Union Budget 2020-21 Major Highlights; Cuts in Income Tax

Starting with the Aspirational theme, “the farmers’ income will be doubled by 2022” said Nirmala Sitharaman. “The new education Policy will be announced soon” she said.

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Finance Minister Nirmala Sitaraman presents her second Union budget 2020-21 in the Lok sabha. This year the budget focuses on three areas, Aspirational India, Economic Development and a Caring society. Starting with the Aspirational theme, “the farmers’ income will be doubled by 2022” said Nirmala Sitharaman.  “The new education policy will be announced soon,” she said.  This year’s Economy Survey cast economic growth to rebound and hit 6%-6.5% in the next financial year starting April 1.

Here are the major glimpses of the Union Budget 2020-21

  • 69k crore allocated for PM’s Jan Arogya Yojna
  • 12,300 crore allocated for Swach Bharat
  • 99,300 crore projected on FY 21 Education sector in 2020-21 in
  • 2.83 Lakh crore allocated for Agriculture FY 21
  • 1.23 lakh crore allocated for Rural development FY 21
  • 69,000 Cr allocated for Healthcare FY21
  • 1.7 Lakh crore allocated for Transport infra

From the income tax front

  • Govt set a huge relief for individuals
  • Reduced corporate tax

INCOMEOLDNEW
Up to 5 Lakh5%0%
5-7.5 lakhs20% 10%
7.5-10 Lakhs 20% 15%
10-12.5 Lakhs 30% 20%
12.5-15 Lakhs 30% 25%

  • For income more than 15%, it will attract an income tax will be charged at 30%
  • 3.50 lakh crore allocated for public sector banks
  • Insurance cover for depositor raised to 5 lakhs

In Power Sector

  • Govt allocated INR 44 billion for clean air incentives with cities will all over 1 million people
  • Old power plants to be shut if emissions norms not met
  • 4400 cr allocated for clean air scheme

Wellness & Water Sanitation Sector

  • More hospitals to be set up in 2022-23
  • Uses of Artificial Intelligence on Ayushman Bharat scheme
  • 12,300 cr allocated for Swach Bharat
  • 3.6 lakh cr allocated for Jal Jeevan mission

Education Sector

  • New education policy will be announced soon
  • 99,300 crore in the education sector in 2020-21
  • Employment opportunity for general (Science & Technology) students
  • The internship opportunity will be provided by urban local bodies
  • Online education program proposed to the degree level

For Eco-Development

  • Govt proposed Investment clearance cell
  • Creation of 5 new smart cities
  • Schemes to encourage mobile manufacturers
  • National Tech textile mission soon to be proposed

For Indian Railways

  • High-speed train between Mumbai – AHD soon
  • 18,000 cr allocated in the rail project
  • 150 trains via PPP model
  • More Tejas like trains to connect more tourist spots

Roadway & Construction

  • Delhi-Mumbai expressway by 2022-23
  • Proposed to monetize 6000 km of Highway
  • Proposed Chennai- Bangalore expressway
  • 1.7 lakh crore allocated for transport infra in 2021

Skill India Initiative

  • The government proposed ₹3,000 crores for ‘Skill India’ to provide relevant skill training for the youth
  • FY21 fiscal deficit target pegged at 3.5% of GDP

Connect India

  • Digital connectivity for essential services
  • ₹6,000 crores allocated for BharatNet program
  • 1 lakh gram panchayat to get optical fiber link this year
  • Private sectors to set up data center parks

Agriculture Sector

  • Nabard refinance scheme will be expanded
  • 20 lakhs farmers to set up solar pumps this year
  • Village storage schemes for farmers
  • Dhana Lakhsmi schemes for village women
  • Krishi Udan will be launched by the civil aviation
  • 16 pt action plan for farmers
  • Zero budget natural farming
  • 200 lakh tonne fish production by 2022-23

Finance Minister Nirmala Sitharaman in her second union budget presentation carried her documents in ‘Bahi-Khata’ wrapped in red cloth. Chief Economic Advisor Krishnamurthy Subramanian during Union Budget 2019 addressed the Bahi-Khata as the ‘Farewell from the slavery of western thought.


By, Ms. SAMAYETA KANJILAL, Research Fellow & Business Development Executive, The Policy Times


 

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Union Budget 2020-21 Major Highlights; Cuts in Income Tax
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Starting with the Aspirational theme, “the farmers’ income will be doubled by 2022” said Nirmala Sitharaman. “The new education Policy will be announced soon” she said.
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