Highlights of India's

Union Budget 2020-21

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The 2020-21 Union Budget presented by the Union
Finance Minister 'Nirmala Sitharaman' in Lok Sabha.
 This is the second budget being presented by Finance
Minister Nirmala Sitharaman.

Union Budget:
 The annual financial statement of a government, the
Union budget gives details about the revenue and
expenditure of the Centre in the past and estimated
spending and projections for the coming year.

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Following are the highlights of 'Mrs Sitharaman' Budget
speech:
 The themes of this Budget: Aspiration, development,
compassion
 Aspirational India in which all sections of the society
seek a better standard of living
 Economic development for all
 Caring and compassionate: Ours shall be a caring
society:

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 Sector-wise highlights
Gross Domestic Product (GDP):
 The nominal GDP growth for the year 2020-21
estimated at 10%, on the basis of trends available
 Accordingly, receipts for 2020-21 estimated at 22.46
lakh crore rupees
 Expenditure at 30.42 lakh crore rupees
 Revised expenditure estimate at ₹ 26.99 Lakh Cr for FY
21
 Estimate Fiscal deficit at 3.8% vs target of 3.3% of GDP
 Corporate tax at 15% lowest in the world
 The turnover threshold for audit raised to ₹ 5 Crore
from ₹ 1 Crore

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Agriculture
 Finance Minister listed a 16-point action plan for
farmers, towards the goal of doubling farmers' income
by 2022
 Agricultural credit target has been set at Rs 15 lakh
crore. NABARD Refinancing Scheme to be further
expanded.
 Will encourage state governments who implement
following model laws: Model Agricultural Land Leasing
Act of 2016; Model Agricultural Produce and Livestock
Marketing Act of 2017;
 Model Agricultural Produce and Livestock Contract
Farming and Services Promotion and Facilitation Act of
2018

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 Pradhan Mantri Kisan Urja Suraksha evem Utthan
Mahabhiyan (PM KUSUM) to be expanded to provide 20
lakh farmers in setting up standalone solar pumps
 2.83 lakh crore rupees allocated for agriculture and
allied activities, irrigation and rural development
 Encourage balanced use of all fertilizers, a necessary
step to change the incentive regime which encourages
excessive use of chemical fertilizers
 Village Storage Scheme run by SHGs, will provide
holding capacity for farmers, women in villages can
regain their status as Dhaanya Lakshmi

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 Krishi UDAN will be launched by the Ministry of Civil
Aviation on international and national routes,
improving value realization in North East and tribal
districts
 Milk processing capacity to be doubled by 2025
 Indian Railways will set up Kisan Rail through PPP
arrangement, for transportation of perishable goods
 Fish production to be raised to 200 lakh tonnes by
2022-23

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Education
 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
 Rs 3,000 crore for skill development
 IND-SAT exam to be held in African and Asian countries,
for benchmarking foreign candidates who wish to
study in India

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 Degree-level full-fledged online education programme to be
offered by institutes in top 100 in National Institutional
Ranking Framework
 Government announces Rs 99,300 crore outlay for
education sector in 2020-21
 New Education Policy to be announced soon
 Urban local bodies across the country to provide internships
for young engineers for a period of up to one year
 8,000 crore rupees over five years to be provided for
quantum technologies and applications

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Health
 The Budget provides an additional Rs 69,000 crore for
the health sector.
 Proposes to expand Jan Aushadhi Kendras in all districts
of the country to provide medicines at affordable rates.

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Finance
 Deposit Insurance Coverage to be increased from 1 lakh
rupees to 5 lakh rupees
 Enshrine in the statute a taxpayers' charter.
 I would like to reassure taxpayers that we remain
committed to taking measures to eliminate tax
harassment
 To achieve higher export credit, a new scheme being
launched which provides higher insurance cover,
reduced premium for small exporters and simplified
procedure for claim settlements

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 27,300 crore rupees for the development of industry
and commerce
 Investment Clearance Cell to set up through a portal,
will provide end-to-end facilitation, support and
information on land banks
 Amendments to be made to enable NBFCs to extend
invoice financing to MSMEs
 Government proposes to sell a part of its holding in LIC
by initial public offer.

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Energy
 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.
 22,000 crore rupees to be provided to power and
renewable energy sector in 2020-21
 India to provide Rs. 273 billion or promotion of industry
and commerce

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Infrastructure
 100 more airports to be developed by 2024 to support the
UDAN scheme
 1.7 lakh crore rupees to be provided for transport
infrastructure in the coming financial year
 More Tejas-type trains to connect iconic destinations
 Accelerated development of highways will be undertaken.
Delhi-Mumbai expressway and two other projects to be
completed by 2023. Monetization of 12 lots of highway
bundles of over 6,000km before 2024

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 National Logistics Policy will soon be released, creating
a single-window e-logistics market
 Project Preparation Facility to be set up for preparation
of infrastructure projects, actively involving young
engineers and management graduates
 Fibre to Home connections under Bharat Net will be
provided to 1 lakh gram panchayats this year itself,
6,000 crore rupees provided for Bharat Net
 Soon, policy for the private sector to build Data Centre
Parks throughout the country
 National Gas Grid to be expanded from 16,200 km to
27,000 km

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Women & Nutrition
 Gross Enrolment Ratio is now higher for girls than for
boys at all levels under 'Beti Bachao Beti Padhao’
 28,600 crore rupees provided for programmes which
are specific to women
 35,600 crore rupees for nutrition-related programmes
in 2020-21
 Over 6 lakh Anganwadi workers have been equipped
with smartphones to upload the nutrition status of 10
crore households.
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Skill India initiative
 The government proposed ₹3,000 crores for 'Skill India'
to provide relevant skill training to the youth in the
country, said Finance Minister Nirmala Sitharaman on
Saturday.
 "There is a huge demand for teachers, paramedical staff
and caregivers in foreign countries. However, their skills
do not match in accordance to demand by employers.
So, my government proposes ₹3,000 crores for skill
development," she said during the 90th Budget
presentation.
 Government to sell govt stake in IDBI Bank to private
investors

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Indian Railways
 4 station redevelopment projects in railways via PPP
models
 To develop solar capacity in Indian railways
 Plan more Tejas like trains to connect tourist locations
 Govt to launch Rs. 18,600 crore worth Bengaluru
Suburban Transportation project

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Ayushman Bharat
 Union Budget 2020 allocated Rs. 69,000 crore for the
healthcare sector.
 Out of the total amount, Rs. 6,400 crore will be
sanctioned for Ayushman Bharat Yojna.
 Ayushman Bharat scheme provides health assurance
cover of up to ₹5 lakh per family and is targeted to
cover over 10 crore poor and vulnerable families.

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Connecting India
 Finance Minister Nirmala Sitharaman said ₹6,000 crore
allocated for BharatNet programme
 Around 1 lakh gram panchayats to be linked with
BharatNet this year

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To clean air and pollution-free cities
 Power plants with emissions above prescribed limits
will be asked to close down.
 India's commitment towards tackling climate change
made at the Paris conference kick starts from January 1,
2021.
 FM said ₹Rs. 4,400 crore has been allocated for states
that work towards clean air.

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Transport sector:
 Cente to provide 20% equity for Bengaluru Suburban
Transportation Raj
 100 more airports to be developed by 2024 to support
the Central government's "Udaan" scheme

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Other Sectors
 85,000 crore rupees for Scheduled Castes and Other
Backward Classes in 2020-21 53,700 crore rupees for
Scheduled Tribes Enhanced allocation of 9,500 crore
rupees for Senior citizens and Divyangs
 Five archaeological sites to be developed as iconic sites
 2,500 crore rupees to be allocated for tourism
promotion, in 2020-21
 3,150 crore rupees to be provided for culture ministry
in 2020-21
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 Parameters and incentives to be provided to states who
take measures for cleaner air in cities above 1 million
population - 4,400 crore rupees allocated for this
 India will host G20 Presidency in 2022, 100 crore rupees
to be allocated for making preparations for this historic
occasion, where India will drive global economic agenda

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TAX
 100% tax exemption on Sovereign Wealth Funds' Indra
Investment.
 Concessional 5% withholding tax entended to municipal
bonds, Nirmala Sitharaman
FM Nirmala Sitharaman on the new tax regimes:
Lowest, simplest, smoothest

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 On DDT: Dividend Distribution Tax to be removed,
companies will not be required to pay DDT, dividend to
be taxed only at the hands of recipients at applicable
rates
 Propose to bring a personal income tax regime, where
income tax rates will be reduced.

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The proposed changes in tax slabs are listed in the
following table:

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