Budget 2020 Highlights
Let’s find out in details about the sector-wise measures announced:
- Budget 2020 is woven around three prominent things – “Aspirational India” to boost the standard of living; economic development for all, and building a humane and compassionate society.
- FM encouraged the state governments to undertake the implementation of following model laws issued by the central government.
Under the first theme of “Aspirational India” –
- Government proposes plans to help farmers use proper manure and little water.
- Proposal to help farmers for a balanced use of all kinds of fertilizers.
- Farmers encouraged to set up solar pumps, solar power generation units on their fallow or barren lands.
- NABARD to map and geo-tag warehouses and Food Corporation of India and Warehousing Corporation of India to build warehousing facilities on their land.
- Indian Railways to set up a ‘Kisan Rail’ through Public-Private Partnership
- Village storage scheme has been proposed by the FM
- Government to build up the seamless national cold supply chain for perishables; logistics companies surged as FM proposes to build a seamless national cold storage chain
- The government says milk processing capacity to be doubled by 2025
- Horticulture projects at the district level will be given importance. Online portal on Jaivik Kheti will be strengthened
- All kissaans to be covered under kisan credit card scheme
- Govt proposes Rs 3.6 lakh crore towards piped water supply to households, recharging existing sources, and harvesting rainwater during the current year
- FM announces Rs 99,300 crore outlay for the education sector in 2020-21 and Rs 3,000 crore for skill development
- Viability gap funding via PPP model funding for 112 districts where there are no empanelled hospitals under Ayushman Bharat; proceeds from taxes (direct and indirect) on medical devices to be used for funding the schemes;
- The government allocated Rs 12,3000 crores to Swachh Bharat Mission
- FM proposes ODF+ scheme to sustain ODF behaviour and to ensure no one is left behind.
- Rs 69,000 crores including funds for PM Jan Arogya yojana allocated by the government.
- New education policy to be announced; and FDI funds to be obtained for education
- For the working-age population, Project Preparation Facility to be set up for preparation of infrastructure projects, actively involving young engineers and management graduates
- Setting up of investment clearance cell for entrepreneurs; about 150 higher education to provide apprenticeship embedded degree courses; to start degree level full-fledged programmes
- The government intends to eliminate foot and mouth disease
- What the doctor ordered: Govt to expand Mission Indradhanush, add hospitals to Ayushman Bharat
- Integrated farming systems in rainfed areas shall be expanded
- Government has proposed the framework for development, management and conservation of marine fishery; raising fish production to 200 lakh tons; involve youth in fish farmer producer organisations
Under the Second theme “Economic development”
- All ministries to issue quality standards and government to focus on adoption of technical standard
- Development of districts as export hubs and promotion of government e-marketplace (GEM)
- Focus on the manufacture of network products and encouraging the electronics manufacturing industry
- Development of smart cities and promoting manufacturing to generate investment and employment opportunities
- For exporters, a new scheme Nirwik has been proposed that will digitally refund duties and taxes imposed locally; the scheme is to be launched from FY 2020-21.
- Measures to set up large solar power capacity on land owned by railways
- Proposed to bringing in more TEJAS type trains, Bengaluru suburban train
- A national logistics policy to be released with a single-window “e-logistics market”
- Monetization of 12 lots of highway bundles of over 6,000km before 2024
- FM proposes Rs. 22000 crore to power and renewable energy sector
- Increase in the number of airports to 100 by 2022
- FM proposes to expand the national gas grid from 16,200 km to reach 27,000 km to deepen the gas markets in India
- Data is the new oil (Digital India announcements): Government has adopted technology to directly transfer the finances with the beneficiaries. Policy to enable private sector to build data centre parks to be launched soon. FTTH connections will link 100,000 gram panchayats within the year. Rs 6,000 crore allocated for Bharat Net Program this year. Knowledge translation clusters will be set up across different sectors. Quantum Technologies opening up new frontiers. 8000 crores of outlay in next 5 years. Soon, policy for private sector to build Data Centre Parks throughout the country; our vision is that all public institutions be provided with digital connectivity
- For power discoms – Introduction of prepaid smart meters within the next 3 years in all states and UTs; freedom to choose the supplier of electricity and the rate as per requirement
The Income-tax slab rates applicable under the new tax regime would be:
|Slab Rates||Rate of tax|
|Up to INR 2,50,000||Nil|
|INR 2,50,001 to INR 5,00,000||5%|
|INR 5,00,001 to INR 7,50,000||10%|
|INR 7,50,001 to INR 10,00,000||15%|
|INR 10,00,001 to INR 12,50,000||20%|
|INR 12,50,001 to INR 15,00,000||25%|
Surcharge and education cess would apply as per existing rates.
The new tax regime is optional. Individuals who opt to claim available exemptions/ deductions would be taxed as per the existing rates.
Individuals who earn taxable income up to INR 5,00,000 continue to be exempt from tax liability under the existing and new tax regimes.
Women: Genetic mapping of Indian to be done through two new medical schemes. Beti Bachao, Beti Padhao has yielded tremendous results. Third Theme – Caring society: More than 600000 Anganwadi workers are equipped with smartphones to upload nutritional status of the students of India. Propose to provide Rs 35,600 crore for nutrition-related programmes in 2020-21. Have identified suitable technology to eliminate manual cleaning of sewer systems and septic tanks. 85,000 crores for the welfare of SC and OBC; 85,000 crore rupees for Scheduled Castes and Other Backward Classes in 2020-21, 53,700 crore rupees for Scheduled Tribes. Senior citizens: Enhanced allocation of 9,500 crore rupees for Senior citizens and Divyangs. Culture: 5 archaeological sites would be developed as iconic sites with onsite museums. A Tribal Museum to be set up in Ranchi, Jharkhand. New currency museum to be embedded in the Kolkata Mint – The oldest mint in India. Rs 3,150 crore allocated for the ministry of culture in 2020-21 Environment and climate change: India to make good on the promises made at Paris accord form Jan 1st, 2021. The two hands that will hold all above themes (1) government that is clean (2) trust in every citizen.