Finance Minister Nirmala Sitharaman unveils theUnion Budget 2020 on 1st February 2020 at 11:00 hours in the parliament session. The theme of the Budget 2020 is designed on three grounds:
- Aspirational India
- Healthcare & Awareness
- Caring Society
Finance Minister opens up the budget speech by saying this budget is to increase the income & improve the purchasing power of individuals. According to FM Nirmala Sitharaman, vibrant India in 2020-2021 will be a caring economy to attend the weak and vulnerable citizens. GST has consolidated multiple taxes and integrated the economy. On an average Indian household, is now saving 4% of the monthly spent due to the slashed GST rates.Â
She added, “A total of 60 Lakh new taxpayer were added & 105 crore e-way bills were generated under GST”.Â
Modi government has been successful in controlling the inflation with the motto of â€˜Sabka Saath, Sabka Vikas & Sabka Vishwasâ€™ says FM. She plans to take the country forward by reducing the central government debt from 52.2% to 48.7%Â
India is now the 5th largest economy in the world and the digital revolution will see the next wave in the coming year. We will make sure India will receive seamless digital services this year, says FM. This proves to be good news for the business owner and makes it extremely important to computerize your business to grab the forthcoming new business opportunities.Â
As a relief for the taxpayer, she announced a simplified GST return system will be introduced in April of the new financial year.Â
Healthcare Budget 2020
FM says to make India fit, Mission Indradhanush will be extended to cover new disease and new vaccines. There are 20,000 hospitals empanelled for Ayushman Bharat and will see more in the upcoming Tier 2 & 3 to benefit the poor. PPP model hospital will be set in the 112 aspirational districts. With a campaign of â€˜TB Harega, Desh Jeetegaâ€™ strives to end TB 2025 in India. An amount of Rs. 69,000 crores have been assigned to the healthcare, from which Rs. 6,400 crores will be given to PM Jan Arogya Yojana.
Agriculture, Irrigation & Rural Development Budget 2020
For the FY21, allocation of Rs. 2.83 lakh crore is made for the agriculture, rural development and allied activities. Milk production capacity will be double from 53.5 MT to 108 MT by 2025.
Budget 2020 plans to raise 200 lakh tons of fish production. FM Nirmala Sitharaman approves Rs. 3.6 Lakh crores for Jal Jeevan Mission including rainwater harvesting, local water augmenting, desalination & renewing water resources.
Education Budget 2020
As per the announcements by FM, the education sector has a ray of hope this Financial tear. National Education Policy will be announced soon. ECBs and FDIs will look for education. More than 150 institutes will have the apprenticeship program by March 2021. Online degrees will be offered by top 100 NIRF institutes. A total of Rs. 3,000 crore will be assigned to the skill development to meet the demand of skilled teacher, nurses & paramedical staff abroad. Overall Rs 99,300 crore has been allocated to education.
Entrepreneurship Budget 2020
India has always been rich in trading, skills and metallurgy. Entrepreneurship in India has always been a strength. This year will create more opportunities for startups. Investment clearance cells will be introduced to benefit individuals. She said a well-detailed scheme for manufacturing of electronics will be shared soon.
Export Budget 2020
A new scheme â€˜Nirvikâ€™ (with lower premiums and faster claims) will be offered for exporters. Each district will develop an export hub this will provide a lot of development opportunities for SMEs. A sum of Rs. 27,300 crore is allocated for the development of the industry and SMEs in FY21.
Proposed Budget Railways 2020
More Tejas Express trains will be introduced. Rs. 18, 600 crores, 20% equity will be provided to the Bengaluru Suburban Transportation project by the government. Rs. 1.7 Lakh crores are allocated for the transport infrastructure.
Power Budget 2020
A total sum of Rs. 22,000 crore will be given to the power and renewable sector.
Technology Budget 2020
Allocation of Rs. 6,000 crore will be assigned to BharatNet which will link 100,00 Gram Panchayats with digital connectivity. Rs. 8,000 crore allocation has been set for the National Mission on Quantum Computing & Technology.Â
Proposed Budget 2020 for Women-centric Development
â€˜Beti Bachao Beti Padhaoâ€™ has seen a higher enrollment of girls in the elementary, secondary, higher secondary level of education as 94.32%, 81.32%, 59.7% respectively. More than 6 Lakh Anganwadiâ€™s will be equipped to priorities pregnant women. Rs. 35,600 crore has been allocated for nutrition-related programs & Rs. 28, 600 crores for women empowerment projects.
SC/ST/OBC Relief Budget 2020
Proposed allocation budget for the relief of OBC/SC is Rs. 85,000 crores. For STs, its Rs. 53,700 crore. Rs. 9,500 crore will be allocated for the welfare of senior citizens.
Tourism Budget 2020
The government plans to form five archaeological sites with museums in Rakhi Gadi(Haryana), Hastinapur (UP), Dholavira (Gujarat), Shivsagar (Assam) & Adichanallur (Tamil Nadu). Rs. 3,100 crore has been allocated for the Culture Ministry. Under Udan, more than 100 airports will be developed by 2024. Rs. 2,500 crore has been set for tourism promotion in FY21.
Pollution Control & Environment Budget 2020
Government plans to encourage clean environment and allocates Rs. 4,400 crore for it.
Ending Tax Harassment
FM Nirmala Sitharaman said that a tax-payer charter will be institutionalised to help build the trust in the budget. The government will make sure there will be no harassment for the taxpayer in the country. Companies act will be amended.
Ease of Business Budget 2020
The government will focus on a stable and predictable business environment. Contracts act will be strengthened more to ensure the ease of doing business.
FM said that the startup has a turnover of up to 25 crores is allowed a deduction of 100% of its profits for three assessment years in continuation if the total turnover does not exceed Rs. 25 crore.
Tax Budget 2020
According to the FM, Tax proposals will bring ease of compliance and reduce litigation. She proposed a new personal income tax regime for deductions & exemptions.
New Income Tax Slab:
Income between Rs. 5 Lakh- Rs. 7.5 Lakh will be 10% instead of 20%
Income between Rs. 7.5 Lakh- Rs. 10 Lakh will be 15% instead of 20%
Income between Rs. 10 Lakh- Rs. 12.5 Lakh will be 20% instead of 30%
Income between Rs. 12.5 Lakh- Rs. 15 Lakh will be 25% instead of 30%
Income above 15 lakh will be 30%
This means no tax up to Rs. 5 Lakh.
Withholding taxes Budget 2020
Concessional 5% has been extended to municipal bonds.
Cooperatives will be taxed at 30%.
I-T Act will be amended where CBDT will mandate the taxpayer charter. Pan Card will be online on the basis of the Adhaar card and will not require to fill the online forms.
Defence Budget 2020
For modernization Rs. 1,10,734 crore is allocated for buying a new weapon system.
Swachh Bharat Mission
The Finance Minister announced proposed Rs, 12,300 crores to be allocated for Swachh Bharat Mission
At the End:
The Finance Minister Nirmala Sitharaman has announced a balanced budget focussing on the generation of employment measure for growth in rural, MSME and healthcare sector. Abolition of DDT, tax relief for middle class & lower-middle-class sector with new tax slab will improve public sentiment and living conditions. Listing of LIC will bring focus on to the life insurance sector