Union Budget 2020-21 highlights from Nirmala Sitharaman speech

New Delhi, Feb. 1 (PTI): Following are the highlights from the Union Budget Speech 2020-21. Finance Minister Nirmala Sitharaman on Friday delivered her longest-ever union budget speech.

• It proposes a new income tax structure for individuals willing to forego certain exemptions and deductions
• Under the new structure, an income of INR 5-7.5 lakh to attract 10 per cent tax, INR 7.5-Rs 10 lakh 15 per cent, INR 10-12.5 lakh 20 per cent, INR 12.5-15 lakh 25 per cent, above INR 15 lakh 30 per cent
• Income up to INR 5 lakh to remain exempt from tax
• Bank deposit insurance coverage increased to INR 5 lakh from INR 1 lakh
• Dividend Distribution Tax at the hands of companies abolished; dividend to be taxed at the hands of recipients as per applicable slab
• Govt. to sell part of stake in LIC through IPO
• Fiscal deficit for FY20 estimated at 3.8 per cent, up from 3.3 per cent projected earlier
• Fiscal deficit for 2020-21 projected at 3.5 per cent
• 2020-21 net market borrowing pegged at INR 5.36 lakh crore
• Disinvestment proceeds pegged at INR 1.20 lakh crore for 2020-21, up from INR 65,000 crore in current fiscal
• Receipts estimated at 22.46 lakh crore, expenditure at INR 30.42 lakh crore in 2020-21 based on nominal GDP growth of 10 per cent
• PAN to be allotted instantly on the basis of Aadhaar
• India fifth-largest economy, USD 284 billion FDI inflows during 2014-19
• Central government debt reduced to 48.7 per cent of GDP in March 2019, from 52.2 per cent in March 2014
• Proposal to sell the balance government holding in IDBI Bank to private, retail and institutional investors through stock exchanges
• Defence outlay pegged at INR 3.23 lakh crore in 2020-21, up from INR 3.16 lakh crore this financial year
• Railways to set up ‘Kisan Rail’ through PPP
• Krishi Udaan will be launched by civil aviation ministry on international and national routes
• The outlay for agriculture and allied activities pegged at INR 2.83 lakh crore, Nabard’s re-finance scheme to be further expanded
• Agriculture credit target for the year 2020-21 set at INR 15 lakh crore
• Viability gap funding for setting up hospitals in PPP mode under Ayushman Bharat
• Health sector and Swachh Bharat outlay pegged at INR 69,000 crore and INR 12,300 crore, respectively, in 2020-21
• New Education Policy to be announced soon
• Steps would be taken to enable sourcing external commercial borrowings and FDI in higher education
• National Police University and National Forensic Science University are being proposed
• INR 99,300 crore outlay for the education sector in 2020-21 and INR 3,000 crore for skill development
• Proposes ‘Investment Clearance Cell’ to provide ‘end-to-end’ facilitation and support, including pre-investment advisory, information related to land banks and facilitate clearances at Centre and state level
• Proposes a scheme focussed on encouraging the manufacture of mobile phones, electronic equipment and semiconductor packaging
• National Technical Textiles Mission proposed with a 4-year implementation period from 2020-21 to 2023-24 at an outlay of INR 1,480 crore
• NIRVIK scheme being launched to provide for higher insurance coverage, reduction in premium for small exporters and simplified procedure for claim settlements
• Proposes to digitally refund to exporters duties and taxes levied at the central, state and local levels
• National Logistics Policy to be released soon, to create a single-window e-logistics market and focus on employment generation
• Delhi-Mumbai Expressway would be completed by 2023, Chennai-Bengaluru Expressway would also be started
• More Tejas-type trains will connect iconic tourist destinations
• High-speed train between Mumbai and Ahmedabad would be actively pursued
• The government would consider corporatising at least one major port and, subsequently, it’s listing on bourses
• INR 1.70 lakh crore outlay for transport infrastructure in 2020-21
• Urges States and UTs to replace conventional energy meters by prepaid smart meters in the next 3 years to give consumers the freedom to choose the supplier. Further, measures to reform Discoms would be taken
• INR 22,000 crore outlay for the power and renewable energy sector in 2020-21
• Proposes to expand the national gas grid from the present 16,200 km to 27,000 km
• To deepen gas markets in India, further reforms will be undertaken to facilitate transparent price discovery and ease of transactions
• Policy to enable the private sector to build data centre parks throughout the country soon
• INR 6,000 crore outlay to the BharatNet programme in 2020-21
• Proposes a task force to recommend women’s marriageable age
• Budget allocation of Rs 85,000 crore for Scheduled Castes and Other Backward Classes, Rs 53,700 crore for Scheduled Tribes for 2020-21
• Amendments proposed in the Companies Act
• INR 30,757 crore allocated to Union territories of J&K and Ladakh
• Govt. to ask RBI to allow MSMEs to restructure debt till March 31, 2021
• FPI limit in corporate bonds hiked to 15 per cent of outstanding stock, from 9 per cent
• New debt-ETF, consisting primarily of government securities, to be floated
• Proposes lower tax rates for cooperatives at 22 per cent with 10 per cent surcharge and 4 per cent cess.

Disclaimer

This story has been edited by Eastern Mirror for clarity and taken directly from news agency feeds.