Finance Minister Nirmala Sitharaman on Saturday introduced Union Budget for fiscal year 2020-21, which intends to provide Indian economy a motivation to turn up as more vibrant and stronger.
With a stress on capacity building and empowerment of marginalised section of society including farmers, the Budget plans to secure, as stated by the Finance Minister, that "our people should be gainfully employed. Our businesses should be healthy. For all minorities, women and people from SCs and STs, this Budget aims to fulfil their aspirations."
Here’s a quick glimpse at the key highlights:
INCOME TAX SLABS
- Income between Rs 10-12.5 lakh, tax rate cut to 20 pc from 30 pc.
- Income above 15 lakh rupees will continue to be taxed at 30 pc.
- Income between Rs 5-7.5 lakh, the tax rate is 10 pc.
- Income between Rs 7.5-10 lakh, the tax rate is 15 pc.
- Those earning up to Rs 5 lakh in a year will pay no tax.
- A person earning Rs 15 lakh per anum and not availing any deductions will now pay Rs 1.95 lakh tax in place of Rs 2.73 lakh.
- The new personal income tax regime entails an estimated revenue foregone amounting to Rs 40,000 crore per year.
- Encouraging manufacturer of mobile phones, electronic equipment and semiconductor packaging.
- National technical textiles mission to position India as a global leader.
- Investment clearance cell to provide 'End-to-End' facilitation and support to entrepreneurial youth.
- Developing five new smart cities in collaboration with states in PPP mode.
- The government's debt has reduced to 48.9 per cent from 52.2 per cent while presenting the Union Budget in the Lok Sabha.
- With renewed vigour, under PM's leadership, we commit ourselves to present the people of India with all humility and dedication. People have reposed faith in our economic policy, said Sitharaman.
GOODS AND SERVICES TAX
- Consumers have got an annual benefit of Rs 1 lakh crore by GST.
- Inspector Raj has vanished. It has benefitted MSME.
- The new tax regime has resulted in efficiency gains in the transport and logistics sector.
CREDIT FOR FARMERS
- The government to disburse Rs 15 lakh crore among farmers as credit for the year 2020-21.
- Refinancing scheme of National Bank for Agriculture and Rural Development (NABARD) will be further expanded.
INDUSTRY, COMMERCE DE AND ROAD
- Delhi-Mumbai expressway and two other projects would be completed by 2023.
- Monetisation of 12 lots of highway bundles of over 6,000km will be ensured before 2024.
- Rs 27,300 crore for the development of industry and commerce during 2020-21.
- The government intends to turn every district into an export house.
- Rs 8,000 crore over five years for quantum technologies and applications.
GOODS AND SERVICES TAX
- GST has resulted in efficiency gains in the transport and logistics sector, Inspector Raj has vanished.
- It has benefitted MSME Consumers have got the annual benefit of 1 lakh crore rupees by GST.
- Indian Institute of Heritage and Conservation to be established.
- 8 New Museums proposed, 5 Museums set for a major overhaul.
- 5 Iconic sites to see Infrastructure development.
- Will get Rs 2,500 crore in 2020-21.
- Rs 3,150 crore proposed for Ministry of Culture.
BOOST TO INFRASTRUCTURE
- National Gas Grid to be expanded from the present 16200 km to 27000 km.
- 103 lakh crore for national infrastructure pipeline: 22,000 crores via equity support to infrastructure finance companies.
- Rs 22,000 crore for power and renewable energy sector.
- 100 more airports to be developed by 2024 to support UDAAN Scheme.
REFORMS IN BANKING SECTOR
- RBI to consider an extension of debt restructuring window for MSMEs till March 31, 2021.
- Limits for FPI in corporate bonds increased from 9 pc to 15 pc of the outstanding stock.
- Proposal to sell a part of government holding in LIC by way of IPO.
- Deposit insurance coverage to be increased to Rs 5 lakh per depositor.
- Separate NPS trust for government employees.
- Invoice financing, subordinate debt, export support schemes.
- Rs 69,000 crore provided for health care in Union Budget 2020-21.
- Viability gap funding window proposed for setting up hospitals under Prime Minister Jan Arogya Yojana in PPP Mode.
- Jan Aushadhi Kendra Scheme to be expanded to all districts by 2024.
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