Union budget is the annual financial statement of India. On February 1, 2020, Finance Minister Nirmala Sitharaman presented the Union Budget of India for 2020-2021. It is the second budget of the second term of the NDA government. The budget speech was the longest speech ever delivered by a Finance Minister of India. Sitharaman started her Budget speech by showing respect to the Late Arun Jaitley. She also read out a Kashmiri poem and a Tamil couplet during her Budget Speech. Sitharaman announced that 2020’s budget revolved around three themes- ” Aspirational India, economic development and caring society that is humane and compassionate. ”
• Allocations: Allocation for agriculture is 1.38 lakh crore. Rural development allocation is 1.23 lakh crore. Agriculture and rural allocation is 2.83 lakh crore. Agriculture credit target has been allocated 15 lakh crore. The educational sector is allocated 99,300 crores. Healthcare allocation is 69,000 crore. Transport infrastructure has been allocated 1.7 lakh crore.
Proposal to bring more TEJAS type trains.
Using Public-Private Partnership (PPP) models to initiate 4 station redevelopment projects.
To launch the Bengaluru Suburban Transportation Project worth 18,600 crores and provide 20% equity.
Setting up of Kisan Rail in PPP model to transport perishable goods.
Setting up of huge solar power capacity along the railway tracks.
Promotion of ‘Study in India’ initiative.
Apprenticeship diplomas offered by 150 higher education institutions.
New education policy soon to be announced
Proposal to attach medical colleges to the present district hospitals.
Allocation of 3000 crores for ‘Skill India’ to provide the necessary skill required by the youth.
Setting up of Project Preparation Facility to prepare infrastructure projects.
Setting up of various projects to involve the young management and engineers graduates.
Committed to obliterate tuberculosis by 2025.
Allocation of 6,400 crores for Ayushman Bharat Yojna.
Plan to expand Mission Indradhanush.
Ayushman Bharat Scheme aims to cover5 health assurance of up to 5 lakh per family.
Swachch Bharat Mission encouraged and allocated 12,300 crores.
Sitharaman quoted- NDA government is committed to Open Defecation Free(ODF) plus to sustain ODF behavior and to ensure no one is left behind.
Air pollution scheme to be announced soon. 4,400 crore is allocated for states that actively work towards maintaining clean air.
Launching of ‘Krishi Udaan’ by the Civil Aviation Ministry for agricultural exports.
‘Krishi Udaan’ to transport agricultural products to both national and international locations.
Expansion of the NABARD refinances scheme.
NBFC’s active in credit.
All kisan covered under the Kisan Credit Card (KCC) Scheme.
Expansion of ‘PM Kusum Scheme’ to set up solar pumps to 20 lakh farmers.
Solar power units to be set up by the government.
Encouraging the balanced use of all fertilizers by the farmers.
To change the existing incentive scheme that pushes the use of chemical fertilizers.
Strengthening of online natural products.
Farm income to double by 2022.
16 actionable plans to increase the income of farmers.
Proposal for the village storage scheme.
Proposal to build warehousing facilities on the land of farmers
Proposal for raising fish production to 200 lakh tons. This is done keeping in mind the youth and to involve them in the fish farmer producer organizations.
Strengthening of Jaivik Kheti.
Doubling of the milk processing capacity by 2025.
Expansion of integrated farming systems in areas that have less than 30% irrigation.
Allocation of 3.6 lakh crore to the piped water supply to harvesting rainwater, households and recharging existing sources.
• New income tax slabs
Proposal for a new income tax rate for those who earn up to 15 lakh a year. Annual income between 5 to 7.5 lakhs will incur a 10% tax rather than 20%. Income between 7.5 to 10 lakhs will incur a 15% tax rather than the previous 20%. The income of 10-12.5 lakh witnessed a steady decline of 30% to 20%. Income between 12.5-15 lakhs will incur a tax of 25% rather than 30%. The tax of income between 0-2.5 lakhs, 2.5-5 lakhs and 15 lakhs above remains the same. Sitharaman says the personal income tax is at the lowest rate of all time.
Beneficial to pensioners, entrepreneurs, freshers.
• Removal of dividend tax for companies.
• Sovereign Wealth Fund’s Indra Investment to exempt 100% tax.
• Focus on encouraging the manufacture of electronic equipment and mobile phones.
Subsidy of food at 1.15 trillion.
Subsidy of petroleum at 409.15 billion.
Subsidy of fertilizer at 713.09 billion.
• Power sector
Allocation of 273 billion for the promotion of commerce and industry.
Shutting down of thermal power plants if they do not meet the required emission norms.
Allocation of 80 billion over 5 years for quantum technologies.
Proposal to maintain the commitment made at the Paris Conference from 1st January 2021.
Development of 200 port and coastal roads.
Development 0of 2500 access control highway.
Development of five new smart cities.
Completion of Delhi-Mumbai expressway and 2other corridors by 2023.
Development of 9000 km eco-development corridors.
Development of 100 more airports within 2024 by the NDA government’s “Udaan” scheme.
Privatization of at least one major port.
Monetization of over 6000 km of highways by 2024.
• Customs duty
Custom duty on platinum and palladium decreased to 7.5% from 2.5%.
Custom duty on walnuts increased to 100% from 30%.
Custom duty on auto and auto parts increased by 10%.
Custom duty on fan increased to 20% from 10%.
Customs duty on specified goods used in ac and refrigerators increased to 12.5% from 10%.
• Issue of quality standards and focus on adopting technical standards.
• Proposal of Nirwik scheme that digitally refunds taxes and duties imposed locally for exporters.
• Proposal to promote government e-marketplace (GEM).
• Expansion of the national gas grid from 16,200 km to 27,000 km.
• Plan to introduce prepaid smart meters in all states and union territories in the next 3 years.
• The building of data center parks by the private sector could benefit all IT firms irrespective of their capacity.
• Increment of tax on cigarettes and tobacco products.
• Allocation of 6000 crores for the BharatNet program. Over 1 lakh gram panchayats to be linked in this year by BharatNet.
• Increment of deposit insurance from 1 lakh to 5 lakh.
Sitharaman revealed that GST had been the most historic structural reform that India had ever seen.
Consumers receive the extended GST benefit of 1 lakh crore.
Plan to introduce a simpler GST filing system.
Addition of 16 lakh new taxpayers.
• The nominal GDP growth in 2020-2021 is estimated to be 10%.
• Announcement of a national logistics policy soon.
• Selling of government stake in IDBI bank to private sectors.
• Selling of government stake in LIC through an initial public offering (IPO)
• Allocation of 20,000 crores for the renewable energy sector.
• Allocation of 100 crores in holding the G-20 summit.
• Allocation of 9000 crores for the welfare of senior citizens and 500 crores for Divyangs.
• Allocation of 53,700 crores for the upliftment of the Scheduled Tribes and 85,000 crores for the welfare of Scheduled Castes and Other Backward Classes.
• Allocations of 13,000 crores to Defence pensions.
• Allocation of 30,757 crores to the Union Territory of Jammu and Kashmir.
• Allocation of 3150 crores to the Ministry of Culture within 2020-2021.
• Setting up of Indian Institute of Heritage and Conservation.
• Five sites- Dholavira, Rakhigarhi, Adichanallur, Sivasagar, and Hastinapur to be converted into top-class archaeological sites.
• Development of a Tribal Museum in Ranchi, Jharkhand.
• Development of a New currency museum the Kolkata Mint.
• Proposal to provide 35,600 crore for nutrition related programmes by 2020-2021.
• Suitable technology employed to remove the manual way of cleaning septic tanks and sewer systems.