The budget was based around three prominent themes, aspirational India, economic development and a caring society for all.
MoS Finance and Corporate Affairs Anurag Thakur and Finance Minister Nirmala Sitharaman. (Photo: PTI)
Finance Minister Nirmala Sitharaman presented the Union Budget 2020-21 on Saturday, which was based on three prominent themes - aspirational India, economic development and a caring society for all.
Sitharaman also paid homage to former finance minister Arun Jaitley and highlighted the government's works so far. She said that Prime Minister Narendra Modi's motto of 'Sabka Saath, Sabka Vikas, and Sabka Vishwas' has implemented new programmes for the poor. "We shall strive to bring ease of living for every citizen," Sitharaman said, adding that India has uplifted 271 million people out of poverty. She said citizens would soon be allotted PAN instantly on the basis of Aadhaar, online without filling forms.
Key takeaways of Budget 2020-21:
Income tax:
- In a major relief for individual taxpayers, Sitharaman announced a new regime of personal income tax Under the new personal income tax regime, individual taxpayers to pay tax at a reduced rate of 10 per cent for income between Rs 5 lakh and 7.5 lakh against the current rate of 20 per cent
- Those with income between Rs 7.5 lakh to 10 lakh to pay tax at 15 per cent against the current 20 per cent. Those with income between Rs 10 to 12.5 lakh to pay tax at 20 per cent, down from 30 per cent
- Tax rates for income between Rs 12.5 lakh to 15 lakh will be 25 per cent
For your ease:
- Those earning up to Rs 5 lakh in a year will pay no tax
- Income between Rs 5-7.5 lakh, the tax rate is 10 per cent
- Income between Rs 7.5-10 lakh, the tax rate is 15 per cent
- Income between Rs 10-12.5 lakh, tax rate cut to 20 per cent from 30 per cent
- A person earning Rs 15 lakh per anum and not availing any deductions will now pay Rs 1.95 lakh tax in place of Rs 2.73 lakh.
- The new personal income tax regime entails an estimated revenue foregone amounting to Rs 40,000 crore per year
Environment, health and education
- The government on Saturday proposed a Rs 22,000 crore outlay for renewables and power sector in 2020-21 for realising its goal of 24x7 electricity for all and providing freedom to consumers to choose service provider and tariff
- Sitharaman urged all states to convert the conventional electricity meters into pre-paid smart meters in next three years so as to provide consumers a choice of service providers and rate of electricity
- Rs 69,000 crore provided to healthcare sector, out of which Rs 6,400 crore will be sanctioned for Ayushman Bharat Yojna
- Hospitals to be built in 100 districts of the country under Ayushman Bharat scheme. The government will open hospitals in second and third-tier cities under the public-private partnership (PPP) model
- A sum of Rs 99,300 crores for education for the year 2020-21 will be provided
- A new Education Policy to be announced soon
- In a major development, Sitharaman said that full-fledged degree level online courses will soon be offered by the top educational institutions in the country.
- A degree level full-fledged online education programme will be offered by the country's top 100 educational institutions to students belonging to deprived sections of the society and those who do not have access to higher studies
Trains, transport and infrastructure
- Rs 1.7 lakh crore allocated for transport infrastructure
- 100 more airports to be developed by 2024
- More Tejas-like trains to be developed in India
- A proposal was under consideration for setting up large solar panel capacity alongside the railway tracks on land owned by railways
- 550 wi-fi facilities commissioned at railway stations
- The Delhi-Mumbai Expressway to be completed by 2023 and the Chennai-Bengaluru Expressway will also be launched
For Farmers
- Government to set up Kisan Rail in public-private-partnership (PPP) mode for cold supply chain to transport perishable goods
- Krishi UDAN will be launched by the Ministry of Civil Aviation on international and national routes aiming to improve value realisation in North East and tribal districts
- The Finance Minister said high focus is given at the district level for horticulture to gain momentum
- PM KUSUM scheme will be expanded to help 2 million farmers in setting up standalone solar pumps
(With inputs from agencies)
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