Budget 20-21: Disaster in Substance and Optics
This government appeared to have aced propaganda, publicity and media management since 2014. But the way the Union Budget has been handled shows a complete breakdown of these very skills. 
 
Forget about breakthrough ideas to unleash the ‘animal spirits’ of Indian business and accelerate economic growth, Budget 20-21 was a disaster even in terms of optics. It has created an unenviable record of being the longest Budget speech in 70 years (2 hours and 43 minutes), despite the last two pages being ‘considered read’ because the finance minister (FM) Nirmala Sitharaman felt unwell by the end of it.
 
 
Even as social media was quick to adjudge the speech as boring, a video of Union power minister RK Singh, apparently struggling to keep himself awake, while positioned just behind the FM, went viral, making matters worse. Mr Singh declared he was doing ‘eye exercises’ in parliament to ‘improve blood circulation’. But the damage was done. Take a look.
 
 
All this has to be seen in a context. Ms Sitharaman’s previous Budget was so poor that it embarrassingly got unravelled over the next three months, through a series of press conferences to announce rollbacks. This time, the ministry was supposed to be better prepared after a series of well-publicised pre-Budget meetings (albeit some with the prime minister (PM) at which the FM was not present).  
 
But things are worse this time. The fusillade of rollbacks and clarifications began within hours of the speech and economic experts continue to pick apart the numbers of revenue and tax collections. 
 
The BSE Sensex did a see-saw of 1,000 points after the Budget, especially when mutual funds turned big buyers on Tuesday. It is not clear if it is because they are expecting more roll-backs; but the gloom and bewilderment continues. 
 
The government hates any criticism and PM Modi has already lashed out at critics saying, “attempts were being made to mislead people on the Union Budget,” but the post-Budget reactions from industry and commentators suggest that people are unwilling to be silenced anymore. 
 
 
At a recent post-Budget meeting, realtor Niranjan Hiranandani minced no words when he attacked the “lack of total clarity, lack of demand, lack of liquidity and tax terrorism” that industry has to deal with. The rating agency CRISIL was equally blunt. “What makes this ‘shrinking’ feeling stranger and last longer is the long-overdue financial sector clean-up, at a time when the economy is suffering from other ailments,” said its review.  
 
Investment adviser and writer Harsh Roongta was at his sarcastic best when he said, the FM deserves a ‘round of applause’ from the investment and tax advisory community, because almost every taxpayer will need their services. The HR (human relations) head of a large business conglomerate spoke about how they may have to set up help-lines to counsel employees on which tax regime would be in their interest. 
 
This is the exact opposite of what Ms Sitharaman claimed in her Budget speech. It also shows a shocking lack of appreciation or understanding of people’s inability to deal with constantly changing rules and compliance requirements. 
 
Needlessly Misleading 
Even where the government was experimenting with a new tax structure leading to lower income-tax (I-T) for certain income segments, the FM caused needless confusion and anger by preferring hyperbole to straight talk and explanations. Ms Sitharaman prefaced her direct tax segment with a quote from Kalidasa’s Raghuvamsa: “Surya, the Sun, collects vapour from little drops of water. So does the King. They give back copiously. They collect only for people’s wellbeing.
 
She went on to announce “a new and simplified personal income-tax regime wherein income-tax rates will be significantly reduced for the individual taxpayers who forgo certain deductions and exemptions.”
 
The promise of “significant relief to the individual taxpayers” clearly implied that it would apply to all those who opt for it. But chartered accountants (CAs) totted up the numbers and quickly discovered that many would end up paying higher taxes. 
 
At a post-Budget press conference, the finance secretary asserted:“I am not saying it (new scheme) will benefit everyone. It might benefit 30%-40%of the people. But, even if it is benefiting 30%, then also it is a big thing.” These, he said, are mainly senior citizens, new entrants to the job market and maybe some small businessmen and shopkeepers. 
 
Wouldn’t it have made sense for the Budget speech to say that it is experimenting with a new tax regime that will offer the option of paying lower taxes to just two classes of taxpayers or about 30% of taxpayers? Why make tall claims and trigger outrage and negativity? Immediately after the Budget, the FM admitted to the ‘lack of clarity’ and said, “(t)hat is why we have started issuing clarifications.” That is not what a Budget is supposed to do—create confusion, which needs to be managed.
 
Finance ministry mandarins also claim that 90% of the 580 million taxpayers had claimed deductions of less than Rs2 lakh in 2018-19. But, with so many people picking holes in the Budget numbers, we will wait to see if this is true. 
 
Another botched up announcement related to taxing the overseas income of citizens who are not ordinarily resident in India. This triggered panic among non-resident Indians (NRIs) those who work in gulf countries that have no personal income-tax. Hasty clarifications have been issued after the issue was set to snowball.
 
Devil in the Detail
On many other fronts, the Budget seems to have worked overtime at making the lives of every segment of society difficult. High income earners as well as global Indians are outraged over the unfairness of dividend distribution tax to them as well as the change in ‘normally resident’ rules for NRI status. 
 
FM says she has axed 70 out of over a 100 exemptions and I-T deductions and intends to review and rationalise many more in the coming years. One impact of this, and a series of new compliances, will crush charities and foundations engaged in not-for-profit public services. They will have to spend huge time and money on government compliances while tax exemptions on donations are badly squeezed. 
 
In a country with no social security, a large chunk of people below the poverty line and a state incapable of delivering many public services, this attack on non-government organisations (NGOs) seems aimed at silencing and shutting them down en masse, rather than a selective clean-up. It is unclear how these seemingly vindictive provisions fit in with any of the three Budget themes touted by the FM: Aspirational India, ‘Sabka Saath, SabkaVikas, SabkaVishwas and Caring Society. Is it possible for the government to deliver on all of this through its own inefficient schemes and poor execution while cutting out help and support of private charities?
 
An Empty Charter
Even as it unleashed so much confusion over taxes, the Budget announced a ‘Taxpayer Charter’ to improve tax governance. It seems to be the brain-child of Sanjeev Sanyal, principal economic adviser in the finance ministry, who has been explaining it in a series of tweets. 
 
Did he notice that we already have a toothless Citizens’ Charter announced by RBI governor Raghuram Rajan in August 2014, which was only a motherhood statement with no intention of penalising banks for failure to abide by the Charter? 
 
The central board of direct taxes (CBDT) has already posted a tax charter on its website with timelines for resolving issues; but no prizes for guessing that there are no punishments, or consequences, for failure to implement its provisions. 
 
With stiff tax collection targets and policy-making in the hands of the tax department, it is no surprise that even Mohandas Pai, former CFO (chief financial officer) of Infosys and unabashed cheerleader of the government is sceptical. “Take away tax policy from CBDT,” he tweeted.
 
 
Mr Sanyal may have noticed that India also experimented with a tax ombudsman scheme but successive governments been extremely tardy about even appointing people to the posts. The Right to Information (RTI) Act also acted as a redress tool for a while, but that too is being defanged. This makes it difficult for us to get excited about a mere announcement of a Tax Charter, even if it is ‘enshrined in the statutes’ as the FM has promised. 
 
We can dig up many such details and inconsistencies across various segments of the Budget speech—but what it adds up to is a government that is not in listening mode, out of touch with issues on the ground and far away from delivering either the caring or vikas that it has promised. Of course, it has been so for many decades now. And that makes this regime just as insensitive as the previous ones. 
 

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    COMMENTS

    sanjeevnandaofficial

    2 months ago

    With all the commotion surrounding the budget going on, the real motive of an 'announcement' seems to have lost its meaning. The ministry could've easily posted their allotments through various outlets in print - the reason that the FM stands before the house and speaks, is to give the citizens a report card of how the country has performed in the last fiscal year, with genuine comments about the highs and lows sprinkled in between.
    Having said that, the longest Budget announcement since the 50s, offered no catharsis whatsoever. Citizens were left confused and baffled. What the FM talked about made less airwaves than what she carefully omitted out. There was no talk about the unemployment, neither the flailing automobile industry. This practice should be eradicated in favor of a printed release. That way we wont be left more confused by the budget after, than before we came into it.

