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03 Feb 2020Posted By: Mudit Handa


What are the High Tides of Union Budget 2020?

The Union Budget 2020 was presented on 1st February 2020 in the parliament by the Honorable Finance Minister of India Smt. Nirmala Sitharaman.

This is indeed a tax-friendly budget and has surely given a sigh of relief to 135 million taxpayers who were expecting a reduction in the income tax slab.

On the whole, this year’s budget is focussed on boosting economic growth by reducing the tax burden and sparing more money into the hands of taxpayers. This will boost the consumption level and further increase production and thus boost the economy.

The government has extended enormous tax relief and notified an all-new Income tax slab. Now, income up to ₹5 lakhs shall be totally tax-free.

Let us discuss in detail about the key highlights of Union Budget 2020.

 

#1. Economic targets

The Finance minister has revealed that during the FY 2019-20, the government expenditure has been ₹30.42 lakh crores and government revenue has been  ₹22.46 lakh crores. Accordingly,

  • The nominal GDP target for FY 2020-21 is 10%.

  • The fiscal deficit target for FY 2020-21 is 3.5%.


#2. Agricultural measures

With a view to enhance agricultural output and give a boost to this sector, the following measures have been introduced-

  • Agricultural credit to the tune of  ₹15 lakh crore shall be provided to farmers.

  • ₹2.83 lakh crore shall be allocated for the irrigation


#3. Healthcare reforms

In order to enhance public healthcare, the following measures shall be taken-

  • ₹69 lakh crore shall be allocated for the healthcare sector.

  • ₹28,600 crores shall be allocated for women healthcare. 


#4. Educational Reforms

In view of promoting and improving education and skill development, the following measures shall be taken-

  • ₹99,000 crore shall be allocated for the education sector.

  • ₹3 lakh crore shall be allocated for the purpose of skill development.

  • ₹35,600 crores shall be allocated for improving the nourishment.


#5. Infrastructural reforms

Indeed, Infrastructure is the basis of the economy. Keeping this in mind, the government has announced the following initiatives to be taken-

  • ₹27,300 crores shall be allocated for the development of commerce & industry.

  • ₹2,500 crores shall be allocated for the tourism sector.

  • 2,000km of coastal & land ports to be developed.

  • 1,000 airports to be constructed till 2024

  • 9,000km of economic corridors to be developed.

  • 2,500 km access control highways to be built.

  • Delhi-Mumbai expressway to be completed by the year 2023.

  • Chennai-Bangaluru expressway to be begun in 2020 itself.

Note: Very importantly, the G20 summit is to be hosted this year by India. A total of ₹100 crores shall be spent for this purpose.


#6. Ease of living

In order to enhance the ease of living of the citizens, the following measures shall be taken-

  • ₹22,000 crore shall be allocated for power & renewable resources.

  • 5 new smart cities shall be launched under public-private partnership mode.

  • Smart meters to be installed for fair & transparent collection.

  • ₹5,958 crores shall be allocated for development in Ladakh

  • ₹9,500 crores shall be allocated to the Senior citizens.

  • ₹12,300 shall be allocated for Swachh Bharat Mission

  • ₹3.6 lakh crore shall be allocated for Jal Jeevan Mission

  • ₹4,400 crores shall be allocated for ensuring clean air.


#7. Government e-Marketplace

The Government e-Marketplace has emerged as a progressive platform for the growth & development of MSMEs in India.

In this regard, the government has revealed that over 3.24 lakh vendors have got the GeM registration as sellers. Hence, the government has now proposed to take the turnover of the Government e-Marketplace to ₹3 lakh crore during FY 2020-21.

Truly, the sellers having GeM registration have bright prospects this year.


#8. Goods & Services Tax reforms

As per the government, the Goods and Services Tax has not only enhanced ease of doing business but has also increased savings of the taxpayers having GST registration

Now, the government has proposed to enhance the GSTN by introducing Artificial Intelligence (AI) for easing the following procedures:

  • Electronic GST refund

  • Improving the GST return filing procedure

This will truly boost the convenience of the merchants having GST registration.

So these are the key highlights of Union Budget 2020.

Also, read about the Direct tax reforms in Union Budget 2020.

Also, refer to the 

If you need any further guidance as regards the GST registration, GeM registration or Income-tax return filing procedure, please feel free to contact our business advisors at 8881-069-069.

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