Prominent Themes of the Budget

Governance
Ease of Financial
sector
Living

Aspirational
sp a o a Economic
co o c
Caring Society
India Development

Agriculture, Irrig Industry, Comm Women &

ation and Rural erce and Child, Social
Development Investment Welfare

Wellness, Water Culture and

Infrastructure
and Sanitation Tourism

Education and Environment and

New Economy
Skills Climate Change

GOVERNANCE
STRUCTURAL REFORMS
IBC GST
• Honourable • 20 per cent reduction in turn around time for trucks.
exit through • Benefit to MSMEs through enhanced threshold and
IBC for composition
p limits.
companies. • Savings of about 4 per cent of monthly spending
for an average household.
• In last 2 years, 60 lakh new taxpayers added and
105 crore e-way bills generated
1
 DIGITAL REVOLUTION
Shift to DBT Next wave
• During 2018- • Digital Governance.
19, `7 lakh crore • Improve physical quality of life through
t
transferred
f d N ti
Nationall Infrastructure
I f t t Pipeline
Pi li
through DBT. • Disaster Resilience.
• Social Security through Pension and
Insurance penetration.

INCLUSIVE GROWTH
• Governance guided by “Sabka Saath, Sabka Vikas, Sabka
Vishwas” with focus on:
• Preventive Healthcare: Provision of sanitation and water
• Healthcare: Ayushman Bharat
• Clean energy: Ujjawala and Solar Power
• Financial Inclusion,
Inclusion Credit support and Pension
• Affordable Hosuing
• Digital penetration

FINANCIAL SECTOR

• Deposit Insurance Coverage to increase from `1 lakh to `5

Lakh per depositor.
• Eligibility limit for NBFCs for debt recovery under SARFAESI
Act proposed to be reduced to asset size of `100 crore or
loan size of `50 Lakh.
• Proposal to sell balance holding of government in IDBI Bank
Bank.
• Separation of NPS Trust for government employees from
PFRDAI.

• Specified categories of government securities would be opened

for non resident investors
• FPI Limit for corporate bonds to be increased to 15 per cent.
• New debt ETF proposed mainly for government securities.

2
 Macroeconomic Indicators
GDP Growth Rate (per cent) CPI and WPI (per cent)
8.5
8 6
7.5
7 4
6.5
6 2
5.5
5 0
4.5

4-15

5-16

6-17

7-18

April-
2018-19
4

er)
-2

Decembe
2014

2015

2016

2017

2019-20(A
-4

CPI-C WPI

9,000
Net FDI CAD/Forex (per cent)
8,000
7,000 35

6,000 30
US $ Million

25
5,000
20
4,000
15
3,000
10
2,000
5
1,000
0
0
Oct-17

Oct-18

Oct-19
Apr-17

Apr-18

Apr-19
Jan-17

Jul-17

Jan-18

Jul-18

Jan-19

Jul-19

-1,000

53 3.5
Trends in Deficits Debt
ent)

nt)

52 3
External Debt (per cen
Central Government Debt (per ce

4.1 4.2 51 2.5

1.1 50
3.9 4.0 2
3.8 49
Percent of GDP

Percent of GDP

0.9 1.5
3.8 48
0.7 0.9 3.5 3.5 3.5 47 1
3.4 3.6
46 0.5
0.5 0.7 0.7 3.4
45 0
0.3 3.2
0 4 0.4
0.4 0 4 0.4
04 0.4
0.1 3.0

Central Government Debt as per cent of GDP

External Debt as per cent of GDP at current

PD FD (RHS) exchange rate

3
 Tracking Progress in Numbers
Foreign Exchange Reserves (` crore) Gross Bank Credit (` Crore)
3320000 10000000
3270000 9000000
3220000 8000000
3170000 7000000
3120000 6000000
3070000 5000000
3020000 4000000
2970000 3000000
02-Aug-2019
16-Aug-2019
30-Aug-2019
13-Sep-2019
27-Sep-2019
11--Oct-2019
25--Oct-2019
08-Nov-2019
22-Nov-2019
06-Dec-2019
20-Dec-2019
03--Jan-2020
17--Jan-2020
2000000
1000000
0
Nov.24,Mar.
201730,Nov.23,
2018 Mar.29,
2018 Nov.22,
2019 2019

National Infrastructure Pipeline

Distribution of workers by status in
Employment (per cent) Rural Infrastructure

2011-12 2017-18 Irrigation

Renewable Power
60
Conventional Power
50
40 Railways
30 Urban and Housing
20
Roads
10
0 0 5 10 15 20
Self employed Regular wage/ Casual labour
Salaried Rs. Lakh Crores

India is the 5th largest economy in the world in terms of GDP at current US $ Trillion.

USA CHINA
GERMANY 3.9
21.4
14.1 5.2

JAPAN
2.9

INDIA

All figures in US $
Trillion

4
 Budget at a glance
Revenue Expenditure
p ((in ` Capital
p Expenditure
p ( ` crore))
(in
crore)
4,20,000
28,00,000
3,50,000
24,00,000

20,00,000 2,80,000

16,00,000 2,10,000
12,00,000
1,40,000
8,00,000
70,000
4,00,000

0 0

Revenue Receipts (in ` crore) Capital Receipts (in Rs. 

Capital Receipts (in Rs
crore)
21,00,000

12,00,000

14,00,000 10,00,000

8 00 000
8,00,000

6,00,000
7,00,000
4,00,000

2,00,000
0 0

5
 Budget at a Glance
Non Debt Capital
Rupee Comes From Receipts
6%
Borrowings and
Other Liabilities
20%
Income Tax
17%

Non Tax Revenue

Union Excise 10%
Duties
7%

Customs
4%
Corporation Tax
18%
GST
18%

Centrally
Rupee Goes To Sponsored
Pensions Schemes
6% 9%
Other
Expenditure Subsidies
10% 6%

Defence
8%
Central Sector
Schemes
13%

Interest
Payments
Finance 18%
Commission and
Other Transfers
10%

States' Share of
Taxes and Duties
20%

6
 Tax proposals
Concessional corporate tax rate of 15 per cent to new domestic
companies in manufacturing and power sector.
Tax concession for sovereign wealth fund of foreign governments
and other foreign investments.
Tax benefits to Start-ups by way of deduction of 100 per cent of
their profits are enhanced by increasing turnover limit and
period of eligibility.
eligibility
Concessional tax rate for cooperatives proposed.
Turnover threshold for audit of MSMEs increased.
Extension of time limits pertaining to the tax benefits for
affordable housing.
Issuance of Unique Registration Number to all charity institutions
f easy tax
for t compliance.
li
Health cess to be imposed on imports of medical equipment
given these are made significantly in India.

Dividend Distribution Tax removed and classical system

of dividend taxation adopted.

Simplified and New Income Tax Regime as an option to

the old regime
regime.
Income
Bracket (`
lakh) Below 5 5-7.5 7.5-10 10-12.5 12.5-15 Above 15
Tax Rate (per
cent) Exempt 10 15 20 25 30

Simplified GST return shall be implemented from 1st April

2020. Refund process to be fully automated.
7
Agriculture, Irrigation and Rural Development

PM KUSUM to cover 20 lakh farmers for stand alone solar

pumps and
d ffurther
th 15 llakh
kh ffor grid
id connected
t d pumps.

• Viability gap funding for creation of

efficient warehouses on PPP
mode.
• SHG run Vill
SHGs Village storage
t scheme
h
to be launched.
• Integartion of e-NWR with e-NAM.

“Kisan Rail” and “Krishi Udaan” to be • Fish Production

l
launched
h dbby IIndian
di R Railways
il andd target of 200
Ministry of Civil Aviation respectively lakh tonnes by
for a seamless national cold supply 2022-23.
chain for perishables. • Another 45000
acres of aqua
• Elimination
Eli i ti off FMD and dbbrucellosis
ll i culture to be
in cattle and PPR in sheep and supported.
goat by 2025. • Fishery
• Increasing coverage of artificial extention
insemination to 70 per cent. through 3477
• Doubling of milk processing Sagar Mitras
capacity by 2025. and 500 fish
• Agricultural credit target of `15 FPOs.
lakh crore for 2020-21. • Raise fishery
exports to `1
lakh crore by
2024-25.

8
Wellness, Water and Sanitation
• More than 20
20,000
000 empanelled hospitals under
PM Jan Arogya Yojana.
• FIT India movement launched to fight NCDs.

Coverage • “TB Harega Desh Jeetega” campaign

under
Nikshay launched to end TB by 2025
2025.
Poshan
Yojana (`
Lakh) • Viability gap funding proposed for
35 setting up hospitals in the PPP
mode.
• Expansion of Jan Aushadhi Kendra
Scheme to all districts by 2024.

• ODF Plus to sustain ODF behaviour.

• Focus on liquid and grey water
management along with waste
management.

80
70 SBM ((` crore))
60
12294
50
40 9638
30
20
10
0
NFHS-3 NFHS-4

IMR U5MR 2019-20 (RE) 2020-21 (BE)

9
 Education and Skills
• About 150 higher educational institutions will start
apprenticeship embedded courses.
• I t
Internship
hi opportunities
t iti tto fresh
f h engineers
i b urban
by b local
l l
bodies.
• Special bridge courses to improve skill sets of those seeking
employment abroad.

