BUDGET BULLETIN 2020
1 THIS BUDGET IS TO BOOST INCOME AND ENHANCE PURCHASING POWER, SAYS FINANCE MINISTER.
v TOTAL OF 60 LAKH NEW TAXPAYERS AND 105 CRORE E-WAY BILLS GENERATED UNDER GST, SAYS NIRMALA SITHARAMAN.
v AN AVERAGE HOUSEHOLD NOW SAVES ABOUT 4% OF ITS MONTHLY SPEND ON ACCOUNT OF REDUCED GST
v GST RESULTED IN RS 1 LAKH CRORE GAINS TO CONSUMERS, REMOVED INSPECTOR RAJ AND HELPED TRANSPORT SECTOR
v THIS BUDGET IS WOVEN AROUND THREE PROMINENT THINGS – ASPIRATIONAL INDIA TO BOOST THE STANDARD OF LIVING; ECONOMIC DEVELOPMENT FOR ALL; AND BUILDING A HUMANE AND COMPASSIONATE SOCIETY
v MOVED ON FROM OVER 4 PERCENT GROWTH IN 1950S TO 7.4 PERCENT TO 2014-19 PERIOD, SAYS FINANCE MINISTER.
v FM SITHARAMAN SAYS CENTRAL GOVT’S DEBT HAS COME DOWN TO 48.7% IN MARCH, 2019 FROM 52.2% IN MARCH, 2014
v FM TRANSLATES KASHMIRI POEM INTO HINDI. IT SAYS, “HAMARA VATAN KHILTE HUEY SHALIMAR BAGH JAISA…HAMARA VATAN DAL JHEEL ME KHILTE HUEY KAMAL JAISA…NAUJAWAANON KE GARM KHOON JAISA…MERA VATAN, TERA VATAN, HAMARA VATAN DUNIYA KA SABSE PYARA VATAN”
AGRICULTURE SECTOR
Ø FM: WE ARE COMMITTED TO THE GOAL OF DOUBLING FARMERS’ INCOME BY 2020
Ø WE WANT TO ENCOURAGE STATE GOVERNMENTS TO IMPLEMENT MODEL AGRICULTURAL LAWS PASSED BY CENTRAL GOVERNMENT: FM
Ø WE SHALL HELP 15 LAKH FARMERS SOLARIZE THEIR GRID-CONNECTED PUMPSETS: FM
Ø FM SITHARAMAN SPEAKS ABOUT GOVERNMENT’S EFFORTS TO PROMOTE THE USE OF SOLAR ENERGY IN THE FARMING SECTOR
Ø GOVT LAYING DOWN 16 ACTIONABLE POINTS TO ENHANCE FARMER INCOME
Ø 1.23 LAKH CR TO BE ALLOCATED FOR RURAL DEVELOPMENT, PANCHAYATI RAJ: FM
Ø RS 2.83 LAKH CRORE TO BE ALLOCATED FOR AGRI, IRRIGATION, AGRI COMPANIES
Ø GOVT TO EXPAND FISH PRODUCTION CAPACITY TO 200 LAKH TONNES +VE FOR AVANTI FEEDS, WATERBASE
Ø WILL EXPAND FISH PRODUCTION CAPACITY TO 200 LAKH TONNES: FM
Ø MILK PROCESSING CAPACITY TO BE EXPANDED TO 108 T FROM 53.5 T
Ø AGRICULTURE CREDIT TARGET IS AT `15 LAKH CR VS `12 LAKH CR (YOY): FM
Ø INDIAN RAILWAYS TO SET UP A KISAN RAIL FOR TRANSPORT OF PERISHABLE GOODS +VE FOR CONCOR, NAVKAR CORP
Ø ALL BENEFICIARIES OF PM KISAN SCHEME TO BE COVERED UNDER KISAN CREDIT CARD
Ø NABARD RE-FINANCE SCHEME TO BE EXPANDED TO PUSH AGRICULTURAL CREDIT
Ø GOVT TO STRENGTHEN NATIONAL ONLINE ORGANIC PRODUCTS MARKET: NIRMALA SITHARAMAN
Ø GOVT TO LAUNCH VILLAGE STORAGE SCHEMES RUN BY WOMEN SELF-HELP GROUPS +VE FOR STORAGE WAREHOUSE COS.
