Finance Minister Nirmala Sitharaman presented the Union Budget structured on the overall theme of “ Ease of Living”. Further, three prominent themes of the budget are −
- Aspirational India: Better standards of living with access to health, education and better jobs for all sections of the society.
- Economic Development for all: “Sabka Saath, Sabka Vikas, Sabka Vishwas”.
- Caring Society: Both humane and compassionate.
Agriculture, Irrigation and Rural Development
- Rs. 15 lakh crore target set for the year 2020-21.
- PM-KISAN beneficiaries to be covered under the KCC scheme.
- Rs. 1 lakh crore fisheries’ exports to be achieved by 2024-25.
- 200 lakh tonnes fish production targeted by 2022-23.
- 3477 Sagar Mitras and 500 Fish Farmer Producer Organisations to involve youth in fisheries extension.
- Kisan Rail to be setup by Indian Railways through PPP to build a seamless national cold supply chain for perishables.
- Krishi Udaan to be launched by the Ministry of Civil Aviation.
- One-Product One-District for better marketing and export in the Horticulture sector.
- Jaivik Kheti Portal – online national organic products market to be strengthened.
- PM – KUSUM to be expanded.
- Financing on Negotiable Warehousing Receipts (e-NWR) to be integrated with e-NAM.
- Deen Dayal Antyodaya Yojana – 0.5 crore households mobilised with 58 lakh SHGs for poverty alleviation.
- In Livestock, doubling of milk production capacity, and increase in artificial insemination sought.
Wellness, Water and Sanitation
- Jan Aushadhi Kendra Scheme to offer 2000 medicines and 300 surgicals in all districts by 2024.
- TB Harega Desh Jeetega campaign launched – commitment to end Tuberculosis by 2025.
- Commitment to ODF – Plus in order to sustain ODF behaviour.
- Rs. 69,000 crore allocated for overall Healthcare sector.
Education and Skills
- New Education Policy to be announced soon.
- National Police University and National Forensic Science University proposed for policing science, forensic science, and cyber-forensics.
- Up to 1-year internship to fresh engineers to be provided by Urban Local Bodies.
- Ind-SAT proposed for Asian and African countries as a part of Study in India program.
- Rs. 99,300 crore for education sector and Rs. 3,000 crore for skill development in 2020-21 is allotted.
Industry, Commerce and Investment
- Investment Clearance Cell proposed to be setup.
- National Technical Textiles Mission to be setup to position India as a global leader in technical textile.
- New scheme NIRVIK to be launched to achieve higher export credit disbursement. All Ministries to issue quality standard orders as per PM’s vision of “Zero Defect-Zero Effect” manufacturing.
- Rs.27,300 crore allocated for 2020-21 for development and promotion of Industry and Commerce.
- National Infrastructure Pipeline – More than 6,500 projects across sectors, to be classified as per their size and stage of development.
- A National Logistics Policy to be released soon.
- National Skill Development Agency to give special thrust to infrastructure – focused skill development opportunities.
- Rs.100 lakh crore to be invested on infrastructure over the next 5 years.
- Expansion of national gas grid from the present 16,200 km to 27,000 km proposed.
- Rs.22,000 crore proposed for power and renewable energy sector in 2020-21.
- Policy to enable private sector to build Data Centre parks throughout the country.
- Rs.6,000 crore proposed for Bharat net programme in 2020-21.
- Mapping of India’s genetic landscape – Two new national level Science Schemes to be initiated to create a comprehensive database.
- Knowledge Translation Clusters to be set up across different technology sectors including new and emerging areas.
- Rs.8,000 crore proposed over five years for National Mission on Quantum Technologies and Applications.
- Deposit Insurance and Credit Guarantee Corporation (DICGC) permitted to increase Deposit Insurance Coverage to Rs. 5 lakh from Rs.1 lakh per depositor.
- Co-operative Banks to be strengthen by amending Banking Regulation Act.
- NBFCs eligibility limit for debt recovery reduced from − Rs. 500 crore to Rs. 100 crore asset size, Rs. 1 crore to Rs. 50 lakh loan size.
- Government to sell its balance holding in IDBI Bank to private, retail and institutional investors through the stock exchange.
- FPI limit in corporate bonds increased to 15% from 9% of its outstanding stock.
- Debt Based Exchange Traded Fund expanded by a new Debt-ETF consisting primarily of Government Securities.
- An International Bullion exchange(s) to be set up as an additional option for trade by global market participants with the approval of regulator.
- Government to sell a part of its holding in LIC by way of Initial Public Offer (IPO).
- For year 2020-21:Nominal growth of GDP estimated at 10%.
- Fiscal deficit of 3.8% estimated in RE 2019-20 and 3.5% for BE 2020-21.
- Around 70 of the existing exemptions and deductions (more than 100) to be removed in the new simplified regime.
- Corporate Tax- Tax rate of 15% extended to new electricity generation companies.
- Dividend Distribution Tax – DDT removed making India a more attractive investment destination.
- Start-ups – Start-ups with turnover upto Rs. 100 crore to enjoy 100% deduction for 3 consecutive assessment years out of 10 years.
- MSMEs – Turnover threshold for audit increased to Rs. 5 crore from Rs. 1 crore for businesses carrying out less than 5% business transactions in cash inorder to boost less cash economy.
- Co-operative societies exempted from Alternate Minimum Tax (AMT) just like Companies are exempted from the Minimum Alternate Tax (MAT).
- Affordable Housing – Additional deduction up to Rs. 1.5 lakhs for interest paid on loans taken for an affordable house extended till 31st March, 2021.
- Income Tax Slabs for individuals below 60 years of age under new tax regime – Applicable to FY 2020-21 (AY 2021-22). The tax calculated on the basis of such rates will be subject to health and education cess of 4%. Any individual opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions.
|Income Tax Slab||Tax Rate|
|Up to Rs 2.5 lakh||NIL|
|Rs 2.5 lakh to Rs 5 lakh||5%|
|Rs 5 lakh to Rs 7.5 lakh||10%|
|Rs 7.5 lakh to Rs 10 lakh||15%|
|Rs 10 lakh to Rs 12.5 lakh||20%|
|Rs 12.5 lakh to Rs 15 lakh||25%|
|Rs 15 lakh and above||30%|