Video Editor: Vivek Gupta
Several important decisions were announced in the 2020 Union Budget on Saturday, 1 February. Here’s a quick rundown of all the important points. You can read more about each highlight below:
- Income tax slabs and rates have been revised. The taxpayer can now opt to pay income tax either under the 2019-20 tax slabs, which allow tax exemptions, but a slightly higher tax rate, or under the 2020-21 tax slab, which has removed several exemptions, around 70 of more than 100, but calculates income tax at a lower percentage. Read more here.
- The Life Insurance Corporation will be going public. The government has proposed to sell a part of its holding in the LIC, through an initial public offering (IPO). Read more here.
- Depositors to be insured up to Rs 5 lakh, up from the previous amount of Rs 1 lakh, under the DICGC, in case a bank fails or goes under. Read more here.
- The Centre has also proposed allocation of Rs 30,757 crore for Jammu and Kashmir, and Rs 5,958 crore for Ladakh for 2020-21. Jammu and Kashmir suffered a loss of at least Rs 17,300 crore in four months following the abrogation of article 370, as per a report from the Kashmir Chamber of Commerce and Industry. Read more here.
- Rs 99,300 crore is the budget for the education sector and another Rs 3,000 crore for the skill development for the next fiscal year. Read more here.
- Rs 1.7 lakh crore to be provided for transport and transport infrastructure in 2020-21. Read more here.
- New simplified GST system from April 2020. Read more here.
- Rs 4,400 crore to be allocated for ‘Clean Air’ initiatives in states across India. Read more here.
- Health sector to get a boost with a proposed budget of Rs 69,000 crore. Read more here.
- Finance Minister Nirmala Sitharaman proposed a 16-point action plan to boost agriculture and farmers' welfare. She said that the government has insured 6.11 crore farmers under the Pradhan Mantri Fasal Bima Yojna. Read more here.
Read the full text of the Union Budget 2020-21 below: