Budget 2020: Key takeaways from Nirmala Sitharaman's Union Budget
New Delhi : Finance Minister Nirmala Sitharaman on Saturday presented the much-awaited Union Budget in Parliament in a bid to revive the economic growth and boost people's income. The Budget is based on three themes - aspirational India, economic development for all, and caring society.
In the beginning, she announced that this year's budget is mainly for boosting income and improving the purchasing power of people.
The Finance Minister said the fiscal deficit is estimated at 3.8 per cent (revised estimate for 2019-20) of the gross domestic product in the current financial year, and the government aims to lower it to 3.5 per cent (budget estimate for 2020-21) in the financial year ending March 2021.
In the budget, she proposed allocation of Rs 69,000 crore to the healthcare sector and Rs 12,300 crore to Prime Minister Narendra Modi's flagship cleanliness programme Swachh Bharat Mission. The Finance Minister also earmarked another Rs 3.6 lakh crore towards the supply of piped water to households.
Here are some key takeaways from her speech:
The income tax rates have been revised.
5% tax for income between Rs 2.5-5 lakh
10% tax for income between Rs 5-7.5 lakh as against 20%
15% tax for income between Rs 7.5-10 lakh as against 20%
20% tax for income between Rs 10-12.5 lakh as against 30%
25% tax for income between Rs 12.5-15 lakh as against 30%
30% tax for income above Rs 15 lakh
Income tax rates will be significantly reduced for those who forego reliefs, exemptions, said Finance Minister
Budget Highlight: HEALTHCARE
Rs 690 billion will be spent toward healthcare spending
Budget Highlight: TRANSPORT
100 more airports are planned by 2024
Over 6,000 km of highways in 12 lots will be monetized by 2024
One major airport will be privatized
High-speed train between Mumbai and Ahmedabad will be actively pursued, Nirmala Sitharaman says while presenting Union Budget 2020.
Budget Highlight: 16-POINT ACTION PLAN FOR FARMERS
The government is committed to doubling farmers' income by 2022, the Finance Minister said, as she proposed to allocate Rs 2.83 lakh crore for agriculture and rural sectors such as irrigation.
Budget Highlight: MANUFACTURING
Schemes that encourage manufacturing of mobile phones, electronic equipment and semiconductor packaging will be introduced
Private sector to build Data Centre Parks throughout the country will be encouraged
80 billion rupees over five years to be provided for quantum technologies and applications
Milk processing capacity to be doubled by 2025
Budget Highlight: BANKING/INSURANCE
Insurance cover for bank depositors to be raised to Rs 5 lakh from Rs 1 lakh
Budget Highlight: INFRASTRUCTURE
5 new smart cities in public-private partnership mode
Delhi-Mumbai Expressway to be completed by 2023
100 more airports to be developed by 2024
Estimated nominal GDP growth rate for 2020-21 is 10 per cent, said Finance Minister Nirmala Sitharaman. Wealth creators will be respected in this country, tax harassment will not be tolerated, she added.