Budget 2020 Impact: Finance Minister Nirmala Sitharaman today (1st Feb,2020) will be presenting her 2nd Union Budget. Nirmala Sitharaman stated that Aspirational India, Economic development and a caring society with Ease of Living are the three themes of this Budget.
Check this article to know Union Budget 2020-21 will impact the different sectors.
Budget 2020 Impact On: Income Tax
Union Finance Minister stated that the tax proposals would bring ease of compliance and reduce litigation. She said that new personal income tax regime would be reduced who forego deductions and exemptions. New Income Tax slabs are as follows:
Tax Rates as per the Income Bracket of an Individual
| Income Bracket (in lakh) |
Tax Rate (per cent) |
|---|---|
| Below 5 Lakh | Exempt |
| 5- 7.5 Lakh | 10 |
| 7.5- 10 Lakh | 15 |
| 10-12.5 Lakh | 20 |
| 12.5-15 Lakh | 25 |
| Above 15 Lakh | 30 |
Tax Rates as per the Taxable Income Slab: Comparison with previous years
| Taxable Income Slab (Rs.) | Existing tax rates | New tax rates |
|---|---|---|
| 0-2.5 Lakh | Exempt | Exempt |
| 2.5-5 Lakh | 5% | 5% |
| 5-7.5 Lakh | 20% | 10% |
| 7.5-10 Lakh | 20% | 15% |
| 10-12.5 Lakh | 30% | 20% |
| 12.5-15 Lakh | 30% | 25% |
| Above 15 Lakh | 30% | 30% |
- Deposit insurance for depositors enhanced from Rs 1 lakh to Rs 5 lakh.
- Dividend Distribution Tax (DDT) removed making India a more attractive investment destination.
- Rs. 25,000 crore estimated annual revenue forgone.
- Start-ups with turnover up to Rs. 100 crore to enjoy 100% deduction for 3 consecutive assessment years out of 10 years.
Budget 2020 Impact On Agriculture:
- FM stated that the government is determined to the goal of doubling the farmer’s income by the year 2022.
- FM allotted budget of 2.83 lakh crore for agriculture and rural development.
- Krishi Udaan to be launched by Civil Aviation Ministry to transport agri-products to national as well as international destinations.
- KUSUM scheme to be expanded to help 2 million farmers in setting up standalone solar pumps.
- Agriculture credit target has been set at Rs 15 lakh crore.
- A total of 6.11 crore farmers insured under Fasal Bima, says finance minister.
- Under the Deendayal Antyodaya Scheme, fish farmer producer organisation to be set up.
- Milk processing capacity to be expanded to 108 tonnes from 53.5 tonnes.
Budget 2020 Impact On Education
- Under the Union Budget, Rs 99, 300 crore allocated for education sector in 2020-21 and Rs 3,000 crore for skill development.
- New education policy will also be announced soon.
- A degree-level full-fledged online education programme to be offered by institutes in top 100 in National Institutional Ranking Framework.
- Indian Institute of Heritage and Culture to be established under Ministry of Culture.
Budget 2020 Impact On Health
- 69,000 crores have been allotted to the health sector.
- 4400 crores allocated for Clean Air
- FM Proposes a public-private partnership (PPP) mode hospitals in 112 aspirational districts. Wellness water and sanitation & Healthcare Mission Indradhanush expanded to cover 12 diseases, Fit India Movement, Jal Jeevan Mission, Swachh Bharat Mission.
- “TB हारेगा, देश जीतेगा” Campaign, Strengthen the campaign to end Tuberculosis by 2025. Jan Aushadi Kendra Scheme offering 2000 medicines, 300 surgical by 2024.
- Rs 12,300 crore allocated to Swachh Bharat Mission.
- Rs 35, 600 crore for nutrition-related programmes for 2020-21.
- Rs 3.6 lakh crore approved for Jal Jeevan Mission
Budget 2020 Impact On Infrastructure
- Rs.103 lakh crore National Infrastructure Pipeline projects earlier announced.
- 1.7 Lakh Crores for Transport Infrastructure
- High-Speed Train Mumbai-Ahemadabad would be actively pursued, urge to State & UTs to replace conventional energy meters by prepaid smart meters in the next 3 years
- 100 more airports will be developed under UDAN by 2024.
- India will host G-20 presidency in the year 2022 and Rs 100 crore has been allocated for preparation.
- Rs.1.7 lakh crore proposed for transport infrastructure in 2020-21.
Budget 2020 Impact On Industry, Commerce and Investment
- Propose to provide Rs 27,300 crores for development for industry and commerce for year 2020-21
- Govt allows tech companies to set up Data Centre parks to provide internet to citizens. It allocates Rs 6,000 crore for BhartatNet
- Policies will be launched soon for building Data Centre Parks.
- A proposal to set up solar plants on the land owned by Railways is under consideration, says FM
Budget 2020 Impact On Tourism
- Government has allocated Rs 2,500 crore for tourism for FY21.
- Five archaeological sites will be developed as iconic sites with on-site museums -Rakhigarhi, Hastinapur, Shivsagar, Dholavira and Adichanallur. A tribal museum will be set up in Ranchi, Jharkhand.
- Rs 3,100 crore has been set aside for Culture Ministry.
Budget 2020 Impact On Environment & Climate Change
- Allocation for this purpose to be Rs.4400 crore for 2020-21.
Budget 2020 Impact On Indian Railways
- Large solar power capacity to be set up alongside rail tracks, on land owned by railways.
- Four station re-development projects and operation of 150 passenger trains through PPP.
- More Tejas type trains to connect iconic tourist destinations.
- High speed train between Mumbai and Ahmedabad to be actively pursued.
- 148 km long Bengaluru Suburban transport project at a cost of Rs 18600 crore, to have fares on metro model. Central Government to provide 20% of equity and facilitate external assistance up to 60% of the project cost.
Budget 2020 Impact On Financial Sector
- 10 banks consolidated into 4.
- Rs. 3,50,000 crore capital infuse.
- NBFCs eligibility limit for debt recovery reduced from Rs. 500 crore to Rs 100 crore asset size. Rs 1 crore to Rs 50 lakh loan size
- The window for MSMEs debt restructuring by RBI to be extended by one year till March 31, 2021.
Budget 2020 Impact On: Women Empowerment and Backward Classes
- Rs 85,000 crore allocated for SCs and OBCs in Budget for FY 2020-21
- 28,600 crores allocated to programmes related to women
- More than 6 lakh Anganwadi workers equipped with smartphones to update the nutritional status of 10 crore households Task Force appointed to mothers.
- 53,700 crores allocated for Senior Citizens
- 9,500 crores allocated for Divyangs for 2020-21
Economic Survey 2020
Questions Based On Economic Survey 2020 For SSC, IAS, Railways and Other Government Exams 2020
