Union Budget 2020-21 highlights

• It proposes new income tax structure for individuals willing to forego certain exemptions and deductions 

• Under the new structure, income of Rs 5-7.5 lakh to attract 10 per cent tax, Rs 7.5-Rs 10 lakh 15 per cent, Rs 10-12.5 lakh 20 per cent, Rs 12.5-15 lakh 25 per cent, above Rs 15 lakh 30 per cent 

• Income up to Rs 5 lakh to remain exempt from tax

• Bank deposit insurance coverage increased to Rs 5 lakh from Rs 1 lakh

• Dividend Distribution Tax at the hands of companies abolished; dividend to be taxed at the hands of recipients as per applicable slab

• Govt to sell part of stake in LIC through IPO

• India fifth-largest economy, USD 284 billion FDI inflows during 2014-19

• Fiscal deficit for FY20 estimated at 3.8 per cent, up from 3.3 per cent projected earlier * Fiscal deficit for 2020-21 projected at 3.5 per cent

• 2020-21 net market borrowing pegged at Rs 5.36 lakh crore

• Disinvestment proceeds pegged at Rs 1.20 lakh crore for 2020-21, up from Rs 65,000 crore in current fiscal

• Receipts estimated at 22.46 lakh crore, expenditure at Rs 30.42 lakh crore in 2020-21 based on nominal GDP growth of 10 per cent 

• PAN to be allotted instantly on the basis of Aadhaar

• Central government debt reduced to 48.7 per cent of GDP in March 2019, from 52.2 per cent in March 2014

• Proposal to sell the balance government holding in IDBI Bank to private, retail and institutional investors through stock exchanges 

• Defence outlay pegged at Rs 3.23 lakh crore in 2020-21, up from Rs 3.16 lakh crore this financial year

• Railways to set up 'Kisan Rail' through PPP

• Krishi Udaan will be launched by civil aviation ministry on international and national routes 

• Outlay for agriculture and allied activities pegged at Rs 2.83 lakh crore, Nabard's re-finance scheme to be further expanded Agriculture credit target for the year 2020-21 set at Rs 15 lakh crore

• Viability gap funding for setting up hospitals in PPP mode under Ayushman Bharat 

• Health sector and Swachh Bharat outlay pegged at Rs 69,000 crore and Rs 12,300 crore, respectively, in 2020-21 

• New Education Policy to be announced soon

• Steps would be taken to enable sourcing external commercial borrowings and FDI in higher education

• National Police University and National Forensic Science University are being proposed

• Rs 99,300 crore outlay for the education sector in 2020-21 and Rs 3,000 crore for skill development 

• Proposes 'Investment Clearance Cell' to provide 'end-to-end' facilitation and support, including pre-investment advisory, information related to land banks and facilitate clearances at Centre and state level 

• Proposes a scheme focussed on encouraging manufacture of mobile phones, electronic equipment and semi-conductor packaging 

• National Technical Textiles Mission proposed with a 4-year implementation period from 2020-21 to 2023-24 at an outlay of Rs 1,480 crore 

• NIRVIK scheme being launched to provide for higher insurance coverage, reduction in premium for small exporters and simplified procedure for claim settlements 

• Proposes to digitally refund to exporters duties and taxes levied at the central, state and local levels

• National Logistics Policy to be released soon, to create a single-window e-logistics market and focus on employment generation 

• Delhi-Mumbai Expressway would be completed by 2023, Chennai-Bengaluru Expressway would also be started

• More Tejas-type trains will connect iconic tourist destinations

• High-speed train between Mumbai and Ahmedabad would be actively pursued

• The government would consider corporatising at least one major port and, subsequently, its listing on bourses * Rs 1.70 lakh crore outlay for transport infrastructure in 2020-21

• Urges states and UTs to replace conventional energy meters by prepaid smart meters in the next 3 years to give consumers the freedom to choose the supplier. Further, measures to reform Discoms would be taken 

• Rs 22,000 crore outlay for the power and renewable energy sector in 2020-21

• Proposes to expand the national gas grid from the present 16,200 km to 27,000 km 

• To deepen gas markets in India, further reforms will be undertaken to facilitate transparent price discovery and ease of transactions Policy to enable private sector to build data centre parks throughout the country soon

• Rs 6,000 crore outlay to the BharatNet programme in 2020-21

• Proposes a task force to recommend on women's marriageable age

• Budget allocation of Rs 85,000 crore for Scheduled Castes and Other Backward classes, Rs 53,700 crore for Scheduled Tribes for 2020-21 

• Amendments proposed in Companies Act

• Rs 30,757 crore allocated to Union territories of J&K and Ladakh

• Govt to ask RBI to allow MSMEs to restructure debt till March 31, 2021

• FPI limit in corporate bonds hiked to 15 per cent of outstanding stock, from 9 per cent 

• New debt-ETF, consisting primarily of government securities, to be floated

• Proposes lower tax rates for cooperatives at 22 per cent with 10 per cent surcharge and 4 per cent cess. 

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