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Burning Issues

[Burning Issue] Highlights of the Union Budget 2020

 



Estimates

Prominent themes of the Budget 2020

 

 

Agriculture

  • A budget allocation of ₹2.83 lakh crore for the sector comprising agriculture and allied activities.
  • Doubling farmers incomes by 2022.
  • Agri-credit availability set at ₹15 lakh crore for 2020-21.
  • Comprehensive measures for 100 water stressed districts.
  • Provide 20 lakh farmers to set up standalone solar pumps. Help another 15 lakh farmers to solarise their power grid.
  • Village storage scheme proposed to be run by women SHGs.
  • Indian Railways to have refrigerated coaches capability in ‘kisan trains’ to carry perishables and milk.
  • Krishi UDAN on international and national routes.

Health and Sanitation

  • An allocation of ₹69,000 crore for the health sector.
  • ₹12,300 crore for Swachh Bharat this year.
  • Proposal to set up hospitals in Tier-II and Tier-III cities with the private sector using PPP.
  • Expand Jan Aushadhi scheme to provide for all hospitals under Ayushman Bharat by 2025.

Education

  • ₹99,300 crore for education sector in 2021 and about ₹3,000 crore for skill development.
  • Urban local bodies to provide internship to young engineers for a year.
  • Degree-level full fledged online education programmes by institutions ranked in top 100 in NIRF rankings, especially to benefit underprivileged students.
  • A national police university and a national forensic science university is proposed to be setup.
  • IND SAT exam for students of Asia and Africa to promote “study in India” programme.

Infrastructure

  • Budget proposes to provide ₹1.7 lakh crore for transport infrastructure in 2021
  • National Logistics Policy to be released soon.
  • Chennai-Bengaluru Expressway to be started.
  • Aim to achieve electrification of 27,000 km of lines.
  • Plan to have a large solar power capacity for Indian Railways.
  • The government also proposes a Bengaluru suburban rail project at a cost of ₹18,600 crore.
  • Govt to monetise 12 lots of national highways by 2024.
  • 100 more airports will be developed by 2024 to support UDAN.

Culture and Tourism

  • Indian Institute of Heritage and Conservation has been proposed under the Ministry of Culture. This will be given a status of deemed university.
  • 5 sites will be developed as iconic sites with on-site museums
  1. Rakhigarhi (Haryana)
  2. Hastinapur (Uttar Pradesh)
  3. Shivsagar (Assam)
  4. Dholavira (Gujarat)
  5. Adichanallur (Tamil Nadu)
  • Maritime museum to be set up at Lothal- the Harappan age maritime site near Ahmedabad, by Ministry of Shipping.

Tax

  • A new tax regime has been announced. Those who want to be in the old regime with exemptions, can continue to pay at the old rates.
Income Tax
Between ₹5 lakh and ₹7.5 lakh Reduced to 10% from the current 20%
Between ₹7.5 lakh to ₹10 lakh Reduced to 15% from the current 20%
Between ₹10 lakh to ₹12.5 lakh Reduced to 20% from the current 30%
Between ₹12.5 lakh to ₹15 lakh Reduced to 25% from the current 30%
Above ₹15 lakh Continue at 30%, but without exemptions
  • Over 70 deductions have been removed.
  • Companies will no longer be required to pay Dividend Distribution Tax (DDT).
  • Aadhaar-based verification for GST compliance to be introduced.

Also read:

Government Budgeting

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