Ø HORTICULTURE SECTOR EXCEEDS THE PRODUCTION OF FOOD GRAIN: FM
Ø INDIAN RAILWAYS TO SET UP KISAN RAIL FOR TRANSPORT OF PERISHABLE GOODS
Ø VILLAGE STORAGE SCHEME PROPOSED TO BE RUN BY SELF-HELP GROUPS
Ø GOVERNMENT TO PROVIDE VIABILITY GAP FUNDING FOR SETTING UP WAREHOUSES
Ø GOVT LOOKING TO CHANGE EXISTING REGIME THAT PROMOTES EXCESSIVE USE OF CHEMICAL FERTILISERS
Ø LOOKING TO CHANGE EXISTING REGIME THAT PROMOTES EXCESSIVE USE OF CHEMICAL FERTILIZERS: FM SITHARAMAN
Ø GOVT TO HELP FARMERS SET UP SOLAR POWER UNITS
Ø GOVT TO EXPAND ‘PM KUSUM SCHEME’ TO 20 LAKH FARMERS TO SET UP SOLAR PUMPS
Ø GOVT TO HELP FARMERS SET UP SOLAR POWER UNITS
Ø EXPAND ‘PM KUSUM SCHEME’ TO 20 LAKH FARMERS TO SET UP SOLAR PUMPS: FM
Ø GOVT PROPOSING COMPREHENSIVE MEASURES FOR 100 WATER-STRESSED DISTRICTS
Ø PROPOSING COMPREHENSIVE MEASURES FOR 100 WATER-STRESSED DISTRICTS: FM SITHARAMAN
EDUCATIONAL AND HEALTH SECTOR
Ø FM SAYS RS 99,300 CRORE ALLOCATED FOR EDUCATION SECTOR IN FY21 +VE FOR EDUCATION SERVICES PROVIDER
Ø GOVT PLANS TO ATTACH MEDICAL COLLEGE TO DISTRICT HOSPITALS VIA PPP MODEL +VE FOR HEALTHCARE
Ø MOOTS 1-YEAR INTERNSHIP FOR ENGINEERS BY URBAN LOCAL BODIES: FM SITHARAMAN
Ø GOVT TO PROMOTE ‘STUDY IN INDIA’
Ø PROPOSE TO START IND-SAT EXAM FOR ASIAN & AFRICAN STUDENTS: FM
Ø GOVT ALLOCATES RS 69,000 CRORE FOR HEALTH SECTOR IN FY21 +VE FOR PHARMA COS
Ø GOVT TO START FULL-FLEDGED ONLINE DEGREE PROGRAMS FOR UNDER-PRIVILEGED STUDENTS
Ø 150 HIGHER EDUCATION INSTITUTIONS TO OFFER APPRENTICESHIP DIPLOMAS BY MARCH 2021 +VE FOR EDUCATION COS
Ø TO SOURCE MORE ECB & FDI FOR EDUCATION SECTOR: FM SITHARAMAN
Ø NEW EDUCATION POLICY TO BE ANNOUNCED SOON: FM
Ø GOVT AIMS TO ERADICATE TUBERCULOSIS BY 2025
Ø RS 3.6 LAKH CR ALLOCATED FOR JAL JIVAN MISSION: FM
Ø ALLOCATE RS 69,000 CR FOR HEALTH SECTOR IN FY21
Ø GOVT TO SET UP MORE HOSPITALS UNDER ‘AYUSHMAN’ SCHEME
Ø PROCEEDS FROM TAX ON MEDICAL DEVICES TO BE USED TO FUND HOSPITAL DEVELOPMENT +VE FOR HOSPITALS
Ø FM SAYS PROCEEDS FROM TAX ON MEDICAL DEVICES TO BE USED TO FUND HOSPITAL DEVELOPMENT
Ø TO PROVIDE VIABILITY GAP FUNDING FOR SETTING UP HOSPITALS UNDER PPP MODEL: FM
Ø NEED TO EMPANEL MORE HOSPITALS IN TIER-II & III CITIES: FM
Ø GOVT TO PROVIDE VIABILITY GAP FUNDING FOR SETTING UP HOSPITALS UNDER PPP MODEL +VE FOR HOSPITAL COS