    ~ Sanjeev Nanda, Financial Advisor

    prime

    2 months ago

    This really got me laughing: "PM Modi has already lashed out at critics saying, “attempts were being made to mislead people on the Union Budget". " At least he was honest about that one ;)

    mohitmahawar007

    2 months ago

    Whole article looks like a Twitter rant rather than an objective assessment. The bar of quality is much higher for Moneylife.

    REPLY

    sanjeevnandaofficial

    In Reply to mohitmahawar007 2 months ago

    I honestly liked it for this very reason - being off the cuff made the article even more cathartic. It was in-depth and well written

    S.SuchindranathAiyer

    2 months ago

    I could not have put it better myself. Essentially, the Government is run by incompetent corrupt Neta-Babus who formulate and implement ideas based on ivory tower assumptions without any understanding of ground realities and existing action systems.

    imkhushi.dubey

    2 months ago

    these are sheer experiments by political parties, they will make our condition worse till the last year of the tenure , and on the last year revive back these things to make it look populist and these forgetful ppl may vote these crooks... its a planned strategy, chk out who the financial advisor is :)

    suketu

    2 months ago

    Empty vessels make the most noise.
    Recently Modi has taken full credit for GST as well!He thinks it a success and that speaks for himself and his party.

    Nasir Ahmed Rayadurg

    2 months ago

    Simple things are being made complicated and every past regime has meted the same treatment to taxpayers, this regime too is no different. Economic experts made so many suggestions for propelling us to the next 1/2 of 21st century, nothing has been heard and actioned, alas we are left way behind.

    Harish

    2 months ago

    Very Good Article. I also remember one industrialist saying before the budget that we were in for a [positive] surprise on budget day. It was a surprise all right!

    Suketu Shah

    2 months ago

    What was the need to do the drama of calling India's top 20-30 Industrialists from Mumbai to Delhi by Namo for their suggestions on the economy when not a single suggestions was implemented.We regularly find a bunch of lies everyday bny Namo himself in political speeches.This budget is just a reflection of the way namo runs the country or wishes to run-by fooling everyone in the country.

    Nirmala Sitharaman shd not be blamed.This has Budget has Namo written all over it.

    P M Ravindran

    2 months ago

    Since my forte is not finances I can hardly comment on many of the criticisms listed here. But yes, I know that making choices on which tax regime to accept does certainly require more effort than following just one that is thrust on you. But I was justifying it on the ground that over a period of time the various deductions would be done away with and we will have a simple cost to employer (?) kind of figure that would be taxed. But still the rumors about doing away with income tax and introduction of a consumption tax made better sense.

    I have a doubt about one figure- the 580 million in the statement 'Finance ministry mandarins also claim that 90% of the 580 million taxpayers had claimed deductions of less than Rs2 lakh in 2018-19.' It cannot be just IT payers and it cannot be all the indirect tax payers either. So where does this figure come from.

    Now to my subject- the RTI Act. The critic says 'The Right to Information (RTI) Act also acted as a redress tool for a while, but that too is being defanged.' Being defanged? You have got it all wrong, madam. The RTI Act, has been designed just to provide a rehabilitation home for some blue eyed babus of the government after their retirement from regular employment, with the pay and perks of Chief Election Commissioner/ Election Commissioner for a job that is simpler than that of a munsif in our judiciary. As one who had petitioned the President of India to remove the first Chief Information Commissioner of the Central Information Commission and the Governor of Kerala to remove the first Chief Information Commissioner of the Kerala State Information Commission under the relevant clauses of the RTI Act, my indulgence in RTI Act now is purely with the aim of exposing the idiots and traitors among public servants where idiots are defined as those who do not know the job they are paid to do and traitors as those who know it but would not do it.

    Aditya G

    2 months ago

    The budget is becoming irrelevant with each passing year. It's one of those vestiges of colonialism that needs to go. The best way to approach is to iterate through the year and pass amendments & laws in forthcoming parliamentary sessions as and when required. This makes policy making much more flexible.

    REPLY

    sanjeevnandaofficial

    In Reply to Aditya G 2 months ago

    Somebody Finally Said It!

    prime

    In Reply to Aditya G 2 months ago

    Totally agree. Mixing government balance sheet, projected expenses and revenues with corporate and personal taxation in one giant smogfest makes no sense at all.

    vipin agarwal

    2 months ago

    In addition, surprised to see Deemed Income provision for Salaried class as Perks not needing Simplification and liberally being used to Armtwist to pay more tax ( PF taxation being new addition). Wonder why we still tax Motor car ownership as Perquisite ?? Can FM explain why an Individual earning over 10 cr as Agriculture Income not be called Super Rich?? Why temporary Surcharges and Cess become permanent ? Why FM shows tax rate without such Surcharges and Cess in Budget Speech? Every year FM sets new Vision overlooking what happened in previous years? Extremely peeved to see complete absence of Vision to Shape up the Economy surrounded with opportunities but plagued with apathy and indifference to Reality Checks !!

    Prasanna

    2 months ago

    Legislation to be introduced of Income-tax Act should not be in the hands of the Tax regulator. They have made a mess of the new provisions in the Income-tax Act. In some places it is down right absurd. For instance every seller whose turnover is more than Rs 10 crores is required to collect tax @ 0.1% from every buyer who buys goods of more than Rs 50 lakhs. Why???? Does not Govt. have linkages of GST database with Income-tax data bases? This is stupid. There are many instances of the Budget being unfair and unreasonable. Did I hear ease of living? This is living in Income-tax made HELL. Less said the better. GOD help India and GOD help its citizens (including Non Residents who will now be taxed on their world income in India) from tax tyranny launched by Tax Officers whose attitude does not change. It is a down right stupid and idiotic budget.

    vipin agarwal

    2 months ago

    In addition, surprised to see Deemed Income provision for Salaried class as Perks not needing Simplification and liberally being used to Armtwist to pay more tax ( PF taxation being new addition). Wonder why we still tax Motor car ownership as Perquisite ?? Can FM explain why an Individual earning over 10 cr as Agriculture Income not be called Super Rich?? Why temporary Surcharges and Cess become permanent ? Why FM shows tax rate without such Surcharges and Cess in Budget Speech? Every year FM sets new Vision overlooking what happened in previous years? Extremely peeved to see complete absence of Vision to Shape up the Economy surrounded with opportunities but plagued with apathy and indifference to Reality Checks !!

    Arpita Padiyar

    2 months ago

    budget was disappointing ☹️

    Budget unlikely to boost economy in short-term: Crisil
    The measures announced to trigger growth in the Union Budget 2020-21, including the widening of the fiscal deficit target, would not result in major impact for the slowing economy in the short-term, a report by Crisil said on Sunday.
     
    The budget on Saturday set the fiscal deficit target for financial year 2020-21 at 3.5 per cent, at higher than the previous target of 3.0 per cent. 
     
    The report noted that the additional fiscal space is to be funded by aggressive disinvestment, asset monetisation and telecom revenue targets, optimistic tax-buoyancy assumptions and some tightening in overall expenditure, adding that the space created is being used to fund capital expenditure (capex) and rural sector spending to support consumption.
     
    "The government has aimed at some measured moves in the budget to bolster growth. Most of these, however,are not expected to provide a short-term boost," it said.
     
    According to Crisil, the relaxation in target to spur growth was inevitable, and more realistic. 
     
    With this budget, fiscal policy appears to be doing its bit, it said, adding, however, that fiscal pressures have also intensified in the past two years, leaving the government with limited ability to stimulate growth.
     
    "There is some support to growth, but nothing substantial in the short term. However, the government is still eyeing the long-term and has, therefore, pushed capex. The multiplier impact of this will be positive but lagged," Crisil said. 
     
    The report observed that in the absence of growth-triggering factors, growth pick-up in fiscal 2021 is expected to be largely led by the base effect and supported by somewhat better farm incomes led by a good rabi crop and the delayed impact of monetary easing. 
     
