February 01, 2020

Complete Budget 2020 Updates including Finance Bill, Budget Speech & Memorandum 2020 links

Introduction of speech


• FM: Have added 60 lakh, new taxpayers
• FM: Households saved 4% on monthly spends after GST implementation
• FM: FDI increased from $119 bn in 2009-14 to $284 bn in 2018-19
• FM: Central govt debt reduced to 48.7% of GDP in Mar 2019 from 52.2% in March 2014
• FM: We are committed to the goal of doubling farmers' income by 2020

Agriculture Sector
• FM: We are committed to the goal of doubling farmers' income by 2020
• We want to encourage state governments to implement model agricultural laws passed by central government: FM
• We shall help 15 lakh farmers solarize their grid-connected pump sets: FM
• FM Sitharaman speaks about the government's efforts to promote the use of solar energy in the farming sector
Govt laying down 16 actionable points to enhance farmer income
• `1.23 lakh cr to be allocated for rural development, Panchayati Raj: FM
• Rs 2.83 lakh crore to be allocated for Agri, irrigation, Agri companies
• Govt to expand fish production capacity to 200 lakh tonnes +ve for Avanti Feeds, Waterbase
• Will expand Fish Production capacity to 200 lakh tonnes: FM
• Milk processing capacity to be expanded to 108 T from 53.5 T
• Agriculture credit target is at `15 lakh cr vs `12 lakh cr (YoY): FM
• Indian Railways to set up a Kisan Rail for the transport of perishable goods +ve for CONCOR, Navkar Corp
• All beneficiaries of PM Kisan scheme to be covered under the Kisan Credit Card
• NABARD re-finance scheme to be expanded to push agricultural credit
• Govt to strengthen national online organic products market: Nirmala Sitharaman
• Govt to launch village storage schemes run by women self-help groups +ve for storage warehouse cos.
• Horticulture sector exceeds the production of food grain: FM
• Indian Railways to set up Kisan Rail for the transport of perishable goods
• Village storage scheme proposed to be run by self-help groups
• Government to provide viability gap funding for setting up warehouses
• Govt looking to change existing regime that promotes excessive use of chemical fertilizers
• Looking to change the existing regime that promotes excessive use of chemical fertilizers: FM Sitharaman
• Govt to help farmers set up solar power units
• Govt to expand 'PM Kusum Scheme' to 20 lakh farmers to set up solar pumps
• Govt to help farmers set up solar power units
• Expand 'PM Kusum Scheme' to 20 lakh farmers to set up solar pumps: FM
• Govt proposing comprehensive measures for 100 water-stressed districts
• Proposing comprehensive measures for 100 water-stressed districts: FM Sitharaman

Educational and Health sector
• FM says Rs 99,300 crore allocated for the education sector in FY21 +ve for the education services provider
• Govt plans to attach medical college to district hospitals via PPP model +ve for healthcare
• Moots 1-year internship for engineers by urban local bodies: FM Sitharaman
• Govt to promote 'Study in India'
• Propose to start IND-SAT Exam for Asian & African students: FM
• Govt allocates Rs 69,000 crore for the health sector in FY21 +ve for pharma cos
• Govt to start full-fledged online degree programs for underprivileged students
• 150 higher education institutions to offer apprenticeship diplomas by March 2021 +ve for education cos
• To source more ECB & FDI for Education Sector: FM Sitharaman
• New education policy to be announced soon: FM
• Govt aims to eradicate tuberculosis by 2025
• Rs 3.6 lakh cr allocated for Jal Jivan Mission: FM
• Allocate Rs 69,000 cr for the health sector in FY21
• Govt to set up more hospitals under 'Ayushman' scheme
• Proceeds from tax on medical devices to be used to fund hospital development +ve for hospitals
• FM says proceeds from a tax on medical devices to be used to fund hospital development
• To provide viability gap funding for setting up hospitals under PPP model: FM
• Need to impanel more hospitals in Tier-II & III Cities: FM
• Govt to provide viability gap funding for setting up hospitals under PPP Model +ve for hospital cos

Industry and commerce
• Rs 27,300 cr allocated for the development of industry & commerce in FY21
• Govt to start digital refund of state & central taxes to exporters
• Rs 1,480 cr allocated for textile mission: FM Sitharaman
• FM says need to boost manufacturing & attract investment in electronics chain
• Five new smart cities in collaboration with states via PPP: FM
• Govt to set up investment clearance cell for end-to-end entrepreneurial facilitation
• Entrepreneurship has always been the strength of India: FM

