Union Budget 2020-2021

Presenting the first Union Budget of the third decade of the 21stcentury, Finance Minister-Smt. Nirmala Sitharaman, unveiled a series of far-reaching reforms, aimed at energizing the Indian economy through a combination of short-term, medium-term, and long term measures.

– The Union Budget was structured on the overall theme of “ Ease of Living”. Further, three prominent themes of the budget are:-

– Aspirational India – better standards of living with access to health, education and better jobs for all sections of the society.

– Economic Development for all – “Sabka Saath,Sabka Vikas , Sabka Vishwas”.

– Caring Society – Both humane and compassionate.

– The income tax rates have been revised.

– 10% tax for income between Rs 5-7.5 lakh as against 20%

– 15% tax for income between Rs 7.5-10 lakh as against 20%

– 20% tax for income between Rs 10-12.5 lakh as against 30%

– 25% tax for income between Rs 12.5-15 lakh as against 30%

– 30% tax for income above Rs 15 lakh

– 15% concessional tax rate for new power generation companies.

– Tax on cooperative societies reduced to 22% without exemptions.

– 100% tax concession to sovereign wealth funds on investment in infrastructure projects.

– For year 2020-21:Nominal growth of GDP estimated at 10%.

– Fiscal deficit of 3.8% estimated in RE 2019-20 and 3.5% for BE 2020-21.

– Rs 690 billion will be spent toward healthcare spending

– High-speed train between Mumbai and Ahmedabad will be actively pursued, Nirmala Sitharaman says while presenting Union Budget 2020.

– Insurance cover for bank depositors to be raised to Rs 5 lakh from Rs 1 lakh

– 5 new smart cities in public-private partnership mode

– Delhi-Mumbai Expressway to be completed by 2023

– 100 more airports to be developed by 2024

– To launch a new direct tax dispute settlement scheme — Vivaad se Vishwaas scheme.

– Govt plans to sell part of its holding in Life Insurance Corporation (LIC) by way of Initial Public Offering.

– Government doubles the divestment target for the next fiscal at Rs 2.1 lakh crore.

– Start-ups with turnover up to Rs. 100 crore to enjoy 100% deduction for 3 consecutive assessment years out of 10 years.

– India will host the G20 Presidency in the year 2022 and the Finance Ministry is set to allocate Rs 100 crore for the preparations.

– Defence gets Rs 3.37 lakh crore as the defence budget

– Rs 2.83 lakh crore to be allocated for the 16 Action Points; Rs 1.6 lakh crore allocated to agriculture and irrigation; Rs 1.23 lakh crore for Rural development and Panchayti Raj.

– Rs 4,400 crore for clean air; Rs 53,700 crore for ST schemes; Rs 85,000 crore for SC, OBCs schemes; Rs 28,600 for women specific schemes; Rs 9,500 crore for senior citizen schemes.

– Rs 30,757 crore rupees for Union Territory of J&K; Rs 5,958 crore rupees for Union Territory of Ladakh.

– National recruitment agency: New common entrance test for non-gazetted government jobs and public sector banks.

– 5 new Smart cities to be set up via PPP model.

– Rs 1.7 lakh crore allocated to transportation.

– 100 more airports to be set up by 2024 to support UDAN scheme.

– Rs 6,000 crore for BharatNet programme; Fibre to Home connections under BharatNet will be provided to 1 lakh gram panchayats this year itself

– 5 archaeology sites to be developed for world-class museums

– Rakhigarhi (Haryana)

– Hastinapur (Uttar Pradesh)

– Shivsagar (Assam)

– Dholavira (Gujarat)

– Adichanallur (Tamil Nadu)

– Maritime museum to be set up at Lothal- the Harappan age maritime site near Ahmedabad, by the Ministry of Shipping.

– Rs 18,600 crore worth Bengaluru suburban transport project launched; 20% equity will be provided by the Centre.

– New Education Policy to be announced soon.

– Fish production to be raised to 200 lakh tonnes by 2022-23

– Rs 3.6 lakh crore allocated to water sanitation and pipeline project; Rs 12,300 crore for Swachh Bharat.