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Finance Minister Nirmala Sitharaman has completed her 2020 Budget speech, but Twitter seems to have latched on to Memes. Here are some of the trending ones:
With all exemptions removed:— SandeepG (@Ghai_27) February 1, 2020
NPS: 0.5 lk
Std. Ddn :0.5 lk
Med. Ins. : 0.25lk
i.e., 3.5 lks will now be taxed between 10-15%. Those who think new tax regime is beneficial, basically aapka kat gaya.#Budget2020
Any budget for IT cell abusive trolls & University of whatsapp ? #Budget2020— Niraj Bhatia (@bhatia_niraj23) February 1, 2020
Delivering a budget speech for over 2 hours (The speech began at 11:02 AM), Finance Minister Sitharaman stepped down after coughing. While her former colleagues rushed to her asking her to catch her breath, she persisted for a few minutes, before calling it a day. For trivia hunters, the budget speech extended for 2.40 hours or 160 minutes. The house will resume business on Monday, 3rd February 2020.
Bengaluru today accounts for 80% of India's Semiconductor Industry— Tejasvi Surya (@Tejasvi_Surya) February 1, 2020
Tech-savvy & digitally smart B'luru, already competing with the world, will play most vital role in directing the new schemes aimed at promoting mobile & Semiconductor manufacturing#Budget2020
Option to be provided to cooperative societies to be taxed at 22% plus 10% surcharge and 4% cess, with no exemptions or deductions— PIB India (@PIB_India) February 1, 2020
To be exempted also from Minimum Alternative Tax
- FM @nsitharaman
Watch LIVE: https://t.co/TN71mvbfGt#Budget2020 #JanJanKaBudget
100% tax exemption for foreign sovereign wealth fund investments in India— Siddharth Zarabi (@szarabi) February 1, 2020
Reducing individual income-tax for various tax slabs is a welcome step. Higher disposable income = higher consumer demand.— Milind Deora ?????? ????? (@milinddeora) February 1, 2020
I also welcome the decision to scrap Dividend Distribution Tax. It was a double tax & should have been abolished a long time ago#Budget2020
100 new airports. These guys are cuckoo. No scientific assessment, just juvenile headlines.— Sanjay Jha (@JhaSanjay) February 1, 2020
It’s like 100 smart cities that went nowhere.
Alexa loves 100. #Budget2020
Setting up a committee to revisit the marriageable age for women. #Budget2020— Anand Ranganathan (@ARanganathan72) February 1, 2020
To ensure more persons avail and to further incentivize, dates for availing special loans have been extended by one more year. Tax holiday on profits earned of affordable housing projects approved by 31st March 2020.
Govt extends additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021.
Tax on Cooperative societies proposed to be reduced to 22 per cent plus surcharge and cess, as against 30 per cent at present, says FM
Date of approval of affordable housing projects for availing tax holiday on profit earned by developers extended by 1 year: FM
Finance Minister abolishes DDT. Companies will not be required to pay DDT; dividend to be taxed only at the hands of recipients, at applicable rates
Proposes Personal Income Tax and Simplification of Taxation system: "The interim budget exempted individuals up to Rs 5 lakhs from any income tax (with deductions). The income tax act is riddled that makes it a burdensome process. To provide significant relief and to siplify income tax labs, a new simplified income tax regime, where in income tax rates will be significantly reduced for those who forego certain exemptions,"
Here's what Sitharaman proposes:
• 1. Tax for income in range of Rs 5-7.5 lakhs has been reduced to 10 percent slab against prevailing 20 percent.
• 2. For income between 7.5 lakhs to Rs 10 lakhs, he or she will pay at a reduced rate of 15 percent against prevailing 20 percent.
• 3. Income between 10-12.5 lakhs, the prevailing tax rate is 30 percent, that is brought down to 20 percent.
• 4. Income between 12.5-15 lakhs will be taxed at 25 percent only.
• 5. Incomes above 15 lakhs will be continued at 30 percent but no exemption.
• Those earning up to Rs 5 lakhs will not be paying any tax in old or new regime. The proposed tax structure will offer relief to middle-class.
Finance Minister offered an example saying, "a person earning Rs 15 lakhs per annum and not availing any deductions whatsoever will pay Rs 1.90 lakhs as compared to Rs 2.73 lakhs in old regime. The tax will be reduced by a huge margin."
The new regime is optional and will offer the government, tax collection of Rs 40,000 crores.
"Currently, more than 100 exemptions of different nature are provided in the income tax. I have removed 70 of them in the new simplified regime. We will review and rationalize with a view to simplifying and lowering tax rates," adds the Finance Minister.
•15th Finance Commission has given its report. In the spirit of cooperative federalism. We have in substantial measures, accepted the recommendations.
•RE (Revised Estimates) expenditure for FY20 at Rs 26.99 lakh crore, receipts at Rs 19.32 lakh crore, says Sitharaman.
•"We estimate a fiscal deficit of 3.8 percent in RE 2019-20 and 3.5 percent in BE 2020-21. This estimation is consistent with government's abiding commitments to reducing Fiscal estimates," says the Finance Minister.
•Net borrowing would be Rs 4.99 lakh crores in 2019-20. It has been fixed at Rs 5.36 lakh crores for 2020-21. "Good part is it would go towards caital expenditure of the government."
After talking of a Bullion exchange at GIFT city that would enable India to enhance potential, create jobs and lead to better price discovery of Gold, Finance Minister Nirmala Sitharaman drops a surprise:
Talks of benefits from listing companies on stock exchange and of disinvestment. The company unlocks value and allos retail investors to join the wealth creation net. Throws a surprise by stating, "A part of holding in LIC will be divested in an IPO."
•Deposit Insurance for bank deposits to be hiked to Rs 5 lakhs from currently Rs 1 lakh. A robust mechanism is in place to monitor the health of all scheduled commercial banks. In the wake of crises such as PMC bank, the FM assures that the money deposited by individuals is absolutely safe.
•For NBFCs: Limits for eligibility under SARFAESI act has been proposed to be reduced from Rs 500 crores to Rs 100 crores. Or loan size of existing Rs 1 crore to Rs 50 lakhs. NBFCs will find accessing debt recovery tribunals more approachable.
•New scheme to provide subordinate debt to MSMEs announced.
•IDBI Bank: Balance of holding IDBI bank to retail and institutional ivnestors through stock exchanges.
A national recruitment agency as an independent and specialized institution for common eligibility to non-gazetted officers.
Amid boos from the opposition, Sitharaman says that the program has given tremendous results with Gross Enrolment Ratio higher for girls than for boys at all levels.
For Scheduled Caste an outlay of Rs 85,000 crores. For Scheduled tribes, an amount of Rs 53,700 crores has been allocated.
Rs 9,500 crores have been provided for 2020-21.
Government has harnessed new technology to enable Direct Benefit Transfers on a scale like never before: FM
We will soon roll out policy to enable private sector to build data centre parks throughout the country says FM. This will help is storing and dissemination of data better.
The FM also proposed special plan to include young engineers, management graduates and economists. According to her, a huge employment opportunity exists for India's youth in construction, operation and management of infrastructure in the country. FM proposes Rs 8,000 crore outlay over 5 years for National Mission of Quantum Technology and Application. One lakh gram panchayats will be connected to the optical fibre programme.
A special cost advantage for electronics manufacturing in India has been proposed for more investments into schemes to encourage manufacturing of mobile phones, semi-conductor packaging and electronic equipment. A detailed scheme with details to be released soon.
On Exports, a new scheme Nirvik will be offered for exporters. This will have lower premiums and a faster claims settlement. Refund to exporters the duties levied including electricity and VAT which have been not refunded. This will be launched this year itself, says FM. Each district will have to be developed as an export hub. The governments e-marketplace has a lot of opportunities for SMEs.
100 more airports will be developed to provide support to the PM Udaan scheme: Finance Minister Nirmala Sitharaman
Speaks on schemes launched by the Indian Railways, speaks on Wi-Fi connectivity offered by the Indian Railways.
