Union Budget 2020 Highlights
Finance Minister Nirmala Sitharaman on 1st February 2020 rejigged personal income tax slabs with riders, extended tax benefits for affordable housing and gave relief to companies on payment of dividend in the Union Budget for 2020-21 as the Narendra Modi government aims to boost consumption to bring the economy out of the worst slowdown in 11 years. The minister proposed raising customs duty on a variety of products ranging from tableware and kitchenware, electrical appliances to footwear, furniture, stationery and toys to give a level playing field to domestic companies and boost 'Make in India'. To boost growth, Sitharaman announced higher spending on infrastructure, rural development, and the Agri sector. The Finance Minister said the government is proposing a 16-point action plan to boost agriculture and farmers' welfare.
Below mentioned are a few highlights of the Union Budget 2020.
Highlights of Union Budget 2020
Budget 2020 is woven around three prominent things – “Aspirational India” to boost the standard of living; economic development for all, and building a humane and compassionate society.
FM encouraged the state governments to undertake the implementation of following model laws issued by the central government.
Under the first theme of “Aspirational India”
Farmers encouraged to set up solar pumps, solar power generation units on their fallow or barren lands.
The government proposes plans to help farmers use proper manure and little water.
NABARD to map and geo-tag warehouses and Food Corporation of India and Warehousing Corporation of India to build warehousing facilities on their land.
Proposal to help farmers with a balanced use of all kinds of fertilizers.
The village storage scheme has been proposed by the FM.
Government to build up the seamless national cold supply chain for perishables; logistics companies surged as FM proposes to build a seamless national cold storage chain
Indian Railways to set up a ‘Kisan Rail’ through Public-Private Partnership
Government has proposed the framework for development, management and conservation of marine fishery; raising fish production to 200 lakh tons; involve youth in fish farmer producer organizations
Horticulture projects at the district level will be given importance. Online portal on Jaivik Kheti will be strengthened
The government says milk processing capacity to be doubled by 2025
Integrated farming systems in rainfed areas shall be expanded
All Kisans to be covered under the Kisan credit card scheme
What the doctor ordered: Govt to expand Mission Indradhanush, add hospitals to Ayushman Bharat
Govt proposes Rs 3.6 lakh crore towards piped water supply to households, recharging existing sources, and harvesting rainwater during the current year
FM announces Rs 99,300 crore outlay for the education sector in 2020-21 and Rs 3,000 crore for skill development
The government intends to eliminate foot and mouth disease
Viability gap funding via PPP model funding for 112 districts where there are no impaneled hospitals under Ayushman Bharat; proceeds from taxes (direct and indirect) on medical devices to be used for funding the schemes;
The government allocated Rs 12,3000 crores to Swaccha Bharath Mission
Rs 69,000 crores including funds for PM Jan Aarogya yojana allocated by the government.
FM proposes ODF+ scheme to sustain ODF behavior and to ensure no one is left behind.
For the working-age population, Project Preparation Facility to be set up for preparation of infrastructure projects, actively involving young engineers and management graduates
New education policy to be announced; and FDI funds to be obtained for education
Setting up of investment clearance cell for entrepreneurs; about 150 higher education to provide apprenticeship embedded degree courses; to start degree level full-fledged programs
Under the Second Theme “Economic Development”
Development of smart cities and promoting manufacturing to generate investment and employment opportunities
Focus on the manufacture of network products and encouraging the electronics manufacturing industry
All ministries to issue quality standards and government to focus on adoption of technical standard
For exporters, a new scheme Nirwik has been proposed that will digitally refund duties and taxes imposed locally; the scheme is to be launched from FY 2020-21.
Development of districts as export hubs and promotion of government e-marketplace (GEM)
A national logistics policy to be released with a single-window “e-logistics market”
Monetization of 12 lots of highway bundles of over 6,000km before 2024
Measures to set up large solar power capacity on land owned by railways
Proposed to bringing in more TEJAS type trains, Bengaluru suburban train
Increase in the number of airports to 100 by 2022
For power discoms – Introduction of prepaid smart meters within the next 3 years in all states and UTs; freedom to choose the supplier of electricity and the rate as per requirement
FM proposes Rs. 22000 crore to power and renewable energy sector
FM proposes to expand the national gas grid from 16,200 km to reach 27,000 km to deepen the gas markets in India
Data is the new oil (Digital India announcements): Government has adopted technology to directly transfer the finances with the beneficiaries. Policy to enable the private sector to build data center parks to be launched soon. FTTH connections will link 100,000-gram panchayats within the year. Rs 6,000 crore allocated for Bharat Net Program this year. Knowledge translation clusters will be set up across different sectors. Quantum Technologies opening up new frontiers. 8000 crores of outlay in the next 5 years. Soon, policy for the private sector to build Data Centre Parks throughout the country; our vision is that all public institutions be provided with digital connectivity
Genetic mapping of Indian to be done through two new medical schemes. Beti Bachao, Beti Padhao has yielded tremendous results.
Third Theme – Caring Society
More than 600000 Anganwadi workers are equipped with a smartphone to upload the nutritional status of the students of India. Propose to provide Rs 35,600 crore for nutrition-related programmes in 2020-21.
Have identified suitable technology to eliminate manual cleaning of sewer systems and septic tanks. 85,000 crores for the welfare of SC and OBC; 85,000 crore rupees for Scheduled Castes and Other Backward Classes in 2020-21, 53,700 crore rupees for Scheduled Tribes.
Senior citizens: Enhanced allocation of 9,500 crore rupees for Senior citizens and Divyangs.
Culture: 5 archaeological sites would be developed as iconic sites with the on-site museum. A Tribal Museum to be set up in Ranchi, Jharkhand. New currency museum to be embedded in the Kolkata Mint – The oldest mint in India. Rs 3,150 crore allocated for the ministry of culture in 2020-21 Environment and climate change: India to make good on the promises made at Paris accord form Jan 1st, 2021.