Highlights of Budget 2020-21
As received from Dr G Srikumar, Chennai:
M G Warrier
Here are all the key highlights from Nirmala Sitharaman's Budget speech:
* New optional tax slabs: New income tax slabs will be available for those who forgo exemptions.
Taxable income slabs
Up to Rs 2.5 lakh
Rs 2,50,001 to Rs 5,00,000
Rs 5 Lakh to Rs 7.5 Lakh
Rs 7.5 lakh to Rs 10 lakh
Rs 10 lakh to Rs 12.5 lakh 20%
Rs 12.5 lakh to Rs 15 lakh 25%
Rs 15 lakh and above 30%
* To simplify the tax system and lower tax rates, around 70 of more than 100 income tax deductions and exemptions have been removed.
* Dividend Distribution Tax abolished; Companies will not be required to pay DDT; dividend to be taxed only at the hands of recipients, at applicable rates
* New power generation companies will be offered 15% tax rate.
* Tax on cooperative societies reduced to 22% without exemptions.
* Taxpayer charter to be instituted in the tax charter, a part of our statutes, to end tax harassment. Tax harassment will not be tolerated, says FM.
* Propose to amend Companies Act to bring criminal liability in certain areas.
* To amend I-T Act to allow faceless appeals.
* To launch new direct tax dispute settlement scheme -- Vivaad se Vishwaas scheme.
*Interest and penalty wived
* To look at ensuring that contracts are honoured.
* Proposes new National Policy on Official Statistics will improve data collection and dissemination, using tech.
* Tax holiday for affordable housing extended by 1 year.
* Govt plans to raise funds via Life Insurance Corporation (LIC) initial public offer.
* NRI will be allowed to invest in certain G-sec.
* FPI limit in corporate bonds raised to 15% from 9%.
* Govt doubles divestment target for the next fiscal at Rs 2.1 lakh crore.
* FY20 fiscal deficit revised to 3.8% from 3.3% in the current fiscal.
* For FY21, fiscal target seen at 3.5%.
* Net market borrowing for FY20 at Rs 4.99 lakh crore; For FY21 it's pegged at Rs 5.36 lakh crore.
* To help bank depositors, govt increases depositor insurance to Rs 5 lakh from current Rs 1 lakh.
* Encourage PSBs to approach capital markets for fund raising.
* Banking Regulation Act to be amended to strengthen Cooperative banks.
* National recruitment agency: New common entrance test for government non-gazetted jobs and public sector banks.
* 5 new Smart cities to be set up via PPP model.
*Rs 1.7 lakh crore allocated to transportation
* 100 more airports to be set up by 2024 to support UDAN scheme
* Accelerated development of highways will be undertaken; Delhi-Mumbai expressway and two other projects to be completed by 2023.
* NHAI to monetize 12 lots of highway bundles of over 6,000 km before 2024.
* Young engineers and management graduates will be roped in for infrastructure projects under Project Preparation Facility.
* National Logistics Policy will soon be released, creating single window e-logistics market
* Rs 6,000 crore for Bharatnet programme; Fibre to Home connections under Bharat Net will be provided to 1 lakh gram panchayats this year itself
* New policy for private sector to build Data Centre Parks.
* 5 archeology sites to be developed for world-class museums
* Rs 2,500 crore for tourism promotion.
* National gas grid will be expanded to 27,000 km from 16000 km
* Rs 22,000 crore to power and renewable energy
* FM urges all states and UTs to replace conventional energy meters by pre-paid smart meters in 3 years, this will give consumers the freedom to choose supplier and rate as per their requirements.
* Advise to shut thermal plants if they don't meet emission norms.
* 5 measures for Railways:
*Large solar power capacity to be set up alongside rail tracks, on land owned by Railways
* More Tejas-like trains for tourists.
* Four stations will be redevelopment with the help of PPP model.
* Launches Rs 186, 00 crore worth Bengaluru suburban transport project; 20% equity will be provided be the Centre
* Aspirational India: Agriculture-- 16 action points to aid farmers
* Agriculture market needs to be liberalised; govt proposes to handhold farmers, says FM
* Comprehensive measures for 100 water-stressed districts being proposed
* Govt will help 20 lakh farmers for setting up solar pumps.
* Farm market will to be liberalized.
*PM Kusum scheme will be expanded to 20 lakh farmers.