    A normal monsoon in 2020 and benign global crude oil prices would be critical to achieve the predicted growth, it added. 
     
    According to the report, despite tight fiscal conditions, the budget makes room for higher capex and overall capex is budgeted to increase 18 per cent in the fiscal year 2020-21. 
     
    "A large part of this is because of spending on infrastructure creation. Overall infrastructure spending, however, is budgeted to decline 7 per cent in fiscal 2021.
     
    This is because of lower reliance on extra budgetary spending through central public sector enterprises (CPSEs) despite higher budgetary support. Lower spending is especially seen in roads and highways, urban infrastructure, and power," it said. 
     
    It further said that the budget has tightened revenue expenditure, but makes way for higher social-sector spending. Growth in revenue expenditure is expected to slow down in fiscal 2021, led by lower burden of food, fuel and fertiliser subsidies.
     
    The budget, however, makes way for higher allocations on some of the flagship programmes, such as Pradhan Mantri Gram Sadak Yojna (PMGSY), Pradhan Mantri Krishi Sinchai Yojna (PMKSY), Pradhan Mantri Awas Yojna (PMAY) and Pradhan Mantri Kisan Samman Nidhi (PM Kisan), spending on which is revenue in nature, it added. 
     
    The report also said that allocation for most of these schemes faced the axe in fiscal 2020, and higher spending next fiscal can support rural employment, income and consumption.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Ramesh Poapt

    2 months ago

    govt may think overseas borrowing as thought earlier finally.

    selliing PSUs ratna-s majboori!

    gcmbinty

    2 months ago

    I-Tax value in comparison to the value of the total taxes (GST/CGST) on sales will determine the buying (consumption) capacity of the consumers. If consumers are able to save, that is the good budget. Otherwise, the budget is not good.

    Budget 2020: Key Highlights
    Presenting the first union Budget of the third decade of the 21st century, finance minister Smt. Nirmala Sitharaman, on Saturday day unveiled a series of reforms, aimed at energising the Indian economy through a combination of short-term, medium-term, and long term measures.
     
    The Union Budget has been structured on the overall theme of “Ease of Living.” This has been achieved by farmer friendly initiatives such as Agriculture credit target of Rs15 lakh crore for 2020-21; schemes of “Kisan Rail” and “Krishi Udaan” for a seamless national cold supply chain for perishables; and expansion of PM-KUSUM to provide 20 lakh farmers for setting up stand-alone solar pumps.
     
    In the health sector, the Budget proposes more than 20,000 empanelled hospitals under PM Jan Arogya Yojana for poor people; and expansion of Jan Aushadhi Kendra Scheme to all districts offering 2,000 medicines and 300 surgicals by 2024.
     
    Infrastructure receives a boost, with 100 more airports by 2024 to support Udaan scheme; and operation of 150 passenger trains to be done through PPP mode.
     
    Starting apprenticeship embedded courses through 150 higher educational institutions by March 2021 and a proposal to establish Indian Institute of Heritage and Conservation are some of the other major highlights. 
     
    Here are the key highlights of the Budget 2020:
     
    Budget 2020 is woven around three prominent things - aspirational India to boost the standard of living; economic development for all; and building a humane and compassionate society.
     
    Public Finance
     
    • Nominal GDP growth for the year 2020-21 estimated at 10%, on the basis of trends available.  Accordingly, receipts for 2020-21 estimated at Rs22.46 lakh crore. Expenditure estimated to be Rs30.42 lakh crore.
    • Fiscal deficit of 3.8% in revised estimate (RE) 2019-20 and 3.5% in budget estimate (BE) 2020-21
    • Central govt's debt has come down to 48.7% in March 2019 from 52.2% in March 2014.
       
     
    Tax Reforms
     
    Significant tax reforms undertaken. To provide significant relief to individual tax payers and simplify tax law, a new regime of personal income tax to be introduced.  Around 70 of more than 100 income tax deductions and exemptions have been removed, in order to simplify tax system and lower tax rates.
     
