Union Budget 2020-21

Union Budget (2020)
BUDGET GLOSSARY
"" Union Budget Notes...
Union Budget is the most comprehensive report of the Government’s finances in
which revenues from all sources and outlays for all activities are consolidated. The
Budget also contains estimates of the Government’s accounts for the next fiscal year
called Budgeted Estimates.
"" Direct and Indirect Taxes

Direct taxes are the one that fall directly on individuals and corporations. For example,
income tax, corporate tax, etc.
Indirect taxes are imposed on goods and services. They are paid by consumers when
they buy goods and services. These include excise duty, customs duty, etc.
"" GST
The constitution defines “Goods and Services Tax” means any tax on supply of goods,
or services or both except taxes on the supply of the alcoholic liquor for human
consumption.
“Goods” means every kind of movable property other than money and securities but
includes actionable claim, growing crops, grass and things attached to or forming
part of the land which are agreed to be severed before supply or under a contract of
supply
“Services” means anything other than goods, money and securities but includes
activities relating to the use of money or its conversion by cash or by any other
mode, from one form, currency or denomination, to another form, currency or
denomination for which a separate consideration is charged
"" Customs Duty

These are levies charged when goods are imported into, or exported from, the
country, and they are paid by the importer or exporter. Usually, these are also passed
on to the consumer.
"" Fiscal Deficit

When the government’s non-borrowed receipts fall short of its entire expenditure,
it has to borrow money form the public to meet the shortfall. The excess of total
expenditure over total non-borrowed receipts is called the fiscal deficit.
"" Revenue Deficit

The difference between revenue expenditure and revenue receipt is known as
revenue deficit. It shows the shortfall of government’s current receipts over current
expenditure.
"" Primary Deficit

The primary deficit is the fiscal deficit minus interest payments. It tells how much
of the Government’s borrowings are going towards meeting expenses other than
interest payments.
"" Fiscal policy

It is the government actions with respect to aggregate levels of revenue and spending.
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Union Budget (2020)
Notes... Fiscal policy is implemented though the budget and is the primary means by which
the government can influence the economy.
"" Monetary Policy

This comprises actions taken by the central bank (i.e. RBI) to regulate the level of
money or liquidity in the economy, or change the interest rates.
"" Inflation
A sustained increase in the general price level. The inflation rate is the percentage
rate of change in the price level.
"" Capital Budget

The Capital Budget consists of capital receipts and payments. It includes investments in
shares, loans and advances granted by the central Government to State Governments,
Government companies, corporations and other parties.
"" Revenue Budget

The revenue budget consists of revenue receipts of the Government and it expenditure.
Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute
taxes like income tax, corporate tax, excise, customs, service and other duties
that the Government levies. The non-tax revenue sources include interest on loans,
dividend on investments.
"" Finance Bill

The Bill produced immediately after the presentation of the Union Budget detailing
the Imposition, abolition, alteration or regulation of taxes proposed in the Budget.
"" Vote on Account

The Vote on Account is a grant made in advance by the parliament, in respect of the
estimated expenditure for a part of new financial year, pending the completion of
procedure relating to the voting on the Demand for Grants and the passing of the
Appropriation Act.
"" Excess Grants

If the total expenditure under a Grant exceeds the provision allowed through its
original Grant and Supplementary Grant, then, the excess requires regularization by
obtaining the Excess Grant from the Parliament under Article 115 of the Constitution
of India. It will have to go though the whole process as in the case of the Annual
Budget, i.e. through presentation of Demands for Grants and passing of Appropriation
Bills.
"" Budget Estimates

Amount of money allocated in the Budget to any ministry or scheme for the coming
financial year.
"" Revised Estimates

Revised Estimates are mid-year review of possible expenditure, taking into account the
rest of expenditure, New Services and New instrument of Services etc. Revised Estimates
are not voted by the Parliament, and hence by itself do not provide any authority for
expenditure. Any additional projections made in the Revised Estimates need to be
authorized for expenditure through the Parliament’s approval or by Re-appropriation
order.
"" Re-appropriations
Re-appropriations allow the Government to re-appropriate provisions from one
sub-head to another within the same Grant. Re-appropriation provisions may be
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sanctioned by a competent authority at any time before the close of the financial Notes...
year to which such grant or appropriation relates. The Comptroller & Auditor General
and the Public Accounts Committee reviews these re- appropriations and comments
on them for taking corrective actions.
"" Outcome Budget

From the fiscal year 2006-07, every Ministry presents a preliminary Outcome Budget
to the Ministry of Finance, which is responsible for compiling them. The Outcome
Budget is a progress card on what various Ministries and Departments have done with
the outlays in the previous annual budget. It measures the development outcomes of
all Government programs and whether the money has been spent for the purpose it
was sanctioned including the outcome of the fund usage.
"" Guillotine
Parliament, unfortunately, has very limited time for scrutinising the expenditure
demands of all the Ministries. So, once the prescribed period for the discussion
on Demands for Grants is over, the Speaker of Lok Sabha puts all the outstanding
Demands for Grants, Whether discussed or not, to the vote of the House. This process
is popularly known as ‘Guillotine’.
"" Cut Motions

Motions for reduction to various Demands for Grants are made in the Form of Cut
Motions seeking to reduce the sums sought by Government on grounds of economy
or difference of opinion on matters of policy or just in order to voice a grievance.
"" Consolidated Fund of India

All revenues raised by the Government, money borrowed and receipts from loans
given by the Government flow into it. All Government expenditure other than certain
exceptional items met from Contingency Fund and Public Account are made from
this account. No money can be appropriated from the Fund except in accordance
with the law.
"" Contigency Fund of India

A fund placed at the disposal of the President to enable him/her to make advances
to the executive/Government to meet urgent unforeseen expenditure.
"" Public Account

Under provisions of Article 266(1) of the Constitution of India, Public Account is
used in relation to all the fund flows where Government is acting as a banker.
Examples include Provident Funds and Small Savings. This money does not belong
to government but is to be returned to the depositors. The expenditure from this
fund need not be approved by the Parliament.
"" Corporate Tax

This is the tax paid by corporations or firms on the incomes they earn.
"" Disinvestment
By disinvestment we mean the sale of shares of public sector undertakings by the
Government. The shares of government companies held by the Government are
earning assets at the disposal of the Government. If these shares are sold to get cash,
then earning assets are converted into cash, So it is referred to as disinvestment.
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Union Budget (2020)
BUDGET
Budget Highlights (2020-21): Sector-wise Analysis
Notes...
Growth Forecasts and fiscal
projections to be achieved by
Budget 2020
"" Fiscal deficit of 3.5% of GDP has been set for the current financial year.
"" Nominal GDP growth rate has been targeted at 12%of GDP.
"" Overall GDP growth rate has been forecasted for 2020-21 at 6%-6.5% by
the Economic Survey.
"" To sustain a fast GDP growth rate and achieve a US$ 5 trillion economy
target, India needs to invest 1.4 trillion dollars in infrastructure.
This budget is woven around three prominent themes:

"" Aspirational India in which all sections of the society seek better standards of
living, with access to health, education and better jobs.
"" Economic development for all, indicated in the Prime Minister’s exhortation of
“Sabka Saath, Sabka Vikas, Sabka Vishwas”. This would entail reforms across
swathes of the economy. Simultaneously, it would mean yielding more space
for the private sector. Together, they would ensure higher productivity and
greater efficiency.
"" Caring Society: Ours shall be a caring society that is both humane and
compassionate. Antyodaya is an article of faith.
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Aspirational India
Notes...
Budget in this section has dealt with necessities to push up economy in such a way
that it meets the demands of existing population in terms of food security, health and
governance.
Agriculture, Irrigation and Rural Development
Highlights:
"" Sixteen Point Agenda for doubling farmer’s income by 2022

1. Adoption of Model Laws: These laws have already been enforced and to be
adopted by state governments:
"" Model Agricultural Land Leasing Act, 2016;
"" Model Agricultural Produce and Livestock Marketing (Promotion and
Facilitation) Act, 2017; and
"" Model Agricultural Produce and Livestock Contract Farming and Services
(Promotion and Facilitation) Act, 2018.
2. Water Security: It aims to address the water stress issue in hundred water-
stressed districts.
3. Solar Pumps under KUSUM Scheme: It aims to incentivize 20 lakh farmers for
setting up stand-alone solar pumps and further to help another 15 lakh farmers
solarise their grid-connected pump sets under KUSUM Scheme.
4. Sustainable use of fertilizers: The budget has sought to use all kinds of
fertilizers including the traditional organic and other innovative fertilizers in
asustainable manner with a ‘balanced approach’.
5. Development of forward-linkages:
"" Proposal for geo-tagging of all warehouses which are present in the
country.
"" Proposal for setting up of warehouses in accordance with norms set by
Warehouse Development and Regulatory Authority (WDRA) at block/taluk
level with Viability Gap Funding by the central government.
6. Village Storage scheme to be run by Self-help Groups (SHGs) in order to store
the agricultural products and provide farmers a good holding capacity and
reduce their logistics cost.
7. National Cold Supply Chain and “Kisan Rail” to be setup to provide better
storage and transportation facilities for perishable agricultural goods.
"" Proposal of refrigerated coaches in Express and Freight trains to transport
perishable agricultural products.
8. Krishi Udaan Scheme: This will be launched by the Ministry of Civil Aviation on
international and national routes to transport agricultural products especially
fish, meat and dairy products across the globe.
9. “One product, One district”: Scheme in horticulture sector to be supported by
the central government by providing incentives to those states which support
cluster-wise production of horticulture products.
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Union Budget (2020)
Notes... 10. Promotion of ‘Integrated Farming System’ in rain-fed areas to counter the
vagaries of monsoon or unseasonal rain.
"" This will include Multi-tier cropping, bee-keeping, solar pumps, solar energy
production in the non-cropping season. Zero-Budget Natural Farming will be
promoted in this area to reduce the on-farm expenditure by farmers.
11. The budget proposes to strengthen Negotiable Warehousing Receipts (e-NWR)
whichwill be integrated with e-NAM.
12. Agricultural Credit:
"" The budget proposes to strengthen agricultural credit by expanding refinance
by NABARD and has set a target of Rs. 15 lakh crore for agricultural credit.
"" It has further intended to cover all eligible beneficiaries of PM-KISAN under
the KCC scheme.
13. Livestock and Animal Husbandry: The budget proposes to eliminate Foot and
Mouth disease and brucellosis in cattle and also Peste des Petits ruminants
(PPR, commonly known as goat plague) in sheep and goat by 2025.
"" It also proposes to increase coverage of artificial insemination from existing
30% to 70%, development of fodder farms to produce quality fodder and
doubling milk processing facility by 2025.
14. Blue Economy: It proposes to put in place a framework for the development,
management, and conservation of marine fishery resources.
15. It aims to raise the production of fish and promotethe growth of algae, sea-weed
and cage Culture. It will furtheremploy ‘Sagar Mitras’ toinvolve youths in marine
processing industries and form 500 Fish Farmer Producer Organisations.
16. It aims to further help SHGs under Deen Dayal Antyodaya Yojana for the
alleviation of poverty.
Challenges in Agriculture Sector:

Agriculture sector is one of the largest sector of Indian economy has is largest
employer too. It contributes meagerly 17% to GDP while more than 52% of the
population is directly or indirectly dependent on it.
Currently India is second largest populous country of the world and according to the
UN’s World Population Prospects report, 2019 itis expected to surpass China by 2026
to become the world’s largest country.
India is needed to foster a plan so that it can meet its goal of food security and
eliminate hunger related disease such as Child Stunting, Child Wasting, Child
Mortality and Undernourishment.
India currently holds 102nd position among 117 nations of the world in Global Hunger
Index which is jointly published by the International Food Policy Research Institute
(IFPRI), Concern Worldwide, and Welthungerhilfe (WHH).
For an agriculturally prosperous country like India, it is a cause of great concern that
food produced is not distributed equally due to lack of forward linkages and storage
facilities.
Further, it needs to deal with impact of climate change on agriculture, unseasonal
rain and erratic monsoon in rainfed areas.
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India has largest livestock population in the world which needs to be protected from Notes...
various types of disease such as foot and mouth disease in cattle and peste des
petits ruminants (PPR) in sheep and goat.
The total Livestock population in India stands at 535.78 million in the country showing
an increase of 4.6% over Livestock over the last 7 years.They are considered as an
alternative means of income for farmers.
Agricultural credit is a big issue in India as large chunk of Indian farmers practice
intensive agriculture and mixed farming.
Failure of crops and financial burden has often caused suicide of large number of
farmers in India. 396 cases of farmer’s suicide were reported in 2019 which is huge.
Hence, there is a need to counter it.
Having one of the largest coastlines in the world, Indian fisheries sector has great
potential to increase India’s forex reserves by exporting marine products.
How Budget proposals can help to overcome challenges?

The budget has cautiously tried to meet aspirations and needs of this sector through
its Sixteen point Agenda in different ways.
It has tried to enforce existing model laws in agriculture with the help of state
government.
To deal with climate change, it aims to address the water stress issue in hundred water
stressed districts and provide solar pumps to strengthen irrigation infrastructure at
subsidized price under KUSUM scheme.
The budget has sought to use all kinds of fertilizers including the traditional organic
and other innovative fertilizers in asustainable manner with a ‘balanced approach’ to
counterthe low productivity of farm sector.
To end regional disparity in food security by developing forward linkages such as
storage, processing and transportation facility.
Government has proposed geo-tagging of all warehouses, setting up of model
warehouse and Village Storage scheme to strengthen storage infrastructure.
To strengthen transport facility National Cold Supply Chain, Kisan Rail and Krishi
Udan has been proposed.
This will also help government to achieve doubling the agricultural export by 2022 in
accordance with ‘Agricultural Export Policy’.
Promotion of ‘Integrated Farming System’ in rainfed areas will help to counter
vagaries of monsoon and unseasonal rain.
Further by expanding refinance by NABARD and setting target of Rs. 15 lakh crore
for agricultural credit, government will counter the issue of financial stress faced by
farmers due to crop failures.
Expansion of credit to cover all eligible beneficiaries of PM-KISAN under the KCC
scheme will help to counter number of farmer’s suicides in the country.
Budget has proposed to eliminate Foot and Mouth disease and brucellosis in cattle
and also peste des petits ruminants (PPR) in sheep and goat by 2025.
Further expansion of coverage of artificial insemination from existing 30% to 70%
and development of fodder farms will help to achieve dual objective of doubling milk
processing facility by 2025 and ensuring healthy cattle population.
Promotion of food processing in fisheries by integrating youths will help to push up
India’s marine export.
Budget proposals are in line with the aim of government of doubling the farmer’s
income and agricultural export by 2022
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Union Budget (2020)
Notes...
Wellness, Water and Sanitation
Highlights:
Proposes to setup more hospitals tier-2 and tier-3 cities under the PPP model.
In the first phase, priority will be in those ‘Aspirational District’, which do not have
empanelled hospitals under the ‘Ayushman Bharat’ scheme.
Eliminate TB from India by 2025 and setting up of Jan Ausadhi Kendras offering
2000 medicines and 300 surgical to all districts by 2024.
Challenges in health & wellness in India:

Out of the total health expenditure in India, effectively about only one-third (30%) is
contributed by the public sector while 70% of total expenditure is borne by private
sector.
Lack of low cost generic medicine in different parts of country sucks money from
middle and lower class and increase household expenditure.
India has eliminated polio in 2012 and in process of eliminating TB by 2025.
Although, health infrastructure in major cities are good but is overcrowded by the
patients from tier-2 and tier-3 cities.
Further, there is a wide gap of health infrastructure between different regions of
the country especially the case of ‘Aspirational districts’, which lacks empanelled
hospitals under Ayushman Bharat Mission.
Further, India needs huge investment in water infrastructure to enable reach of ‘safe
drinking water’ and tapped water to every household by 2024 under “Jal Jeevan
Mission”
How Budget proposals can help to overcome challenges

Budget proposes to setup more hospitals tier-2 and tier-3 cities under PPP model
and will provide assistance in form of viability gap funding with special focus on
‘Aspirational Districts’.
Further, government has reiterated to eliminate TB from India by 2025.
To address the issue of availability of low cost generic medicine, government has
planned to set up Jan Ausadhi Kendras offering 2000 medicines and 300 surgical
equipments to all districts by 2024.
To push its aspirational “Jal Jeevan Mission”, government has proposed huge
investment in water infrastructure.
Education and Skills
Highlights:
The budget proposes to announce ‘The New Education Policy’.
It also proposes to start a programme whereby urban local bodies across the country
would provide internship opportunities to fresh engineers for a period of up to one
year.
‘National Police University’ and ‘National Forensic Science University’ have been
proposed.
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It has also proposed to start degree level full-fledged online education Notes...
programmes.
It has proposed to attach a medical college to an existing district hospital on the
basis of the PPP model with the availability of Viability Gap Funding from the
government.
Challenges in Education Sector:

Indian Education sector is marred by mismatch in level of requisite technical
education and current demands from different sectors of economy.
Primary, secondary, higher secondary and higher education sector is equally
impacted by it.
This significant gap of skill development in India, is a major concern and needs to be
bridged, for us to remain competitive in the world market. This is one of the cause of
unemployment in India.
There is huge employment crisis in market where the unemployment rate (UR) in
both rural and urban India is at its highest since 1972.
Only 46.21 percent students were found employable or ready to take up jobs in 2019
and a decline in employability was seen in BTech, Engineering. MCA graduates,
Technical & Computer-related courses according to India Skills Report, 2019.
There is also lack of doctors in the country which needs to be looked into. Currently,
doctor-population ratio is of 0.62:1000 as per current population which is estimated
to be of around 1.33 billion

Proposed ‘The New Education Policy’ will beat par with standards of modern
education system thus improve the quality of education & marketable skills of
youth.
It also proposed to start a programme where by urban local bodies across the country
would provide internship opportunities to fresh engineers for a period up to one year.
This will essentially help India to counter existing ‘skill gap’, persisting in the country
along with other programmes such as STRIVE and ‘Young Scientist programme.’
Further to expand the scope and infrastructure of health education, budget has
proposed to attach a medical college to an existing district hospital on the basis of
PPP model with availability of Viability Gap Funding from the government in case of
requirement to expand infrastructure.
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Union Budget (2020)
Economic
Notes...
Development
Industry, Commerce, and Investment
Highlights:
Proposal to establish a Investment Clearance Cell.
Proposed to develop five new smart cities in collaboration with States in PPP
mode.
National Technical Textiles Mission has been proposed.
NIRVIK(Niryat Rin Vikas Yojana) has been proposed by the budget to achieve higher
export credit disbursement to small exporters.
Challenges:
Currently, country is going through a tough phase of economic development due to
decline in growth rate as low as 5% of GDP and further prediction by major global
agencies such as IMF to remain low at 4.8% of GDP.
Further, the industrial sector as per Index of Industrial Production (IIP) registered a
growth of 0.6 per cent in 2019-20 which is very low as compared to same period.
Indian economy is chiefly impacted by crisis in telecom sector, MSME sector due to
slow credit inflow and automobile sector due to deficit in demand.
The rate of unemployment coupled with economic crisis is a major challenge for
India due to its huge demographic dividend.
India’s Demographic Dividend will peak around 2041, when the share of working-age,
i.e. 20-59 years, population is expected to hit 59%. Hence, India needs to be prepared
for it by creating employment opportunities.

To further improve ease of doing business and faster resolution of financial issues
, the budget has proposed Investment Clearance Cell that will provide “end to end”
facilitation and support, including pre-investment advisory, information related to
land banks and facilitate clearances at Centre and State level.
This will help to strengthen ‘Start up Ecosystem’ and will deal with dual challenge of
unemployment and slow growth rate.
It has also proposed to develop five new smart cities along proposed economic
corridors to adjust working population and creating a job ecosystem. Sites will
be chosen on the basis of location (near economic corridors and industries to
be developed) and other factors such as technical requisites and human capital
availability.
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National Technical Textiles Mission has been proposed which will give impetus to Notes...
traditional textile industries by upgrading them with current demands of technical
textiles across globe and to create an export-oriented industry of technical textiles.
NIRVIK (Niryat Rin Vikas Yojana) has been proposed by the budget to achieve higher
export credit disbursement to small exporters. This includes higher insurance
coverage, reduction in premium for small exporters and simplified procedure for
claim settlements. This will help to achieve the goals set by ‘Industrial Export Policy’
and ‘Agricultural Export Policy’ by 2022.
Infrastructure
Highlights:
National Infrastructure Pipeline to be strengthened.
The budget has proposed a National Logistics Policy to strengthen the logistics
sector.
The budget proposed to replace conventional energy meters by prepaid smart meters
in the next 3 years.
To Expand the National Gas Grid from the present 16200 km to 27000 km.
“Arth Ganga” Plan which was envisaged earlierto energise economic activity along
river banks will be realised.
It has also proposed to complete NW-2 (Dhubri to Sadiya) by 2022.
It has proposed to build infrastructure to harness solar power along the Railway
tracks. It also proposed to run 150 more trains and on PPP model.
Further, it aims to connect more cities with semi-high speed trains along with fulfilling
its commitment to effectively implement high-speed train corridor (Bullet Train) from
Mumbai to Ahmadabad.
Challenges in Infrastructure sector:

Infrastructure projects are highly capital intensive and funding is considered as a
major impediment in achieving the infrastructure goals.
India has been marred with multiple challenges in Infrastructure sector including
financing, land acquisition, Environmental Impact Assessment (EIA) and clearances
from various agencies.
Along with it, lack of dedicated freight corridor in railways and roadways are also
a challenge to India’s economic growth as it has impacted India’s performance in
logistics sector in which it has achieved 35th rank worldwide.
India is also facing challenges in energy sector due to pollution caused by thermal
power plants and recent slump in coal production.

National Infrastructure Pipeline has been proposed to be strengthened which has
already been launched with 103 lakh crore investment having 6500 projects across
sector.
Budget has proposed for a National Logistics Policy to strengthen logistic sector.
It has proposed to expand the national gas grid from the present 16200 km to 27000
km which will essentially cut greenhouse gas emissions from households.
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Notes... “Arth Ganga” plan has been envisaged to strengthen infrastructure along banks of
the river Ganga by promoting economic activities.
It has also proposed to complete NW-2 (Dhubri to Sadiya) by 2022.
It has proposed to build infrastructure to harness solar power along the Railway
tracks. It also proposed to run 150 more trains and on PPP model. It will meet energy
requirements in a sustainable manner.
New Economy: Assimilating new technologies

and governance ideas
Highlights:
A policy to enable the private sector to build Data Centre parks throughout the
country.
Fibre to the Home (FTTH) connections through Bharatnet.
National Mission on Quantum Technologies and Applications be setup with a corpus
of INR 8000 crore.
Two new national level Science Schemes to create a comprehensive database of the
genetic landscape of India.
Challenges:
Although, India has a deep telecom penetration but digital infrastructure in governance
is still far behind the current norms.
High speed internet is still not available in far flunged area which is a serious cause
of concern.
Advanced technologies which are being developed across the globe and are being
adopted must be implemented in India.
Data centers of private multi-national companies are located outside India’s
jurisdiction. This has caused serious challenges to inspection pertaining to
governance, tax compliance, national security and various other issues.

Budget has proposed a policy to enable private sector to build Data Centre parks
throughout the country for better accessibility and utilization of data.
Fibre to the Home (FTTH) connections through Bharatnet will link 100,000 gram
panchayats this year to comply with challenges faced by digital governance
infrastructure.
The budget has proposed National Mission on Quantum Technologies and
Applications be setupwith a corpus of 8000 crore rupees. It will help India to comply
with global standards in digital infrastructure.
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Caring Society
Notes...
Women & Child, Social Welfare
Highlights:
Introducing automated cleaning of sewer lines with new technologies.
Increased allocation to nutrition-related programmes, programmes related to women
and child development and welfare of’ schedule caste and schedule caste.
Challenges:
There are various challenges in women and child development in India starting from
gaps in gender equality, wage equality, nutritional care for mother and child and
gender violence among others.
Further, problems such as ‘Manual Scavenging’ which has already been abolished is
still persisting in Indian society showcasing inhumane nature.

Budget has proposed to do away with manual scavenging by introducing automated
cleaning of sewer lines with new technologies.
It has also allocated a significant amount to nutrition-related programmes, which

has already been running, related to women and child development and welfare
of Scheduled Caste and Scheduled Tribes. It will further reduce incidences of
malnutrition and improve conditions of vulnerable section of our society.
Culture & Tourism
Highlights:
UNION
BUDGET
2020-21
NEW ANNOUNCEMENTS
Indian Five Museum on Tribal Maritime

Institute of Archaeological Numismatics Museum Museum
Heritage and Sites as and Trade in Ranch in Lothal
Conservation Iconic Sites
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Union Budget (2020)
Notes... To develop five archaeological sites as iconic sites with onsite Museums. They are
Rakhigarhi (Haryana), Hastinapur (Uttar Pradesh) Shivsagar (Assam), Dholavira
(Gujarat) and Adichanallur (Tamil Nadu).
A museum on Numismatics and Trade will be opened at Old Mint building Kolkata
and the ‘Tribal Museum’ in Ranchi.
Setup a maritime museumat Lothal, the Harrapan age maritime site near
Ahmedabad.
Challenges:
Diverse Indian mainland and geographical extent is covered with multiple cultural
realms which are yet to be cashed in form of tourism and forex earning by exporting
services.
Although, India has multiple heritage sites from Harappan Civilization but it lacks
proper showcasing to attract tourist footfalls.
Tourism contributed to 9.2% of India’s GDP in 2018 and supported 42.673 million
jobs, i.e, 8.1% of its total employment, which is too less owing to vast and culturally
diverse Indian landscape.

Development of five archaeological sites as iconic sites with onsite Museums,
amuseum on Numismatics and Trade, and a maritime museum at Lothal, wil further
improve domestic as well as international tourism while showcasing rich Indian
cultural heritage and diversity and help in increasing export of services.
Environment & Climate Change
Highlights:
To achieve targets set up by the Paris Climate Deal by cutting emission and closing
down those thermal plants whose emission is higher than a pre-set limit.
It also proposed to help state governmentsin cutting air pollution in cities.
Challenges:
Although India’s per capita Green House Gas Emission is very low as compared to
rest of the world . It produces GHGs as low as half of the world’s average but due to
INDCs as par with Paris Climate deal it has to cut its green house gas emission.
Pollution in cities is a major problem for India. According to a report by Green Peace,
22 of world’s 30 most polluted cities are in India.
Seasonal Smog in National Capital territory of Delhi has caused all time high pollution
level causng loss to health, economy and environment.

These proposals will further highlight the India’s commitment toward a greener world
using sustainable development strategies.
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Notes...
Governance
Highlights:
India will host the G-20 presidency in the year 2022 - the year of the 75th anniversary
of independence of Indian Nation.The budget has allocated a sum of Rs. 100 crore
to begin the preparations for the event.
It has also proposed a special package for newly created union territories of Jammu
and Kashmir and Ladakh.
Financial Sector
Highlights:
It has proposed to increase Deposit Insurance Coverage for a depositor under
Deposit Insurance and Credit Guarantee Corporation (DICGC) from Rs. one lakh to
Rs. five lakh per depositor.
It has proposed to strengthen the Cooperative Banks by amendments to the Banking
Regulation Act.
It has proposed to sell the balance holding of Government of India IDBI Bank to
private, retail and institutional investors through the stock exchange.
Credit Guarantee Trust for Medium and Small Entrepreneurs (CGTMSE) has been
proposed by the budget to provide subordinate debt for entrepreneurs of MSMEs.
Taxation System
Highlights:
PAN to be allotted online on the basis of Aadhaar details without any requirement of
the detailed application.
The budget has proposed to abolish the Dividend Distribution Tax (DDT) and instead
proposed and adopt the classical system of dividend taxation under which the
companies would not be required to pay DDT.
The dividend shall be taxed only in the hands of the recipients at their applicable
rate.
It has proposed a concessional corporate tax rate of 15% to new domestic companies
engaged in the generation of electricity.
It has proposed to grant 100% tax exemption to interest, dividend and capital gains
income in respect of investment made in infrastructure and other notified sectors by
the Sovereign Wealth Fund of foreign governments.
The budget has proposed ‘Vivad Se Vishwas’ scheme under which will cover
disputes related to Direct Taxes.
Under this scheme, a taxpayer would be required to pay only the amount of the
disputed taxes and will get a complete waiver of interest and penalty provided he
pays by 31st March 2020.
Option to be provided to cooperative societies to be taxed at 22% plus 10%
surcharge and 4% cess, with no exemptions or deductions.
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Union Budget (2020)
Notes... There have a lot of modifications to the simplification of paying GST.
A Simplified return from

1st April, 2020.
Centralized system
SMS based filling for nil return for e-invoices in
Return pre-filling
Improved Input Tax Credit flow GST
A system of cash
Aadhaar based verification reward to incentivize
of taxpayers to weed out customers to seek
dummy units invoice
The budget has proposed new taxation slabs for paying income tax
New Income Tax Rate
Income Range Tax Rate
5 - 7.5 Lakh 10%
7.5 - 10 Lakh 15%
10 - 12.5 Lakh 20%
12.5 - 15 Lakh 25%
Those earning up to Rs. 5 lakh in a year will pay no tax
Tax rate of 30% on income above Rs. 15 lakh will be

continued
Challenges:
Complex taxation system coupled with heavy taxes with surcharges has compelled
foreign investors to keep away from Indian economy.
Taxes such as Dividend Distribution Tax (DDT) on share holders dividends was a
burden on brokers.
India’s tax base is narrow has become narrower due to low collection of GST. India’s
gross tax-to-gdp ratio fell to 10.9 per cent in 2018-19 on account of lower than
estimated GST collection.
18 www.iasscore.in
Union Budget (2020)
How Budget proposals can help to overcome challenges? Notes...

