Union Budget 2020 – 2021

Union Budget 2020 – 2021

Posted by Creditkaro

General February 05, 2020

All eyes were set on the Union budget 2020 on the 1st of Feb. The whole country was glued to the television screens, people were watching live updates on their phones, everybody was in hopes of a revival of the economy. This economy had seen one the worst economic slowdown in the past decades, a drastic fall in GDP in the past year, demonetization and a lot more. According to a source, India’s GDP growth had come down to 5.6 percent in 2019 from 7.4 percent in 2018. India’s economic slowdown is lasting longer than expected and the situation is steadily getting out of control. In a time like this, all eyes were set on Finance minister, Nirmala Sitharaman as she presented her second budget. This is the second budget from Narendra Modi led NDA government’s term. The central idea of the Union budget 2020 are:

  • Aspirational India
  • Economic development
  • A caring society

Here are some highlights of the Union Budget 2020:

TAX:

Union Budget 2020 – 2021

The government has announced a new tax regime, however, those who want to remain in the old regime can continue to pay at old rates. The new tax regime is as follows:


INCOMETAX
  • Upto Rs. 2.5 lakhs
  • Between INR 5 lakhs and INR 7.5
  • Between INR 7.5 lakhs to 10 lakhs
  • Between 10 lakhs to 12.5 lakhs
  • Between 12.5 lakhs to 15 lakhs
  • Above 15 lakhs
  • Rs 2.5 lakh to Rs 5 lakh


  • NIL
  • Reduced to 10% from the current 20%
  • Reduced to 15% from the current 20%
  • Reduced to 20% from the current 25%
  • Reduced to 25% from the current 30%
  • Continued at 30%, without any exceptions
  • 5% (Tax rebate of Rs 12,500 available under section 87A)

Apart from this over 70 different types of deductions have been removed, also companies will no longer have to pay Dividend Distribution Tax (DDT) and an Aadhaar-based verification will be introduced for GST compliance. (Tax slab source: The Hindu)

Also read: How to file ITR online?


AGRICULTURE

Union Budget 2020 – 2021

The government indicated that The Prime Minister Kusum scheme has reduced the dependence of farmers on diesel and kerosene. Now, PM Kusum will cover 20 lakh farmers for stand-alone solar pumps and further 15 lakh farmers for grid-connected pumps. The government will now revise incentives for the use of chemical fertilizers and for the creation of efficient warehouses on PPP mode. SHGs run village storage scheme will be launched and integration of e-NWR with e-NAM.

“Kisaan Rail” and “Krishi Udaan” will be launched by the Indian Railways and Ministry of Civil Aviation respectively for a seamless national cold supply chain for perishables.

  • Doubling of the milk processing capacity by 2025
  • Agriculture credit target of INR 15 lakh crore for 2020-21
  • Raise fishery exports to INR 1 lakh crore by 2024-25

EDUCATION

Union Budget 2020 – 2021

However, the education sector will now be open to FDI and new education policy will be announced. A total of 3000 crores will be given for skill development and the degrees offered by the top 100 NIRF-ranked institutes can soon take online.

About 150 educational institutions will start apprenticeship embedded courses

  • Ind-SAT to be conducted in Asia and Africa understudy in India program.
  • Internship opportunities to fresh engineers by urban local bodies
  • Special bridge courses will be introduced to improve skill sets of those seeking employment abroad.

HEALTHCARE

Union Budget 2020 – 2021

Therefore, A total of INR 69,000 crore has been provided for the healthcare sector of which PM Jan Arogya Yojana will get INR 6,400 crore. The government will extend “Mission Indra Dhanush” to cover new diseases and new vaccines and Fit India will also be a part of this mission.

More than 20,000 hospitals will be impaneled hospitals under PM Jan Arogya Yojana.

  • “TB Harega Desh Jeetega” campaign launched to end TB by 2025
  • Expansion of Jan Aushadhi Kendra scheme to all districts by 2024.
  • A viability gap funding has been funding proposed for setting up hospitals in the PPP model.

INFRASTRUCTURE

Union Budget 2020 – 2021