On the 1st of February 2020, Finance Minister Nirmala Sitharaman presented the Union Budget 2020-21 in the Lok Sabha. While the budget was being presented, the whole country was waiting in order to get a glimpse of the new amendments and additions to this year Union Budget.
While it was being presented, Mrs. Sitharaman shed some light on the choices of the government for this year’s budget. She did approve of the choice of the Modi Government and was in full accordance with their policies claiming “130+ Crore people’s decision has brought faith in the country’s economic policy.”
What’s In For The People In The New Budget?
The new budget is aimed to boost people’s income and enhance their purchasing power. But not everyone feels the same way after implementation of the new rules.
About the Budget, the crowd is seemingly having mixed reactions towards it. From middle-class woes to millennials jokes, everyone presented their opinion about it in whichever form they could be it a political statement or a social media meme.
But what is our actual Budget? What are the major points that highlight the true image of the upliftment of the poor?
Income Tax
- Individuals earning between INR 5 lakhs and INR 7.5 lakhs have their taxes reduced from 20% to 10%. Also, added from the last budget, no tax is to be paid by those earning less than INR 5 lakh P.A.
- INR 7.5 lakhs to INR 10 lakhs Income Holders have tax rates deductions starting from 15% and goes up to 20%. Income tax for individuals earning anywhere between INR 10 lakh to INR 12 lakh has new tax rates at 20%.
- Individuals having INR 12.5 lakhs to INR 15 lakhs and above INR 15 Lakh income will be facing 25% and 30% (without exemptions) tax rates respectively.
A total of 70 deductions have been withdrawn. Dividend Distribution Tax for Companies has been removed. Aadhar is made mandatory for GST and Pan verifications. There have been drastic changes in the rate percentages as compared to last year’s budget.
*NOTE- Those who prefer to be in the old regimes have leniency to continue in paying as per the old rates.
Finance and Economy Sector
Statements about LIC going Public are also proposed and bank policies are improved as well. The bank deposit insurance cover increased with a 400% increase up to INR 5 lakh.
Agriculture Sector
This year’s budget aims towards making our farmer’s income grow exponentially by 2022. INR 2.83 lakh crore has been allocated for Agricultural Sector and Related Industries.
Margin at INR 15 Lakh Crore has been set for Agri-credit availability for 2020-21. Unlike 2019, this year’s budget focuses more on the agricultural sector.
- Water stressed districts are to be taken care of which includes the installation of a solar pump for 20 Lakh farmers. Added with another 15 lakh farmers to solarise power supply. SHGs are to be promoted. Introduction of ‘Kisan Rail’ in the Indian Railways. These will have refrigeration to carry fresh dairy products. Lastly, Krishi UDAN on national and international routes to be focused more.
- For Health, Sanitation and Cleanliness, the provision of ₹69,000 crores for the country’s health sector are introduced. Coinciding with last year’s Budget, this year aimed for Swachh Bharat 2020. INR 12,300 crore for Swachh Bharat has been provided.
- The education sector saw hooks of opportunity and gets INR 99,300 crore in 2021 along with the Skill Development Department getting INR 3,000 Crore as well. Last year’s budget focused on training new-age skills like AI, robotics and 3D printing. This year’s plan includes an internship program for young engineering students annually.
The budget is set to provide INR 1.7 Lakh Crore for transportation infrastructure. Railway to become more dependant on solar energy through power plants. 27,000 Km of electrical lines are targeted in order to meet daily consumption.
Also, More than 90 airports are aimed to become fully functional this year onwards which sums up the main headlines for this year’s Annual Budget 2020-21.
Do tell if you happen to like the budget or what would you like to change about it.