Budget has introduced speedy resolution of cases pertaining to direct taxes by
introducing ‘Vivad Se Vishwas’ scheme under which will cover disputes related
to Direct Taxes. This will help to strengthen “Tax Resolution Infrastructure” in the
country.
It has also abolished Dividend Distribution Tax (DDT) to ease regulations and tax
compliance in financial sector.
It has also eased down various taxation complexities by providing numerous options
such as concessional corporate tax rate of 15% to new domestic companies engaged
in the generation of electricity, 100% tax exemption to interest, dividend and capital
gains income in respect of investment made in infrastructure and other notified
sectors by the Sovereign Wealth Fund of foreign governments.
It has eased down paper work by allotment of PAN to be allotted online on the basis
of Aadhaar details. It will enable to widen tax base.
Corporation Income Tax Customs

Tax
Borrowings Union Excise Duties

and Ohter
Libilities GST & Other Taxes
Non-Tax Revenue
Non-Debt
Capital Receipts
Other Expenditure
Pensions
Subsidies
States’
Defence
Share of
Centrally Taxes &
Sponsored Finance Central Interest
Duties
Schemes Commission and Sector Payments
Other Transfers Schemes
**********
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Union Budget (2020)
Notes...
20 www.iasscore.in
UNION BUDGET – 2020 – Important Takeaways & KEY
highlights
Presenting the first Union Budget of the third decade of 21 st century, Finance Minister Smt.
Nirmala Sitharaman, today unveiled a series of far-reaching reforms, aimed at energizing
the Indian economy through a combination of short-term, medium-term, and long-term
measures.
The Key Highlights of Union Budget 2020-21 are as follows:
Three prominent themes of the Budget
• Aspirational India - better standards of living with access to health, education and better
jobs for all sections of the society
• Economic Development for all - “Sabka Saath , Sabka Vikas , Sabka Vishwas”.
• Caring Society - both humane and compassionate; Antyodaya as an article of faith.
• Three broad themes are held together by:
o Corruption free, policy-driven Good Governance.
o Clean and sound financial sector.
• Ease of Living underlined by the three themes of Union Budget 2020-21.
Three components of Aspirational India
• Agriculture, Irrigation, and Rural Development

• Wellness, Water, and Sanitation
• Education and Skills
Sixteen Action Points for Agriculture, Irrigation and Rural Development
• Rs. 2.83 lakh crore to be allocated for the following 16 Action Points:
o Rs. 1.60 lakh crore for Agriculture, Irrigation & allied activities.
o Rs. 1.23 lakh crore for Rural development & Panchayati Raj. -
• Agriculture credit:
o Rs. 15 lakh crore target set for the year 2020-21.
o PM-KISAN beneficiaries to be covered under the KCC scheme.
o NABARD Re-finance Scheme to be further expanded.
• Comprehensive measures for 100 water-stressed districts proposed.
• Blue Economy:
o Rs. 1 lakh crore fisheries’ exports to be achieved by 2024-25.
o 200 lakh tonnes fish production targeted by 2022-23.
o 3477 Sagar Mitras and 500 Fish Farmer Producer Organisations to involve youth
in fisheries extension.
o Growing of algae, sea-weed and cage culture to be promoted.
www.bankersdaily.in www.bankersdaily.testpress.in
o Framework for development, management and conservation of marine fishery
resources.
• Kisan Rail to be setup by Indian Railways through PPP:
o To build a seamless national cold supply chain for perishables (milk, meat, fish,
etc.
o Express and Freight trains to have refrigerated coaches.
• Krishi Udaan to be launched by the Ministry of Civil Aviation:
o Both international and national routes to be covered.
o North-East and tribal districts to realize Improved value of agri-products.
• One-Product One-District for better marketing and export in the Horticulture sector.
• Balanced use of all kinds of fertilizers - traditional organic and innovative fertilizers.
• Measures for organic, natural, and integrated farming:
o Jaivik Kheti Portal – online national organic products market to be strengthened.
o Zero-Budget Natural Farming (mentioned in July 2019 Budget) to be included.
o Integrated Farming Systems in rain-fed areas to be expanded.
o Multi-tier cropping, bee-keeping, solar pumps, solar energy production in non-

cropping season to be added.
• PM-KUSUM to be expanded:
o 20 lakh farmers to be provided for setting up stand-alone solar pumps.
o Another 15 lakh farmers to be helped to solarise their grid-connected pump sets.
o Scheme to enable farmers to set up solar power generation capacity on their
fallow/barren lands and to sell it to the grid.
• Village Storage Scheme:
o To be run by the SHGs to provide farmers a good holding capacity and reduce their
logistics cost.
o Women, SHGs to regain their position as Dhaanya Lakshmi.
• NABARD to map and geo-tag agri-warehouses, cold storages, reefer van facilities, etc.
• Warehousing in line with Warehouse Development and Regulatory Authority (WDRA)
norms:
o Viability Gap Funding for setting up such efficient warehouses at the block/taluk
level.
o Food Corporation of India (FCI) and Central Warehousing Corporation (CWC) to
undertake such warehouse building.
• Financing on Negotiable Warehousing Receipts (e-NWR) to be integrated with e-NAM.
• State governments who undertake implementation of model laws (issued by the Central
government) to be encouraged.
• Livestock:
o Doubling of milk processing capacity to 108 million MT from 53.5 million MT by
2025.
o Artificial insemination to be increased to 70% from the present 30%.
o MNREGS to be dovetailed to develop fodder farms.
o Foot and Mouth Disease, Brucellosis in cattle and Peste Des Petits ruminants (PPR)
in sheep and goat to be eliminated by 2025.
• Deen Dayal Antyodaya Yojana – 0.5 crore households mobilized with 58 lakh SHGs for
poverty alleviation.
• Rs. 69,000 crore allocated for overall Healthcare sector.

• Rs. 6400 crore (out of Rs. 69,000 crore) for PM Jan Arogya Yojana (PMJAY):
o More than 20,000 hospitals already empanelled under PM Jan Arogya Yojana
(PMJAY).
o Viability Gap Funding window proposed for setting up hospitals in the PPP mode.
o Aspirational Districts with no Ayushman empanelled hospitals to be covered in the
first phase.
o Targeting diseases with an appropriately designed preventive regime using
Machine Learning and AI.
• Jan Aushadhi Kendra Scheme to offer 2000 medicines and 300 surgicals in all districts
by 2024.
• TB Harega Desh Jeetega campaign launched - commitment to end Tuberculosis by 2025.
• Rs. 3.60 lakh crore approved for Jal Jeevan Mission:

o Rs. 11,500 crore for the year 2020-21.
o Augmenting local water sources, recharging existing sources, and promoting water
harvesting and de-salination.
o Cities with million-plus population to be encouraged to achieve the objective during
the current year itself.
• Rs.12, 300 crore allocation for Swachh Bharat Mission in 2020-21:
o Committment to ODF-Plus in order to sustain ODF behaviour.
o Emphasis on liquid and grey water management.
o Focus also on Solid-waste collection, source segregation, and processing.
• Rs. 99,300 crore for education sector and Rs. 3000 crore for skill development in 2020-21.
• New Education Policy to be announced soon.
• National Police University and National Forensic Science University proposed for
policing science, forensic science, and cyber-forensics.
• Degree level full-fledged online education program by Top-100 institutions in the National
Institutional Ranking Framework.
• Up to 1-year internship to fresh engineers to be provided by Urban Local Bodies.
• Budget proposes to attach a medical college to an existing district hospital in PPP mode.
• Special bridge courses to be designed by the Ministries of Health, and Skill Development:
o To fulfill the demand for teachers, nurses, para-medical staff and care-givers
abroad.
o To bring in equivalence in the skill sets of the workforce and employers’ standards.
• 150 higher educational institutions to start apprenticeship embedded degree/diploma
courses by March 2021.
• External Commercial Borrowings and FDI to be enabled for education sector.
• Ind-SAT proposed for Asian and African countries as a part of Study in India program.
Economic Development
Industry, Commerce and Investment
• Rs. 27,300 crore allocated for 2020-21 for development and promotion of Industry and
Commerce.
• Investment Clearance Cell proposed to be set up:
o To provide “end to end” facilitation and support.
o To work through a portal.
• Five new smart cities proposed to be developed.

• Scheme to encourage manufacture of mobile phones, electronic equipment and semi-
conductor packaging proposed.
• National Technical Textiles Mission to be set up:
o With four-year implementation period from 2020-21 to 2023-24.
o At an estimated outlay of Rs 1480 crore.
o To position India as a global leader in Technical Textiles.
• New scheme NIRVIK to be launched to achieve higher export credit disbursement, which
provides for:
o Higher insurance coverage
o Reduction in premium for small exporters
o Simplified procedure for claim settlements.
• Turnover of Government e-Marketplace (GeM) proposed to be taken to Rs 3 lakh crore.

• Scheme for Revision of duties and taxes on exported products to be launched.
o Exporters to be digitally refunded duties and taxes levied at the Central, State
and local levels, which are otherwise not exempted or refunded.
• All Ministries to issue quality standard orders as per PM’s vision of “Zero Defect-Zero
Effect” manufacturing.
Infrastructure
• Rs.100 lakh crore to be invested on infrastructure over the next 5 years.

• National Infrastructure Pipeline:
o Rs. 103 lakh crore worth projects; launched on 31st December 2019.
o More than 6500 projects across sectors, to be classified as per their size and stage
of development.
• A National Logistics Policy to be released soon:
o To clarify roles of the Union Government, State Governments and key

regulators.
o A single window e-logistics market to be created
o Focus to be on generation of employment, skills and making MSMEs

competitive.
• National Skill Development Agency to give special thrust to infrastructure-focused skill

development opportunities.
• Project preparation facility for infrastructure projects proposed.
o To actively involve young engineers, management graduates and economists

from Universities.
• Infrastructure agencies of the government to involve youth-power in start-ups.

• Rs.1.7 lakh crore proposed for transport infrastructure in 2020-21.
Highways:
• Accelerated development of highways to be undertaken, including:
o 2500 Km access control highways.
o 9000 Km of economic corridors.
o 2000 Km of coastal and land port roads.
o 2000 Km of strategic highways.
• Delhi-Mumbai Expressway and two other packages to be completed by 2023.
• Chennai-Bengaluru Expressway to be started.
• Proposed to monetise at least 12 lots of highway bundles of over 6000 Km before 2024.
Indian Railways:
• Five measures:
o Large solar power capacity to be set up alongside rail tracks, on land owned by
railways.
o Four station re-development projects and operation of 150 passenger trains

through PPP.
o More Tejas type trains to connect iconic tourist destinations.
o High speed train between Mumbai and Ahmedabad to be actively pursued.
o 148 km long Bengaluru Suburban transport project at a cost of Rs 18600 crore,

to have fares on metro model. Central Government to provide 20% of equity and
facilitate external assistance up to 60% of the project cost.
• Indian Railways’ achievements:
o 550 Wi-fi facilities commissioned in as many stations.
o Zero unmanned crossings.
o 27000 Km of tracks to be electrified.
Ports & Water-ways:
• Corporatizing at least one major port and its listing on stock exchanges to be considered.
• Governance framework keeping with global benchmarks needed for more efficient sea-
ports.
• Economic activity along river banks to be energised as per Prime Minister’s Arth
Ganga concept.
Airports:
• 100 more airports to be developed by 2024 to support Udaan scheme.

• Air fleet number expected to go up from present 600 to 1200 during this time.
Electricity:
• “Smart” metering to be promoted.
• More measures to reform DISCOMs to be taken.
Power:
• Rs.22, 000 crore proposed for power and renewable energy sector in 2020-21.
• Expansion of national gas grid from the present 16200 km to 27000 km proposed.
• Further reforms to facilitate transparent price discovery and ease of transactions.
New Economy
• To take advantage of new technologies:
o Policy to enable private sector to build Data Centre parks throughout the country
to be brought out soon.
o Fibre to the Home (FTTH) connections through Bharatnet to link 100,000 gram
panchayats this year.
o Rs.6000 crore proposed for Bharatnet programme in 2020-21.
• Measures proposed to benefit Start-ups:
o A digital platform to be promoted to facilitate seamless application and capture

of IPRs.
o Knowledge Translation Clusters to be set up across different technology sectors

including new and emerging areas.
o For designing, fabrication and validation of proof of concept, and further scaling
up Technology Clusters, harbouring test beds and small scale manufacturing
facilities to be established.
o Mapping of India’s genetic landscape- Two new national level Science Schemes
to be initiated to create a comprehensive database.
o Early life funding proposed, including a seed fund to support ideation and
development of early stage Start-ups.
• Rs.8000 crore proposed over five years for National Mission on Quantum Technologies
and Applications.
Caring Society
• Focus on:
o Women & child,
o Social Welfare;
o Culture and Tourism
• Allocation of Rs. 35,600 crore for nutrition-related programmes proposed for the
FY2020-21.
• Rs.28, 600 crore proposed for women specific programs.
• Issue about age of a girl entering motherhood - proposed to appoint a task force to present
its recommendations in six months’ time.
• Financial support for wider acceptance of technologies, identified by Ministry of Housing
and Urban Affairs to ensure no manual cleaning of sewer systems or septic tanks, to be
provided.
• Rs. 85, 000 crore proposed for 2020-21 for welfare of Scheduled Castes and Other
Backward Classes.
• Rs. 53, 700 crore provided to further development and welfare of Scheduled Tribes.
• Enhanced allocation of Rs. 9,500 crore provided for 2020-21 for senior citizens and
Divyang.
Culture & Tourism
• Allocation of Rs. 2500 crore for 2020-21 for tourism promotion.

• Rs.3150 crore proposed for Ministry of Culture for 2020-21.
• An Indian Institute of Heritage and Conservation under Ministry of Culture proposed; with
the status of a deemed University.
• 5 archaeological sites to be developed as iconic sites with on-site Museums:
o Rakhigarhi (Haryana)
o Hastinapur (Uttar Pradesh)
o Shivsagar (Assam)
o Dholavira (Gujarat)
o Adichanallur (Tamil Nadu)
• Re-curation of the Indian Museum in Kolkata, announced by Prime Minister in January

2020.
• Museum on Numismatics and Trade to be located in the historic Old Mint building in
Kolkata.
• 4 more museums from across the country to be taken up for renovation and re-curation.
• Support for setting up of a Tribal Museum in Ranchi (Jharkhand).
• Maritime museum to be set up at Lothal- the Harrapan age maritime site near Ahmedabad,
by Ministry of Shipping.
• State governments expected to develop a roadmap for certain identified destinations and
formulate financial plans during 2021 against which specified grants to be made available
to the States in 2020-21.
• Allocation for this purpose to be Rs.4400 crore for 2020-21.

• Proposed to advise the utilities to close the running old thermal power plants with carbon
emission above the pre-set norms.
• States that are formulating and implementing plans for ensuring cleaner air in cities above
one million to be encouraged.
• PM launched Coalition for Disaster Resilient Infrastructure (CDRI) with Secretariat in
Delhi. Second such international initiative after International Solar Alliance.
Governance
• Clean, corruption-free, policy driven, good in intent and most importantly trusting in faith.
• Taxpayer Charter to be enshrined in the Statute will bring fairness and efficiency in tax
administration.
• Companies Act to be amended to build into statues, criminal liability for certain acts that
are civil in nature.
o Other laws with such provisions are to be corrected after examination.
• Major reforms in recruitment to Non-Gazetted posts in Government and Public sector
banks:
o An independent, professional and specialist National Recruitment Agency
(NRA) for conducting a computer-based online Common Eligibility Test for
recruitment.
o A test-centre in every district, particularly in the Aspirational Districts.
• A robust mechanism to be evolved for appointment including direct recruitment to various
Tribunals and specialised bodies to attract best talents and professional experts.
• Contract Act to be strengthened.
• New National Policy on Official Statistics to:
o Promote use of latest technologies including AI.
o Lay down a road-map towards modernised data collection, integrated information
portal and timely dissemination of information.
• A sum of Rs. 100 crore allocated to begin the preparations for G20 presidency to be hosted
in India in the year 2022.
• Development of North East region:
o Improved flow of funds using online portal by the Government.
o Greater access to financial assistance of Multilateral and Bilateral funding agencies.
• Development of Union Territories of J&K and Ladakh:
o An amount of Rs. 30,757 crore provided for the financial year 2020-21.
o The Union Territory of Ladakh has been provided with Rs. 5,958.
Financial Sector
• Reforms accomplished in PSBs :

o 10 banks consolidated into 4.
o Rs. 3,50,000 crore capital infused.
• Governance reforms to be carried out to bring in transparency and greater professionalism
in PSBs.
• Few PSBs to be encouraged to approach the capital market to raise additional capital
• Deposit Insurance and Credit Guarantee Corporation (DICGC) permitted to increase
Deposit Insurance Coverage to Rs. 5 lakh from Rs.1 lakh per depositor.
• Scheduled Commercial Bank’s health under monitoring through a robust mechanism,
keeping depositors’ money safe.
• Cooperative Banks to be strengthen by amending Banking Regulation Act for:
o Increasing professionalism.
o Enabling access to capital.
o Improving governance and oversight for sound banking through the RBI.
• NBFCs eligibility limit for debt recovery reduced from:
o Rs. 500 crore to Rs 100 crore asset size.
o Rs 1 crore to Rs 50 lakh loan size.
• Private capital in Banking system:
o Government to sell its balance holding in IDBI Bank to private, retail and
institutional investors through the stock exchange.
• Easier mobility in jobs:
o Auto-enrolment in Universal Pension coverage.
o Inter-operability mechanism to safeguard the accumulated corpus.
• Pension Fund Regulatory Development Authority of India Act to be amended to:
o Strengthen regulating role of PFRDAI.
o Facilitate separation of NPS trust for government employees from PFRDAI.
o Enable establishment of a Pension Trust by the employees other than Government.
• Factor Regulation Act 2011 to be amended to:
o Enable NBFCs to extend invoice financing to the MSMEs through TReDS
• New scheme to provide subordinate debt for entrepreneurs of MSMEs by the banks
o Would be counted as quasi-equity.
o Would be fully guaranteed through the Credit Guarantee Trust for Medium and
Small Entrepreneurs (CGTMSE).
o The corpus of the CGTMSE would accordingly be augmented by the government.
• Window for MSME’s debt restructuring by RBI to be extended by one year till March 31,
2021.
o More than five lakh MSMEs have already been benefitted.
• An app-based invoice financing loans product for MSMEs to be launched.
o To prevent the problem of delayed payments and consequential cash flows
mismatches.
• Export promotion of MSMEs:
o For selected sector such as pharmaceuticals, auto components and others.
o An Rs 1000 crore scheme anchored by EXIM Bank together with SIDBI.
o Hand holding support for technology upgradations, R&D, business strategy etc.
Financial Market
• Deepening Bond Market.

o Certain specified categories of Government securities to be opened fully for non -
resident investors also.
o FPI limit in corporate bonds increased to 15% from 9% of its outstanding stock.
• New legislation to be formulated for laying down a mechanism for netting of financial
contracts.
o Scope of credit default swaps to expand.
• Debt Based Exchange Traded Fund expanded by a new Debt-ETF consisting primarily of
Government Securities.
o To give attractive access to retail investors, pension funds and long-term investors.
• A Partial Credit Guarantee scheme for the NBFCs formulated post the Union budget 2019-
20 to address their liquidity constraints.
o New mechanism to be devised to further this.
o Government support to securities so floated.
Infrastructure Financing
• Rs.103 lakh crore National Infrastructure Pipeline projects earlier announced.

• Rs 22,000 crore to cater to the equity support to Infrastructure Finance Companies such as
IIFCL and a subsidiary of NIIF.
• IFSC, GIFT city: full of potential to become a centre of international finance as well as a
centre for high end data processing:
o An International Bullion exchange(s) to be set up as an additional option for trade

by global market participants with the approval of regulator.
Disinvestment
• Government to sell a part of its holding in LIC by way of Initial Public Offer (IPO).
Fiscal Management
• XV Finance Commission (FC):
o XV Finance Commission has given its first report for FY2020-21
o Recommendations accepted in substantial measure
o Its final report for five years beginning 2021-22 to be submitted during the latter
part of the year.
• GST Compensation Fund:
o Balances due out of collection of the years 2016-17 and 2017-18 to be transferred
to the Fund, in two instalments.
o Hereinafter, transfers to the fund to be limited only to collection by way of GST

compensation cess.
• Overhaul of Centrally Sponsored Schemes and Central Sector Schemes necessary:
o To align them with emerging social and economic needs of tomorrow
o To ensure that scarce public resources are spent optimally
• On the recent debate over transparency and credibility of projected fiscal numbers, it is
assured that procedure adopted is compliant with the FRBM Act.
• For the FY 2019-20:
o Revised Estimates of Expenditure: at Rs.26.99 lakh crore
o Revised Estimates of Receipts: estimated at Rs.19.32 lakh crore.
• For year 2020-21:
o Nominal growth of GDP estimated at 10%.
o Receipts: estimated at Rs.22.46 lakh cr
o Expenditure: at Rs.30.42 lakh cr.
• Significant tax reforms for boosting investments recently undertaken. However, expected
tax buoyancy expected to take time.
• Fiscal deficit of 3.8% estimated in RE 2019-20 and 3.5% for BE 2020-21. It comprises
two ingredients;
o 3.3% for year 2019-20 and 3% for the 2020-21 budget estimate.
o Deviation of 0.5%, consistent with Section 4(3) of FRBM Act, both for RE 2019-
20 and BE 2020-21. (Section 4 (2) of the FRBM Act provides for a trigger
mechanism for a deviation from the estimated fiscal deficit on account of structural
reforms in the economy with unanticipated fiscal implications.)
o Return path, committing to fiscal consolidation without compromising needs of
investment out of public funds, is laid in Medium Term Fiscal Policy cum Strategy
Statement.
o Market borrowings: Net market borrowings: Rs.4.99 lakh crore for 2019-20 and
Rs.5.36 lakh crore for 2020-21.
• A good part of the borrowings for the financial year 2020-21 to go towards Capital
expenditure that has been scaled up by more than 21%.
Direct Tax
Direct Tax Proposals - To stimulate growth, simplify tax structure, bring ease of compliance, and
reduce litigations.
• Personal Income Tax:

o Significant relief to middle class taxpayers.
o New and simplified personal income tax regime proposed:
Taxable Income Slab (Rs.) Existing tax rates New tax rates
0-2.5 Lakh Exempt Exempt
2.5-5 Lakh 5% 5%
5-7.5 Lakh 20% 10%
7.5-10 Lakh 20% 15%
10-12.5 Lakh 30% 20%
12.5-15 Lakh 30% 25%
Above 15 Lakh 30% 30%
o Around 70 of the existing exemptions and deductions (more than 100) to be

removed in the new simplified regime.
o Remaining exemptions and deductions to be reviewed and rationalised in coming
years.
o New tax regime to be optional - an individual may continue to pay tax as per the
old regime and avail deductions and exemptions.
o Measures to pre-fill the income tax return initiated so that an individual who opts
for the new regime gets pre-filled income tax returns and would need no assistance
from an expert to pay income tax.
o New regime to entail estimated revenue forgone of Rs. 40,000 crore per year.
• Corporate Tax:
o Tax rate of 15% extended to new electricity generation companies.
o Indian corporate tax rates now amongst the lowest in the world.
• Dividend Distribution Tax (DDT):
o DDT removed making India a more attractive investment destination.
o Deduction to be allowed for dividend received by holding company from its
subsidiary.
o Rs. 25,000 crore estimated annual revenue forgone.
• Start-ups:
o Start-ups with turnover up to Rs. 100 crore to enjoy 100% deduction for 3
consecutive assessment years out of 10 years.
o Tax payment on ESOPs deferred.
• MSMEs to boost less-cash economy:

o Turnover threshold for audit increased to Rs. 5 crore from Rs. 1 crore for businesses
carrying out less than 5% business transactions in cash.
• Cooperatives:
o Parity brought between cooperatives and corporate sector.
o Option to cooperative societies to be taxed at 22% + 10% surcharge and 4% cess
with no exemption/deductions.
o Cooperative societies exempted from Alternate Minimum Tax (AMT) just like
Companies are exempted from the Minimum Alternate Tax (MAT).
• Tax concession for foreign investments:

o 100% tax exemption to the interest, dividend and capital gains income on
investment made in infrastructure and priority sectors before 31st March, 2024 with
a minimum lock-in period of 3 years by the Sovereign Wealth Fund of foreign
governments.
• Affordable housing:
o Additional deduction up to Rs. 1.5 lakhs for interest paid on loans taken for an
affordable house extended till 31st March, 2021.
o Date of approval of affordable housing projects for availing tax holiday on profits
earned by developers extended till 31st March, 2021.
Tax Facilitation Measures
• Instant PAN to be allotted online through Aadhaar.
• ‘Vivad Se Vishwas’ scheme, with a deadline of 30th June, 2020, to reduce litigations in
direct taxes:
o Waiver of interest and penalty - only disputed taxes to be paid for payments till
31st March, 2020.
o Additional amount to be paid if availed after 31st March, 2020.
o Benefits to taxpayers in whose cases appeals are pending at any level.
• Faceless appeals to be enabled by amending the Income Tax Act.
• For charity institutions:
o Pre-filling in return through information of donations furnished by the done.
o Process of registration to be made completely electronic.
o Unique registration number (URN) to be issued to all new and existing charity
institutions.
o Provisional registration to be allowed for new charity institutions for three years.
o CBDT to adopt a Taxpayers’ Charter.
• Losses of merged banks:

o Amendments proposed to the Income-tax Act to ensure that entities benefit from
unabsorbed losses and depreciation of the amalgamating entities.
Indirect Tax
• GST:
o Cash reward system envisaged to incentivise customers to seek invoice.
o Simplified return with features like SMS based filing for nil return and
improved input tax credit flow to be implemented from 1st April, 2020 as a
pilot run.
o Dynamic QR-code capturing GST parameters proposed for consumer invoices.
o Electronic invoice to capture critical information in a centralized system to be
implemented in a phased manner.
o Aadhaar based verification of taxpayers being introduced to weed out dummy or
non-existent units.
o GST rate structure being deliberated to address inverted duty structure.
• Customs Duties:
o Customs duty raised on footwear to 35% from 25% and on furniture goods to 25%
from 20%.
o Basic customs duty on imports of news print and light-weight coated paper reduced
from 10% to 5%.
o Customs duty rates revised on electric vehicles and parts of mobiles.
o 5% health cess to be imposed on the imports of medical devices, except those
exempt from BCD.
o Lower customs duty on certain inputs and raw materials like fuse, chemicals, and
plastics.
o Higher customs duty on certain goods like auto-parts, chemicals, etc. which are also
being made domestically.
• Trade Policy Measures

o Customs Act being amended to enable proper checks of imports under FTAs.
o Rules of Origin requirements to be reviewed for certain sensitive items.
o Provisions relating to safeguard duties to be strengthened to enable regulating such
surge in imports in a systematic way.
o Provisions for checking dumping of goods and imports of subsidized goods being
strengthened.
o Suggestions for reviews of exemptions from customs duty to be crowd-sourced.
• Excise duty proposed to be raised on Cigarettes and other tobacco products, no change
made in the duty rates of bidis.
• Anti-dumping duty on PTA abolished to benefit the textile sector.
Unprecedented Milestones and Achievements of Indian Economy
• India now the fifth largest economy of the world.

