ₹18,600 crore.
- Government to monetise 12 lots of national highways by 2024.
- 100 more airports will be developed by 2024 to support UDAN.