Finance Minister Nirmala Sitharaman presented her second budget on Saturday Feb 1 , below are the highlights.
Saturday’s Union budget, the third in a span of one year, will seek to kickstart an economy staring at the worst pace of expansion recorded since the 2008-09 global financial crisis.
WATCH the budget speech live here.
Sitharaman quotes a Kashmiri verse
Sitharaman recites a verse in Kashmiri by Dinanath Kaul and translates it into Hindi, ‘Humara watan khilte hue Shalimar bagh jaise, humara watan Dal lake mein khilte hue kamal jaisa, naujawanon ke garam khoon jaisa, mera watan tera watan, humara watan, duniya ka sabse pyara watan’.
Sitharaman outlines plan for farming
Sitharaman: Farm markets need to be liberalised, farming need to be made more competitive, handholding of farm-based activities need to be provided, sustainable cropping patterns and more tech needed.
6.11 crore farmers have been insured
We have insured 6.11 crore farmers under Pradhan Mantri Fasal Bima Yojna.
Focus on 100 water-stressed districts
Our government is proposing comprehensive measures for 100 water-stressed districts in the country.
2 million farmers to get funds for solar pumps
20 lakh farmers to be provided funds for setting up standalone solar pumps. Govt proposes 16-point action plan to boost agriculture and farmers welfare.
Kisan Rail, Krishi Udaan for farmers
To build a seamless national cold supply chain for perishables, Indian Railways will set up Kisan Rail through PPP model so that perishable goods can be transported quickly. Krishi Udaan will be launched by MoCA on international and national routes.
Rs 99,300 cr allotted for education, Rs 3000 cr for skill development
Rs 99,300 crore allocated for education sector, Rs 3,000 crore for skill development in FY21.
Degree level full-fledged online education programme by institutions ranked in top 100 .
Manufacturing of mobile phones, electronics to get boost
Scheme focussed on encouraging manufacture of mobile phones, electronic equipment and semiconductor packaging to be introduced.
More Tejas trains for iconic destinations
A proposal is under consideration for setting up large solar panel capacity alongside the railway tracks on land owned by railways.
More Tejas type trains will connect iconic destinations.
Transport infrastructure gets Rs 1.7 lakh crores
I propose to provide Rs 22000 crores to power and renewable energy sector in 2020-21.
I propose to provide Rs 1.7 lakh crores for transport infrastructure in 2020-21, Rs 27,300 crore rupees for development of industry and commerce.
Private sector to be roped for data centre parks
To soon bring out a policy to enable private sector to build Data Centre Parks in the country.
Will achieve seamless delivery of services through digital governance.
National Logistics Policy will soon be released, creating single window
More girl students enrolled than boys
‘Beti Bachao, Beti Padhao’ has yielded tremendous results, gross enrollment ratio of girls across all levels of education now higher than boys.
Quantum technology gets Rs 5000 cr over 5 years
Rs 8,000 crore over five years to be provided for quantum technologies and applications.
Fibre to home connections under BharatNet will be provided to 1 lakh gram panchayats this year itself, and Rs 6000 crore has been provided for BharatNet.
Senior citizens and Divyangs get Rs 95000 crore
Enhance allocation of Rs 9500 crores for senior citizens and ‘Divyang’.
I propose to provide Rs 35,600 crores for nutrition related programmes for 2020-21.
Rakhigarhi, Hastinapur among 5 iconic sites to be developed
I propose to provide Rs 2500 crores for promotion of tourism in the year 2020-21.
Five archaeological sites to be developed as iconic sites with on-site museums — Rakhigarhi, Hastinapur, Shivsagar, Dholavira and Adichanallur.
Culture and tourism, SC/OBC/ST get allotment
Govt allocates Rs 3,150 cr for ministry of culture, Rs 2,500 cr for ministry of tourism.
Rs 85,000 crore rupees allotted for Scheduled Castes and Other Backward Classes in 2020-21, and Rs 53,700 crore rupees for Scheduled Tribes.
Taxpayer charter to prevent harassment
We wish to enshrine in the statutes a taxpayer charter through this Budget.
Our govt remains committed to taking measures to ensure that our taxpayers are free from tax harassment of any kind.
Bank deposit insurance hiked to Rs 5 lakh
In the wake of banks going under, Finance Minister Nirmala Sitharaman announced that the bank depositors insurance, which currently stands at Rs 1 lakh, has been enhanced to Rs 5 lakh.
Govt pension trust to be separated from PFRDA
Sitharaman: Balance govt holding in IDBI Bank to be sold to private retail investors.
Government proposes amendments to facilitate the separation of government pension trust from PFRDA.
Govt to sell part of its stake in LIC
Sitharaman: Government proposes to sell a part of its holding in LIC by initial public offer.
Certain govt securities will be open for foreign investors.
Tax cut on income of Rs 5 to Rs 15 lakh
Finance Minister Nirmala Sitharaman has unveiled new rates, increasing the slabs and offering less tax burden to the assessees.
The new tax rates are:
Income up to Rs 5 lakh no tax.
Dividend tax burden on individuals, not companies
Sitharaman: Dividend Distribution Tax shifted to individuals instead of companies.
70 IT deductions reduced to simplify tax system
Sitharaman: Around 70 of more than 100 income tax deductions and exemptions have been removed, in order to simplify tax system and lower tax rates.
Relief for interest payment to NRIs
Sitharaman: Concessional withholding rate of 5 pc on interest payment to non-residents extended up to June 30, 2022.
100 pc tax concessions to wealth funds for investing in infra
Government proposes 100 pc tax concession to sovereign wealth funds on investment in infra projects.
Tax holiday on affordable housing extended by one year
Sitharaman: In order to promote affordable housing projects, I propose to extend date of approval of affordable housing projects for availing tax holiday by one more year.
Coop societies get tax relief
Sitharaman: Option to be provided to cooperative societies to be taxed at 22% plus 10% surcharge and 4% cess, with no exemptions or deductions. Cooperative socieities to be exempted also from Minimum Alternative Tax.
Income of charitable institutions fully tax-exempt
Sitharaman: Income of charitable institutions fully exempt from taxation; Donation to such institutions allowed as deduction in computing taxable income of donor.
Turnover limit for start-ups to hiked to Rs 100 cr
Sitharaman: Start-ups are engine of growth. Propose to increase turnover limit for startups from Rs 25 crores to 100 crores.
Threshold of MSMEs’ audit raised to Rs 5 crore
Sitharaman: Turnover threshold for audit of MSMEs to be increased from Rs 1 crore to Rs 5 crore, to those businesses which carry out less than 5% of their business in cash.
‘Vivad se Vishwas’ for tax appeals
Sitharaman: ‘Vivad se Vishwas’ scheme for direct tax payers whose appeals are pending at various forums.
Pay more for footwear, furniture
Sitharaman: Customs duty on footwear, furniture raised.
Sitharaman’s speech the longest so far
Finance Minister Nirmala Sitharaman winds up her Budget speech after 2 hours 40 minutes, the longest ever by a finance minister, with 2 more pages still to go.