1 February 2020 brought India’s explication to the economic slowdown it went through. The Bahi-Khata wrapped budget was proposed as a shield against the tainted backdrop of the inglorious state of the economy. Nirmala Sitharaman launched the budget 2020 with the focal points being Aspirational India, economic development for all and caring society.
Prominent key points:
- Inclusive growth
- Generation of employability
The kingpin of the budget included simplification of tax regime and reduction in tax rates to benefit the middle and lower-middle classes by removing the DDT(Dividend Distribution Tax).
- 10% tax on income between ₹5 and ₹5 lakh(20% before)
- Income between ₹5 lakh to ₹10 lakh, to give 15% tax.
- Citizens with income ₹10 lakh and ₹5 lakh, tax rate cut to 20% from 30%.
- Income earners of ₹5 lakhs to ₹15 lakhs will pay 25% tax.
Taxpayers can opt for the new or earlier structure according to their benefit.
Citizens with income up to Rs 5 lakh are eligible for the Nil rate of tax once they forgo reliefs and exemptions.
Key points for various sectors are:
Agriculture-Rs 2.83 lakh crore
- Distribution of stand-alone solar pumps to 20 Lakh farmers for a more eco-friendly approach.
- Assistance to 15 lakh farmers for solarisation of farms.
- Agricultural credit of around Rs 15 lakh crore to be made available
- Expansion of women self-help groups (SHGs) to manage farm produce at the village level.
Healthcare – Rs 69,000 crore
- Promoting Swachch Bharat mission by issuing Rs 12,300 cr
- Setting up hospitals in Tier II and Tier III cities under the PPP model
Education–Rs 99,300 crore
- Skill development bagged Rs 3,000 cr
- Provision for internship opportunities for fresh engineers with Urban Local Bodies.
- Proposal for a full-time online degree-level education programme to assist talented students from deprived backgrounds.
- Attachment of a medical college to existing district hospitals to lessen dearth of qualified doctors.
Infrastructure –Rs 1.7 lakh crore
- Development of 5 new smart cities
- The government intends to add up to 100 new airports, 2000km of highways, 9000 km of eco-development corridors,
- Rs 35,600 crore for nutrition programmes
- Allocation for the upliftment of weaker sections of the society Rs 1,38,000 crore
- Allocation to Ministry of Culture: Rs 3,150 crore
- Promotion of clean air: Rs 4,400 crore
For Railways- ₹70,000 crore, capital expenditure up to ₹1.61 lakh crore
- The budget also proposed setting up of a large solar power capacity near the rail tracks
- Running more Tejas type trains connecting iconic tourist places.
- The government aims to provide early life funding, including a seed fund to support ideation and development of early-stage Startups.
- Eligible startups with turnover up to Rs 25 crore allowed the deduction of 100% of its profits for three consecutive assessment years out of seven if the total turnover does not exceed Rs 25 crore rupees.
- For larger startups, the ministry proposed the turnover limit to be extended to Rs 100 crore and duration up to 10 years.
The budget aims to observe an economic jump from 6% to 6.5% growth, promotion of digital governance seamlessly leading to ease of living and fulfiling aspirations of each section.