• 7.4% average growth clocked during 2014-19 with inflation averaging around 4.5%.
• 271 million people raised out of poverty during 2006-16.
• India’s Foreign Direct Investment elevated to US$ 284 billion during 2014-19 from US$
190 billion during 2009-14.
• Central Government debt reduced to 48.7% of GDP (March 2019) from 52.2% (March
2014).
• Two cross-cutting developments:
o Proliferation of technologies (Analytics, Machine Learning, robotics, Bio-
informatics and Artificial Intelligence).
o Highest ever number of people in the productive age group (15-65 years) in India.
• GST removed many bottlenecks in the system.
Future Aim for sustaining India’s unique global leadership, driven by Digital Revolution
• Seamless delivery of services through Digital Governance.

• Improvement in physical quality of life through National Infrastructure Pipeline.
• Risk mitigation through Disaster Resilience.
• Social security through Pension and Insurance penetration.
Summary of Union
Budget
2020 - 2 1
The Budget 2020-21 was presented in the backdrop of
two crosscutting developments:
Proliferation of technologies, specially analytics, machine learning, robotics, bio-informatics & Artificial Intelligence; and
The number of people in the productive age group i.e. 15-65 years in India, being at its highest.
The Union Budget has been structured on the overall
theme of “Ease of Living.”
Three prominent themes of the Budget

Aspirational India: in which all sections of society seekbetter standards of living, with access to health, education X
and better jobs.

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Components: Agriculture Irrigation & Rural development; Wellness, Water & Sanitation; Education & Skills. X
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Economic Development for all: would entail pervasive economic reforms and yielding more space for the private
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sector to ensure higher productivity and greater efficiency.

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Components: Industry, Commerce and Investment; Infrastructure; and the New Economy.
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Caring Society: based on Antyodaya, which is both humane and compassionate.
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Components: Women & Child, Social Welfare; Culture and Tourism and Environment & Climate Change.
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These themes are held together by a corruption free, policy-driven

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good governance and a sound financial sector.

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Agriculture, Irrigation and Rural Development

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Encourage State governments to undertake implementation of model laws already issued by the Central government
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such as Model Agricultural Land Leasing Act, 2016; Model Agricultural Produce and Livestock Marketing (Promotion
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and Facilitation) Act, 2017; and Model Agricultural Produce and Livestock Contract Farming and Services (Promotion
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and Facilitation) Act, 2018

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Propose to expand PM-KUSUM scheme. In addition, a scheme to enable farmers to set up solar power generation
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capacity on their fallow/barren lands and to sell it to the grid would be operationalized.
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Encourage balanced use of all kinds of fertilizers including the traditional organic and other innovative fertilizers.
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Government will provide Viability Gap Funding for setting up such efficient warehouses at the block/taluk level.
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As a backward linkage, a Village Storage scheme is proposed to be run by the SHGs.

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To build a seamless national cold supply chain for perishables goods Indian Railways will set up a “Kisan Rail” and
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Ministry of Civil Aviation launch Krishi Udaan on international and national routes.
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Government will focus on “one product one district” for better marketing and export of Horticulture sector.
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Integrated farming systems in rainfed areas shall be expanded.

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Negotiable Warehousing Receipts (e-NWR) will be integrated with e-NAM.

The NABARD re-finance scheme will be further expanded. Agriculture credit target for the year 2020-21 has been
set at 15 lakh crore.
Coverage of artificial insemination shall be increased from the present 30% to 70%. MNREGS to develop fodder farms.
Eliminate Foot and Mouth disease,brucellosis in cattle and also peste des petits ruminants (PPR) in sheep andgoat
by 2025.
Raising fish production to 200 lakhtonnes by 2022-23.Raisefishery exports to 1 lakh crore by 2024-25.
Sagar Mitras and Fish Farmer Producer Organisations for fishery extension.

Set up Viability Gap funding window for setting up hospitals in the PPP mode (Aspirational Districts in first phase).
Using machine learning and AI, in the Ayushman Bharat scheme.
Propose to expand Jan Aushadhi Kendra Scheme to all districts offering 2000 medicines and 300 surgicals by 2024.
Enhance ODF Plus in order to sustain Open Defecation Free behaviour.

About 150 higher educational institutions will start apprenticeship embedded degree/diploma courses by March
2021 to improve employabilityin the general stream (vis-à-vis services or technology stream) students.
It proposes to start a programme whereby urban local bodies across the country would provide internship
opportunities to fresh engineers for a period up to one year.
A degree level full-fledged online education programme shall be offered only by institutions who are ranked within
top 100 in the National Institutional Ranking framework.This would provide quality education to students of deprived
section of the society as well as those who do not have access to higher education.
Under its “Study in India” programme, Ind-SAT is proposed to be held in Asian and African countries. It shall be used
for benchmarking foreign candidates who receive scholarships for studying in Indian higher education centres.
A National Police University and a National Forensic Science University are being proposed in the domain of policing
science, forensic science, cyber-forensics etc.
It is proposed to attach a medical college to an existing district hospital in PPP mode to meet shortage of qualified
medical doctors. X
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A special bridge courses be designed by the Ministries of Health, Skill Development together with professional bodies
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to match the employer’s standards required for teachers, nurses, para-medical staff and care-givers abroad.
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Focus on maximising the benefits of three separately developing economic activities: (1) the upcoming economic XXX
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corridors; (2) revitalisation of manufacturing activities; and (3) Technology and the demands of aspirational classes.
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Proposal to develop five new smart cities in collaboration with States in PPP mode. X
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Proposal of a scheme focussed on encouraging domestic manufacture of mobile phones, electronic equipment and
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semi-conductor packaging.
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A National Technical Textiles Mission isproposed with a four-year implementation period from 2020-21 to 2023-24
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at an estimated outlay of 1480 crore.

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It proposes to set up an Investment Clearance Cell.

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A new scheme, NIRVIK, is being launched to achieve higher export credit disbursement. It provides for higher
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insurance coverage, reductionin premium for small exporters and simplified procedure for claimsettlements.
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National infrastructure pipeline: It aims to bring in generic and sectoral reforms in development, operation and
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maintenance of these infrastructure projects.

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Highways: Accelerated development of highways will be undertaken. This will include development of 2500 Km
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access control highways, 9000 Km of economic corridors, 2000 Km of coastal and land port roads and 2000 Km
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of strategic highways.
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Railway: Setting up a large solar power capacity alongside the rail tracks, on the land owned by the railways.
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A proposal is under consideration.

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Port: Government would consider corporatizing at least one major port and subsequently its listing on the stock
exchanges to make sea-ports more efficient.
Inland Waterways: The Jal Vikas Marg on National Waterway-1 will be completed. Further, the 890 KmDhubri-Sadiya
connectivity will be done by 2022.
Airways: One hundred more airports would be developed by 2024 to support Udaan scheme. It is expected that
the air fleet number shall go up from the present 600 to 1200 during this time.
Electricity: To improve status of DISCOMS, it urge all the States and Union Territories to replace conventional
energy meters by prepaid smart meters in the next 3 years.
Oil and Gas: Proposed to expand the national gas grid from the present 16200 km to 27000 km.
Proposal to set up a project preparation facility for infrastructureprojects.It also proposed to direct all infrastructure
agencies of the government to involve youth-power in start-ups.
A National Logistics Policy will be released soon. It will create a single window e-logistics market and focus on
generation of employment, skills and making MSMEs competitive.
iasrank.com
New Economy
It is based on innovations that disrupt established business models. It includes Artificial intelligence, Internet-of-Things
(IoT), 3D printing, drones, DNA data storage, quantum computing, etc.To take advantage of this government proposes-
To bring out soon a policy to enable private sector to build Data Centre parks throughout the country. This will
enable firms to incorporate data in every step of their value chains.
Fibre to the Home (FTTH) connections through Bharatnet will link 100,000-gram panchayats this year. Financial
allocation has been provided to BharatnetProgramme.
To expand the base for knowledge-driven enterprises, Intellectual property creation and protection will play an
important role. Initiatives have been proposed which will benefit the Start-ups-
A digital platform would be promoted that would facilitate seamless application and capture of IPRs.
Knowledge Translation Clusters would be set up across different technology sectors including new & emerging areas.
Mapping of India’s genetic landscape is critical for next generation medicine, agriculture and for bio-diversity
management. To support this development, we will initiate two new national level Science Schemes, to create a
comprehensive database.
Proposal to provide early life funding, including a seed fund to support ideation and development of early stage X
X
X
Start-ups.
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Proposal to provide an outlay of 8000 crore over a period five years for the National Mission on Quantum Technologies
X X
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and Applications. X
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Women & Child, Social Welfare

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In continuing with our government’s commitment to the welfare of women, budget provides for about ` 28,600 crore
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for programs that are specific to women.
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Financial support for technologies for cleaning of sewer systems or septic tanks will be provided.
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Financial allocation has also been made for Scheduled Castes and Other Backward Classes, Scheduled Tribes and
XX X
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senior citizens and Divyang.

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Culture & Tourism

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Five archaeological sites would be developed as iconic sites with onsite Museums. They are: Rakhigarhi (Haryana),
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Hastinapur (Uttar Pradesh) Shivsagar (Assam), Dholavira (Gujarat) and Adichanallur (Tamil Nadu).
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Government proposes to establish an Indian Institute of Heritage and Conservation under Ministry of Culture; it shall
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have the status of a deemed University.

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A maritime museum would be set up at Lothal- the Harrapan age maritime site near Ahmedabad, by Ministry of Shipping
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On Environment, States that are formulating and implementing plans for ensuring cleaner air in cities above one
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million to be encouraged.
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Proposed to advise the utilities to close the running old thermal power plants with carbon emission above
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the pre-set norms.

