The Finance Minister of India Nirmala Sitharaman presented the Union Budget 2020-21 for the second term of Narendra Modi-led Government on Saturday which will create a pathway of making India a $5 Trillion Economy by the year 2024-25.
Industries and Corporates
MSME Business turnover threshold for the audit has been raised to Rs. 5 crores from Rs. 1 crore.
Instant PAN based on Aadhaar proposed and Aadhaar-based verification for GST compliance to be introduced to identify dummies.
Banking & Tax System
New Simplified Personalized Income Tax Regime:
5-7.5 Lakhs – 10% reduced from 15%
7.5-10 Lakhs – 15% reduced from 20%
10-12.5 Lakhs – 20% reduced from 30%
12.5-15 Lakhs – 25% reduced from 30%
15 Lakhs or more – 30% same as earlier rate
Dividend Distribution Tax has been removed, it has been argued that the system of levying DDT results in increase of tax burden for investors.
Deposit insurance cover increased to Rs. 5 lakh from Rs. 1 lakh.
Government plans to sell its stake in LIC and its holding in IDBI to be sold to the private sector.
Indian Institute of Heritage and Conservation to be set up, with the status of a deemed university. A Tribal Museum is proposed in Ranchi, Jharkhand.
Five archaeological sites will be developed as world-class sites:
Hastinapur, Uttar Pradesh
Adichanallur, Tamil Nadu
Rs. 3,150 crore allocated to Ministry of Culture.
Rs. 2,500 crore allocated to promote Tourism.
Rs. 4,400 crore allocated to promote clean air in cities with 1 million population.
FDI and ECB in education, 150 higher education institutions to start apprenticeships. Urban Local Bodies to provide internships opportunities for fresh engineers for a year.
Study in India: An INDSAT exam is proposed to be held in Asian and African countries, a National Police University and a National Forensic Science University are proposed.
The government proposes to provide Rs. 8,000 crore over five years for the National Mission on Quantum Technology and Applications.
Rs. 99,300 crore allocated to the Education sector and Rs. 3,000 crore for Skill Development
Infrastructure & Energy Development
Chennai-Bengaluru Expressway to be started, Aircraft fleet size will increase to 1,200 planes by 2024 and 100 more airports will be developed by 2024 to support UDAN.
The government also proposes a Bengaluru suburban rail project at a cost of Rs. 18,600 crore and Rs. 1.7 lakh crore for transport infrastructure in 2021.
100,000 Gram Panchayat will be connected with Bharat Net Programme.
Rs. 22,000 crore to power and renewable energy sector.
Rs. 27,300 crore for development and promotion of industry and commerce in 2021.
Health & Human Development
The government proposes to set up hospitals in Tier-II and Tier-III cities with the private sector using PPP, Tuberculosis to be ended in the country by 2025.
Rs. 69,000 crore allocated to the Health sector and Rs. 12,300 crore for Swachch Bharat mission.
Rs. 35,600 crore allocated for nutrition-related programmes.
SC and OBC development – Rs. 85,000 crore
ST development – Rs. 53,000 crore
Senior citizens and persons with disabilities – Rs. 9,000 crore.
Govt committed to double the income of farmers by 2022
Encourage the state governments to implement model laws passed by the central government — Model Agri Land Leasing Act, 2016, APMC, 2017 and Contract Farming, 2018.
The government will provide 20 lakh farmers with stand-alone solar pumps and help another 15 lakh farmers to solarise their farms.
Comprehensive measures for 100 water-stressed districts, encourage farmers to use all kinds of fertilizers.
Special Farmer Rail
Developing… more to follow