Nirmala Sitharaman delivered the Union Budget 2020 today, and considering the embattled condition of the Indian economy, it had its work cut out for it. The allocation to some key sectors were seen to be lower than expected, among these being the skill development and transport infrastructure sectors. New income tax rates were also introduced that show a significant reduction from earlier. Here are some of the key points of this budget.
1. Lower income tax slabs have been introduced which can help people in the ₹5 - 15 lakh bracket. However, only those not availing exemptions and deductions will be able to claim the revised lower rates.
Reduction of 20% to 10% for income between ₹5 - 7.5 lakh
2. ₹2.83 lakh crore allocated for agriculture and irrigation sector.
3. ₹99,300 crore has been proposed for the education sector and ₹3000 crore for skill development.
However, the amount proposed for skill development is being seen as lower than expected, and has been criticised for not taking the younger generation's future into account.
4. ₹69,000 crore for the healthcare sector.
5. ₹3.6 lakh crore for the Jal Jeevan Mission to recharge water sources and improve water harvesting.
The move hopes to provide functional tap connections to every rural household by 2024.
6. ₹1.7 lakh crore for transport infrastructure. This has also been seen as lower than expected.
7. ₹85,000 crore for welfare of scheduled castes and backward classes, and ₹53,700 crores for scheduled tribes.
8. ₹28,600 crores for women-related schemes.
9. ₹4400 crore for clean air schemes.
10. ₹6000 crore to provide 100,000 gram panchayats with digital connectivity.
11. ₹12,300 crore for Swachh Bharat Mission.
12. ₹27,300 crore for industry and commerce.
13. ₹22,000 crore for power and renewable energy sectors.
14. ₹35,600 crore for nutritional schemes.
15. ₹30,757 allocated for Jammu and Kashmir.
16. ₹4.7 lakh crore allocated to defense, a 9% increase from earlier.
17. ₹8000 crore has been set up for the National Mission on Quantum Computing and Technology.
18. Deposit insurance cover will be hiked from ₹1 lakh to ₹5 lakh.
19. 100 more airports to be developed by 2024.
20. A tax payers charter will be enshrined in the statute to prevent tax harassment.
With the economy in the dismal condition that it currently is, it is hoped that this budget will inject some life into it.