In her speech, the Finance Minister Nirmala Sitharaman announced that the main focus of this year’s budget would be to increase the income of the people which in turn would increase their purchasing power. There has been a drastic fall in the GDP and the money flow in the economy has also been slow, which has led to reduction in the consumption of goods and services by the people. This budget was aimed at saving our deteriorating economy and bringing up the GDP. Here’s a short and quick look at what the union budget 2020-21 has in store for all of us.
- First is the changes in the tax system:
| INCOME | TAX |
| 5-7.5 lakh | Reduced to 10% from 20% |
| 7.5-10 lakh | Reduced to 15% from 20% |
| 10-12.5 lakh | Reduced to 20% from 30% |
| 12.5-15 lakh | Reduced to 25% from 30% |
| Above 15 lakh | 30% without exemptions |
- Companies don’t have to pay the Dividend Distribution Tax (DDT) anymore
- For GST compliance, aadhar-based verification is introduced
- PAN card issuance will be quick, as it is now Aadhar-based
- Bank deposit insurance cover has been increased from Rs. 1 lakh to Rs. 5 lakh per depositor
- The Companies Act will be amended to decriminalize civil offences
- Government plans to sell 1% stake of LIC to the public
- The largest amount, that is Rs. 2.83 lakh crore, has been allotted to the agriculture sector
- Farmers’ income will be doubled by 2020
- Agri-credit availability is set at Rs. 15 lakh crores
- Comprehensive measures for 100 water deprived cities
- Providence to set up standalone solar pumps for 20 lakh farmers, help to another 15 lakh to solarize their power grid
- Village storage scheme run by women SHGs proposed
- Indian railways to have refrigerated coaches in ‘Kisaan Trains’ for carrying perishables and milk
- International and national routes to have Krishi UDAN
- Rs 69,000 crores have been allotted to the Health sector
- Rs. 12,300 crores to be given to Swacch Bharat Abhiyan
- Proposal to set up hospitals in tier-II and tier-III cities using PPP with the private sector
- Expansion of Jan Aushadhi scheme to provide for all hospitals that fall under Ayushman Bharat by 2025
- Rs.99,300 crore allotted to the education sector and around Rs. 3,000 crore for skill development
- Internships will be given to young engineers for a year
- Degree level online education programs by institutions ranked in top 100 in NIRF rankings to be provided, specially for underprivileged students