Infrastructures and civil development
• FM announces 5 measures for Indian Railways
• FM: 4-station re-development projects in railways via PPP Models
• Govt to launch Rs 18,600 crore worth Bengaluru Suburban Transportation Project +ve for infra
• Delhi-Mumbai Expressway to be completed by 2023
• NHAI to monetize 12 lots of highway bundles of 6,000 km by 2024: FM Sitharaman
• Govt to develop solar capacity in Indian Railways +ve for solar panel providers
• FM: Govt to set up 9,000 km economic corridor, 2,000 km of a coastal road
• National Logistics Policy to create a single-window e-logistics market, says FM
• Govt will be starting Chennai-Bengaluru Expressway +ve for road developers
• National Logistics Policy to release soon: FM Sitharaman
• FM says National Logistics Policy to create single-window e-Logistics market
• National Infra Pipeline worth Rs 103 lakh cr involves 6,500 Projects: FM
• Budget 2020: Govt to launch 'village storage scheme' for women in villages to regain 'Dhaanya Lakshmi' status
• National infrastructure pipeline envisions improving ease of living

Ease of Living
• Govt to set-up the Indian Institution of Heritage & Conservation
• Govt allocates Rs 85,000 cr for scheduled castes & OBCs in FY21
• FM says 5 archaeological sites to be developed as iconic sites +ve for NBCC
• Centre allocates Rs 53,700 cr for scheduled tribes in FY21
• Govt allocates Rs 28,600 cr for women-centric programs in FY21
• “Prepaid smart metering and freedom to choose power supplier will lay the ground to bring competition in the power sector and give consumers a choice,“ says KPMG.
• Favor keeping states' share in tax revenue at 42%: Finance Minister
• Gross enrollment of girls across the country is higher than boys: FM Sitharaman
• Govt allocates Rs 8,000 cr over 5 years for National Mission Quantum Technology
• Centre allocates Rs 6,000 cr for BharatNet Program in FY21
• Govt to come out with a policy for building data center parks: FM
• Govt will expand National Gas Grid to 27,000 Km from 16,200 Km
• FM allocates Rs 22,000 cr to power & renewable sector
• Govt to come out with a policy for building data center parks +ve for NBCC
• Smart electricity meters to give consumer freedom to choose a supplier
• Rs 1.7 lakh cr allocated for transportation in FY21
• FM says rail tracks to be electrified
• 100 more airports to be developed by 2024 to support 'UDAN': FM
• Govt plans more Tejas-type trains to connect tourist locations
• Centre to provide 20% equity for Bengaluru Suburban Transportation Project
• A long time requirement for the Agri sector has been heeded by the govt in its commitment to build a seamless cold supply chain for perishables. This is important taking into account that we are very low in cold chains and most are for potato.

Country development
• Promoting ease of living is the goal of Modi government: FM
• National security is the govt's top priority: FM Sitharaman
• Wealth creators will be respected in India: Finance Minister
• Centre proposes Rs 4,400 cr for clean air in FY21
• Advised to shut thermal power units if emission above limit: FM Sitharaman
• Will incentivize states promoting clean air in cities with a population above 1 million: FM
• FM says need to boost manufacturing & attract investment in electronics chain
• FM says Rs 2,500 crore allocated for tourism promotion in FY21
• Rs 3,100 cr allocated for Ministry of Culture in FY21
• Four more museums to be taken up for renovation & recreation: FM
• Centre allocates Rs 9,500 cr for senior citizens & handicapped for FY21
• 5 archaeological sites to be developed as iconic sites

Banking and Finance Sector and Disinvestment
• Hiking foreign investor access to government securities positive for yields: CRISIL
• Govt to transfer balances into GST compensation fund for 2016-18

