Finance Minister Nirmala Sitharaman presented the budget for the financial year 2020-21 in the parliament today and it mainly covered all the sectors that could help India come out of the ailing economic slowdown.
This year’s Union Budget centers around three ideas — Aspirational India, Economic development, A Caring Society.
Here are all the key points you need to know about the 2020-21 budget.
1. Deposit insurance coverage has now been increased from Rs 1 Lakh to Rs 5 lakh so your money is safer now
2. Budget to help farmers and rural India
In the budget, the government has decided to expand ‘PM Kusum Scheme’ to 20 lakh farmers to set up solar pumps. The government has also announced the ‘Krishi Udaan’ scheme for the agriculture and allied sector. Under the scheme, a dedicated rail will be flagged to transport farmers’ dairy products across the country.
Solar power generation will be set up on farmers’ barren land so they can produce energy and sell the surplus for side income.
Moreover, the Finance Ministry will allocate Rs 2.83 crores for agriculture and irrigation. And Rs 1.23 lakh crore will be allocated to rural development, Panchayati Raj. The government in this financial year plans to spend Rs 12,300 crores in Swachh Bharat mission.
Other schemes for agriculture include village storage scheme, measures to help water-stressed sectors, double the milk processing capacity by 2025 and more.
3. Budget for education sector
Nirmala Sitharaman while presenting the 2020-21 Budget has announced a new education policy. Under the new education policy, goverement has said that it will spend a whopping Rs 99,300 crore in the educational sector in the FY21. Moreover, the government has also set aside Rs 3,000 crore for skill development.
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4. Budget for the health sector
The Union budget has proposed an additional 69,000 for the health sector. Moreover, the government has proposed to attach a medical college to a district hospital in PPP model.
Out of the total amount, Rs 6,400 crores will be sanctioned for Ayushman Bharat Yojna. Quoted as the world’s largest healthcare scheme, Ayushman Bharat provides health assurance cover of up to Rs 5 lakh per family to 10 crore poor families.
5. Budget to curb pollution
Govt. will encourage states which formulate plans for air pollution and aid them with the allocated budget of Rs 4,400 to fight pollution, especially in northern states and union territories like New Delhi. Also, power plants with emissions above prescribed limits will be asked to close down.
6. For Indian Railways and Airports
This year’s budget will focus on adding solar capacity to the Indian Railways. More Tejas type trains will be launched to connect the iconic destinations of India. And govt. has also said to spend Rs 18,600 crores on the Bengaluru Suburban Transportation project.
The govt has also proposed the development of 100 more airports by 2024 under the Udaan Scheme. Overall Rs. 1.7 lakh crore has been allocated for the transport infrastructure in the Financial year 2020-21.
7. Push for renewable energy sector
FM announced Rs 20,000 crores for the renewable energy sector.
8. Budget for connecting India
Finance Minister Nirmala Sitharaman said Rs 6,000 crores will be spent under the BharatNet program, which will connect around 1 lakh gram panchayats with BharatNet this year.
9. Skill training for the youth
The government has also allocated Rs 3,000 crores to provide relevant skill training to the youth.
“There is a huge demand for teachers, paramedical staff and caregivers in foreign countries. However, their skills do not match in accordance to demand by employers. So, my government proposes ₹3,000 crore for skill development,” FM said during the 90th Budget presentation.
Govt. has announced to sell govt’s stake in IDBI Bank to private investors. Also, the govt. will sell its stake in LIC through IPO. FY21 fiscal deficit target pegged at 3.5% of GDP
11. Relief for income taxpayers
The government has slashed the percentage of tax that a taxpayer pays to give more money into the hand of the taxpayer.
Here are the new income tax slabs
0 – 2.5 lakh – exempted
₹2.5 lakh – ₹5 lakh – 5%
₹5 lakh – ₹7.5 lakh – 10% (20% earlier)
₹7.5 lakh – ₹10 lakh – 15% (20% earlier)
₹10 lakh to ₹12.5 lakh – 20% (30% earlier)
₹12.5 lakh – ₹15 lakh – 25% (30% earlier)
No change in tax rates above ₹15 lakh
12. Budget for industry and commerce
India will invest Rs 273 billion for the promotion of industry and commerce. Thermal plants exceeding the emission norms will be told to shut. India will also allocate Rs 44 billion for clean air incentives in cities with over 1 million people. FY21 divestment target pegged at Rs 2.1 lakh crore.
13. Plan to construct
With the 2020-21 Union Budget govt. plans to invest in projects like 2,500 access control highway, 9,000 km eco-development corridors, 200 coastal and port roads, 2,000 km strategic highways and investment in Delhi-Mumbai expressway and 2 other corridors which will be completed by 2023.
14. Budget for J&K and Ladakh
The government has also allocated Rs. 30,757 and Rs. 5,958 respectively for the developments of the newly inducted Union Territories.
15. Budget for backward communities and senior citizens
16. Budget for Smart Cities
Finance Minister Nirmala Sitharaman announced that five new smart cities will be developed in the country. The cities will be developed with states in private partnership mode, she added.