    • Under the new personal income tax regime, individual tax payers to pay tax at reduced rate of 10% for income between Rs5 lakh - Rs7.5 lakh.  
    • For income between Rs7.5 lakh - Rs10 lakh, tax rate will now be 15% against the current 20%.
    • For income between Rs10 lakh - Rs12.5 lakh, the new tax rate will be 20%, down from 30%.
    • For income between Rs12.5 lakh – Rs15 lakh - tax rate will be 25%
    • Income above Rs15 lakh will continue to be taxed at 30%
    • The new personal income tax regime is optional for taxpayers and the new tax rates are without deductions available under the old tax regime.
    • Those who wish to claim rebates and concessions are free to file taxation under the old regime. 
    • Under Vivad Se Vishwas Scheme, taxpayer to pay only amount of disputed tax, will get complete waiver on interest and penalty, if scheme is availed by 31 March 2020
    • To boost start-ups, tax burden on employees due to tax on employee stock options preference (ESOPs) to be deferred by five years or till they leave the company or when they sell, whichever is earliest.
    • Dividend distribution tax (DDT) to be removed, companies will not be required to pay DDT; dividend to be taxed only at the hands of recipients, at applicable rates. 
    • Concessional corporate tax cut to be extended to new domestic companies engaged in power generation.
    • Tax on cooperative societies to be reduced to 22% plus surcharge and cess, as against 30% at present.
    • FM says goods and service tax (GST) has resulted in efficiency gains in transport and logistics sector, inspector raj has vanished, it has benefitted MSME
     
    Agriculture & Allied Activities 
     
    • FM lists 16-point action plan for farmers, towards the goal of doubling farmers' income by 2022. 
    • Rs2.83 lakh crore allocated for agriculture and allied activities, irrigation and rural development
    • Agricultural credit target has been set at Rs15 lakh crore. NABARD refinancing scheme to be further expanded. 
    • Comprehensive measures for 100 water-stressed districts being proposed
    • For better marketing and export, supporting states will focus on one product for one district, so that high focus is given at district level for horticulture to gain momentum
    • Financing on negotiable warehousing receipts to be integrated with e-national agricultural market (e-NAM).
    • Krishi UDAN will be launched by ministry of civil aviation on international and national routes, improving value realisation in north east and tribal districts.
    • Indian Railways will set up Kisan Rail through public-private-partnership (PPP) arrangement, for transportation of perishable goods
    • Budget encourages balanced use of all fertilizers, a necessary step to change the incentive regime which encourages excessive use of chemical fertilizers.
    • Farmers who have fallow or barren land will be helped to set up solar power generation units and also sell surplus power to the solar grid.
    • Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) to be expanded to provide 20 lakh farmers in setting up standalone solar pumps
    • Milk processing capacity to be doubled by 2025
    • Fish production to be raised to 200 lakh tonnes by 2022-23.  Framework for development, management and conservation of marine fishery resources to be put in place.  Fishery extension work to be enabled by rural youth as Sagar Mitras, forming 500 fish farmer producing organizations
    • Village Storage Scheme run by SHGs, will provide holding capacity for farmers, women in villages can regain their status as Dhaanya Lakshmi.  Warehouses will be set up, viability gap funding to be provided to set up warehouses.

     

     
    Industry & Commerce
     
    • Rs27,300 crore for development of industry and commerce
    • Investment clearance cell to provide end-to-end facilitation, support and information on land banks.
    • Scheme focussed on encouraging manufacture of mobile phones, electronic equipment and semiconductor packaging to be introduced.
    • National technical textiles mission (NTTM) to be introduced, with a four-year implementation period, with an outlay of Rs1,480 crore.
    • To achieve higher export credit, a new scheme being launched which provides higher insurance cover, reduced premium for small exporters and simplified procedure for claim settlements.
    • National logistics policy will soon be released, creating single window e-logistics market.
    • Project preparation facility to be set up for preparation of infrastructure projects, actively involving young engineers and management graduates.
     
