Union Budget 2020 Key Highlights: Budget Focused on Employment, New Reforms Economic Growth, says PM Modi

Prime Minister Narendra Modi addressed the nation following the presentation of Budget 2020. PM started his special address to the nation on eve of Budget 2020 by congratulating Finance Minister Nirmala Sitharaman and her team for presenting the first budget of the decade. He said the Budget presented today is focused on driving economic growth through key reforms and policy measures. He further added that his Government is committed to delivering on aspirations of the Youth of the country and in line with this the Budget has several provisions to boost employment generation. He said in order to boost employment and growth, special attention has been given to agriculture, infrastructure, textiles and technology in Budget 2020.

"The new reforms announced in the budget will speed up the economy, financially empower every citizen of the country and strengthen the foundation of the economy in this decade" : PM @narendramodi on #Budget2020 #JanJanKaBudget pic.twitter.com/OlzIfwmISV

— PIB India (@PIB_India) February 1, 2020

In a special address to the nation today evening, PM Modi said that students and salaried professionals will reap the maximum benefit of the measures announced in today’s budget. He highlighted that Income tax overhaul will surely benefit the salaried professionals but also several other sectors.

Just platitudes & slogans. Nothing substantial to alleviate peoples’ misery, the growing unemployment, rural wage crash, farmers’ distress suicides and galloping prices. #BudgetSpeech pic.twitter.com/867dB4f4lc

— Sitaram Yechury (@SitaramYechury) February 1, 2020

Giving his first reaction to the Budget 2020, Rahul Gandhi termed FM Nirmala Sitharaman’s 2^nd Budget speech lacking any stratetic idea and instead of addressing economic problems through tactical methods. He added that the longest budget speech was borne with “lot of repetitions, lot of rambling, all talk and the country is suffering”. He further added that FM didn’t address the issue of unemployment and didn’t talk about any measures to help our youth get jobs.

Congress party in its first reaction has termed Budget 2020 speech if Nirmala Sitharaman as lacklustre. Congress said that the budget didn’t provide any special stimulus for economic growth and didn’t address key issues that the economy faces today. Congress said that it looks like Modi Government has abandoned its USD 5 Trillion Economy Target. 

Budget full of piecemeal measures, repackaged schemes, jugglery of tax slabs and no real solutions to solve economic crisis: Cong

— Press Trust of India (@PTI_News) February 1, 2020

Finance Minister Nirmala Sitharaman delivered the longest speech in the history of the Union Parliament today. Her speech lasted almost 2.5 hours and was by far the longest in terms of duration taken to deliver it. At the end, Nirmala Sitharaman was feeling unwell and had to stop her speech midway. The Lok Sabha has been adjourned for now.

Following the key annonucements in Union Budget 2020, markets plunged into red on Saturday afternoon. At the time of filing of this story, Sensex was down 600 points while Nifty had breached the 11,800 mark. 

Finance Minister also proposed a new scheme titled ‘Vivad se Vishwas’ aimed at bringing down the litigation in direct taxation scheme. She said that currently around 4.83 lakh direct cases pending in various appellate forums. To address this problem, the new scheme will enable tax payers to get complete waiver on interest and penalty and will need to pay only the amount of disputed tax, if they avail the scheme by 31^st March 2020.

Finance Minister announced that Tax on Cooperative societies to be reduced to 22% from earlier 30% along with surcharge and cess.

In a push to boost real-estate sector, Finance Minister extended the tax holiday on profit earned by developers by 1 more year. This means, the date of approval of affordable housing projects for availing tax holiday on profit earned by developers extended by 1 year. FM also announced an additional Rs 1.5 lakh tax benefit on affordable housing loans

Finance Minister announced major relief for salaried tax payers but with a crucial condition. The new tax rates and slabs are optional and can be availed only by those tax payers who forego reliefs, exemptions. Nirmala Sitharaman says govt has removed 70 exemptions, deductions with a view to further simplify tax regime.

FM announced that Dividend Distribution Tax shifted to individuals instead of companies. She further added that 100% tax concession will be given on sovereign wealth funds on investment in infra projects. She also announced extension of concessional tax rate of 15% for firms that operate under the power generation sector.

Revised Income Tax Slabs and Income Tax Rates

Much in line with the expectations, FM deliver major relief to tax payers by slashing tax rates and restructuring the tax slabs. 

• For income between Rs 5 to 17.5 lakh, the tax rate has been reduced to 10%
• For income between Rs 7.5-10 lakh, the tax rate has been reduced 15%
• For income between Rs 10-12.5 lakh, the tax rate has been reducced to 20%
• For income between Rs 12.5 lakh to 15 lakh, the tax rate will be reduced to 25%
• For income above Rs 15 lakhs, tax to continue at 30%

Finance Minister announced that Nominal GDP growth for FY21 has been revised to 10%. On the other hand, FM announced a fiscal deficit target of of 3.8%, much below the aggressive target of 3.3% proposed earlier. Summing up she said that RE (Revised Estimates) expenditure for FY20 at Rs 26.99 lakh crore, receipts at Rs 19.32 lakh crore. FM further added that the fiscal deficit target has been revised to spur growth and meet GDP targets.

Among the key announcements of Budget 2020, the Finance Minister proposed to sell a part of its holding in LIC via IPO. The announcement was met with massive uproar from opposition members.

Finance Minister also talked about improvement of Banking Sector, especially the need to address the high NPAs of PSUs. Talking about the work ethic in Public Sector Banks, she said that Modi Government is committed to improving the overall work-ethics in PSU Banking Agencies. She also said that the insurance cover for depositors in Banks has been hiked to Rs 5 lakhs from existing Rs 1 lakh. She further added that more than 5,00,000 MSMEs benefited from RBI's restructuring of loans. FM has also extended the deadline for restructuring MSME NPAs by 1 more year to March  2021.

The newly created Union Territories of Jammu and Kashmir as well Ladakh also found a mention in FM’s Budget Speech. She announced that Union Government will support promotion of investment by providing the necessary boost to economic growth of the region. She announced allocation of Rs 30,757 crore for 2020-21 for Jammu and Kashmir and Rs 5,958 crore for Ladakh.

To address the issue of rising unemployment in the country, FM proposed setting up of a National Recruitment Agency, which will conduct a national-level computer-based online common eligibility test for recruitment of people to non-gazetted post under the Government of India.

FM also made some crucial business and economic policy related announcements to win back trust of wealth creators. She said that improving ‘ease of doing business’ is the top priority for Modi Government. In line with this, she said that government would like enshrine in the statue a taxpayers' charter. She also talked about end of licence raj and said that her government will announce measures to eliminate tax harassment.

1. Rakhigarhi, Haryana.
2. Hastinapur, Uttar Pradesh.
3. Sivasagar, Assam.
4. Dholavira, Gujarat.
5. Adichanallur, Tamil Nadu

Finance Minister has admitted that air pollution in large cities has become a cause for major concern and a health hazard for the people. To address this issue, she has set aside Rs 4,400 crores for clean air mission. Govt will also encourage and incentivize states that formulate plans for ensuring cleaner air, says FM.

Finance Minister in her Budget speech reached out to the Scheduled Caste (SC) and Scheduled Tribe (ST) through a hefty budget outlay. Nirmala Sitharaman set aside Rs Rs 85,000 crore for SC, Rs 53,000 crore for ST.

Check out the outlays for different sectors that have been announced by Finance Minsiter in her speech so far:

• Scheduled Caste Welfare Schemes: Rs 85,000 crore
• Scheduled Tribes Welfare Schemes: Rs 53,700 crore
• Senior Citizens: Rs 9,000 crore
• Health & Nutrition Related Scheme: Rs 35,600 crore
• Road and Transportation: Rs 1.7 lakh crore
• National Mission of Quantum Technology and Application: Rs 8,000 crore
• Renewable Energy Sector: Rs 20,000 crore
• Industry and Commerce Development: Rs 27,300 crore
• Education: Rs 99,300 crore
• Skill Development: Rs 3,000 cror

FM Nirmala Sitharaman termed Mod Government’s flagship scheme ‘Beti Bachao, Beti Padhao’ as a great success that has brought results and resulted into higher enrolment of girl-students into school as compared to boys. He remarks were met with protests from Opposition members as they tried to interrupt Sitharaman's speech.

Continuing focus on solar and renewable energy sector, FM announced that Government has set aside Rs 22,000 crore for this sector. As part of this push, FM also announced setting up of solar plants on vacant land around railway tracks across the country.

