Budget 2020: 10 Important Points Of The Budget
Finance Minister Nirmala Sitharaman today presented the Union Budget 2020 with the longest-ever budget speech in Parliament. In the speech, she vowed to boost the income and purchasing power of the people.
Highlights of Union Budget 2020
• The FM in her budget speech reiterated PM Modi’s goal of making India a $5 trillion economy. She said that government would empower people through higher growth and meaningful employment.
• In the move to introduce new tax rates, the FM brought down the income tax outgo for people earning Rs. 15 lakh a year by Rs. 78,000 to Rs. 1,97,000.
• FM announced that the government’s debt had reduced to 48.7% of GDP from 52.2% in March 2014. She also said that fundamentals of the economy were strong.
• FM said that the government aims to bring down the fiscal deficit from 3.8% of the GDP (revised estimate 2019-20) to 3.5% of GDP in the financial year ending March 2021.
• The government assigned a budget of Rs. 2.83 lakh crore for agricultural and rural sectors; Rs. 3.6 lack crore for piped water supply to every household; Rs. 99,300 crore for the education sector and Rs. 28,600 crore on central schemes for women.
• In 2019-20, the agricultural credit would be boosted to Rs. 15 lakh crore. The FM said that Non-banking financial companies (NBFs) would help in agriculture.
• The FM assured citizens of safety of their savings in banks by increasing the insurance cover on deposits to Rs. 5 lakh from existing Rs. 1 lakh.
• Healthcare sector got Rs. 69,000 crore with the promise that taxes from medical devices will be invested in the infrastructure in the healthcare sector. The PM’s Swachh Bharat Mission gets Rs. 12,300 crore and Rs. 3.6 lakh crore towards piped water supply to households.
• In the sector of power and renewable energy, FM allocated Rs. 4,400 crore for clean air incentives in cities over 10 lakh population. Also, the government earmarked Rs. 22,000 crore for power and renewables. FM also said that the consumers would get smart meters against conventional energy meters in the next three years.
• In infrastructure, the FM said that the government would electrify 11,000 kilometers of railway tracks and construct 2,000 kilometers of highways. The FM also announced National Logistics Policy that would be released soon. Also, 100 airports would be developed and 6,000 kilometers of highways would be monetized in 12 lots by 2024.