Union finance minister Nirmala Sitharaman presented the much-awaited Budget 2020-21 in parliament. This is her second budget and the Finance minister looks confident to get country’s growth back up with the economy heading at the most critical pace of expansion recorded in a decade.
Starting off with the consumer benefits, FM reported that GST has emerged in efficiency gains in the transport and logistics sector, it has benefited Micro, Small & Medium Enterprises(MSME), says Finance Minister. She continues further, “consumers have got an annual benefit of 1 lakh crore rupees by GST.”
Here are the details:
For pollution control: Govt has allocated Rs 4,400 for pollution control 2020-21
For Indian Railways: Govt has planned to develop solar capacity in Indian railways. Have planed additional Tejas like trains to connect tourist locations including 4 station redevelopment projects in railways via PPP models. It will further launch Rs18,600 crores worth the Bengaluru Suburban Transportation project.
The Bengaluru Suburban Rail project will get 20% equity of the 18,000-odd Crore project.
Boost for the renewable energy sector: Nirmala Sitaraman announced ₹20,000 crores for the renewable energy sector.
Highway infrastructure: The central government is planning to construct 2500 access control highway, 9000 km eco-development corridors, 200 coastal and port roads, 2000 km strategic highways, Delhi-Mumbai expressway ad 2 other corridors will be completed by 2023.
FM also proposed to provide ₹1.7 lakh crore for transport infrastructure in 2020-21
Transport sector: FM announced that the Center will provide 20% equity for Bengaluru Suburban Transportation Raj. Including 100 more airports to be developed by 2024 to support the Central government’s “Udaan” scheme.
For the agricultural sector: The Government has decided to tighten the agricultural credit target at Rs15 lakh crore for fiscal 2020-21. Not just that, Indian Railways will also play an important role to strengthen the farmer’s goods supply chain. The railways will set up Kisan Rail in public-private partnership (PPP) model for the cold supply chain to transport perishable goods. Other details.
- NBFC’s & co-operatives active in credit, NABARD refinance scheme to be strengthened
- Agri credit target ₹15 lakh crores
- Eligible PM KISAN beneficiaries covered under KCC
- The govt will further allocate ₹2.83 crores for agriculture and irrigation. ₹1.23 lakh crore will be allocated to rural development, Panchayati Raj.
Center allocates Rs 8,000 cr over 5 years on a national mission for quantum technology
For the education sector: 150 higher institutions to offer apprenticeship diplomas by March 2021. The government will promote the ‘Study In India’ initiative.
Under New education policy center is all set to provide ₹99,300 crores for the educational sector in FY21. FM Nirmala Sitharaman said, “By 2030, India will have the largest working-age population in the world. This population needs both job and life skills. New education policy to be announced soon.”
Health sector: The govt proposes to attach a medical college to a district hospital in PPP mode which will be a clear attempt to strengthen health infra at the district level, says HT Editor Sukumar Ranganathan.
Finance Minister proposes ₹35,600 crores for nutrition program in FY 2020-21. ₹28,600 crores for women-specific programs
Industry and commerce sector: Finance Minister Nirmala Sitharaman announces allocation of ₹27,300 cr for development and promotion of industry and commerce sector for FY 2020-21.
‘Beti bachao, beti padhao’ has yielded tremendous results: FM said ‘Beti bachao, beti padhao’ has shown tremendous results, gross enrolment ratio of girls across all levels of education now higher than boys.
Ease of PAN: Finance Minister Nirmala Sitharaman: Govt to further ease the process of allotment of PAN. Govt to launch system for instant allotment of PAN on the basis of Aadhaar.
FM proposes new rates of income tax:
Propose to bring a new, simplified Income Tax regime. Under it, no income tax for an individual earning up to ₹5 lakh per annum.
For those with income between ₹5-7.5 lakh, a new income tax rate will be 10%
For income between ₹7.5-10 lakh, a new tax rate is 15% against prevailing 20%
For income between ₹10-12.5 lakh, a new tax rate is 20% against present 30%
For income between ₹12.5-15 lakh, a new tax rate is 25%
Income above 15 lakh will continue to be taxed at the rate of 30%
Budget allocations by FM Nirmala Sitharaman so far:
Healthcare – ₹ 69,000 crore
Education – ₹ 99,300 crore
Skill development – ₹3,000 crore
Swachh Bharat Mission – ₹ 12,300 crore
Transport infra – ₹1.7 lakh crores
Power and renewable energy – ₹22,000 crore