FM proposed construction of large solar-powered capacity alongside rail tracks as part of transport infrastructure development in the Union Budget. She also proposed monetize 12 lots of highway bundles of over 6000km before 2024. On transportation front, she also added that 100 more airports to be developed by 2024 and more Tejas like trains will be launched soon.

In the Union Budget, FM Sitharaman has pitched for accelerated growth of highways across India. She said that Modi Government will complete the construction of Delhi-Mumbai expressway and two other projects by 2023. She also added that soon National Logistics Policy to make MSMEs more competitive.

FM Nirmala Sitharaman in her budget speech said that “Entrepreneurship is strength of India”. To help entrepreneurs, she has proposed setting up of an investment clearance cell – which will work as a one stop shop for facilitation and support including pre-investment advisory. The Cell will also provide investors info on land banks and also help clearance at state-level.

FM announced two key programmes aimed at improving health and wellness of the people. For this Modi Government will launch 'Jal Jeevan Mission' to provide save drinking water and sanitation programme 'Swachh Bharat Yojna' have been launched to tackle health concerns.  Allocation for Swachh Bharat Mission raised to Rs 12,300 crore in 2020-21. Overall, Union Budget accounts Rs 69,000 crore for the health sector. She also said that Jan Aushadhi Kendras in all districts of the country to provide medicines at affordable rates. FM also announced an Anti-TB campaign  to eliminate TB by 2025.

FM in her budget speech said that India is all set to have largest working age population in the world by 2030. In line with this, FM said that the Budget provides for various steps that will be taken to deliver higher quality education. As part of this mission, Finance Minister said that op 100 institutions in the county will start offering ‘degree-level full-fledged online education programme’. Total outlay of Rs 99,300 crore and  Rs 3,000 crore for skill development announced by FM.

Another key agri-sector anouncement was launch of Kisan Rail which will be primarily used for transport of perishable goods from farm to markets. On similar lines, Krishi Udaan will also be launched MoCA on international and national routes.

In her budget speech, FM Sitharaman said that Food Corporation of India and Warehousing Corporation of India will be asked to develop warehousing facilities on their land. Before that, FM announced a slew of measures related to Agri Sector i.e.

Aggressive Agri credit target of Rs 15 lakh crore

Fish Production Target set at 200 lakh tonnes

Modi Government has announced that it will incentive farmers to use solar energy to fulfil their needs for electricity. Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) to be expanded to provide 20 lakh farmers in setting up standalone solar pumps.

Talking about the measures planned for agriculture sector in Budget 2020, FM reiterated that Modi Government is committed to doubling farmer’s income by 2020. She further added that her government plans to make farming a competitive intensive sector. To this end, she will asked state government to implement model agricultural laws passed by central government.

In her budget speech, FM Nirmala Sitharaman recounted the key acheivements of Modi Government during the last two terms. She said that under the able leadership of PM Modi, inflation has been contained well, Banks have been recapitalized, historic GST has been implemented, Inspector Raj has been vanished and direct bank transfer of subsidy has taken economic development to the citizens.

Finance Minister began her budget speech by highlighting the three central themes on which the Bahi-Khata 2020 is based. The three themes are

1. Aspirational India – To boost the standard of living among the people of India
2. Economic Development – To take the fruits of economic benefits to every citizen of India
3. Caring Society – To build a humane and compassionate society

Finance Minister began her budget speech by talking about measures to boost income and enhance the purchasing power of the people. She said that it is important for people of India are gainfully employed. For every member of the schedule caste and schedule tribe, for every woman, for every individual from minority section of the society, this budget aims to give wings to your aspirations, says FM

Get here detailed analysis of the Union Budget 2020 and know the key policy decisions announced by Finance Minister Niramala Sitharaman in her Budget Speech. 

Click Here for Budget Analysis and Detailed Overview.

Finance Minsiter will present the Union Budget 2020 i.e. Vote on Account at 11 AM in Parliament. Budget Speech of FM Nirmala Sitharaman will be streamed live across various platforms to ensure that it reaches to everyone easily. Speech will be televised live on various TV channels including National TV channels like Doordarshan, Lok Sabha TV, Rajya Sabha TV, and other private news channels. In addiiton to this, you can also catch Budget 2020 Speach Live on Youtube Channels of PIB, Loksabha Live, Rajyasabha Live as well as on other Social media channels.

Stay tuned for latest updates about Budget 2020 Here.