Ø “ANTI-TB CAMPAIGN TO BE LAUNCHED TO ELIMINATE TB BY 2025”
INDUSTRY AND COMMERCE
Ø RS 27,300 CR ALLOCATED FOR DEVELOPMENT OF INDUSTRY & COMMERCE IN FY21
Ø GOVT TO START DIGITAL REFUND OF STATE & CENTRAL TAXES TO EXPORTERS
Ø RS 1,480 CR ALLOCATED FOR TEXTILE MISSION: FM SITHARAMAN
Ø FM SAYS NEED TO BOOST MANUFACTURING & ATTRACT INVESTMENT IN ELECTRONICS CHAIN
Ø FIVE NEW SMART CITIES IN COLLABORATION WITH STATES VIA PPP: FM
Ø GOVT TO SET UP INVESTMENT CLEARANCE CELL FOR END-TO-END ENTREPRENEURIAL FACILITATION
Ø ENTREPRENEURSHIP HAS ALWAYS BEEN THE STRENGTH OF INDIA: FM
Ø A NEW SCHEME NIRVIK WILL BE OFFERED FOR EXPORTERS. THIS WILL HAVE LOWER PREMIUMS AND A FASTER CLAIMS SETTLEMENT. REFUND TO EXPORTERS THE DUTIES LEVIED INCLUDING ELECTRICITY AND VAT WHICH HAVE BEEN NOT REFUNDED. THIS WILL BE LAUNCHED THIS YEAR ITSELF, SAYS FM. EACH DISTRICT WILL HAVE TO BE DEVELOPED AS AN EXPORT HUB.
INFRASTRUCTURES AND CIVIL DEVELOPMENT
Ø FM ANNOUNCES 5 MEASURES FOR INDIAN RAILWAYS
Ø FM: 4-STATION RE-DEVELOPMENT PROJECTS IN RAILWAYS VIA PPP MODELS
Ø GOVT TO LAUNCH RS 18,600 CRORE WORTH BENGALURU SUBURBAN TRANSPORTATION PROJECT +VE FOR INFRA
Ø DELHI-MUMBAI EXPRESSWAY TO BE COMPLETED BY 2023
Ø NHAI TO MONETISE 12 LOTS OF HIGHWAY BUNDLES OF 6,000 KM BY 2024: FM SITHARAMAN
Ø GOVT TO DEVELOP SOLAR CAPACITY IN INDIAN RAILWAYS +VE FOR SOLAR PANEL PROVIDERS
Ø FM: GOVT TO SET UP 9,000 KM ECONOMIC CORRIDOR, 2,000 KM OF COASTAL ROAD
Ø NATIONAL LOGISTICS POLICY TO CREATE SINGLE-WINDOW E-LOGISTICS MARKET, SAYS FM
Ø GOVT WILL BE STARTING CHENNAI-BENGALURU EXPRESSWAY +VE FOR ROAD DEVELOPERS
Ø NATIONAL LOGISTICS POLICY TO RELEASE SOON: FM SITHARAMAN
Ø FM SAYS NATIONAL LOGISTICS POLICY TO CREATE SINGLE-WINDOW E-LOGISTICS MARKET
Ø NATIONAL INFRA PIPELINE WORTH RS 103 LAKH CR INVOLVES 6,500 PROJECTS: FM
Ø BUDGET 2020: GOVT TO LAUNCH ‘VILLAGE STORAGE SCHEME’ FOR WOMEN IN VILLAGES TO REGAIN ‘DHAANYA LAKSHMI’ STATUS
Ø NATIONAL INFRASTRUCTURE PIPELINE ENVISIONS IMPROVING EASE OF LIVING
COMMON PEOPLE LIFE DEVELOPMENT
Ø GOVT TO SET-UP INDIAN INSTITUTION OF HERITAGE & CONSERVATION
Ø GOVT ALLOCATES RS 85,000 CR FOR SCHEDULED CASTES & OBCS IN FY21
Ø FM SAYS 5 ARCHAEOLOGICAL SITES TO BE DEVELOPED AS ICONIC SITES +VE FOR NBCC
Ø CENTRE ALLOCATES RS 53,700 CR FOR SCHEDULED TRIBES IN FY21
Ø GOVT ALLOCATES RS 28,600 CR FOR WOMEN CENTRIC PROGRAMMES IN FY21
