Union Minister of Finance and Corporate Affairs of India, Nirmala Sitharaman, presented the Union Budget 2020-21 in the Parliament, on Saturday. In her budget speech, the Finance Minister informed that the budget is aimed at boosting income and enhancing the purchasing power of people, particularly the middle and lower-middle-class sections of the society. Here are a few highlights of Union Budget 2020:
Union Budget 2020 highlights:
Income Tax
- New income tax slabs with reduced rates proposed. As per the new tax regime, no tax needs to be paid by those whose income is less than Rs 5 lakh per annum.
- Likewise, the income tax rates reduced from 20% to 10% for individuals who earn between Rs 5 lakh – Rs 7.5 lakh per year.
- Similarly, income take rates reduced from 20% to 15% for individuals earning between Rs 7.5 lakh – Rs 10 lakh per annum
- The tax rates slashed from 30% to 20% for those who make Rs 10 lakh – 12.5 lakh and from 30% to 25% to individuals earning Rs 12.5 lakh – 15 lakh annually
- Dividend distribution tax abolished
Finance
- Rs 27,300 crore for development of industry and commerce
- Deposit Insurance Coverage to be increased from Rs 1 lakh to Rs 5 lakh
Education
- Rs 99, 300 crore allotted to the Education sector in 2020-21
- Rs 3,000 crore announced for skill development
- A degree-level full-fledged online educational programme to provide quality education to students of deprived sections
- Medical colleges to be attached to district hospitals in Public Private Partnership (PPP) mode to bridge the shortage of qualified medical doctors
Health
- The Budget provides an additional Rs 69,000 crore for the Health Sector
- Expansion of Jan Aushadhi Kendras in all districts across the country to provide medicines at affordable rates
Agriculture
- The agricultural credit target has been set at Rs 15 crore. NABARD Refining Scheme to be expanded
- Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhitan (PM KUSUM) to provide 20 lakh farmers in setting up solar pumps
GDP
- The estimated nominal GDP growth for the year 2020-21 is 10%
- Estimate Fiscal deficit at 3.8% vs target of 3.3% of GDP
Others
- A total of Rs 12,300 crore allocated for Swachh Bharat in 2020-21
- Rs 85,000 crore allocated for Scheduled Castes and Other Backward Classes, Rs 9,000 crore for senior citizens