PM launched Coalition for Disaster Resilient Infrastructure (CDRI) with Secretariat in Delhi. Second such international
initiative after International Solar Alliance.
Governance
Proposed to set up a National Recruitment Agency (NRA) as an independent, professional, specialist organisation for
conduct of a computer-based online Common Eligibility Test for recruitment to Non-Gazetted posts.
It is proposed to evolve a robust mechanism for appointment in various Tribunals and specialised bodiesincluding
direct recruitment to these bodies to attract best talents and professional experts.
Proposed new National Policy on Official Statistics to lay down a road-map towards modernised data collection
(including use of AI), integrated information portal and timely dissemination of information.
Financial Sector
Deposit Insurance and Credit Guarantee Corporation (DICGC) has been permitted to increase Deposit Insurance
Coverage for a depositor, which is now one lakh to five lakh per depositor.
To strengthen the Cooperative Banks, amendments to the Banking Regulation Act are proposed for increasing
professionalism, enabling access to capital and improving governance & oversight for sound banking through the RBI.
The limit for NBFCs to be eligible for debt recovery under the Securitization and Reconstruction of Financial Assets
and Enforcement of Security Interest (SARFAESI) Act 2002 is proposed to be reduced from 500 crore to asset size of
100 crore or loan size from existing 1 crore to 50 lakh.
An app-based invoice financing loans product will be launched. This will obviate the problem of delayed payments
and consequential cash flows mismatches for the MSMEs.
Handholding support (for technology upgradations, R&Detc) for selected sectors such as pharmaceuticals, auto
components and others has been extended. A scheme of ` 1000 crore will be anchored by EXIM Bank together with
SIDBI for equity and technical assistance. Both these institutions would contribute ` 50 crore each.
Financial Markets
FPI limit in corporate bonds, currently at 9% of outstanding stock, will be increased to 15% of the outstanding
stock of corporate bonds.
A legislation would be brought for laying down a mechanism for netting of financial contracts. This would improve
investors’ confidence and to expand the scope of credit default swaps,.
Government proposes to expand Debt-based Exchange Traded Fund (ETF)
For investment in infrastructure
GIFT City would set up an International Bullion exchange(s) in GIFT-IFSC as an additional option for trade by global
market participants.This will enable India to enhance its position worldwide, create jobs in India and will lead to
better price discovery of gold.
Fiscal Management
Estimated nominal growth of GDP for year 2020-21, on the basis of trends available, at 10%.
A fiscal deficit of 3.8% in RE 2019-20 and 3.5% for BE 2020-21. X
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Part B
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Direct Tax
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Personal Income Tax and simplification of taxation

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In order to provide significant relief to the individual taxpayers

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and to simplify the Income-tax law, budget propose to bring a

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new and simplified personal income tax regime wherein income

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tax rates will be significantly reduced for the individual taxpayers

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who forgo certain deductions and exemptions.

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New tax regime to be optional - an individual may continue

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to pay tax as per the old regime and avail deductions and
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exemptions.
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Around 70 of the existing exemptions and deductions (more

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than 100) to be removed in the new simplified regime.

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The new personal income tax rates will entail estimated

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revenue foregone of Rs. 40,000 crore per year.

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Dividend Distribution Tax (DDT)

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Propose to remove the DDT and adopt the classical system of

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dividend taxation under which the companies would not be

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required to pay DDT. The dividend shall be taxed only in the

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hands of the recipients at their applicable rate.

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The removal of DDT will lead to estimated annual revenue

forgone of Rs. 25,000 Crore.
Concessional tax rate for Electricity generation companies
In order to attract investment in power sector, budget proposes to extend the concessional corporate tax rate of
15% to new domestic companies engaged in the generation of electricity.
Tax concession for foreign investments
100% tax exemption to the interest, dividend and capital gains income on investment made in infrastructure and
priority sectors before 31st March, 2024 with a minimum lock-in period of 3 years by the Sovereign Wealth Fund of
foreign governments.
Start-ups
Start-ups with turnover up to Rs. 100cr to enjoy 100%
deduction for 3 consecutive assessment years out of 10 years.
Start-ups generally use Employee Stock Option Plan (ESOP)
to attract and retain highly talented employees. Tax payment
on ESOPs is deferred for five years or till they leave the
company or when they sell their shares, whichever is earliest.
Medium, Small and Micro Enterprises
In order to boost less-cash economy and to reduce the
compliance burden on small retailers, traders, shopkeepers,
turnover threshold for audit increased to Rs. 5 crore from
Rs. 1 crore for businesses carrying out less than 5% business
transactions in cash.
Affordable housing:
Additional deduction (announced in last year’s budget) up
to Rs. 1.5 lakhs for interest paid on loans taken for an
affordable house extended till 31st March, 2021.
Cooperatives
Parity brought between cooperatives (currently taxed at a
rate of 30%) and corporate sector.
Option to cooperative societies to be taxed at 22% + 10% surcharge and 4% cess with no exemption/deductions.
Cooperative societies exempted from Alternate Minimum Tax (AMT) just like Companies are exempted from the
Minimum Alternate Tax (MAT).
For charity institutions
Process of registration to be made completely electronic.
Unique registration number (URN) to be issued to all new and existing charity institutions.
Tax Facilitation Measures
Under Vivad Se Vishwas’ scheme a taxpayer would be required to pay only the amount of the disputed taxes X
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(direct taxes) and will get complete waiver of interest and penalty, provided he pays by 31st March, 2020.
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Those who will avail the scheme after 31st March, 2020 will have to pay some additional amount. The
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scheme will remain open till 30th June 2020.

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In order to impart greater efficiency, transparency and accountability to the assessment process, a new faceless
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assessment scheme to be enabled by amending the Income Tax Act.

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Instant PAN to be allotted online through Aadhaar.
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Losses of merged banks:

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Amendments proposed to the Income-tax Act to ensure that entities benefit from unabsorbed losses and
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depreciation of the amalgamating entities.
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Taxpayer’s Charter X
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CBDT to adopt a Taxpayers’ Charter whereby taxpayer’s rights would be clearly enumerated. This would enhance
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the efficiency of the delivery system of the Income Tax.

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Indirect Tax
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GST
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A simplified GST return shall be implemented from the 1st April, 2020 with features like SMS based filing for nil
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return, return pre-filling, improved input tax credit flow and overall simplification.
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Dynamic QR-code is proposed for consumer invoices. GST parameters will be captured when payment for purchases
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is made through the QR-code.

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GST rate structure is also being deliberated so as to address issues like inverted duty structure.
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Customs Duties:
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India’s rank has improved from 146 to 68 on Trading Across Border parameter of Ease of Doing Business rankings
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by the World Bank.

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Review of Rules of origin requirement because of threat caused to domestic industry by Free Trade Agreements.
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Labour intensive sectors in MSME are critical for employment generation. Cheap and low-quality imports are an
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impediment to their growth.Keeping in view the need of this sector, customs duty is being raised on items like
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footwear and furniture.

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Proposal to impose a nominal health cess, by way of a duty of customs, on the imports of medical equipment
keepingin view that these goods are now being made significantly in India. The proceed from this cess shall be
used for creating infrastructure for health services in the aspirational districts.
Proposal to raise excise duty, by way of National Calamity Contingent Duty on Cigarettes and other tobacco products.

Union Budget 2020-21

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Union Budget 2020-21

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Union Budget (2020)

"" Direct and Indirect Taxes

"" Customs Duty

"" Fiscal Deficit

"" Revenue Deficit

"" Primary Deficit

"" Fiscal policy

"" Monetary Policy

"" Capital Budget

"" Revenue Budget

"" Finance Bill

"" Vote on Account

"" Excess Grants

"" Budget Estimates

"" Revised Estimates

"" Outcome Budget

"" Cut Motions

"" Consolidated Fund of India

"" Contigency Fund of India

"" Public Account

"" Corporate Tax

This budget is woven around three prominent themes:

Agriculture, Irrigation and Rural Development

"" Sixteen Point Agenda for doubling farmer’s income by 2022

Challenges in Agriculture Sector:

How Budget proposals can help to overcome challenges?

Challenges in health & wellness in India:

How Budget proposals can help to overcome challenges

Education and Skills

Challenges in Education Sector:

How Budget proposals can help to overcome challenges?

How Budget proposals can help to overcome challenges?

Challenges in Infrastructure sector:

How Budget proposals can help to overcome challenges?

New Economy: Assimilating new technologies

How Budget proposals can help to overcome challenges?

Women & Child, Social Welfare

How Budget proposals can help to overcome challenges?

 It has also allocated a significant amount to nutrition-related programmes, which

Culture & Tourism

Indian Five Museum on Tribal Maritime

How Budget proposals can help to overcome challenges?

Environment & Climate Change

How Budget proposals can help to overcome challenges?

Notes...  There have a lot of modifications to the simplification of paying GST.

A Simplified return from

New Income Tax Rate

Income Range Tax Rate

5 - 7.5 Lakh 10%

7.5 - 10 Lakh 15%

10 - 12.5 Lakh 20%

12.5 - 15 Lakh 25%

Those earning up to Rs. 5 lakh in a year will pay no tax

Tax rate of 30% on income above Rs. 15 lakh will be

How Budget proposals can help to overcome challenges? Notes...

Corporation Income Tax Customs

Borrowings Union Excise Duties

The Key Highlights of Union Budget 2020-21 are as follows:

Three prominent themes of the Budget

Three components of Aspirational India

• Agriculture, Irrigation, and Rural Development

Sixteen Action Points for Agriculture, Irrigation and Rural Development

o Integrated Farming Systems in rain-fed areas to be expanded.

o Multi-tier cropping, bee-keeping, solar pumps, solar energy production in non-

It has also allocated a significant amount to nutrition-related programmes, which

Notes... There have a lot of modifications to the simplification of paying GST.