Use coupon code TOP15 on all courses

Link

Union Budget 2020-21 Highlights

Union Budget 2020-21 Highlights

Three prominent themes of the Budget

  • Aspirational India - better standards of living with access to health, education and better jobs for all sections of the society.
  • Economic Development for all - “Sabka Saath, Sabka Vikas, Sabka Vishwas”.
  • Caring Society - both humane and compassionate; Antyodaya as an article of faith.

Highlights

Expenditure: The government proposes to spend Rs 30,42,230 crore in 2020-21, which is 12.7% higher than the revised estimate of 2019-20.

Receipts: The receipts (other than net borrowings) are expected to increase by 16.3% to Rs 22,45,893 crore, owing to higher estimated revenue from disinvestments.

GDP growth: The government has assumed a nominal GDP growth rate of 10% (i.e., real growth plus inflation) in 2020-21. 

Deficits: Revenue deficit is targeted at 2.7% of GDP. The fiscal deficit is targeted at 3.5% of GDP. 

Agriculture:

  • A budget allocation of Rs.2.83 lakh crore for the sector comprising agriculture and allied activities.
  • Doubling farmers incomes by 2022.
  • Agri-credit availability set at Rs.15 lakh crore for 2020-21.
  • Comprehensive measures for 100 water-stressed districts.
  • Provide 20 lakh farmers to set up standalone solar pumps. Help another 15 lakh farmers to solarise their power grid.
  • Village storage scheme proposed to be run by women SHGs.
  • Indian Railways to have refrigerated coaches capability in ‘Kisan trains’ to carry perishables and milk.
  • Krishi UDAN on international and national routes.
  • Jaivik Kheti Portal – online national organic products market to be strengthened.

Economy and Finance:

  • Bank deposit insurance cover had been increased from Rs.1 lakh to Rs.5 lakh per depositor.
  • Government plans to amend the Companies Act to decriminalise civil offences.
  • Government to sell part of its stake in LIC via a public offering.

Health and Sanitation:

  • Allocation of Rs.69,000 crore for the health sector.
  • Rs.12,300 crore for Swachh Bharat this year.
  • Proposal to set up hospitals in Tier-II and Tier-III cities with the private sector using PPP.
  • Expand the Jan Aushadhi scheme to provide for all hospitals under Ayushman Bharat by 2025.

Education:

  • Rs.99,300 crore for the education sector in 2021 and about Rs.3,000 crore for skill development.
  • Urban local bodies to provide internship to young engineers for a year.
  • Degree-level full-fledged online education programmes by institutions ranked in top 100 in NIRF rankings, especially to benefit underprivileged students.
  • A national police university and a national forensic science university is proposed to be setup.
  • IND SAT exam for students of Asia and Africa to promote “study in India” programme.

Infrastructure:

  • The budget proposes to provide Rs.1.7 lakh crore for transport infrastructure in 2021
  • National Logistics Policy to be released soon.
  • Chennai-Bengaluru Expressway to be started.
  • Aim to achieve electrification of 27,000 km of lines.
  • Plan to have a large solar power capacity for Indian Railways.
  • The government also proposes a Bengaluru suburban rail project at a cost of Rs.18,600 crore.
  • Govt to monetise 12 lots of national highways by 2024.
  • 100 more airports will be developed by 2024 to support UDAN.
  • 5 new smart cities in public-private partnership mode
  • Delhi-Mumbai Expressway to be completed by 2023.

Tax slabs

Income Tax
Between Rs.5 lakh and Rs.7.5 lakh Reduced to 10% from the current 20%
Between Rs.7.5 lakh to Rs.10 lakh Reduced to 15% from the current 20%
Between Rs.10 lakh to Rs.12.5 lakh Reduced to 20% from the current 30%
Between Rs.12.5 lakh to Rs.15 lakh Reduced to 25% from the current 30%
Above Rs.15 lakh Continue at 30%, but without exemptions

Taxation

  • Over 70 deductions have been removed.
  • Companies will no longer be required to pay Dividend Distribution Tax (DDT).
  • Aadhaar-based verification for GST compliance to be introduced.
  • Aadhaar-based quick issuance of PAN announced.
  • Tax on cigarettes and other tobacco products to be increased
  • Audit the threshold for MSMEs raised to Rs.5 crore from Rs.1 crore

List of key budgetary allocations

  • FY21 agriculture allocation Rs.1.38 lakh crore
  • FY21 rural development allocation Rs.1.23 lakh crore
  • FY21 agriculture and rural allocation Rs.2.83 lakh crore
  • FY21 agriculture credit target Rs.15 lakh crore
  • FY21 education allocation at Rs.99,300 crore
  • FY21 healthcare allocation at Rs.69,000 crore
  • FY21 transport infra allocation at Rs.1.7 lakh crore
bankexamstoday-banner
Join 40,000+ readers and get free notes in your email

0 comments:

Post a Comment

Thanks for commenting. Follow us on Telegram. Search BankExamsToday