New Delhi:
Finance Minister Nirmala Sitharaman, who has presented her second Union Budget in Parliament today, has hiked insurance cover on deposists by Deposit Insurance and Credit Guarantee Corporation (DICGC) to Rs 500,000 lakh from Rs 100,000.
Depositors money in schedule commercial banks absolutely safe, said Sitharaman while giving the longest ever budget speech.
Soumya Kanti Ghosh, Group Chief Economic Adviser, SBI says, “This revision in DICGC coverage becomes all the more desirable, where senior citizens / retired people have no social security in place and mostly keep fixed deposits for earning interest income which in many cases becomes a part of their current income for regular upkeep.”
The Budget-2020-21 wants to achieve aspirational India, caring society, eco-development, said Sitharaman.
India is now the fifth largest economy in the world and the Central government debt has reduced to 48.7 per cent of GDP from 52.2 per cent in March 2014. She said growth of 7.4 per cent was surpassed in 2014-19 with average inflation of 4.5 per cent.
Sitharaman also listed out various welfare schemes like affordable housing, direct benefit transfer (DBT) and Ayushman Bharat.
Between 2006-2016 India was able to raise 271 million people out of poverty 16 lakh new taxpayers added to the system, An average household now saves about 4% of its monthly spend on account of reduced GST, said Sitharaman.
Sitharaman revised the country's fiscal deficit target to 3.8 per cent for the current fiscal year, from an earlier target of 3.3 per cent Sitharaman, who was presenting the annual budget in parliament, also pegged the fiscal deficit target for the year 2020/21 at 3.5 per cent of the GDP.
FM said nominal GDP growth for 2020-21 is estimated at 10 per cent.She receipts for 2020-21 are pegged at Rs 22.46 trillion while expenditure at Rs 30.42 trillion.The revised estimated expenditure for FY20 has been pegged at Rs 26.99 trillion and receipts at Rs 19.32 trillion, she said.
The net market borrowings would be at Rs 4.99 trillion in FY 2019-20 and are estimated at Rs 5.36 trillion in the next fiscal.
New income tax slab for FY 2020-21
-No tax will be applied on earnings up to Rs 5 lakh,
-Rs 5-7.5 lakh: 10%, Rs7.5 lakh to Rs 10 lakh: 15%, Rs 10 lakh-12.5 lakh: 20%, Rs 12.5 lakh-15 lakh: 25%.
-for those earning above ₹15 lakh, 30%.
–no exemptions will be allowed if the tax payer opts for the new rates,
-more than 100 deductions provided currently under I-T Act. Proposal is to remove 70 of them,
-New simplified personal income tax regime to lower income tax and Rs 40,000 crore per annum will be revenue foregone from new income tax rates for individuals.A person earning Rs 15 lakh per anum and not availing any deductions will now pay Rs 1.95 lakh tax in place of Rs 2.73 lakh,
-Dividend Distribution Tax(DDT) to be removed, Dividend to be taxed in hands of recipient. Deduction allowed for dividend received by holding company from subsidiary,
-Proposes 100 per cent tax concession to sovereign wealth funds on investment in infra projects,
-Govt extends additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021
-deferment of tax payment by employees on ESOPs from startups by 5 years
Healthcare
-Allocation of Rs 69,000 crore, inclusive of Rs 6,400 crore for Jan Arogya Yojana, to healthcare in Budget 2020.
This marks an increase from last year when she allocated Rs 62,659 crore.
-The Government will open hospitals in tier 2 and tier 3 cities covered under Aspirational districts scheme which still do not have a Ayushman-empanelled hospital.
-proceeds from taxes on medical devices will be used for this vital health infrastructure in these districts.
-a new campaign to eradicate TB.
-allocates Rs 9,000 crore for senior citizens
-health cess on import of medical equipment
Doubling farmer income by 2022
–Government has insured 6.11 crore farmers under Pradhan Mantri Fasal Bima Yojna:
– Focussing on skills, education, and agriculture,the government is committed to double the farmer income by 2022.
-Farmers with barren land can set up solar power units so that they can get a living out of it.Government to incentivizs farmers to go solar
.
– Action plan to ease India's water problems starts with helping 100 districts
Sitharaman has a 16-point guide to make India an aspirational economy