Allocation 2020-21 (BE) Study in 

Study in EQUIP (` crore)
(` crore)
India (crore) 1413
DHRUV 65

Operation Digital
Board
32
0 10 20 30

• Degree level online

2019‐20  2020‐21  2020-21 (BE)
education (RE) (BE)
programmes for
students of deprived
sections of the Programme for Apprenticeship
society. Training (` crore)
• Ind-SAT to be
conducted in Asia 2020-21 (BE)
and Africa under
2019-20 (RE)
Study in India
programme. 166 168 170 172 174 176

New Economy
• Knowledge Translation Clusters for emerging technology sectors
• Scaling up of Technology Clusters harbouring test beds and small
scale manufacturing facilities.
• National Mission on Quantum Technologies and applications with an
outlay of Rs.8000 crore proposed.
10
 Industry, Commerce and Investment
• Scheme to encourage manufacturing of mobile
phones, electronic equipment and semi conductor
packaging.
packaging
• National Technical Textiles Mission for a period of 4
years.

• NIRVIK Scheme for higher export credit disbursement

launched.
• S tti up off an Investment
Setting I t t Clearance
Cl Cell
C ll to
t provide
id
end to end facilitation.

• Extension of invoice financing to MSMEs through TReDs.

• A scheme to provide subordinate debt for entrepreneurs of
MSMEs
MSMEs.
• Scheme anchored by EXIM Bank and SIDBI to handhold MSMEs
in exports markets.

CORPORATE TAX RATE CUT
Thailand 20

India 22

Japan 23.2

Bangladesh 25

Indonesia 25

China 25

Sri Lanka 28

Philippines 30

0 10 20 30

11
 Infrastructure
• National Logistics Policy to be launched soon
soon.
• Roads: Accelerated development of Highways.
• Railways: Four station redevelopment projects
• 150 passenger trains through PPP mode.
• More Tejas type trains for tourist destinations.
• Port: Corporatizing
p g at least one major
j p port.
• Air: 100 more airports to be developed under
UDAAN.

• Power: Efforts to replace conventional energy

meters by prepaid smart meters.

• Gas Grid: Expand National Gas Grid to 27,000 km

• Infrastructure Financing: `103 lakh crore National

infrastructure Pipeline projects announced.
• An international bullion exchange to be set up at GIFT
City.

Bharat Net (` crore) Accelerated road development

9000
8000
7000
6000
5000
4000
3000
2000
1000
0 4000 8000
0
2019-20 (RE) 2020-21 (BE) in km

12
 Caring Society
Women & Culture and Tourism Environment
child, social • Proposal to establish and Climate
Welfare Indian Institute of Change
• More than 6 Heritage and • Coalition for
lakh conservation. Disaster
anganwadi • 5 archaeological Resilient
workers sites to be developed Infrastructure
equipped as iconic sites. launched in
with smart • A museum on September
phones. Numismatics and 2019.
• A task force Trade to be • Encouragem
to be established ent to states
appointed to • Tribal museum in implementing
recommend Ranchi . plans for
regarding • Maritime museum to cleaner air in
lowering be set up at Lothal. cities above 1
MMR and million.
improving
nutrition
levels.

Tourism promotion
(` crore)

2500

Nutrition related programmes

(` crore)
35600

2020-21 (BE)

2020-21 (BE)

13
Budget Allocation to Major Schemes

PM KISAN Pradhan Mantri Swasthya

Suraksha Yojana

In ` Crore
80000
70000
7000
60000
6000
50000 5000
40000 4000
30000 3000
2000
20000
1000
10000 0
0 2019-20 RE 2020-21 BE
2019-20 RE 2020-21 BE

ICDS
DBT LPG 29000

28000

27000
2020-21 BE
26000
2019-20 RE 25000

24000
0 10000 20000 30000 40000
23000
2019-20 2020-21
RE BE
Pradhan Mantri
Awas Yojana
28000
27500 Pradhan Mantri Gram
27000
26500
Sadak Yojana
26000
25500
5500 2020-21 BE
25000
24500 2019-20 RE
24000
0 5000 10000 15000 20000
2019-20 RE 2020-21 BE

15
 Expenditure of major items
In ` Crore

Rs. 50040 Ministry of Housing and Urban Affairs

Rs. 67112 Ministry of Health and Family Welfare

Rs. 72216 Ministry of Railways

Ministry of Road Transport

Rs. 91823
and Highways

Rs. 99312 Ministry of Human Resource

Development

Rs. 122398 Ministry off Rural Development

Ministry of Consumer
Rs. 124535
Affairs, Food and Public
Distribution

Rs. 142762 Ministry of Agriculture and Farmers’

Welfare

Rs. 167250 Ministry of Home Affairs

Rs. 471378 Ministry of Defence

14