31 Key Points About Union Budget 2020

Finance Minister Nirmala Sitharaman on Saturday i.e Feb 1, 2020 unveiled the budget for fiscal 2020-21, vowing to boost the income of Indians and their purchasing power, in a bid to revive domestic economic growth that has slumped to lowest in decade.

Union Budget 2020 highlights:

  1. Overall theme is “Ease of Living.”
  2. Between 2006-2016, 271 million are out of poverty and we should be proud of it.
  3. Country has moved on from over 4 per cent growth in 1950s to 7.4 per cent to 2014-19 period.
  4. Finance minister Nirmala Sitharaman says Central government debt reduced to 48.7 per cent of GDP in 2019 from 52.2 per cent.
  5. India is now 5th largest economy in world.
  6. Government to incentivise farmers to go solarOver 6 crore farmers under Pradhan Mantri Fasal Bima Yojna have been insured. Pradhan Mantri Kisan Urja Suraksha and Utthan Mahabhiyan (PM KUSUM) to be expanded, providing 20 lakh farmers in setting up standalone solar pumps.
  7. Education and Training Govt will start start Ind-Sat Exam to promote study in India and a degree-level online education programme for the deprived. A total of Rs 3,000 crore will be given for skill development.
  8.  Aspirational India – better standards of living with access to health, education and better jobs for all sections of the society.
  9. Economic Development for all – “Sabka Saath , Sabka Vikas , Sabka Vishwas”.
  10. Caring Society – both humane and compassionate; Antyodaya as an article of faith.
  11. Village storage scheme – SHG  to provide farmers a good holding capacity and reduce their logistics cost. Women, SHGs to regain their position as Dhaanya Lakshmi
  12. Kisan Rail – To build a seamless national cold supply chain for perishables (milk, meat, fish, etc.) ,Express and Freight trains to have refrigerated coaches.
  13. Krishi Udaan Krishi Udaan will be launched by Civil Aviation Ministry to transport agri-products to national as well as international destinations.
  14. PM Modi’s ‘Nal se jaal’ scheme announced, govt proposes Rs 3.6 lakh crore towards piped water supply to households.
  15. National Textile Mission to be launched with a proposed Rs 1,480 crore allocation.
  16. To boost infrastructure, 9,000 km of economic corridor will be set up. “Chennai-Bengaluru expressway will also be started. Delhi-Mumbai expressway to be completed by 2023,” .
  17. 550 Wi-Fi facilities have been commissioned at railway stations. 1 lakh gram panchayats to get optical fiber link. An allocation of Rs 6,000 crore will be provided for BharatNet scheme.
  18. 100 more airports to be developed by 2025.  The FM also said 1,150 trains will run under the public private partnership (PPP) mode, also four stations will be redeveloped with the help of the private sector. Besides, the minister promised more Tejas type trains to connect tourist destinations.
  19. An allocation of Rs 8,000 crore will be made for National Mission on Quantum computing and Technology.
  20. Women schemes, senior citizens in Budget: Sitharaman says enrolment ration for girls under ‘Beti Bachao Beti Padhao‘ is higher than boys. “Gross enrollment of girls is 94.32 per cent in elementary levels, 81.32 per cent in secondary level and 59.7 per cent in higher secondary level,” she says. Further, Rs 28,600 crore will be allocated in FY21 for women linked programs.
  21. Budget also proposes Rs 4,400 crore to tackle Delhi’s air pollution problem. Last year, the Supreme Court had termed the situation as “worse than Emergency” as air quality dipped to hazardous levels.
  22. Foreign direct investment (FDI) into the country has increased to $284 billion during 2014-19 from $190 billion in previous five years.
  23. Nirvik (Niryat Rin Vikas Yojana) scheme to provide enhanced insurance cover and reduce premium for small exporters.
  24. Fiscal deficit target pegged at 3.8% of GDP for FY 2019-20.  FY21 fiscal deficit target pegged at 3.5% of GDP. Fiscal deficit is considered the most important marker of a government’s financial health. Not letting the fiscal deficit go completely out of control has been one of the standout achievements of the Modi government.
  25. Government to sell part holding in LIC. Besides, govt to also sell stake in IDBI Bank to private investors. The government’s move is a part of efforts to push through an aggressive disinvestment and asset monetisation programme.
  26. Nominal growth of GDP for 2020-21 has been estimated at 10 per cent.
  27. Budget proposes new simplified tax regime soon. New income tax rates : 10% tax for income between 5 lakh-7.5 lakh; 15% tax for income between 7.5 lakh to 10 lakh; 20% tax for income between 10 lakh to 12.5 lakh; 25% tax for income between 12.5 lakh to 15 lakh; 30% tax for income above 15 lakh.
  28.  Dividend Distribution Tax is to be removed. Dividend shall be taxed at the hands of the recipients.
  29. To boost investments and shore up the lagging economy, corporate tax for existing companies slashed to 22 per cent. Govt proposes 100 per cent tax concession to sovereign wealth funds on investment in infra projects. Moreover, concessional tax rate of 15 per cent extended to power generation companies.
  30. Coming to affordable housing now: Finance Minister Nirmala Sitharaman extends additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021.
  31. ‘Vivad se Vishwas’ scheme announced by Sitharaman for direct taxpayers whose appeals are pending at various forum. 4.83 lakh direct cases pending in various appellate forums. Under the scheme, taxpayer to pay only amount of disputed tax. They will get complete waiver on interest and penalty if scheme is availed by March 31, 2020.
  32. 15th Finance Commission has cut state share of central taxes by one percentage point to 41 per cent.

Girish

    Senior Lecturer, SSBCrackExams, B-Tech, Mechanical Engineering Examinations - Cleared written exams in CAPF AC- 2018, 2019(Written), Intelligence Bureau ACIO(Written), AP Public Service commission GROUP 1(Written), AP Public Service commission GROUP 2(Written).

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