Nirmala Sitharaman – the Finance Minister has bestowed the Indian Union Budget 2020-21 in the Lok Sabha. After Narendra Modi’s National Democratic Alliance returned to power for a second term, it is a second budget allocation for the ongoing year. The Central government is to give Rs. 99,300 crores for the educational division in FY21. Some new educational policies will be announced soon, said Sitharaman in one of the reports. Sitharaman also introduced new income tax slabs and lower rates. These income tax rates are voluntary and are open to those who are prepared to forego some exceptions and deductions.
The Union Budget 2020 focuses on three ideas:
- Aspirational India
- Economic development
- A Caring Society
As per the Economy Survey, economic growth this year is expected to bounce and hit 6% to 6.5% till the next financial year, beginning April 1.
Here are the key highlights for Budget 2020:
Union Budget 2020 For Allocation:
Under the government budget 2020-21, funds allocated for construction of new lines is ₹12,000 crores, around ₹2,250 crores for gauge conversion, ₹700 crores toward doubling, ₹5,786.97 crore for rolling stock and ₹1,650 crores to signalling and telecom.
Union Budget 2020 For Railway:
- The Indian railway has got a budget allocation of Rs. 70,000 crores, and a cost for capital investment of Rs. 1.61 lakh crores.
- The budget also propounds to placing a large capacity solar power, beside the rail tracks.
- Works of 150 passenger trains and redevelopment of four stations, would be done through a public-private partnership model.
- The railway budget 2020 is also directed towards more of Tejas type trains, which will join the iconic tourist destinations.
Government Budget 2020 For New Income Tax Slabs:
- In Indian Union Budget 2020, Finance Minister Nirmala Sitharaman introduced a new set of income tax rates for those who make up to ₹15 lakh yearly.
- She also stated that around 10% tax will be allowed on individuals earning between ₹5 to ₹7.5 lakh from about 20 percent from now.
- Those with income between ₹7.5 lakh to ₹10 lakh will also draw a lower tax of 15%. For people with annual income between ₹10 lakh and ₹12.5 lakh, the income tax rate is lessened to 20% from 30%.
- Those with annual earning of ₹12.5 lakhs to ₹15 lakhs will pay around 25 percent tax.
- As per the Union Budget 2020 allocated by the Finance Minister, those earning over ₹15 lakh would proceed to pay the tax at the prevailing rate of 30%.
Benefits For The Pensioners, Job Starters, Entrepreneurs To Gain From The New Income Tax Administration:
As per the sources, Going for the new tax rates offered in the budget could be beneficial for job-starters, pensioners, entrepreneurs, and those taxpayers who are unable to assert any available deductions and exclusions below the current tax structure.
On Income Tax:
The reduction in income tax rates has helped to save up to ₹1,820 to ₹20,300 a year in tax for an individual with an annual income of above ₹10 lakh. However, it was accustomed to former prevailing exemptions and deductions, including the standard deduction of about ₹50,000 with the waiver that is earned on payment up to ₹1.5 lakh in tuition fee of children, and addition towards insurance premium and provident fund.
- Food subsidy has stared at ₹1.15 trillion that is around $16.18 billion for the new year government budget 2020-21.
- Petroleum subsidy observed at ₹409.15 billion, which is around $5.76 billion for the annual year budget 2020-21.
- Fertiliser subsidy of around ₹713.09 billion that goes about $10.03 billion considering the budget 2020-21.
- The Indian budget 2020, also allocated for the Power sector.
- India is to provide ₹273 billion, which is around $3.84 billion for the promotion of industry and commerce.
- Few firms operating old thermal power plants are advised to shut units if discharge norms aren’t sufficed.
- India to allot ₹44 billion that is estimated around $619.11 million towards clean air purposes in cities with over 1 million people.
Government Budget 2020 Allocation For Manufacturing:
- The scheme converged on encouraging the manufacture of mobile phones, electronic equipment, and semiconductor packaging to be included.
- Assists the private sector to develop data centers parks throughout the country.
- Approximately, ₹80 billion for over five years to be given to quantum technologies, and applications.
- Milk processing capacity to be increased by 2025.
- More airports and highways. India to build 100 more airports by the year 2024.
- India to monetize across 6,000 km of highways in 12 blocks by the year 2024.
- India on the verge to undertake at least one major port.
- Customs duty against walnuts increased to 100% from 30%
- Customs duty upon autos and auto parts are increased up to 10%
- Customs duty on platinum and palladium decreased to 7.5% from 12.5% for some purposes.
Budget 2020 Allocation For Agriculture:
A Union Budget 2020, allocated ₹2.83 lakh crore for the sector, including agriculture and its associated activities. An act to double up farmers’ income is conceded, until the year 2022. An agri-credit is enabled, and its availability is assessed at ₹15 lakh crore for annual budget 2020-21.
An action plan is devised towards 100 plus water-stressed districts. More than 20 lakh farmers, aided to set up a solar pump concerning their farming needs. Another 15 lakh farmers, assisted to solarise their power grid considering their agriculture need. Some budget is also directed towards the village storage scheme, proposed to be run by women SHGs. Indian Railways are also likely to have refrigerated coaches in ‘Kisan trains’ to carry raw perishables and milk while travelling to longways. Krishi UDAN held on international and national routes.
Government Budget 2020 Towards Health And Sanitation:
An estimated amount of ₹69,000 crores is allocated towards the health sector. Around ₹12,300 crores of government budget 2020 is allocated towards Swachh Bharat. A proposal is being determined to set up hospitals in Tier-II and Tier-III cities collaborating with the private sector using PPP. Jan Aushadhi scheme will be carried out in all hospitals on a large scale under Ayushman Bharat by 2025.
Indian Budget 2020 Towards Educations:
About ₹99,300 crores are allocated for the education sector in 2021 and nearly ₹3,000 crores for skill development. Many young engineers will be given internships by the urban local bodies for almost a year. An advantage for students from rural and unprivileged ones will be given degree-level full-fledged online education programs through institutions that ranked in the top 100 in NIRF rankings, particularly this step will be taken to benefit needy students. A national police university and a national forensic science university are about to set up soon. An IND SAT exam for the students of Asia and Africa to encourage the “study in India” program.
An Indian Union Budget 2020 Allocated Towards Overall Infrastructure:
- The budget 2020-21 offers ₹1.7 lakh crore for transport infrastructure in 2021.An Indian National Logistics Policy is to be released early.
- The Chennai – Bengaluru Expressway to be begun soon.
- Will strive to attain electrification of 27,000 km of lines.
- Conspiring to have a large solar power capacity for Indian Railways.
- The government has also come up with a Bengaluru suburban rail project at a huge budget of about ₹18,600 crores.