• Govt plans to raise fund via LIC IPO: FM
• GIFT City to set up international bullion exchange
• Rs 22,000 cr of Rs 103 lakh cr already provided for infrastructure: FM
• Govt to enhance partial credit guarantee scheme for NBFCs
• FPI Limit in corporate bonds to be raised to 15% from 9%
• FM says recent CPSE Debt ETF has been a big success
• New debt ETF to be launched consisting mostly of G-Secs: FM
• NRIs to be allowed to invest in certain categories of G-Sec
• Govt asked RBI to mull extending MSME recast window by 1 more year, says FM Sitharaman.
• FY21 fiscal deficit target pegged at 3.5% of GDP: Bloomberg
• FY20 fiscal deficit seen at 3.8% of GDP: Bloomberg
• Centre to allow NBFCs to extend invoice financing to MSMEs
• Govt to sell stake in IDBI Bank to private investors
• Govt to amend banking regulation act to strengthen co-operative banks
• NBFC eligibility for SARFAESI Act reduced to Rs 100 cr from Rs 500 cr AUM
• Deposit insurance coverage increased to Rs 5 lakh from Rs 1 lakh: FM
• PSBs will be encouraged to approach capital markets for fundraising, says FM Sitharaman
• Govt has infused Rs 3.5 lakh crore in PSU banks over last few years
• Govt to allocate Rs 100 cr for hosting the G20 Summit In 2022
• Govt to bring national policy on official statistics
• Centre to launch a common entrance test for recruitment of non-gazetted posts
• Govt proposes to amend the Companies Act to bring criminal liability in certain areas
• FM says Govt to launch new export credit scheme called 'NIRVIK'
• Tax harassment cannot be tolerated: FM
• To enshrine a taxpayer charter in the statute: FM


Economic budget statistics
• Saw substantial loss of revenue due to Corp tax cut in the short term: FM Sitharaman
• FY21 total expenditure seen at Rs 30.42 lakh cr
• Net market borrowing for FY20 at Rs 4.99 lakh cr
• Net market borrowing for FY21 at Rs 5.36 lakh cr
• Have undertaken deviation of 0.5% for FY20 fiscal deficit, says FM
• Have used FRBM trigger mechanism for fiscal deficit deviation: FM
• FY20 fiscal deficit seen at 3.8% of GDP vs earlier target of 3.3%
• Govt pegged FY21 fiscal deficit target at 3.5% of GDP

• FM says all flagship schemes by govt have been fully provided for
• Receipts estimated at Rs 22.46 lakh cr for FY21: FM
• Revised receipts for FY21 at Rs 19.32 lakh cr: FM
• FY21 nominal GDP growth pegged at 10%: FM
• Revised expenditure estimate for FY20 at Rs 26.99 lakh cr: FM
Direct Taxation
• Govt to amend Income Tax Act so merged PSU banks can absorb losses
• FY21 divestment target said to be Rs 2.1 lakh cr vs FY20 target of Rs 1.05 lakh crore
• Interest & penalty waived in dispute settlement scheme till March 31, 2020
• Govt to launch new direct tax dispute settlement scheme
• Govt to launch 'Vivaad Se Vishwas' Scheme to reduce tax litigation
• Govt to amend I-T Act to allow faceless appeals
• To make the process of registering charitable institutions electronic: FM
• Tax holiday for affordable housing extended by 1 year
• Higher deposit insurance will cover 75% of all depositor vs 61% earlier: CRISIL
• Audit threshold for MSMEs raised to Rs 5 cr from Rs 1 cr
• Tax on co-operative societies reduced to 22% from 30%
• Govt proposes to make tweaks to tax structure for start-ups
• FM extends concessional 5% withholding tax to municipal bonds
• FM announces a 100% tax exemption on sovereign wealth funds' infra investment
• Tax cuts positive for household savings, which have been falling but need to watch how much of that is spent on consumption: CRISIL
• FM proposes to allow deduction of dividend received by holding cos from units
• New power generation cos to be offered a 15% tax rate: FM
• Revenue loss of Rs 25,000 cr due to the abolishment of DDT: FM Sitharaman
• Good News!! Dividend distribution tax abolished.
• Current I-T Act offers more than 100 deductions & exemptions, says FM Sitharaman
• New I-T scheme available for those willing forgo deductions, exemptions: FM
• No income tax for income up to Rs 5 Lakh
• 20% income tax for income between Rs 10-12.5 lakh vs 30% earlier
• 15% income tax for income between Rs 7.5-10 lakh vs 20% earlier
• 10% income tax for income between Rs 5-7.5 lakh: FM
• Saw substantial loss of revenue due to Corp tax cut in the short term: FM Sitharaman

Allied Taxation
• Decriminalising civil offenses under Cos Act & allied laws
• Govt to review rules of origin for imports under a free trade deal
• Customs duty on footwear & furniture to be reduced: FM
• Looking at inverted duty structure under GST: FM
• Govt introduces Aadhaar-based verification for Indirect Taxes

Follow links for government records:

For Finance Bill, 2020

For Memorandum, 2020

For Speech of Our Honorable Finance Minister- Nirmala Sitharaman

 

Read more & stay tuned for more details on Unionbudget2020 , Incometaxslabs , Budget2020 , Nirmalasitharaman, Budget2020 , Dividentdistributiontax , BudgetSession2020

  • Share: