Nirmala Sitharaman announced Union Budget 2020-21

Finance Minister of Indian Ms Nirmala Sitharaman has introduced new budget 2020-21 a few days back. This is the second time in a row that she represented the Budget of India. The GDP growth of India’s forecasts at between 6 to 6.5% for the fiscal year starting April. Sabka Sath, Sabka Vikas, Sabka Vishwas was the tagline of government mentioned by Finance Minister Nirmala Sithraman in her speech.

Union Budget 2020-21 Highlights

  • The tax of only 10% is going to be charged to Rs 5 lakh-7.5 lakh income as against wide-spread 20% rate.
  • If any person earnings 7.5 lakh to 10 lakh annually then they have to pay a 15% tax rate.
  • If the incomes lie between 10 lakh to 12.5 lakh then the tax rate is 20%
  • The tax rate will increase by 5% from 20% if the annual incomes come under 12.5 lakh to 15lakh. Means people have to pay a 25% tax.
  • Above 15 lakh the tax rate will be 30 per cent.
  • This time govt focusing to provide relaxation in terms of the tax rate for new companies in the manufacturing sector to 15%. Similarly, for existing companies, rates lowered at 22%.
  • There is a piece of good news for sovereign wealth funds as the government has proposed a 100% tax concession on investment in infrastructure projects.
  • FY-21 fiscal deficit target pegged at 3.5% of GDP – FY20 fiscal deficit at 3.8% of GDP vs earlier target of 3.3%.
  • DDT stands for Dividend Distribution Tax shifted to individuals instead of companies.
  • Now housing loan will be more affordable as the government has announced up to Rs.1.5 lakh tax benefit on affordable housing loans.
  • As of now, we all know that if we want to apply for new pan then the complete process will take approx 20days of time. But this time the government will provide you with the same instant on the basis of Aadhaar.
  • People can see a raise in custom duty tax rate in furniture and footwear items.
  • ‘Vivaad Se Vishwas’ Scheme will launch by the government to reduce tax litigation.
  • The government will provide Rs. 8k crore for quantum computing over five years to break into this technology.
  • The government has promised to undertake approx 16 action points which include water issue in various states, agriculture-related issue etc.
  • Under the scheme of PM Kusum, solar Power generation units will be set up for farmers to make a living out of the barren land.
  • Healthcare mission Indradhanush expanded to cover wellness water and sanitation.
  • According to the government, approx 112 districts to be covered for AYUSHMAN Treatment.
  • The government will provide 69000 crores to the health sector.
  • To the end, the disease named TB by 2025 government will initiate a new scheme named as TB haarega, Desh Jeetega”.
  • Rs. 12,300 crores will be allotted for Swachh Bharat Mission.
  • The new education policy will be announced soon, IND-SAT exam proposed in Asian and African country for foreign university New Edu policy soon.
  • To produce more doctors and provide more facilities in the hospital medical colleges to be set up at district level.
  • For the development of industry and commerce, Rs 27,300 crore will be provided.
  • The government will provide Rs.6000 crores to BharatNet and will tie-up with tech companies to provide internet to citizens. 
  • Government has launched Poshan Abhiyan for taking care of children and pregnant women. Approx 5600 crores rupees has allotted to nutrition-related programmes for FY 2020-21.
  • For SC and OBC Classes, 85,000 crores allocated for FY 2020-21 For ST Classes, 53,700 crores allocated for FY 2020-21 For Senior Citizens & Divyangs, 9,500 crores for 2020-21.
  • 5 new archaeological sites are going to open with museum Rakhi Garhi Haryana, Hastinapur UP, Shivsagar Assam, Dolavira Assam, Adichalanur in TN.
  • The government has provided 3150 crores to the Ministry of Culture.
  • There is a piece of good news for everyone even me as also that this time the government has raised the insurance cover to Rs 5 lakh per person or depositor. Which is currently Rs 1 lakh. As we all heard about the recent crisis PMC bank. The government has decided to take the decision after the crisis. However, according to me, this amount is not enough it should be more 25 lakh.
  • The government were planning to completely privatize IDBI bank and also sale some of their share from LIC life insurance.
  • Degree level online education courses will be introduced which can be provided by colleges in the top 100 list by National Educational Institute List. 
  • PM Udaan scheme, approx 100 more airport will develop by 2024 under the mentioned scheme.
  • Rs. 28,600 crores will be provided by the ministry of finance to “Beti Bachao Beti padhao”.
  • The Ministry of Finance will provide 27000 cores for renewable power resources and also going to expand the national gas grid to reach 27,000 km from the current reach of 6,000 km.
  • Nominal growth of GDP estimated for 2020-21 on the basis of trends at 10%. Revised estimates of the expenditure for FY 2020-21, 26.99 lakh crores. Receipts estimated at 19.32 lakh crores.
  • Delhi-Mumbai expressway which is in under construction right now. The government is hoping that the same will complete by 2023.
  • The government has proposed Rs 30,757 crore for Jammu and Kashmir, and Rs 5,958 crore for Ladakh for fiscal 2020-21.

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