Finance Minister Nirmala Sitharaman presented the Union Budget 2020-21 in the Lok Sabha on 1 February 2020. This is the second budget after Narendra Modi led National Democratic Alliance returned to power for a second term. This year’s Union Budget centers around three ideas — Aspirational India, Economic development, A Caring Society. Central government to provide ₹99,300 crores for the educational sector in FY21. New education policy will be revealed soon, said Sitharaman.
Union Budget 2020-2021 Highlights
Sitharaman today also proposed new income tax slabs and lower rates. These income tax rates are optional and are available to those who are willing to forego some exemptions and some deductions.
New tax slabs:
- ₹5 lakh – ₹7.5 lakh – 10% (20% earlier)
- ₹7.5 lakh - ₹10 lakh – 15% (20% earlier)
- ₹10 lakh to ₹12.5 lakh – 20% (30% earlier)
- ₹12.5 lakh - ₹15 lakh – 25% (30% earlier)
- Above ₹15 lakh – 30% (No change)
- Budgetary allocation for agriculture and allied actives: Rs 2.83 lakh crore
- Availability of agricultural credit to the tune of Rs 15 lakh crore
- 20 lakh farmers to be provided with stand-alone solar pumps
- Additional assistance for 15 lakh other farmers for farm solarisation
- The budget plans to expand women self-help groups (SHGs) to manage farm produce at the village level. These SHGs will be able to leverage loans from the National Bank for Agriculture and Rural Development (NABARD) under the MUDRA scheme.
- Budgetary allocation for the health sector: Rs 69,000 crore
- Swachch Bharat mission to get Rs 12,300 crore
- Proposal to set up hospitals in Tier II and Tier III cities using the PPP model
- Plans to expand Jan Aushadhi Kendra.
- Budgetary allocation for the education sector: Rs 99,300 crore
- Rs 3,000 crore earmarked for skill development
- Proposal for FDI and ECI in the education sector
- 150 institutions of higher learning to offer apprenticeships
- Fresh engineers to get internship opportunities with Urban Local Bodies.
- Proposal for a full-time online degree-level education programme to help students of deprived sections.
- A PPP model proposed to attach a medical college to existing district hospitals to allay shortage of qualified doctors.
- Allocation to transport infrastructure: Rs 1.7 lakh crore
- Allocation to power and renewable energy: Rs 22,000 crore
- Five new smart cities to be developed
- The government intends to develop 2000 km of highways, 9000 km of eco-development corridors, 200 coastal ports and roads, and over 100 new airports.
- Allocation for nutrition related programmes: Rs 35,600 crore
- Allocation for SC and OBC development: Rs 85,000 crore
- Allocation for ST development: Rs 53,700 crore
- Allocation for Senior citizens and persons with disabilities: Rs 9,000 crore
- Allocation to Ministry of Culture: Rs 3,150 crore
- Promotion of clean air: Rs 4,400 crore