Union Budget 2020: This budget will redefine the economy of India – FM Nirmala Sitharaman

Today Finance Minister Nirmala Sitharaman presented the first budget of the decade. Before presenting the budget, FM Sitharaman paid homage to late former FM Arun Jaitely for enlighting the Indian economy with the concept of GST (One nation, one tax).

Key features of Union Budget 2020

Nirmala Sitharaman opened her speech by overwhelming PM Modi for achieving a clear mandate in the 2019 elections. She further added, “We commit ourselves to serve the people of India with all humanity and dedication. This is the budget to boost their income and enhance their purchasing power. Only through higher growth, we can achieve that.”

“Let all business be innovative, healthy and solvent with the use of technology,” FM added.

“For today’s youth, born at the turn of the century, for every member of the Schedule Caste and Schedule Tribe, who seek for a better life, for every woman wishing to stand up and get counted, for every individual belonging to the minority section of our society, this budget aims to give aspiration and hopes addressed,” FM added.

“During 2014-19, our government brought a paradigm shift in the government, this shift was characterized by a twin focus, ‘fundamental structural reform’ and ‘inclusive growth’, fundamentals of the economy are strong and that has assured microeconomic stability, inflation has been well contained, banks saw thorough cleaning up of accumulated loans of past decade and then they were recapitalized. Companies were provided an exit through IBC (Intermediate Bulk Container).

“In the last two years, we have added six million people to the list of goods and services taxpayers list. A total of rupees 40 crores were filed, there has been extensive engagement with stakeholders who filed new returns.”

“Before the Modi government, only 15 paise of a rupee was reaching to the subsidiaries by the government welfare schemes but now with the help of government-run Jan-Dhan Yojana, now the whole social welfare amount is directly transferred to the beneficiaries account. This has eliminated the broker business.” FM added

FM listed out a few governments schemes as example that directly benefited the poor and disadvantaged:

  1. Benefit schemes with direct welfare transfer to Jan-Dhan account.
  2. Water and sanitation as the probation of basic need as a major for preventive health for all.
  3. Healthcare through Ayushmaan Bharat.
  4. Clean energy from Ujjwala Yojana and solar power.
  5. Financial inclusion credit support in insurance protection to the vulnerable section and pension scheme.
  6. Digital penetration with broadband and UPI.
  7. Affordable housing for all through PMAY (Prime Minister Awas Yojana).

“Between 2006-16 India was able to raise 271 million out of poverty,” FM added.

We are the fifth largest economy of the world, India’s FDI (foreign direct investment) got elevated to 284 billion US Dollars during 2014-19 from 190 billion US Dollars came in the year during 2009-14 (INC era).

“The central government debt that was 52.2% of our GDP got reduced to 48.7% of the total GDP in March 2019. This is the greatest achievement by any government in the past,” FM added

This budget is woven around 3 prominent themes:

  1. Aspirational India, in which all the sections of society seek better standards of living with access to health, education, and better jobs.
  2. Economic Development for all, which will follow the ideology of ‘Sabka Saath, Sabka Vikas, Sabka Vishwaas’. This will also focus on creating more space for the private sector that will ensure higher productivity and better efficiency.
  3. Caring Society, we will focus on creating a society that human and compassionate like Antodaya Yojana.

“Our government is committed to the goal of doubling the farmer’s income by 2022”. She further added “we have provided energy sovereignty through Kusum Yojana and input sovereignty through Paramparagat Krishi Vikas Yojana. We have provided recipients to 6.11 crores farmers insured under Pradhanmantri Fasal Beema Yojana.”

“Substantial support and handholding of farm-based activities such as live stocks, APAV and fisheries need to be provided for.”

“We propose 16 key points for bettering the farming and farmer’s condition of our country,” FM added

  1. Modern agricultural land leasing act of 2016, modern agricultural produced and livestock marketing act of 2017, modern agricultural produced and livestock contract farming and services promotional and facilitation act 2018. We would like the state government to follow these above mentioned 3 farming act for enhancing the agricultural sector of our country.
  2. Water stress-related issues are now a serious concern across the country. Our government is proposing comprehensive measures for 100 water-stressed districts.
  3. In the budget speech of 2019, I have stated that AnnData can be UrjaData also. Kusumbh Yojana removed farmers’ dependency on diesel and kerosine and linked irrigation pump sets solar energy. Now we are proposing to provide solar energy run pump sets to 20 lakh farmers across the country. Along with these 20 lakh farmers more and more will be included to solarise their grid water pumping sets.
  4. Our government is going to introduce balance use of fertilizers including the traditional organic and other innovative fertilizers. This step will reduce the excessive use of chemical fertilizers.
  5. Rs 2.83 lakh allocated for growth of agriculture, and rural development
  6. SHG’s of villages will provide the holding capacity of farmers.
  7. Milk production capacity to be doubled by 2025
  8. Indian Railway will set up Kisan Rail for transportation of perishable goods
  9. Fish production to be raised by 200 lakh tonnes by 202-23
  10. Krishi aviation to be launched by the Ministry of Civil aviation on international routes.

EDUCATION

  1. A medical college to be attached to every district
  2. Rs 3000 crores allocated for skills development
  3. IND-SAT exam to be held at several countries of Asia and Africa
  4. Full-fledged online education courses to be held by 100 top institutes
  5. Government announces a total of Rs 99,300 crores budget to the education sector
  6. New education policies to be announced
  7. Urban local bodies to provide internships to the young engineers
  8. Rs 8000 plus the amount to be quantum technology and applications

HEALTH

The budget provide additional Rs. 69000 crores to the health sector and proposed an expanse of Jan Aushadhi Kendra in all the districts throughout the nation.

FINANCE

  1. Deposit insurance coverage to be increased from Rs 1 lakh to 5 lakh
  2. Ensures elimination of harassment of taxpayers
  3. New schemes to provide a higher insurance cover
  4. Rs 27,300 crores for development of industry and commerce
  5. Investment clearance cell to be set up through a portal, to support information and land banks
  6. Amendments to be made to make changes in NBFC to extent invoice financing through MSME
  7. The government also proposes to sell a part of its holding of LIC.

ENERGY

  1. Also, she urged all UTs to remove their conventional energy meters by the end of 3 years
  2. Rs 22,000 crores to be provided to the power and renewable energy sector
  3. More Tejas-type train to connect to iconic destinations
  4. The development of highways will be undertaken. Delhi-Mumbai expressway and other two projects will be completed by 2023.
  5. National Logistic policies will soon be released
  6. Project preparation facility to be set up for infrastructural projects
  7. Fiber to the Home connection under Bharat Net. Rs 6000 crores to be provided to Bharat Net.
  8. Policies for the private sector to build Data Center Park throughout the country
  9. National Gas Grid to be expanded from 16,200 km to 27,000 kms.

WOMEN AND NUTRITION

  1. Gross enrollment ratio is higher for girls than boys at all level
  2. Women-specific programs are provided of about Rs 28,600 crores.
  3. Rs 35,600 crores provided for the nutrition sector
  4. Over 6 lakh Anganwadi workers will be equipped with smartphones to upload the nutrition status of 10 crores households.

OTHER SECTORS

  1. Rs 85,000 crores to provide for the development of SC and OBCs in 2020-21, 53,700 crores for STs and Rs 9,500 crores for senior citizens.
  2. Five archeological sites to be developed.
  3. Rs 2,500 crores for tourism development
  4. Rs 3,150 crores for culture ministry.

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