Ø FAVOUR KEEPING STATES’ SHARE IN TAX REVENUE AT 42%: FINANCE MINISTER
Ø GROSS ENROLLMENT OF GIRLS ACROSS COUNTRY IS HIGHER THAN BOYS: FM SITHARAMAN
Ø GOVT ALLOCATES RS 8,000 CR OVER 5 YEARS FOR NATIONAL MISSION QUANTUM TECHNOLOGY
Ø CENTRE ALLOCATES RS 6,000 CR FOR BHARATNET PROGRAM IN FY21
Ø GOVT TO COME OUT WITH POLICY FOR BUILDING DATA CENTRE PARKS: FM
Ø GOVT WILL EXPAND NATIONAL GAS GRID TO 27,000 KM FROM 16,200 KM
Ø FM ALLOCATES RS 22,000 CR TO POWER & RENEWABLE SECTOR
Ø GOVT TO COME OUT WITH POLICY FOR BUILDING DATA CENTRE PARKS +VE FOR NBCC
Ø SMART ELECTRICITY METRES TO GIVE CONSUMER FREEDOM TO CHOOSE SUPPLIER
Ø RS 1.7 LAKH CR ALLOCATED FOR TRANSPORTATION IN FY21
Ø FM SAYS RAIL TRACKS TO BE ELECTRIFIED
Ø 100 MORE AIRPORTS TO BE DEVELOPED BY 2024 TO SUPPORT ‘UDAN’: FM
Ø GOVT PLAN MORE TEJAS-TYPE TRAINS TO CONNECT TOURIST LOCATIONS
Ø CENTRE TO PROVIDE 20% EQUITY FOR BENGALURU SUBURBAN TRANSPORTATION PROJECT
Ø A LONG TIME REQUIREMENT FOR THE AGRI SECTOR HAS BEEN HEEDED BY THE GOVT IN ITS COMMITMENT TO BUILD SEAMLESS COLD SUPPLY CHAIN FOR PERISHABLES. THIS IS IMPORTANT TAKING INTO ACCOUNT THAT WE ARE VERY LOW IN COLD CHAINS AND MOST ARE FOR POTATO.
Ø FM ALLOCATES RS 9,000 CRORE FOR SENIOR CITIZENS
Ø FIVE ARCHAEOLOGICAL SITES TO BE DEVELOPED AT ICONIC SITES WITH ON-SITE MUSEUMS: FM SITHARAMAN
Ø RS 3,150 CRORE ALLOCATED FOR THE MINISTRY OF CULTURE IN 2020-21
Ø AYUSHMAN BHARAT HOSPITALS IN 100 MORE DISTRICTS
Ø IN LARGE CITIES WITH POPULATION OF OVER 1 MILLION, CLEAN AIR IS A MATTER OF CONCERN: FM
Ø GOVT PROPOSES TO ENCOURAGE AND INCENTIVIZE STATES THAT ARE FORMULATING PLANS FOR ENSURING CLEANER AIR: FM
Ø RS 4,400 CRORE ALLOCATION FOR CLEAN AIR: FM
TAXATION& FINANCE
Ø WE WISH TO ENSHRINE IN THE STATUE A TAXPAYERS’ CHARTER: FM
Ø WOULD LIKE TO REASSURE TAXPAYERS THAT WE REMAIN COMMITTED TO TAKING MEASURES TO ELIMINATE TAX HARASSMENT: FM
Ø PROPOSE TO SET UP A NATIONAL RECRUITMENT AGENCY FOR CONDUCT OF COMPUTER-BASED ONLINE COMMON ELIGIBILITY TEST FOR RECRUITMENT TO NON-GAZETTED POST: FM
Ø FINANCIAL INCLUSION IS KEY, SAYS FM. A CLEAN, RELIABLE AND ROBUST FINANCIAL SECTOR IS CRITICAL FOR ROBUST ECONOMY, SHE SAYS. INFUSED RS 3.5 CRORE CAPITAL INTO PSU BANKS. A FEW AMONG THEM WILL BE ENCOURAGED TO MOVE CAPITAL MARKET FOR FUND RAISING PURPOSES, SAID FM.