* Supporting states to focus on one product for one district so as to make way for Horticulture to gain momentum
* Change in incentive scheme for chemical fertilisers. We will encourage balanced use of all fertilizers, a necessary step to change the incentive regime which encourages excessive use of chemical fertilizer
* Will help 15 lakh farmers to set up solar sets.
* Krishi UDAN scheme for agri exports on international and national routes. This will also improve value realization in North East and tribal districts.
* Railways will set up Kisan Rail through PPP arrangement, for transportation of perishable goods.
* For better marketing and export, supporting states will focus on one product for one district, so that high focus is given at district level for horticulture to gain momentum
* Zero Budget farming focus of the government.
* Viability gap funding to be provided for setting up warehouses.
* Financing on Negotiable Warehousing Receipts to be integrated with e- National Agricultural Market
* Rs 2.83 lakh crore allocated to agriculture and irrigation
* Rs 1.23 for Rural development and Panchayti Raj
* Agri credit target raised to Rs 15 lakh crore from Rs 12 lakh crore.
* Milk processing capacity to be doubled to 108 tonne from 53 tonne by 2025.
* NABARD Refinancing Scheme to be further expanded.
* MGNREGS to be used to develop fodder farm.
* Will further expand on SHGs for alleviation of poverty.
Fisheries: Framework for development, management and conservation of marine fishery resources to be put in place.
* Fish production to be raised to 200 lakh tonnes by 2022-23
*Youth and fishery extension work to be enabled by rural youth as Sagar Mitras, forming 500 fish farmer producing organizations.
* Rs 3.6 lakh crore allocated to water sanitation and pipeline project; Rs 12,300 crore for Swachh Bharat.
* Our government is committed to Open Defecation Free country, in order to sustain ODF behaviour and to ensure no one is left behind.
* Rs 99,300 crore allocated for education sector, Rs 3,000 crore rupees for skill development
* Urban local bodies to provide internships for young engineers for a period of up to one year.
* External commercial borrowings and FDI to be leveraged to improve the education system.
* A medical college to be attached to a district hospital in PPP mode, viability gap funding to be set up for setting up such medical colleges.
* US-like SAT exam to be held in African and Asian countries for benchmarking foreign candidates who wish to Study In India
* Degree-level full-fledged online education programme to be offered by institutes in top 100 in National Institutional Ranking Framework
* New Education Policy to be announced soon.
* To launch 2 new National science scheme
* Rs 69,000 crore allocated to healthcare sector.
* Indradhanush immunization plan expanded to cover 12 new diseases,.
* Viability gap funding window to be set up to cover hospitals, with priority given to aspirational districts that don't have hospitals empanelled under Ayushman Bharat.
* Propose Rs 35,600 crore nutrition-related plan.
* Over 6 lakh anganwadi workers have been equipped with smartphones to upload the nutrition status of 10 crore households.
* Rs 4,400 crore for clean air
* Rs 53,700 crore to ST schemes
* Rs 85,000 crore for SC, OBCs schemes
* Rs 9,500 crore for senior citizens scheme
* India will host G20 Presidency in 2022, Rs 100 crore to be allocated for making preparations for this historic occasion, where India will drive global economic agenda
* This is the Budget to boost income and purchasing power of Indians, says Sitharaman.
* This Budget is woven around three prominent themes: Aspirational India; Economic Development for All; A Caring Society
* Proliferation of technologies such as analytics, machine learning, Artificial Intelligence, bioinformatics and number of people in productive age group at its highest, point out two cross-cutting developments.
* Sitharaman cites a poem -- Pyara Watan.
* Budget aims to meet hopes and aspirations of all the sections of the society.
* Govt has taken several steps to formalisation of economy.
* Govt wants to improve the life of the people through Rs 100 lakh crore infrastructure pipeline projects.
*FM terms GST as historic structural reform; says it integrated country economically
* GST has resulted in efficiency gains in transport and logistics sector, inspector raj has vanished, it has benefitted MSME Consumers who have got a annual benefit of Rs 1 lakh crore by GST.
* 6 million new taxpayers have been added.
* Average household now saves nearly 4% more on the monthly basis after implementation of GST.
* Govt says aim is to achieve seamless delivery of services through digital governance.
* GST resulted in Rs 1 lakh crore gains to consumers, removed inspector raj and helped transport sector.
* India uplifted 271 million people out of poverty.