With India going through the economic slowdown, Finance Minister Nirmala Sitharaman presented the 'Bahi Khata Budget' at the lok sabha today. India has been going through one of the worst economic slowdowns and this budget was one of the most anticipated.
Earlier, copies of Budget2020 have been brought to the Parliament.
Finance Minister Nirmala Sitharaman started her Budget speech by thanking PM Modi and said we commit ourselves to present the people of India with all humility and dedication. People have reposed faith in our economic policy.
So here are the key announcements made by Nirmala Sitharaman:
Informing about the Goods and Services Tax, SItharaman said, 'GST has resulted in efficiency gains in the transport and logistics sector, inspector raj has vanished, it has benefitted Micro, Small & Medium Enterprises(MSME). Consumers have got an annual benefit of 1 lakh crore rupees by GST'
Central government's debt has come down to 48.7% in March 2019 from 52.2% in March 2014
1) Farming Sector:
-Pradhan Mantri Kisan Urja Suraksha avem Utthan Mahabhiyan (PM KUSUM) to be expanded to provide 20 lakh farmers in setting up standalone solar pumps
-For sector comprising agriculture, allied activities, irrigation and rural development, an allocation of Rs 2.83 lakh crores has been made for 2020-21
-Village Storage Scheme run by Self Help Groups will provide holding capacity for farmers, women in villages can regain their status as 'Dhaanya Lakshmi'
-Comprehensive measures for 100 water-stressed districts being proposed in this budget; agricultural credit target has been set at Rs 15 lakh crore.
-Allocation of Rs 12,300 crores for Swachh Bharat Mission for the year 2020-21.
-Youth and fishery extension work to be enabled by rural youth as 'Sagar Mitras', forming 500 fish farmer producing organizations.
2) Railway Sector:
-To build a seamless national cold supply chain for perishables, Indian Railways will set up Kisan Rail through PPP model so that perishable goods can be transported quickly. Krishi Udaan will be launched by MoCA on international and national routes.
-Setting up large solar panel capacity alongside the railway tracks on land owned by railways, a proposal is under consideration. More Tejas type trains will connect iconic destinations.
-High-speed train between Mumbai and Ahmedabad will be actively pursued.
3)Education Sector:
-Rs 99300 crores for the education sector in 2020-21 and Rs 3000 crores for skill development
-A degree-level full-fledged online education programme to be offered by institutes in top 100 in National Institutional Ranking Framework.
-To provide Rs 35600 crores for nutrition-related programmes for 2020-21
-IND-SAT exam to provide scholarship to Asian, African students to study in India
4) Medical Sector:
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-There is a shortage of qualified medical doctors both general practitioners and specialists; it is proposed to attach a medical college to a district hospital in PPP mode
-Viability gap funding window to be set up to cover hospitals, with priority given to aspirational districts that don't have hospitals empanelled under Ayushman Bharat scheme.
-Clean air is a matter of concern in large cities, propose to encourage states to formulate and implement plans to ensure clean air. Allocation for this purpose is Rs 4,400 crores.
-To impose a nominal health cess on imports of medical equipment
5)Business Sector:
-Entrepreneurship is strength of India.To set up an investment clearance cell that will provided end to end facilitation and support including pre-investment advisory, info on land banks and facilitate clearance at state level
-To provide Rs 27300 crore for development for industry and commerce for year 2020-21
-To soon bring out a policy to enable private sector to build Data Centre Parks in the country
-Rs 27,300 cr for industry, commerce development
-Start-ups are engine of growth. Propose to increase the turnover limit for startups from Rs 25 crores to 100 crores.
6)Transport Sector
-The Delhi-Mumbai Expressway will be completed by 2023
- To provide Rs 1.7 lakh crores for transport infrastructure in 2020-21.
7) Energy Sector
-To provide Rs 22000 crores to power and renewable energy sector in 2020-21
8) Water
-Rs 3.6 lakh crore approved for Jal Jeevan Mission
9) Tourism Sector
-5 archaeological sites to be developed as iconic sites with on-site museums -Rakhigarhi, Hastinapur, Shivsagar, Dholavira and Adichanallur
-To provide Rs 2500 crores for promotion of tourism in the year 2020-21
-Indian Institute of Heritage and Culture to be established under Ministry of Culture
10) Jammu and Kashmir and Ladakh
Allocation of Rs 30,757 crores for 2020-21 for Jammu and Kashmir and Rs 5,958 crores for Ladakh
11) Banking Sector:
-Deposit Insurance and Credit Guarantee Corporation has been permitted to increase deposit insurance coverage to Rs 5 lakh per depositor from Rs 1 lakh
-Mechanism will be made to address liquidity constraints of NBFCs and Hosue finance corporations. Govt to offer support by guaranteeing securities floated to provide liquidity for NBFCs
-Government proposes to sell a part of its holding in LIC by an initial public offer.
-Deposit Insurance and Credit Guarantee Corporation has been permitted to increase deposit insurance coverage to Rs 5 lakh per depositor from Rs 1 lakh
-Mechanism will be made to address liquidity constraints of NBFCs and Hosue finance corporations. Govt to offer support by guaranteeing securities floated to provide liquidity for NBFCs
-Estimate a fiscal deficit of 3.8% in RE 2019-20 and 3.5% for BE 2020-21
- The proposed regime, those with income between Rs 7.5-10 lakhs can pay tax at 15% against the current 20%. Those with income between Rs 10-12.5 lakhs can pay tax at 20% against 30%
-As per Sitharaman, around 70 of more than 100 income tax deductions and exemptions have been removed, in order to simplify tax system and lower tax rates
-In order to promote affordable housing projects, FM proposed to extend date of approval of affordable housing projects for availing tax holiday by one more year
-Dividend Distribution Tax to be removed, companies will not be required to pay DDT, dividend to be taxed only at the hands of recipients at applicable rates
-Concessional corporate tax cut to be extended to new domestic companies engaged in power generation
Other Announcements:
Estimated nominal growth of GDP for the year 2020-21 on the trends available, at 10%.
Enhance allocation of Rs 9500 crores for senior citizens and 'Divyang'.
85,000 crore rupees for Scheduled Castes and Other Backward Classes in 2020-21; 53,700 crore rupees for Scheduled Tribes
India will host G-20 presidency in the year 2022; Rs 100 crores allocated for preparation
The income of charitable institutions fully exempt from taxation; Donation to such institutions allowed as deduction in computing taxable income of donor
Govt to launch system for instant allotment of PAN on basis of Aadhaar