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
