Important Highlights of UNION BUDGET 2020

Important Highlights of UNION BUDGET 2020

Important Highlights of UNION BUDGET 2020 

This years’ union budget was presented by the Finance Minister of India on 1st February 2020. The budget was presented by N. Sitharaman, who presented it for the 2nd time. This years’ budget presentation was the longest in the history of independent India, clocking in at 2 hours 41 minutes.


    The budget was weaved around three things

•    Aspirational India,

•    Economic development and,

•    A Caring Society

    A new tax regime was introduced

•    The government through this budget introduced a new tax regime which they claimed that will make paying taxes for an individual an easier process

•    The government removed over 70 deductions in the new tax regime

•    However, the new tax regime will be optional and it will be at the option of the individual as to which tax calculation system to be used by him (the old tax regime or the new one).


   Income slabs Tax rates Applicable
1Up to 5 lakhs Exempted from paying
25 lakhs-7.5 lakhs   10 %
37.5 lakhs- 10 lakhs 15%
410 lakhs – 12.5 lakhs 20%
512.5 lakhs – 15 lakhs25%
6Above 15 lakhs 30%


    Agriculture sector:

•    Rs 2.83 lakh crore is planned to be allotted to the agriculture sector and irrigation for FY21.

•    The government, in order to increase the usage of renewable resources, is planning to promote the usage of solar energy.

•    The government will be encouraging farmers to use all types of fertilizers to change the ‘incentive regime’ which currently encourages the farmers to use chemical fertilizers.

•    The government also plans on introducing ‘Kisan Rail’ for better transportation of products from farms to markets.

    Education

•    The government plans on allocating 99,300 for the education sector in 2020-21 and also plans to allocate Rs 3000 crore for skill development program

•    The government will be setting up of National Recruitment Agency for conducting a computer-based entrance exam for recruitment to the non-gazetted post

•     To promote higher education in the country, the Introduction of ‘ind-SAT’ exam in Asian and African countries will be initiated.

•    The government is also planning on setting up of ‘National police university’ and ‘National forensic science university’.

•    Around 150 higher educational institutions will start apprenticeship embedded degree/diploma courses by March 2021.

    Health and Sanitation:

•    The government plans on allocating Rs 69,000 crore for the health sector and 35,600 crores for all the nutrition-related programs.

•    The proposal was introduced to set up hospitals in Tier-II and Tier-III cities with the involvement of the private sector using PPP.

•    Expansion of the ‘Jan Aushadhi’ scheme that was introduced to provide for all hospitals under Ayushman Bharat by the year 2025.

•    The government has decided to allot 12,300 crores for ‘Swachh Bharat Abhiyaan’ this year and also planned on introducing the ‘Jal Jeevan Mission’.

•    The government also plans on investing Rs 4400 crore for providing clean air for the people.

    Culture & Tourism

•    The government plans on allocating Rs. 2500 crore for 2020-21 for the tourism promotion.

•    Rs.3150 crore is proposed for allocation to the Ministry of Culture for 2020-21.

•    An Indian Institute of Heritage and Conservation under Ministry of Culture proposed; with the status of a deemed University.

•    5 archaeological sites are planned to be developed as iconic sites with on-site Museums.


This years’ budgetary speech being the longest not only included new schemes but also a homage to Arun Jaitley and a couple of poems, through these new schemes and the tax regime the government plans on reviving the situation of slow-down in the economy.


eStartIndia Team

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