    Infrastructure 
     
    • Rs1.7 lakh crore to be provided for transport infrastructure in the coming financial year.
    • 100% tax concession to sovereign wealth funds on investment in infra projects.
    • Accelerated development of highways will be undertaken. Delhi-Mumbai expressway and two other projects to be completed by 2023.
    • 100 more airports to be developed by 2024 to support the UDAN scheme.
    • More Tejas like trains to be introduced. 
    • Rs22,000 crore for power and renewable energy sector in 2020-21 
    • National gas grid to be expanded from 16,200kms to 27,000kms
    • Large solar power capacity to be set up alongside rail tracks, on land owned by Railways.
    • Fibre to Home connections under Bharat Net will be provided to 1 lakh gram panchayats this year itself, Rs6,000 crore provided for Bharat Net

     

     
    Development
     
    Rs30,757 crore for union territory of Jammu & Kashmir;  Rs5,958 crore for union rerritory of Ladakh 
     
    Banking & Finance
     
    • Deposit insurance coverage to be increased to Rs5 lakh from Rs1 lakh. FM says robust mechanism is in place to monitor and ensure health of all scheduled commercial banks and depositors' money is absolutely safe.
    • Govt. proposes to sell part of its holding in Life Insurance Corporation (LIC) by way of Initial Public Offering (IPO)
    • Certain specified categories of government securities will be open fully for non-resident Indians (NRIs), apart from being open to domestic investors
    • Government proposes to expand Exchange Traded Fund (ETF) by floating a debt ETF, consisting primarily of govt securities.
    • GIFT City to have an International Bullion Exchange, enabling better price discovery of gold
    • Amendments to be made to enable NBFCs to extend invoice financing to MSMEs. App-based invoice financing loans product to be launched, to obviate problem of delayed payments and cash flow mismatches for MSMEs
    • India to host G20 Presidency in 2022, Rs100 crore to be allocated for making preparations for this historic occasion, where India will drive global economic agenda.
     
    Education
     
    • Rs99,300 crore to be provided for education sector in 2020-21 and  Rs3,000 crore for skill development
    • Degree-level full-fledged online education programme to be offered by institutes in top 100 in National Institutional Ranking Framework.
    • Urban local bodies across the country to provide internships for young engineers for a period of up to one year. 
    • IND-SAT exam to be held in African and Asian countries, for benchmarking foreign candidates who wish to study in India. 
    • Government proposes to set up National Police University and National Forensic University.
    • Beti Bachao Beti Padhao has given tremendous results, Gross Enrolment Ratio is now higher for girls than for boys at all levels. GER for girls is 94.3 at the elementary level.

     

     

     
    Health
     
    • Budget 2020 provides an additional Rs69,000 crore for the health sector
    • Govt to expand Mission Indradhanush, add more hospitals to Ayushman Bharat
    • Jan Aushadhi Kendras in all districts of country to be expanded to provide medicines at affordable rates.
    • A medical college to be attached to each district hospital in PPP mode. Viability gap funding to be set up for setting up such medical colleges.
    • Rs35,600 crore outlay for nutrition-related programmes in 2020-21.
    • Over 6 lakh anganwadi workers have been equipped with smartphones to upload the nutrition status of 10 crore households.
     
    Women Empowerment
     
    • Rs28,600 crore provided for programmes which are specific to women
     
    Welfare of SCs/STs and Divyangjan
     
    • Rs85,000 crore for scheduled castes (SC) and other backward classes (OBCs) in 2020-21; 
    • Rs53,700 crore rupees for scheduled tribes (ST); 
    • Enhanced allocation of Rs9,500 crore for senior citizens and divyangjan
     
    Culture 
     
    • Indian Institute of Heritage and Conservation to be established under the aegis of Ministry of Culture.  Five archaeological sites to be developed as iconic sites- Rakhigarhi (Haryana), Hastinapur (UP), Shiv Sagar (Assam), Dholavira (Gujarat) and Adishanaloor (Tamil Nadu).

     
    For more details check the PDF below…
     
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    COMMENTS

    Ramesh Poapt

    2 months ago

    fine print may br little different than the headline!

    Mohan Krishnan

    2 months ago

    Budget made for FIIs and MNCs to loot legally a poor nation.

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