Ø A ROBUST MECHANISM IS IN PLACE TO MONITOR THE HEALTH OF ALL SCHEDULED COMMERCIAL BANKS. THE DEPOSITED MONEY OF INDIVIDUALS IS ABSOLUTELY SAFE: FM
Ø INSURANCE COVER FOR A DEPOSITOR WILL BE RAISED TO RS 5 LAKH FROM RS 1 LAKH: FM
Ø SHE REITERATED THAT ALL DEPOSITS ARE SAFE. NBFC ELIGIBILITY FOR SARFAESI ACT REDUCED TO RS 100 CRORE FROM RS 500 CRORE AUM.
Ø FM SAYS PFRDA ACT WILL BE AMENDED TO SEPARATE NPS TRUST OF GOVERNMENT EMPLOYEES FROM PFRDA.
Ø GOVT ASKS BANKS TO EXTEND RESTRUCTURING MSME NPAS FOR ONE MORE YEAR, WHICH HAS A DEADLINE OF MARCH, 2020
Ø LIC IPO – GOVT PROPOSES TO SELL A PART OF ITS HOLDING IN LIC VIA IPO THIS IS LIKELY TO BE THE BIGGEST IPO IN THE COUNTRY.
Ø NEW TAX RATE (NEW PERSONAL INCOME TAX REGIME WOULD BE REDUCED WHO FOREGO DEDUCTIONS AND EXEMPTIONS) – OPTIONAL
0-5 LAKHS – NIL (AFTER TAKING EFFECT OF 87A)
5-7.5 LAKHS – 10%
7.5- 10 LAKHS – 15%
10-12.5 LAKHS – 20%
12.5 – 15 LAKHS – 25%
ABOVE 15 LAKHS – 30%
TAX PAYER CAN SELECT NEW RATES WITHOUT EXEMPTION OR CONTINUE WITH OLD RATES WITH EXEMPTION.
TOTAL 100 EXEMPTIONS NOW.
70 EXEMPTIONS REMOVED IN NEW REGIME
Ø DIVIDEND DISTRIBUTION TAX ABOLISHED, SAYS FM. COMPANIES WILL NO LONGER BE REQUIRED TO PAY DDT. A TOTAL OF RS 25,000 CRORE IS REVENUE FOREGONE DUE TO DDT ABOLITION, SAYS FM. THIS WILL MAKE INDIA AN ATTRACTIVE INVESTMENT DESTINATION.
Ø DIVIDEND DISTRIBUTION TAX SHIFTED TO INDIVIDUALS INSTEAD OF COMPANIES, SAYS FM
Ø IN A BOOST TO MSMSES, TURNOVER THRESHOLD FOR AUDIT RAISED TO RS 5 CRORE FROM RS 1 CRORE: FM
Ø BUDGET 2020 LATEST UPDATES: FM NIRMALA SITHARAMAN SAYS FOR AFFORDABLE HOUSING, THE DEDUCTION OF RS 1,50,000 WILL BE EXTENDED TO LOAN SANCTION BY ONE YEAR. TAX HOLIDAY ON PROFITS OF DEVELOPERS INVOLVED IN AFFORDABLE HOUSING PROJECTS WILL BE EXTENDED BY ONE YEAR TO MARCH 2021.
Ø BUDGET 2020 LATEST UPDATES: FM NIRMALA SITHARAMAN SAYS TO EASE DEDUCTION DONATION IT IS PROPOSED TO PRE-FILL INFORMATION OF THOSE DONATING. THIS WILL RESULT IN HASSLE FREE CLAIMS FOR THE INDIVIDUALS CLAIMING TAX EXEMPTIONS
Ø BUDGET 2020 LATEST UPDATES: FM NIRMALA SITHARAMAN SAYS THAT IT WILL AMEND I-T ACT TO ENABLE FACELESS APPEALS ON THE LINES OF FACELESS ASSESSMENTS.
Ø TAX ON COOPERATIVE SOCIETIES PROPOSED TO BE REDUCED TO 22 PER CENT PLUS SURCHARGE AND CESS, AS AGAINST 30 PER CENT AT PRESENT, SAYS FM
Ø FM PROPOSES SCHEME TO BRING DOWN LITIGATION IN DIRECT TAXATION SCHEME; 4.83 LAKH DIRECT CASES PENDING IN VARIOUS APPELLATE FORUMS