• A large solar power capacity alongside rail tracks on the land owned by the Railways.
• More station redevelopment programs.
• More Tejas like trains to connect major tourist attractions of India.
• More high speed trains such as the one between Ahmedabad and Mumbai to be started.
• Bengaluru suburban rail to be offered additional boost.
FM says TB Harega, Desh Jeetega campaign has been strengthened to end Tuberculosis by 2025 in the country. Rs 69,000s crore has been provided for the healthcare sector of which PM Jan Arogya Yojana will get Rs 6,400 crore. Mission Indradhanush has been extended to cover new diseases and new vaccines. Fit India is also a part of this outlay. The FM elaborates that there are 20,000 empaneled hospitals in Ayushman Bharat and there is a need to add more in Tier 2 and 3 cities to benefit poor in these areas. PPP mode will be tappped to add hospitals thereby reaching out to areas where there are no hospitals. There will be 112 aspitational districts where first priority will be given.
FM says Entrepreneurship is strength of India and proposes to set up an investment clearance cell that will offer end to end facilitation and support including pre-investment advisory, info on land banks and facilitate clearance at state level. The Finance Minister proposes Rs 27,300 crores for promotion of industry and commerce in 2021.
"India imports technical textile worth 6 million dollar. A new scheme for setting up manufacturing units of technical textiles is being proposed. All ministries during the course of this year will launching quality orders: Nirmala Sitharaman."
"There exists a huge demand abroad for teachers, paramedical staff and care givers. But their skills do not match the required ones by employers. My government proposes Rs 3000 crore for skill development," adds Sitharaman.
Announcement of Rs 99,300 crore outlay for education sector in 2020-21, also proposed are a national Police university, and a national forensic science university. Speaking of Government, Sitharaman says, Urban local bodies will provide internship to young engineers for a year. On degree level online education courses, Sitharaman adds that these programs can be provided by colleges in the top 100 list by National Educational Institute List.
Expanding on the new education policy, the FM says new courses will be introduced in 150 universities by 2026. Also proposed are an SAT exam for students of Asia and Africa to promote "study in India" programme.
For Jal Jeevan mission, Rs 11,500 crore has been allocated in this financial year. Proposes to expand Jan Aushadhi scheme to provide for all hospitals under Ayushmann Bharat by 2025: Nirmala Sitharaman. Nirmala Sitharaman says Rs 12,300 crore has been allocated for Swachh Bharat mission in budget 2020. "Our government is committed to open-defecation free (ODF) plus in order to sustain ODF behaviour. Solid waste management and grey water management are important," she adds.
Finance Minister talking about fund Allocation for agriculture, says it is under majorly 2 broad categories. "For sector comprising agriculture, allied activities, irrigation and rural development, an allocation of Rs 2.8 lakh crores have been made for 2021."
1. We propose to encourage state governments that undertake implementation of already issued central government passed model laws.
2. Water stress related issues are a serious concern. Comprehensive measures proposed for 100 water stressed districts.
3. In budget 2019, I said Annadata could be Urjadaata. The scheme is expanded to allow 20 lakh formers to set up standalone pumps. We will help another 15 lakh farmers to solarize their grid connected pump-sets. Farmers, if they have barren lands will now be helped to setup solar generated units, They will be able to make a living out of that.
4. Our government will encourage balanced use of all fertilizers, including traditional and other innovative ones. This is a necessary step to change the incentive scheme that leads to excessive use of chemical fertilizers.
Quotes Atichudi written by Tamil Saint Avaiyar, saying that farm land should have sufficient manure and water and not excessive one.
5. 152 mn tons of cold storage. Nabard entrusted with the operations. Viability gap funding for setting up efficient warehouses at block/Taluka level. FCI and Central warehousing corporation shall undertake such buildings on their own land.
6. Village storage scheme to be run by SHGs: This will help farmers reduce logistics costs. Women SHGs can avail of Mudra or Nabard assistance and become Dhaanya-Lakshmi.
7. indian Railways to set up Kisan Railways. There will be refrigerated coaches to enable transportation of perishable goods such as meat and milk.
