The new union budget 2020-21 is presented by our Finance Minister Nirmala Sitharaman today. The FM has shown a picture of vibrant India. She has mentioned welfare schemes, sanitation, and water facilities, health care Ayushman Bharat, solar energy use, financial development. Before moving forward she has mentioned the benefits of GST. Her key focus is divided into three points agricultural irrigation and rural development, wellness water, and sanitation facilities, education and digital development.
Agriculture under Union Budget 2020
The Farmer income will be doubled by the end year 2022. The FM has mentioned a total of 6.11 Crore farmers are insured under Fasal Bima Yojna. She has made 16 points regarding the development in the field of agriculture. The main pointers were of PM KUSUM Scheme, which reduces dependence on diesel and kerosene and increases reliance on social energy. “Annadata can be Urjadata. She further added that a total of 20 lakh farmers can set up standalone solar pumps. The government helps the 15 lakh solarise grid-connected pump sets. Farmers can also use barren land for solar energy and have a livelihood out of it.
FM added that NABARD refinances scheme will expand. The NBFC and cooperative banks help in lending money and it has been recognizing by the government as well. The agriculture credit for 2020-21 has proposed at RS 15 lakh. The FM added to run a Kisan Rail for farmers through public-private partnerships and also focus on the Kisan Udan scheme will be stated for the farmers.
She added that 16 lakh new taxpayers were added in the last financial year and the reduction on GST rates has allowed an average household to save about 4% of monthly expenditure. The FM has proposed a new GST return to be implemented from 1st April 2020. The three theme points of the union budget 2020 were aspirational India, economic development for all and caring society under union budget 2020.
Healthcare Sector in focus
The Union Budget 2020 is for the healthcare sector development, she has added to cover new diseases and new vaccines under Mission Indradhanush. There are hospitals under the healthcare Ayushman Bharat scheme which has benefited the poor in 20,000 hospitals. There are 112 districts that are kept on priority under these schemes.
The union budget 2020 covers the education sector in which online education is offered by the top 100 NIRF ranked institutes and degrees will be offered for the same very soon. For the Asian and African students, the IND-SAT exam will be held for scholarships to ‘Study in India’. The forensic sciences and Police academy will be set up and the government will spend Rs 99, 300 crores in the education sector.
The FM has shown the data indicating the increase in the number of girl children under the scheme of Beti Bachao Beti Padhao. She stated that enrollment of girls is 59.7 percent at the higher secondary level, 81.32 percent in secondary level and 94.32 percent in elementary levels. The FM has kept the safety and health of women on priority. For pregnant women and lactating women an allocation of Rs 35,600 crore for nutrition-related programs in FY21. Further, Rs 28,600 crore will be allocated in FY21 by the government for women-linked programs. She fetched the data sharing the there are low maternal mortality rates. Also now 6 lakh Anganwadi workers are equipped to upload status of more than 10 crore households.
In her speech, she has added the value by mentioning five archaeological sites to be developed that are Rakhigarhi (Haryana), Hastinapur (UP), Shiv Sagar (Assam), Dholavira (Gujarat) and Adishanaloor (Tamil Nadu) in iconic sites with museums. The museums to be taken for recreation including the museum building at Kolkata and a new tribal museum to be set up in Ranchi.
Other Important highlights on under the Union Budget 2020
- The proposed audit for MSME business turnover has now been raised to 5 crores from 1 crore. The minister has also requested RBI to extend the debt recast window of MSME by one year to 31 March 2021.
- Presently, 4,83,000 direct tax disputes are pending in the Appellate tribunal which is proposed to bring down in the new budget.
- Dividend Distribution Tax is proposed to be abolished as suggested under the union budget 2020 by the FM. Presently, companies require paying Dividend Distribution Tax on dividends to shareholders at 15% with additional surcharge.
- Income Tax slabs proposed to be revised
|Income (per annum)||Proposed Tax Rate||Old Tax Rate|
|Up to ₹2.5 Lakhs||No tax||No tax|
|₹2.5 Lakhs to ₹5 Lakhs||No tax||5%|
|₹5 Lakhs to ₹7.5 Lakhs||10%||20%|
|₹7.5 Lakhs to ₹10 Lakhs||15%||20%|
|₹10 Lakhs to ₹12.5 Lakhs||20%||30%|
|₹12.5 Lakhs to ₹15 Lakhs||25%||30%|
|Above ₹15 Lakhs||30%||30%|
- The Finance minster has undertaken very significant tax reforms for boosting investment. The estimate a fiscal deficit of 3.8% in 2019-20 and 3.5% in 2020-21.
- Under the Union budget 2020 the government has proposed plans to sell the part of its stake in LIC.
- The government proposed to establish National Recruitment agency for the non gazette posts.