Union Budget 2020 Live Updates

Honorable Finance Minister begins the Union Budget 2020 Speech in the Parliament

Estimated Revenue and Expenditure tabled in Lok Sabha.

Union Budget 2020 Highlights

FM counts benefits of GST and pays homage to Late Shri Arun Jaitley.

An average household now saves 4% on monthly spends on account of GST Implementation.

FM acknowledges the technical and other glitches of GST. FM reminds of the upcoming simplified returns of GST.

271 million people lifted above poverty line.

Debt of Central Government in 2019 is 48.7% of GDP as compared to 52%+ in 2014.

Aspirational India

• 6.11 crore farmers insured under PM Fasal Bima Yojana. Provisional of annual income for farmers.
• Encourage state governments who undertake implementation of model laws already issued by the central government.
• Comprehensive measures for 100 water stressed districts.
• PM Kusum scheme removed farmers dependence on kerosene. 20 lakhs farmers will be assisted to install standalone solar pumps. Helping 15 lakh farmers to connect solar power with grid.
• Encourage balanced use of fertilizers including traditional and organic ones. Government wants to discourage the prevailing incentive regime is promoting chemical fertilizers.
•  162 million metric tonne capacity of warehousing in India. Governmet will provide viability gap funding for setting up warehouses. FCI & Central warehousing corporation shall also contribute in enhancing the storage.
• Women Self help group can avail Mudra and NABARD assistance for setting up storage capacity of the agriculture products.
• Indian Railways will setup a Kisan Rail with refrigerated coaches for milk, meat and fish transport.
• Financing on negotiable warehousing receipt will be integrated with e-NAM.
• Agriculture credit target set at 15 lakh crore for the FY 2020-2021. 

Wellness, Water and Sanitation

• PM Jan Arogya Yojana has 20,000 empaneled hospitals. Government will give Viability Gap funding for setup of hospitals in PPP Mode. First priority to 112 aspirational districts not having any empaneled hospitals.
• Proceeds from taxes on medical devices will be used to support the VGF Model for setting up hospitals.
• Jan Aushadhi Kendra will be extended to all districts by 2024.
• 12300 Cr allocated for Swacch Bharat Mission.

Education and Skills

• New Education Policy will be announced soon.
• Steps would be taken for sourcing of external commercial borrowings in education sector.
• Urban Local bodies will provide internship opportunities for 1 year to fresh engineers.
• Online education programs by top 100 institutes for deprived students.
• Medical college will be attached to district hospital in PPP mode for availability of better doctors. Viability gap funding will be extended by the central government.
• 99300 Cr for education sector and 3000 cr for Skill Programme.

Commerce and Industry

• Investment clearance cell will be setup which will provide end to end service.
• Scheme focusing enhancing of manufacturing of special listed electronics.
• Nirvik scheme is launched for higher insurance cover and reduction in premium for small exporters.
• Reversal of taxes and duty on exported products will be provided through special scheme.

Infrastructure

• As promised 100 lakh crores will be invested in infrastructure.
• More than 6500 projects listed across sectors.
• National Infrastructure pipeline aims to improve ease of leaving for citizens of India.
• National Logistics Policy will soon be released.
• 2500 kms access controlled highways and 9000 kms economic corridors are few highlights.
• Setting up solar power capacity alongside the rail tracks on the land owned by railways
• 150 Passenger trains proposed on PPP mode.
• 100 more airports to be developed by 2024.
• 1.7 lakh crores for transport infrastructure in FY 2020-2021
• Prepaid Smart metering shall be followed by all the states.Freedom to choose suppliers and rate as per requirement.
• 22000 crores for power and renewable energy sector.

New Economy

• Policy to enable private sector to build data center parks throughout the country.
• 6000 cr. for BharatNet Program
• Digital platform for seamless application of IPR.
• 8000 crores over period of 5 years for national mission quantum technologies.

Caring Society

• Gross enrollment ratios of girls in all levels of education is higher than boys.
• Women’s age of marriage shall be revised soon. 
• 35600 cr for nutritional related programs in FY 2020-21.
• Target of no human in sewer cleaning through legislative changes and financial support.
• 85000 crores for SC/ST/OBCs in FY 2020-21.
• 9500 cr. for senior citizen and divyangs in FY 2020-21.

Environment and Climate Change

• Clean air for cities having population more than 1 million.
• Financial Support for states to formulate clean air policy action plan.

Governance & Financial Sector

• Taxpayer Charter is getting institutionalized in the laws.To protect citizens from tax harassment.
• National Recruitment agency for conduct of computer based online common eligibility test for recruitment in non gazetted posts.
• Government underlines that the depositors money is safe. Deposit insurance proposed to be increased to Rs. 5 lakhs.
• IDBI Bank will be open for private investment through stock exchange.
• Propose invoice financing to MSME through NBFC.
• Debt restructuring window to be extended by one more year to 31st March 2020.
• New debt ETF will be launched soon to give access to retail investors to government securities.

Revised estimated of FY 2019-20 are at 26.99 lakh crores and receipts at Rs. 19.3 lakh crores.

Estimated nominal growth of GDP FY. 2020-21 at 10%. Accordingly estimated receipts of Rs. 22.26 lakh crores. Expenditure estimate of Rs. 30+ lakh crores.

Fiscal Estimate of 3.5% in P.E. 2020-2021.

Direct Tax

• Corporate tax rates were reduced for new companies as well as existing companies during the year.
• New Personal Income Tax Regime without Deductions to be introduced.
  • Income Between Rs. 2.5 lakhs – Rs. 5 lakhs @ 5%
  • Reduced rate of 10% for income between Rs. 5 lakhs – Rs. 7.5 Lakhs
  • Income between Rs. 7.5 lakhs – Rs 10 lakhs, rate of 15%
  • Income Between Rs. 10 lakhs – Rs. 12.5 lakhs, rate of 20%
  • Income Between Rs. 12.5 lakhs – Rs. 15 lakhs, rate of 25%
  • Income above Rs. 15 lakhs @ 30%
  • No tax upto Income of Rs. 5 lakhs
• Choice for New and Old regime
• 70 deductions and exemptions not available in New Income Tax Regime. Remaining exemptions and deductions will be simplified soon.
• Dividend Distribution Tax will be removed where dividend shall be taxed in the hands of recipient.
• New corporate tax of 15% also available to power generation companies.
• Startups: ESOPs are taxable for employees. Deferment options  of payment of tax upto 5 years for eligible startup employees.
• Eligibility Turnover limit of Startups to be enhanced to Rs. 100 crore
• Co-operative Societies will be taxed at 22% + 10% surcharge and 4% cess with no exemptions or deductions. Exemption from MAT.
• Turnover limit for tax audit enhanced to Rs. 5 crore only for business using less than 5% cash in revenues.
• Additional deduction of housing loan will be applicable to loans sanctioned upto March 31, 2020
• Tax holiday for affordable housing projects approved by March 2021
• Capital Gains – Transaction value of transfer can now be 10% lower than the circle rates without additional tax burden.
• Donation receiving entities shall obtain registration electronically.