India’s Finance Minister Nirmala Sitharaman presented the second Union Budget of the Modi 2.0 government on February 1 in which she announced a slew of measures, including major tax reliefs for the salaried class, to revive demand and boost economic growth.In her maiden Budget speech in parliament, Ms Sitharaman said:“With renewed vigor, under the leadership of Prime Minister Modi, we commit ourselves to serve the people of India, with all humility and dedication.”The Budget aims to fulfill the aspirations and hopes of all the people in the country. It will boost people’s incomes and enhance their purchasing power, she said. “Only through higher growth we can achieve that and have our youth gainfully employed. Let our businesses be innovative, healthy and solvent with use of technology,” Ms Sitharaman said.
“We wish to open up vistas for a vibrant and dynamic economy with a gentle breeze of new technology. This vibrant India shall be a caring society which shall attend to its weak, the old and the vulnerable among its citizens,” the minister said.She said that her government brought a “paradigm shift” in governance after winning the 2014 Lok Sabha polls, andit was characterised by the twin focus of fundamental structural reform and inclusive growth.
Ms Sitharaman said this budget is woven around three prominent themes; first, aspirational India in which all sections of the society seek better standards of living. Second economic development for all, and third a caring society that is both humane and compassionate, or Antyodaya, an article of faith.
Highlights of Budget 2020
Income Tax
5 lakh-7.5 lakh: Reduced to 10% from current 20%
7.5 lakh-10 lakh: Reduced to 15% from 20%.
10-12.5 lakh: Cut 20% from 30%.
12.5-15 lakh: 25% from 30%.
Above ₹15 lakh: Continue at 30%.More than 70 deductions were removed, and Aadhaar verification for GST compliance to be introduced.
Economy and Finance
Bank deposit insurance cover increased from Rs1 lakh to Rs5 lakh per depositor
To amend the Companies Act to decriminalise civil offences
To sell stakes in LIC via public offering
Industry, Commerce and Investment
Rs27,300 crore for development and promotion of Industry and Commerce for the year 2020-21.
Agriculture and allied sectors
Rs2.83 lakh crore earmarked, of which₹15 lakh crore for agri-credit/Railways to have refrigerated coaches
Health and Sanitation
Rs69,000 crore earmarked, Rs12,300 crore for Swachh Bharat Mission.
Education and Skills
Rs99,300 crore for education, skill development Rs3,000 crore
Infrastructure
Rs1.7 lakh crore earmarked for 2020-21.
Energy
Rs22,000 crore earmarked for power and renewable energy sector.
Jal Jeevan Mission
Of the total Rs3.60 lakh crore, Rs11,500 crorefor 2020-21.
Women and Child development
Rs35600crore for nutrition-related programmes, Rs28,600crore for programs specific to women.
Culture and Tourism
Rs3,150crore for culture, Rs2,500 crore for tourism promotion.
Environment and Climate Change
Rs4400 crore
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