Union Budget Highlights 2020: The Union Budget 2020 is based on three themes – Aspirational India, economic development for all, and caring society. The Income tax rates have been cut, 10% for income of Rs 5-7.5 lakh against earlier 20%
New Delhi: Union Budget 2020 was today presented by Finance Minister Nirmala Sitharamanin 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. The Finance Minister began her speech by saying that the Budget 2020-21 is 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. She proposed to allocate 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 of the highlights of budget 2020.
Highlights Of Union Budget 2020:
Budget Highlight: INCOME TAX:
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
- 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.