Union Cabinet Meeting has commenced in Parlaiment House, where FM Nirmala Sitharaman will breif the Cabinet Members about the key provisions of the Union Budget. She will also seek Cabinet's approval before the presentation of the Budget in both the houses i.e. Loksabha and Rajyasabha.

Preparations are underway for the presentation of Union Budget 2020. Ahead of FM Nirmala Sitharaman’s Budget speech, copies of the budget reached Parliament Complex. These copies will be distributed among MPs of both the houses once the Vote of Account / Bahi-Khata is tabled in the Parliament.

Delhi: The printed copies of the Union Budget being checked by a sniffer dog as part of a security check ahead of the presentation of Budget at 11 am pic.twitter.com/1t9mOoIG1p

— ANI (@ANI) February 1, 2020

Delhi Chief Minister Arvind Kejriwal sent out a tweet ahead of Budget 2020 presentation, asking Central Government to deliver a budget that takes into account the key expectations of the people of Delhi.

?????? ?? ????? ?? ???? ?????? ?? ?? ?????? ????? ??? ??? ?????? ?? ????? ?? ????? ?????? ????? ?? ???????? ?????? ?? ?? ?? ??????? ????? ?????? ??? ?????? ?? ????? ?? ?? ??????????? ?? ????? ????? ???

— Arvind Kejriwal (@ArvindKejriwal) February 1, 2020

Prime Minister Narendara Modi reached Parliament where he will convene the Union Cabinet Meeting at 10:15 AM ahead of Budget 2020 presentation. Cabinet meeting will commence shortly, before presentation of Budget 2020.

Finance Minister Nirmala Sitharaman has reached Parliament. She will be part of the Cabinet Meeting scheduled to be held at 10:15 AM in which she will brief the cabinet about the preparedness of the budget. Following this, She will tabled Union Budget 2020 in Parliament and deliver the much awaited Budget Speech 2020.

#Budget2020 : FM @nsitharaman reaches Parliament with Budget Bag ( bahi khata)#Budget2020-21#BudgetWithAIR pic.twitter.com/fBaBVTC6KQ

— All India Radio News (@airnewsalerts) February 1, 2020

Ahead of FM Nirmala Sitharaman’s Budget Speech 2020, Congress spokesperson has sent out a tweet demanding Tax Cut for salaried class. The tweet calls upon government’s measure to reach out to the corporate and business class through corporate tax cut earlier and called up Modi Government to now offer tax relief for Salaried Class.

Budget2019=

Consumption crashed,
Unemployment soared,
Farm distress surged,
Incomes declined,
Investments slumped,
Public spending fell,
GDP nose dived!

Yet, Modiji gave Corporate Tax Cuts of ?1,45,000Cr

Let #Budget2020 give tax cuts to Salaried Class & invest in Rural India

— Randeep Singh Surjewala (@rssurjewala) February 1, 2020

Ahead of Budget Presentation in Parliament, Finance Minister Nirmala Sitharaman met President Ram Nath Kovind. 

As per tradition, Finance Minister @nsitharaman calls on President Kovind at Rashtrapati Bhavan before presenting the Union Budget. pic.twitter.com/JLEbSxNhAe

— President of India (@rashtrapatibhvn) February 1, 2020

On 1^st February, the Union Ministry of Finance has announced the GST Revenue Collection Numbers for January 2020 ahead of the Budget Presentation. According to the data released, the overall GST revenue collected for January stands at Rs 1,10,828 crores. The ministry further added that the total number of GSTR 3B Returns filed for the month of December up to 31st January, 2020 is 83 lakh.

Cabinet meeting is scheduled to be held at 10:15 AM today in Parliament House, ahead of the Budget Speech. In the meet, Finance Minister Nirmala Sitharaman is expected to brief cabinet members about the key highlights about the Budget 2020 that is being presented today.

Carrying on last year, when FM Nirmala Sitharaman will ditch the colonial past behind and present a ‘Bahi-Khata’ i.e. a ledger wrapped in a red coloured cloth this year as well. Prior to last year, Finance Ministers followed the practice of carrying Budget Speech in a briefcase to the Parliament.

On 1^st February, markets opened in Red ahead of FM’s Budget speech today. Sensex fell by 279.01 points to 40,444.48 while Nifty dropped by 81.45 pts to 11,880.65 ahead of Budget presentation.