Finance Minister Nirmala Sitharaman on 1 February presented the Union Budget for the financial year 2020-21 in the Parliament. Sitharaman said that the three-part theme for Budget 2020 is 1) Aspirational India 2) Economic development for all and 3)Caring society.
Key Highlights of Budget 2020
- Central government's debt has come down to 48.7 percent in March 2019 from 52.2 percent in March 2014
- Fiscal deficit revised from 3.3% to 3.8% of GDP
- FDI (Foreign Direct Investment) of $284 billion received in 2014-2019
- Expenditure estimate for FY 2019-20 revised to Rs 26.99 lakh crore
- Revised receipts for FY21 at Rs 19.32 lakh crore.
- Divestment target set at Rs 2.1 lakh crore for 2020-21
- 16 action points proposed to double farmers' income by 2022
- A scheme for the manufacturing of cell phones, semiconductors, and other electronic devices was proposed
Income Tax Rates for FY 2020-21
- 10% tax on Rs 5 lakh-7.5 lakh income as against prevailing 20%
- 15% tax on Rs 7.5 lakh-10 lakh income against current 20%
- 20% tax Rs 10-12.5 lakh from against 30 percent at present 25% tax on Rs 12.5 lakh-15 lakh income reduced from 30% for FY20
- 30% tax on Rs 15 lakh plus income
Banking and Finance
- Deposit insurance for depositors has increased to Rs 5 lakh from Rs 1 lakh
- Eligibility limit for NBFCs for debt recovery under SARFAESI Act proposed to be reduced to asset size of Rs 100 crore or loan size of Rs 50 Lakh
- Proposal to sell balance holding of government in IDBI Bank Proposal to sell balance holding of government in IDBI Bank
- Separation of NPS Trust for government employees from PFRDAI
- Government to list Life Insurance Corporation of India (LIC) on the stock exchanges
- Dividend Distribution Tax removed
- A debt ETF consisting of government securities will be launched
- Specified categories of government securities would be opened for non-resident investors
- FPI Limit for corporate bonds to be increased to 15 per cent.
Fund Allocations/Targets for 2020-21
- Rs 2.83 lakh crore spending proposed for agri and rural development
- Agri credit target set at Rs 15 lakh crore
- Rs 1.7 lakh crore for transport infrastructure
- Rs 27,300 crore for development of industry and commerce
- Rs 3,000 crore allocated for Skill Development
- Health Sector will be allocated Rs 69,000 crore
- Swachh Bharat Mission allocation reduced to Rs 12,300 crore for 2020-21
- Schemes for Scheduled tribes at Rs 53,700 crore
- Schemes for Scheduled caste, OBCs at Rs 85,000 crore
- Rs 3.6 lakh crore approved for Jal Jeevan Scheme
- Rs 4,400 crore for climate change plans
- Rs 99,300 crore for the education sector
- Rs 2,500 crore for Tourism
- Senior citizens and Divyang citizens welfare allotted Rs 9,500 crore
- Rs 3,150 crore for Culture
- Rs 6,000 crore for BharatNet
- Rs 28,600 crore for women
- Power and renewable energy to receive Rs 22,000 crore
- Rs 1,480 crore towards National Technical Textiles Mission
Railways, Road and Civil Aviation
- 150 trains to be run in PPP (Public-Private Partnership) model
- More Tejas type trains for tourist destinations
- 4 railway stations to be redeveloped with the help of private sector
- Rs 18,600 crores towards Bengaluru Suburban Transportation projects
- Delhi-Mumbai expressway to be completed by 2023
- Indian Railways to set up "Kisan Rail" to support cold supply chain via PPP model
- "Krishi Udaan" to be set up by Ministry of Civil Aviation for cold supplychain
- 100 more airports to be developed under UDAAN.
Agriculture and Rural Development
- PM KUSUM to cover 20 lakh farmers for stand alone solar pumps and further 15 lakh for grid-connected pumps.
- Viability gap funding for the creation of efficient warehouses on PPP mode.
- SHGs (self-help groups) run Village storage scheme to be launched.
- Integration of e-NWR with e-NAM.
- Elimination of FMD and brucellosis in cattle and PPR in sheep and goat by 2025
- Increasing coverage of artificial insemination to 70 percent.
- Doubling of milk processing capacity by 2025.
- Agricultural credit target of Rs 15 lakh crore for 2020-21.
- Fish Production target of 200 lakh tonnes by 2022-23
- Another 45,000 acres of aqua culture to be supported.
- Fishery extension through 3477 Sagar Mitras and 500 fish FPOs.
- Raise fishery exports to Rs 1 lakh crore by 2024-25.