Union Budget 2020: Key announcements by FM Nirmala Sitharaman

Presenting the Budget 2020 in Lok Sabha, Finance Minister Nirmala listed three core themes for the Budget — Aspirational India, Economic Development For All and A Caring Society.

Nominal GDP growth for 2020-21 is being projected at 10 per cent. It is lower than the 12 per cent that was projected in 2019-20, which turned out to be only 7.5 per cent. Recalibration of expectations.

Under the new regime, an individual will have to pay 10 percent tax for income between Rs 5 to 7.5 lakh, down from the previous 20 percent. 15 per cent tax for 7.5 lakh to Rs 10 lakh income. 25% tax for income between 12.5 lakh to 15 lakh and 30% tax for income above 15 lakh and no tax for people earning up to Rs 5 lakh.

"Tax charter is to ensure our taxpayers are free against tax harassment, " said FM

The government owns 100 per cent of LIC.

This measure is important in the backdrop of recent default by cooperative lender PMC Bank Steps are being also taken to professionalise cooperative banks.

"Agriculture, rural development will see an allocation Rs 2.83 lakh crores. The Centre also proposes plans to help farmers use proper manure and little water, encourage the balanced use of fertilizers. In order to build cooperation, the states have been asked to adopt 3 central model laws on agricultural land leasing, marketing and contract farming."

A total of 6.11 crore farmers insured under Fasal Bima, said finance minister.

The Budget has announced Krishi Rail, to be implemented by the Ministry of Railways, and Krishi Udaan by the Ministry of Civil Aviation. These will complement roadways for faster transportation of perishable agricultural goods. While in Railways, refrigerated coaches will be added to Express and Freight trains, the Krishi Udaan scheme will see flights on national and international routes pitching in.

The government will bring out a policy for data centre parks throughout the country. The government has provided Rs 6,000 crore for BharatNet in FY21, she said adding that fibre-to-home through BharatNet will link 1 lakh gram panchayats this year.

Budget 2020 allocated ₹6,000 crore for BharatNet to connect 1 lakh Gram Panchayats.

The government will allow NBFCs to extend invoice financing To MSMEs, Finance Minister Nirmala Sitharaman announced. The Centre has asked the RBI to mull extending MSME recast window by one more year, FM Sitharaman said. In 2019-20, MSME ministry's allocation stood at Rs 7,011 crore.

FM Nirmala Sitharaman has announced an allocation of Rs 3,000 crore for the Skill India programme.

The government plans to increase investment limit of foreign portfolio investors (FPI) in corporate bonds from 9 per cent to 15 per cent, Finance Minister Nirmala Sitharaman said.

Prepaid smart metres save the cost of manual metering, billing and collection, and improve efficiency of this public service. Last month, the power ministry asked states to reduce power tariff of consumers having smart metres.

Finance Minister Nirmala Sitharaman has proposed the setting up five new Smart Cities. The speech did not make any mention of the Budgetary allocation. The government in 2019 had allocated Rs 6,450 crore for the Smart Cities Mission for 2019-2020 against Rs 6,169 crore in 2018-2019, which is about 4.5 percent more than the amount set aside last year.

Fiscal deficit estimated at 3.5% in 2020-21, revised for current year upwards to 3.8% from 3.3%: Nirmala Sitharaman Receipts for 2020-21 pegged at Rs 22.46 lakh cr, expenditure Rs 320.42 lakh cr, says Sitahrama

Beti Bachao Beti Padhao has yielded tremendous results. The gross enrolment ratio of girls across all levels of education now higher than boys. This budget provides 28,600 cr for schemes specifically for women. I propose to provide Rs 35600 crores for nutrition-related programmes for 2020-21., the FM said.