Union Budget 2020-21 in India: Importance and Highlights

The current affairs section is an inevitable part of most of the competitive examinations. In this article get unique features of the ‘Budget 2020’. The Union Budget of India for 2020–2021 was presented by the Union Finance Minister, Nirmala Sitharaman on 1st February 2020 in the Lok Sabha. This is the second budget presentation by Nirmala Sitharaman. Also, it is having another importance that, it is the longest budget speech ever by the Finance Minister. Read the entire article to understand the Union budget and to crack questions.

Download Entri for practicing objective questions from Budget 2020.

UNION BUDGET 2021-22 – HIGHLIGHTS

Union Budget 2020-21: All You Need To Know

It is compulsory for all Central Governments to present an annual financial report of India- an estimate of income and expenditure of the government on a periodical basis. It is represented by the Article 112 of the Indian constitution.

The core ideas of the budget directing the Governance and Financial  Sector to the ease of living are- Aspirational India, Economic development, Caring Society.

Aspirational India

• Agriculture, Irrigation, and Rural Development
• Wellness, Water and Sanitation
• Education and Skills

Economic development

• Industry, Commerce, and Investment
• Infrastructure
• New Economy

Caring Society

• Women and Child, Social Welfare
• Culture and Tourism
• Environment and Climate Change

Expenditure of major items: Allocation to various Ministeries (in crore)

• Ministry of Housing and Urban Affairs- Rs. 50040
• Ministry of Health and Family Welfare- Rs. 67112
• Ministry of Railways- Rs. 72216
• Ministry of Road Transport and Highways – Rs. 91823
• Ministry of Human Resource Development- Rs. 99312
• Ministry of Rural Development- Rs. 122398
• Ministry of Consumer Affairs, Food, and Public Distribution- Rs. 124535
• Ministry of Agriculture and Farmers’ Welfare- Rs. 142762
• Ministry of Home Affairs- Rs. 167250
• Ministry of Defence- Rs. 471378

Budget at a Glance

Rupee Comes From:

• Income Tax 17%
• Union Excise Duties 7%
• Corporation Tax 18%
• GST 18%
• Customs 4%
• Non Tax Revenue 10%
• Borrowings and Other Liabilities 20%
• Non-Debt Capital Receipts 6%

Rupee Goes To:

• Pensions 6%
• Centrally Sponsored Schemes 9%
• Subsidies 6%
• Defense 8%
• Interest Payments 18%
• States’ Share of Taxes and Duties 20%
• Finance Commission and Other Transfers 10%
• Central Sector Schemes 13%
• Other Expenditure 10%

Let us go through the key schemes under individual sectors:

Agriculture (Toward’s doubling farmer’s income)

• Agricultural credit target of 15 lakh crore for 2020-21.
• Financing on Negotiable Warehousing Receipts (e-NWR) to be integrated with e-NAM
• PM KUSUM to cover 20 lakh farmers for stand-alone solar pumps and further 15 lakh for grid-connected pumps.
• All eligible beneficiaries of the PM Kisan scheme will now be covered under the Kisan Credit Card (KCC) scheme.
• “Kisan Rail” and “Krishi Udaan” to be launched by Indian Railways and Ministry of Civil Aviation respectively for a seamless national cold supply chain for perishables.
• Viability gap funding for the creation of efficient warehouses on PPP mode.
• SHG Vill t h SHGs run Village storage scheme to be launched.
• Elimination of FMD, Brucellosis in cattle, and PPR in sheep and goat by 2025.
• Comprehensive measures for 100 water-stressed cities.
• Supporting states which adopt a cluster basis to focus on One product-one market.
• MNREGS to be joined with fodder farms.
• Doubling milk production.
• Scheme to develop solar power generation capacity on barren lands.
• Fish production to be raised to 200 lakh tones by 2022-23

Heritage and Tourism (Preserving heritage and promoting tourism)

• Establishment of the Indian Institute of Heritage and Conservation ( deemed university).
• 5 archaeological sites to be developed as on-site museums:
  Rakhigarhi, Haryana
  Hastinapur, Uttar Pradesh
  Sivasagar, Assam
  Dholavira, Gujarat
  Adichanallur, Tamil Nadu
• Re-curation of Indian Museum at Kolkatta
• Support for allocating Tribal Museum in Ranchi.
• Maritime museum at Lothal

Governance Reforms

• Amendment to remove criminal liability that is civil in nature.
• Setting NRA agency for conducting CBT for recruitment to the non-gazetted posts.
• New national policy for official statistics.
• Banking sector reforms-DICGC permitted to increase Deposit insurance coverage to Rs. 5 lakh, amendments in Banking Regulation Act, Government’s share in IDBI Bank will be sold to the private sector.
• Export promotion measures like digitally refund exporters, duties, and taxes levied; NIRVIK- provides higher insurance coverage; aids pharmaceuticals and auto components through 1000cr scheme anchored by SIDBI and EXIM bank.
• Set-up Investment Clearance Cell.
• Develop 5 new smart cities in the PPP model.
• The limit for FPI  in corporate bonds will be increased to 15%.

