BUDGET 2020

           

Union Finance Minister Mrs. Nirmala Sitharaman delivered the longest budget speech of around 2 hours 45 minutes. A lot was expected from this year's budget as the economy is in the midst of a slowdown and a strong budget was necessary to put the economy back on track.
            So lets have a look at the key highlights of the budget 2020 :
1. DIRECT TAX 
The Government has introduced a new tax regime for those foregoing exemption and deductions. The new tax rate is optional. To simplify tax system more than 70 deductions and exemptions have been removed.
                                           
TAXABLE INCOME SLAB
TAX RATE
Upto Rs. 5 lakh
Nil
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%
  • Dividend Distribution Tax (DDT) has been abolished from companies side. Companies are not required to pay DDT, dividend will be taxed only from recipients.
  • "Vivad se Vishwas" scheme for direct tax payers whose appeal are pending at various forums.
2. AGRICULTURE 
  • Rs. 2.83 Lakh Crore has been allocated for Agriculture and allied activities.
  • Agriculture credit target pegged at Rs. 15 Lakh for 2020-21.
  • Comprehensive measures for 100 water-stressed districts being proposed.
  • Under PM KUSUM scheme 20 lakh farmers will be provided funds to set up standalone solar pumps and another 15 lakh farmers would be provided funds to set up grid-connected solar pumps.
  • Krishi UDAN scheme for agricultural exports on national and international routes
  • Indian Railway will setup Kisan Rail through PPP arrangement for transportation of perishable goods.
3. EDUCATION
  • Rs. 99,300 crore has been allocated for education sector and Rs. 3000 crore for skill development.
  • To promote "Study in India" programme, US like SAT exam to be held for students of Asia and Africa.
  • Degree level full fledged online education programme to be offered by institutes in top 100 in NIRF. 
4. INFRASTRUCTURE
  • Rs. 1.7 lakh crore allocated for transport infrastructure.
  • 100 more airports to be set up by 2024 to support UDAN scheme
  • Chennai-Bengaluru expressway to be started. Delhi-Mumbai expressway to be completed by 2023.
5. RAILWAYS
  • Proposal to be set up large solar capacity along the rail tracks, on land owned by railways.
  • Four station re-development projects and operation of 150 passenger trains would be done through PPP mode.
  • More tejas type train for tourists.
  • 148 km long Bengaluru suburban transport project at a cost of Rs. 18,600 crore.
6. HEALTHCARE
  • Rs.69,000 crore allocated to healthcare sector including Rs. 6400 for PM Jan Arogya Yojana.
  • Viability Gap funding window for setting up hospital in PPP mode.
  • Proposal to expand Jan Aushadhi Kendra scheme offering 2000 medicines and 300 surgicals by 2024.
  • "TB harega Desh Jeetega" Campaign to eliminate tuberculosis by 2025.
  • Propsal to set up hospital in Tier-II and Tier-III cities in PPP mode.
7. SANITATION
  • Rs. 12.300 crore allocated for Swachh Bharat.
  • Rs. 3.6 lakh crore allocated for water sanitation and pipeline project
  • Committed to Open Defecation Free (ODF), in order to sustain ODF behaviour and to ensure no one is left behind.
8. BANKING
  • Bank Deposit insurance cover has been increased from the existing Rs. 1 lakh to Rs. 5 lakh.
  • Banking Regulation Act to be amended to strengthen cooperative banks.
9. SOCIAL WELFARE
  • Rs. 85,000 crore for the welfare of Scheduled Castes and other backward classes. 
  • Rs. 57,300 for the welfare of Schedule Tribes.
  • Rs. 4,400 crore allocated to tackle the problem the pollution.
  • Enhanced allocation of Rs. 9,500 crore for senior citizens and Divyang.
10. OTHERS
  • Government to part of it stake in LIC via public offering, also in IDBI.
  • Disinvestment target for FY pegged at Rs. 2.1 lakh crore.
  • National Textile Mission to be launched with a proposed Rs. 1480 crore allocation.
  • Tax holiday for affordable home extended by 1 year. Additional deduction of Rs. 1.5 lakh for interest paid on loans taken for an affordable house extended till 31st March, 2020.
STATISTICS
  • FY21 fiscal deficit target pegged at 3.5% and 3.8% for FY20.
  • Nominal GDP growth rate for FY21 has been estimated to be 10%.
  • Between 2006-2016, 271 million people came out of poverty.
  • India is world's 5th largest economy.
  • Central government debt came down to 48.7% in March 2019 from 52.2% in March 2014.
  • FDI rose to $284 billion during 2014-19.

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