Union Budget 2020-21: Major Highlights You Need To Know
Updated: Feb 6
On the second day of the Budget session, the finance minister on Saturday presented the Union Budget 2020-21 in the parliament.
So Here Are The Major Highlights From the Union Budget 2020-21:-
Farm And Agriculture Sector -
Encourage states to take up model agricultural laws.
Comprehensive measures for 100 water-stressed districts.
PM Kusum scheme removes dependence on kerosene and encourages the use of solar power.
NABARD will take up an exercise of mapping and geotagging agricultural warehouses, cold storage, and other inventory storage.
A village storage scheme is proposed to be managed by SHEs. This will help farmers store more and reduce logistics costs. Women in the village will be responsible for managing this seamless storage mechanism.
Krishi UDAAN scheme will be launched by the Aviation Ministry.
Financing of negotiable warehousing receipts will be integrating other e-services.
Agricultural credit availability for 2021 has been set at 15 lakh crore.
Govt. aims to eliminate the foot and mouth disease in sheep and goat by 2025
Doubling of milk production of 53.5 million metric tonnes of milk to 103 metric million tonnes by 2025.
Under the Antodyaya scheme, SHEs will be further taken forward and made stronger.
Rs 2.83 lakh crore to be allocated for agriculture.
Rs 1.23 lakh crore to be allocated for rural development and Panchayati Raj.
WOMEN & NUTRITION -
Gross Enrolment Ratio is now higher for girls than for boys at all levels under 'Beti Bachao Beti Padhao'.
28,600 crore rupees provided for programmes which are specific to women.
35,600 crore rupees for nutrition-related programmes in 2020-21.
Over 6 lakh Anganwadi workers have been equipped with smartphones to upload the nutrition status of 10 crore households.
The Indian Railways will set up a Kisan Rail through the public-private partnership model.
Comprehensive measures for 100 water-stressed districts being proposed in this budget; agricultural credit target has been set at ₹15 lakh crore.
High-speed train between Mumbai and Ahmedabad will be actively pursued.
550 wi-fi facilities have been commissioned at railway stations.
Large solar power capacity to be set up alongside rail tracks, on land owned by Railways.
Four station redevelopment project under PPP.
More Tejas types trains to connect tourist places.
The government aims to achieve 11,000 track electrification.
A total of Rs 69,000 crore has been provided for the healthcare sector of which PM Jan Arogya Yojana will get Rs 6,400 crore.
There are 20,000 empanelled hospitals in Ayushman Bharat and need more in Tier 2 and 3 cities to benefit poor in these areas.
PPP mode hospitals will be set up under viability gap funding to look at areas where there are no hospitals. This will be 112 aspirational districts where first priority will be given.
100 more airports to be developed by 2024 to support the UDAN scheme.
1.7 lakh crore rupees to be provided for transport infrastructure in the coming financial year.
Accelerated development of highways will be undertaken.
Delhi-Mumbai expressway and two other projects to be completed by 2023.
Monetization of 12 lots of highway bundles of over 6,000km before 2024.
National Gas Grid to be expanded from 16,200 km to 27,000 km.
Rs 8000 crore allocated over the next five years for quantum technology related computing.
All public institutions at Gram Panchayat levels will be provided with digital connectivity.
Fiber to home through BharatNet will link 100,000 Gram Panchayats in FY21.
An allocation of Rs 6,000 crore will be provided for BharatNet.
A medical college to be attached to a district hospital in PPP mode, viability gap funding to be set up for setting up such medical colleges.
Rs 3,000 crore for skill development.
IND-SAT exam to be held in African and Asian countries, for benchmarking foreign candidates who wish to study in India.
Degree-level full-fledged online education programme to be offered by institutes in the top 100 in the National Institutional Ranking Framework.
The government announces Rs 99,300 crore outlay for the education sector in 2020-21.
Urban local bodies across the country to provide internships for young engineers for a period of up to one year.
8,000 crore rupees over five years to be provided for quantum technologies and applications.
Rs 85,000 crore has been allocated for the empowerment of Scheduled Caste and Rs 53,700 crore for Scheduled Tribes.
The nominal GDP growth for the year 2020-21 estimated at 10%, on the basis of trends available.
Accordingly, receipts for 2020-21 estimated at 22.46 lakh crore rupees.
Expenditure at 30.42 lakh crore rupees.
Revised expenditure estimate at ₹ 26.99 Lakh Cr for FY 21.
Estimate Fiscal deficit at 3.8% vs target of 3.5% of GDP.
Corporate tax at 15% lowest in the world.
The turnover threshold for audit raised to ₹ 5 Crore from ₹ 1 Crore.
Five archaeological sites will be set up with museums on-site in Rakhi Gadi in Haryana, Hastinapur in UP, Dholavira in Gujarat, Shivsagar in Assam and Adichanallur in Tamil Nadu.
A tribal museum will be set up in Ranchi, Jharkhand.
The maritime site will be set up in Lothal. A total of Rs 3,100 crore has been set aside for Culture Ministry in FY21.
Revised Income Tax Slabs -
Up to Rs 5 lakh: No tax; Rs 5-7.5 lakh income: reduced to 10 from 20%; Rs 7.5 lakh to 10 lakh: reduced to 15 from 20%; Rs 10-12.5 lakh: reduced to 20% from 30%; Rs 12.5-15 lakh: reduced to 25% from 30%; Rs 15 lakh: 30% (No change)
Dividend distribution tax abolished.
Around 70 of more than 100 income tax deductions and exemptions have been removed, in order to simplify the tax system and lower tax rates.
To boost startups, the tax burden on employees due to tax on Employee Stock Options to be deferred by five years or till they leave the company or when they sell, whichever is earliest.
Option to be provided to cooperative societies to be taxed at 22% plus 10% surcharge and 4% cess, with no exemptions or deductions. To be exempted also from Minimum Alternative Tax.
Under Vivad Se Vishwas Scheme, the taxpayer to pay them the only amount of disputed tax will get a complete waiver on interest and penalty, if the scheme is availed by March 31, 2020.
Aadhaar-based verification of taxpayers is being introduced. A system to be launched soon, for instant online allotment of PAN on the basis of Aadhaar, without the need for filing an application form.
Power plants with higher emissions will have to be closed. This land will be used for other purposes.
The government will encourage plans to have clean air by the state governments with the allocation of Rs 4,400 crore.
Deposit Insurance Coverage to be increased from 1 lakh rupees to 5 lakh rupees.
27,300 crore rupees for the development of industry and commerce.
Amendments to be made to enable NBFCs to extend invoice financing to MSMEs.
The government proposes to sell a part of its holding in LIC by an initial public offer.
Budget Allocation for J&K and Ladakh
Finance Minister announces a budget allocation of Rs 30,757 crore for the development of Jammu and Kashmir.
Rs 5,958 crore for Ladakh.
Defence budget hiked by 6% from Rs 3.18 lakh crore to Rs 3.37 lakh crore.
With defence pensions, the total budget would go up to Rs 4.7 lakh crore.
India will host G20 Presidency in 2022, 100 crore rupees to be allocated for making preparations for this historic occasion, where India will drive the global economic agenda.
22,000 crore rupees to be provided to the power and renewable energy sector in 2020-21.
Total allocation for 'Swachh Bharat' is around 12,300 crore rupees for this year.
Allocation of Rs 9,500 crore for senior citizens for FY21,
Times Of India
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