Here is
the complete analysis and major highlights of the Budget 2020:
Summary Of INDIAN
Budget-2020
(01/02/2020)
(Hindi & Gujarati)
Theme: Aspirational India; Economic
Development for all & A Caring Society
Languages used in Union Budget 2020: Hindi,
English, Kashmiri, French
Theme 1:
ASPIRATIONAL INDIA
Agriculture
Sector
• Budget is aimed at doubling
farmer income by 2022 by: State governments to implement national laws such as
Contract Farming, 2018, APMC, 2017 and Model Agriculture Land Leasing Act,
2016; Comprehensive measures to be undertaken for 100 water-stressed districts;
Provide stand-alone solar pumps to around 20 lakh farmers; Over 15 lakh farmers
with barren lands will be allowed to solarise their farms and Balanced use of
fertilisers to transform current incentive regime
• “Aathichudi by Auvaiyar. Bhoomi Thiruthi Unn”: It means to take care of your
own land first
• Village Storage Scheme run by self-help groups: Women self-help groups can
now get help from NABARD or Mudra.
• The horticulture sector has exceeded the production of foodgrains by around
311 million metric tons of production. The government will help those states
that work for ‘one product, one district’.
• Integrated Farming Systems to be developed in rain-fed areas
• Negotiable Warehousing Receipts Financing has crossed Rs 6,000 crore.
• Budget fixes the target of Agricultural Credit at Rs 15 lakh crore.
• All beneficiaries of PM Kisan scheme will now be covered under the Kisan
Credit Card (KCC) scheme.
• MNREGA will be merged for creating fodder farms.
• Fish production to be raised to 200 lakh tones by 2022-23
• Indian Railways to set up “Kisan Rail” so that farm goods can be quickly
transported. It will also be used for cold storage of goods through PPP model.
• Ministry of Civil Aviation will launch Krishi UDAN on international and
national routes.
Wellness,
Water and Sanitation
• Budget allocates Rs 12,300
crore for Swachch Bharat Mission
• Budget talks about the “Fit India Movement” in the context of India’s fight
against the NCDs - non-communicable diseases.
• Budget seeks to set up hospitals in Indian Tier-II and Tier-III cities under
the PPP model.
• Jan Aushadhi Kendra will be expanded.
• Budget allocates Rs 69,000 crore for the Health sector
Education
Sector
• Union Budget 2020 proposes
foreign direct investment, FDI and External Commercial Borrowings (ECB) in
education.
• As per the budget, 150 higher education institutions will start
apprenticeships in 2020-21.
• Urban Local Bodies have been asked to provide internship opportunities for
freshers and engineers for a period of one year.
• A degree level online education programme will be launched to provide quality
education to deprived sections students.
• INDSAT exam will be conducted in Asian and African countries under the Study
in India programme.
• Budget proposes to set up “National Police University” and “National Forensic
Science University”.
• Budget proposes to attach a Medical College to every existing district
hospitals under the PPP model.
• The Budget allocates Rs 99,300 crore for the Education sector and Rs 3000
crore for Skill development.
Theme2:
ECONOMIC DEVELOPMENT
• Union Budget 2020 proposes to
set up an “Investment Clearance Cell” to offer services such as to be set free
investment advisory, land banks and others. An online portal will be launched
in this regard.
• A new scheme proposed in electronics manufacturing to spur investments.
• National Technical Textiles Mission proposed.
• All ministries will issue quality standards. A new scheme,
• New scheme “NIRVIK” announced for fewer duties and taxes on exported
products. The scheme will be launched in 2020-21.
• Budget proposes to make each district an export hub.
• Budget allocates Rs 27,300 crore for development of industry and commerce in
2020-21
• National Infrastructure Pipeline to offer employment opportunity
• Government to form a National Logistics Policy soon
• It proposes to build the Chennai-Bengaluru Expressway
Indian
Railways
• Electrification of around
27000 km of railway lines achieved within 100 days of Modi Government formation
in 2019.
• A large solar power capacity proposed for the Indian Railways. It will be
built along the rail track on the Railways owned lands.
• Bengaluru Suburban Rail Project proposed; budget allocates Rs 18,600 crore
for this project
• By 2024, the Government would monetize 12 lots of national highways
• With the help of UDAN scheme, 100 airports will be built by 2024
• The fleet of Aircraft will be increased to 1200 planes by 2024
• Rs 1.7 lakh crore allocated for transport infrastructure
Energy
Sector
• Prepaid Smart Meters: States
will have to replace existing energy meters with the prepaid smart meters.
• Budget allocates Rs 22,000 crore for the Power and Renewable Energy Sector.
• The national gas grid will be expanded from 16200 km to 27000 km.
• A new policy will be launched for the construction of data centre parks by
the private sector.
• Bharat Net to link 1 lakh gram panchayats through Fibre to Home connections
• Budget allocates Rs 6000 crore for the Bharat Net programme
• It provides Rs.8,000 crore in the next 5 years for “National Mission on
Quantum Technology and Applications”.
Theme 3:
A CARING SOCIETY
• ‘Beti Bachao, Beti Padhao’:
Enrollment of girls in schools is higher than the boys.
• Rs 35,600 crore will be provided for nutrition-related programmes
• Task Force will be constituted to look into the issue of girls of low age
entering motherhood
• It allocates Rs 85,000 crore for development of SCs and OBCs
• It allocates Rs 53,700 crore for STs development
• It allocates Rs 9,000 crore for Senior citizens and persons with disabilities
Art
& Culture
• The government will
constitute “Indian Institute of Heritage and Conservation” as a deemed
university
• 5 archaeological sites to be developed as top-notch sites; these sites are
Rakhigarhi, Haryana
Hastinapur, Uttar Pradesh
Sivasagar, Assam
Dholavira, Gujarat
Adichanallur, Tamil Nadu
• The government will build a Tribal Museum in Ranchi.
• The budget allocates Rs 3150 crore for the Ministry of Culture
Tourism
Sector
The Tourism Sector will grow at 7.8% to Rs 1.88 lakh crore.
Climate
• The Coalition for Disaster
Resilient Infrastructure will be implemented from January 2021.
• It allocates Rs 4,400 crore to promote clean air in cities with a population
of over 1 million people.
Banking
Sector
• To avoid the case of citizen
harassment, a taxpayer charter will be enshrined in the statutes.
• For recruitment in non-gazetted posts in banks, National Recruitment Agency
will be constituted for both government and public sector banks.
• It proposes the creation of the New National Policy on Official Statistics
• Deposit insurance cover has increased tremendously from Rs 1 lakh to Rs 5
lakh.
• Disinvestment in Banks: Government’s share in IDBI Bank will be sold to the
private sector.
MSME
& Corporate Sector
• The budget proposes a new
scheme for MSMEs in the context of subordinate debt.
• The debt recast window of MSME is extended by one year to March 31, 2021.
• Certain categories of government securities will now be opened for Non-Resident
Investors.
• The FPI Limit in Corporate bond has increased to 15%.
Strategic
Disinvestment & Privatization
Finance Minister Sitharaman proposes to sell the Government’s
stake in the Life Insurance Corporation of India (LIC). For this purpose, the
LIC IPO will be launched.
Note: Budget calls for the overhaul of certain centrally sponsored
schemes which includes central government debt which is not a part of market
borrowings, however, is used for funding expenditure.
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