8. Krishi Udaan to be innaugrated by Civil Aviation ministry to improve value for farmers.
9. Horticulture: With current produce of 311 mn tonnes exceeds production of food-grains. For better marketing and exports, government to support states that will focus on one product at one district. "A hi-focus is given on district level," says FM.
10. Integrated farming system in rain-fed areas. Bee keeping, solar energy production to be added. Zero Budget Natural Farming will also be included.
Portal on Jaivik Kheti and organic product market to be strengthened.
11. Financing on negotiable warehousing receipts: Crossed more than 600 crore. This will be integrated with e-NAMs.
12. NBFCs & Cooperatives: Are active in agricultural credit space. Nabard scheme to be expanded. Agri credit availability has been set at 15 lakh crores. All eligible PM-KISAN farmers can avail of Kisan Credit Card scheme.
13. Food and Mouth, Cattleosis and PPR in sheep and goat to be eliminated.
14. Blue Economy: A framework to be created
15. Fish processing. Proposes to raise fish production to 200 lakh tonnes.
16. Deen Dayal Antyodaya Schemes: 15 lakh SHGs have been mobilized.
Quipped a Kashmiri Phrase, and then offered the translation in Hindi.
"Hamaara Vataan, khilete hue shaalimar baagh jaise...
Hamaara Vataan, Dal lake main khilte hue Kamal jaisa...
Nav Javaaon ke garam khoon jaisa...
Mera Vataan, Tera Vataan, Hamaara Vataan, Duniyaa ka sabse pyaara vatan."
"It is everything that we do here, everything that we speak through budget and everything that this government does with the guidance of leadership of our Prime Minister. Poem written by Deen Dayal Kaul a Sahitya Academy winner."
Sitharaman hails two factors- On one side, Analytics, Machine Learning and Robotics, Bio-Informatics and Artificial Intelligence, and the other factor is the number of people in the productive age group of 15-65 being the highest. "These are the two cross-cutting streams while we are talking about budget. These are special to contemporary India," she says.
The budget is focussed on three prominent things- Economic Development, Caring Society and Aspirational India.
Sitharaman says:Speaking about GST, the Finance Minister remembers her predecessor remembering his efforts to the country during GST implementation. She said, "I pay homage to the visionary leader later Arun Jaitley. At the time of the rollout of GST, he had said: India will be an India where the centre and states will work harmoniously...will rise out of narrow politics for the country's sake". True to this vision, the GST has been gradually maturing to a tax integrating the country. It has resulted in efficient gains in logistics and transport sector. Turnaround for transport sector has turned down dramatically.. and has led to significant benefits to MSMEs,"
Transition was daunting, GST council is proactive in resolving issues during transition. In last 2 years, we have added more than 60 lakh new tax payers. A total of 40 crore returns were filed. 800 crore invoices, and 105 crore e-way bills generated. A simplified new return system is introduced from 1st April 2020. Former PM
Sitharaman:"In May 2019, PM Modi received a massive mandate again. We commit ourselves to serve the people of India with all humility and dedication: FM...People have unequivocally given the Janadesh in the Modi government...
"This is a budget to boost their income and enhance their purchasing power. Let our businesses be innovative, healthy and solvent with use of tech says FM. For youth, for every member of SC and ST, for every woman wishing to get counted. For minory sections, this budget aims to give wings to their aspirations."
Finance Minister to lay on table, a copy of the Report of 15th Finance commission and explanatory memorandum on actions taken by the 15th Finance Commission. Lok Sabha speaker hails it as First Budget of the new decade.
The house has begun business for the day.
Budget papers have reached the Parliament, and Finance Minister will commence on a meeting with Prime Minister Narendra Modi and other ministers. Budget to commence in a few minutes.
Its a red colored Bahi Khaata for 2020 as well. Union Finance Minister Nirmala Sitharaman has reached Parliament. She called upon the President Ram Nath Kovind. Pictured in a frame were finance ministry officials, MoS for state Anurag Singh Thakur, the Finance Minister and the President. The budget has been expected to commence in a few minutes. Stay tuned on this page for all the latest live updates and announcements.