Taxation

• Boosting Foreign Investment-
• Tax benefits to support start-ups
• For tax-payers: Income Tax slab 2020-21 ( Without Exemption)

• GST payment simplified.
• Income Tax Act to be amended to enable Faceless Appeal, Vivad se Vishwas scheme for reducing litigations on direct taxes.
• Launching a system under which, PAN will be allotted instantly on the basis of Aadhaar.

Know more about the Coronavirus. 

Swachh Bharat

• ODF Plus to sustain ODF behavior.
• Focus on liquid and greywater management along with waste management.
• Rs. 12300 for Swachh Bharat Mission 2020-21.

Education

• Sourcing of External commercial borrowing and FDI for higher quality education.
• Ind-SAT proposed in Asian and African countries under the Study in India program.
• National Police University and National Forensic Science University in the domain of policing forensic sciences, and cyber-forensics.
• The budget proposes to attach a Medical College to every existing district hospital under the PPP model.
• Special bridge courses are designed by the Ministry of Health and skill development.
• 150 higher education centers to start apprenticeship embedded degree/diploma courses by March 2021.
• Degree level online education program by Institutions ranked within 100 in the NIR framework.

MSME

• Turnover threshold raised by five times from 1cr – 5 cr.
• Scheme to provide sub-ordinate debt for entrepreneurs.
• Amendments to Factor Regulation Act 2011- enable NBFC to extend invoice financing.

Middle Class

• The new optional tax regime proposed.

Health and wellness

• More than 20,000 empaneled hospitals under the PMJAY scheme.
• Viability gap funding for setting hospitals in PPP mode.
• Proceeds from taxes on medical devices used for vital medical support.

New Economy 

• Policy to enable the private sector to build Date Center Parks will be enabled.
• FTTH connection through Bharatnet to link 1lakh grama panchayat this year.
• Rs.6000 Cr will be provided to Bharatnet in 2020-21.
• Proposed to outlay Rs. 8000 Cr over a period of 5 years on the National Mission of Quantum Technologies and Applications.
• A digital platform to facilitate application and capture of IPRs.

Environment

• Old thermal power plants with high carbon emission will be advised to be closed.
• Coalition for disaster  resilient infrastructure
• States formulating and implementing cleaner air above one million will be encouraged.

Infrastructure

• Railway– (i) Setting large solar power capacity along rail tracks owned by railways. (ii) More Tejas type trains to connect iconic tourist places. (iii) High-speed trains between Mumbai- Hyderabad. (iv) 148 km long sub-urban transport project.
• Sea-port, Riverine Port and Airport– (i) Air fleet expected to increase to 1200 by 2024. (ii) Jal-Vikas marg on National Highway waterway-1. Further, the 890 km Dhubri-Sadiya connectivity by 2022. (iii) Arth Ganga to be put into practice.
• Power Sector– Replace conventional meters by prepaid smart meters. Reform DISCOMS. Expansion of the National gas grid to 27000 km.
• Highway– Delhi- Mumbai express highway by 2023 and to start Chennai- Bengaluru express highway. Accelerated development of 2500 km of access control highways, 9000 km economic corridors, and 2000km strategic highways.

House for All

• Date of loan sanction for availing the additional deduction up to RS. 15 cr extended by one year.
• Tax concession with respect to real estate transactions.

Jal Jeevan

• Rs. 3.60 lakh crore approved for the Jal-Jeevan mission.
• During 2020-21 Rs, 11500 cr will be provided.
• Emphasis on augmenting local water sources, recharging, and promoting water resources and desalination.

Caring for Society

• Rs. 85000 Cr towards for welfare of Scheduled castes and Other Backward classes.
• Rs. 53700 Cr for development and welfare of Scheduled Tribe.
• Allocation of Rs. 35600 cr for the nutrition-related program.
• Rs. 28600 cr programs for specific women.
• Rs. 9500 cr for senior citizens.

And also, India will be hosting the G-20 presidency in 2022. And, the government has allocated Rs 100 crores for the preparation.

All these about the Union Budget 2020. Download Entri for more GK notes for upcoming competitive exams.

Source: https://www.indiabudget.gov.in/