Finance Minister Nirmala Sitharaman presented her second budget in Lok Sabha today, on Saturday, February 1. Among other key announcements, the government is introducing a simplified personal tax regime and major reforms for the agriculture and education sector. The government has also allocated a total of Rs 28,600 crore for programmes specifically aimed at women. Sitharaman also said that a task force will be set up to recommend marriageable age for women.
In her speech, she said that the Budget revolved around three primary themes – aspirational India, economic development for all and a caring society. After almost two-and-a-half-hours, FM Nirmala Sitharaman had to cut short her speech as she was feeling unwell towards the end. Here’s bringing to you all key highlights from Budget 2020.
1. Rs 12,300 crore has been allocated to the very ambitious ‘Swachh Bharat Mission’ this year.
2. Rs 2.83 lakh crore allocated for agriculture and irrigation sector.
3. FM announced Rs 99,300 crore outlay for the educational sector. She said that the government would introduce foreign direct investments in the educational sector and the Centre will be announcing a new education policy soon.
4. A simplified return format for GST is being introduced from April 2020.
5. More Tejas-like trains and 100 more airports to be developed by 2024
6. Budget proposes Rs 20,000 crore for the renewable energy sector.
7. Rs 1.71 lakh crore allocated for transport infrastructure, which Twitterati are saying is lower than expected.
8. Rs 8,000 crore allocated for National Mission of Quantum Technology and Application for five years.
9. A new investment clearance cell for entrepreneurs to be set up. That will provide them end-to-end facilitation and other support.
10. The nutrition-related programmes will get Rs 35,600 crore. Over 6 lakh Anganwadi workers have been equipped with smartphones in order to amend the nutritional status of over 20 crore households.
11. The Finance Minister proposed Rs 85,000 crore for Scheduled Castes and other backward classes, and Rs 53,700 crore for the Scheduled Tribes.
12. More hospitals in tier 2 and tier 3 cities. A total budget of 69,000 crore has been allotted to the healthcare sector.
13. Rs 3.6 lakh crore for the Jal Jeevan Mission to recharge water sources and improve water harvesting. This has been done in order to provide functional tap connections to each rural household by 2024.
14. Delhi-Mumbai Expressway to be ready in three years.
15. Rs 9,500 crore allocated for senior citizens and ‘Divyang’.
16. Five archaeological sites to be developed with museums in Hastinapur, Sivasagar, Rakhigarhi, Adichanallur and Dholavira.
17. The finance minister proposed a computer-based online common eligibility test for recruitment for non-gazetted government posts. The government has also proposed to set up a National Police University and a National Forensic Science University.
18. Rs 4,400 crore to be allocated to fix the problem of increasing air pollution.
19. The government raised the deposit insurance coverage to Rs 5 lakh from Rs 1 lakh.
20. Budget 2020 announced new tax regimes and slashed income tax rates. As per the new regime, 70 tax exemptions will be removed, and here’s how you will be taxed:
- Incomes between Rs 5 lakh and Rs 7.5 lakh will be taxed at 10% as compared to the current 20%.
- Incomes between Rs 7.5 lakh and Rs 10 lakh will be taxed at 15% as compared to the current 20%.
- Incomes between Rs 10 lakh and Rs 12.5 lakh will be taxed at 20% as compared to the current 30%.
- Incomes between Rs 12.5 lakh and Rs 15 lakh will be taxed at 25% as compared to the current 30%.
- Incomes more than Rs 15 lakh will continue to be taxed at 30%.
Also, the new income tax rates will be optional.
21. A system will be launched for instant allotment of PAN cards on the basis of Aadhar Card.
22. The taxpayers will be benefited depending on exemptions claimed by them. The one who is earning more than 15 lakh per annum and not taking any deductions, will pay Rs 1,95,000 as compared to the current 2,73,000.
23. The Custom Duty on footwear and furniture raised.
24. Customs duty on wall fans and tableware/kitchenware made of porcelain or China ceramic, steel and copper increased to 20%.
Things That Will Become Costly
- Imported footwear
- Furniture
- Cigarettes
- Tobacco products
- Medical equipments
- Wall fans
- Tableware and kitchenware made of China ceramic, porcelain, steel and copper
Things That Will Become Cheaper
- Agro-animal products
- Houses
- Raw sugar
- Skimmed milk
- Certain alcoholic beverages
- Soya fibre, soya protein
- Purified terephthalic acid
- Imported newsprint and lightweight coated paper
It is worth mentioning that Finance Minister Nirmala Sitharaman said that this budget was aimed at raising spending. Tell us, what do you think of Budget 2020? Do you think it will boost India’s falling economy?
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