In my recent post, I wrote about the Budget, mainly about growth and consumption. After reading the budget reviews, I understood that this is a complex mixture of lengthy, complicated, and confusing budgets. I was not going to write as I was in one program while Nirmala Sitharaman was delivering the Budget speech, but in our university, Where I am doing an MBA, it is a task. So I am doing it. This is a budget in short. I will post my view on the budget in a different post.

Highlights:

  • The fiscal deficit target is 3.5% in FY21. For FY 20, it is revised upward to 3.8%. So indirectly, FM accepted that the Government would fail the Divestment and GST collection.
  • Nominal GDP Growth was 10% for FY 21, upward from 7.8% for FY 20. How is that Going to happen with nearly dead Gross fixed Capital Formation?
  • ₹ 1.33 L Cr revenue expected from Telecom companies. Up from 5900 cr. How is that going to happen? wHich company is expected to pay how much part? What if Vodafone Idea failed? Does that signal a tariff hike in telecom customers?
  • Status quo On LTCG.  terrible decision. Ideally, opposite signals were sent by FM.  planned LIC divestment and the status quo on LTCG.

In detail:

For Farmers: Comprehensive measure for 100 water-stressed districts. Expansion of Pm Kusum Yojana. 5 Lk farmers to be expected to solarise their Pumps. Empty, Fallow, Barron land to be used for Solar power.

Mapping and Geotagging of warehouses by NABARD. Proposal for a regulatory body for Warehousing. Increase in capacity of Cold storage. Central Govt will GAP fund to set up the Warehouse on a PPP basis. Old supply chain set up including Cold trains and Airplane For perishable commodities like milk, meat, and fish by Indian railway. The civil aviation ministry will do this for domestic and foreign markets.

Govt support to Horticulture for better marketing and export. Integrated farming beekeeping, multi-tier cropping in non-cropping season.

Easy financing of negotiable warehousing receipts ₹ 6000 cr. This is to be integrated with the national agricultural market. ABARD Refinance Scheme for agricultural credit to be expanded with a target of ₹ 15,00,000 cr for 2020 – 21.

To increase farmers’ income, MNREGA to be dovetailed to create fodder farms.   Still Hate MNREGA?) Milk Processing capacity to be double to 108 million metric tonnes by 2025.

Total Fund allocation For agricultural, irrigation and rural development is ₹ 2,83,000 cr. Subdivision –

Agricultural and Irrigation related activity: ₹1,60,000 cr.

Rural Development and Panchayati raj: ₹1,23,000 cr

For health and sanitation: Mission Indra Dhanush to be expanded with more vaccines. M Jan Arogya’s mission is to work with 20000 hospitals working currently. Ore to join from tier 2 and tier 3 cities. Government to do a Gap funding for setting up hospitals in 112 districts. Proceeds from tax on medical devices will be used in developing health infrastructure. Target to end tuberculosis by 2025. Expand Jan Aushadhi scheme to all districts, Including 2000 medicine and 300 surgical instruments.   ₹69000 provisions for health)

Swachh Bharat mission ₹12,300 cr for 2020 – 21. al Jivan mission aims for piped water to receive ₹3,60,000 cr for the next five years and ₹11,500 cr for 2020 – 21. or Augmenting local Water resources, recharging existing sources of water harvesting, and desalination.

For Education: FDI and ECB permitted in Education. 50 Higher education institutions will start apprenticeships embedded in degrees by March 2021. w Education policy to be declared soon.

Urban Local bodies to be provided internships to fresh engineers for up to 1 year.

To provide quality education to deprived societies and others, proposed degree-level online programs provided by the top 100 institutions in India. T  support the STUDY IN INDIA program IndSat exam is presented in Asian and African countries. I  will be used to benchmark foreign candidates.

National Police University and National Forensic science university are being proposed.

It is proposed to attach medical college to District Hospital in PPP mode. V ability Gap Funding to states ready to provide land for the hospital.

₹99,300 cr for the education sector. ₹ 000 cr for skill development for FY 21. The higher education department has been allocated Rs 39,466.52 crore, while the school education and literacy department was given Rs 59,845 crore.

Infrastructure and Investment: An investment clearance cell will be set up to provide end-to-end facilitation and support, advisory information and support, and advisory information related to land banks on state and central government levels. T will work as a Web portal.

Delhi Mumbai expressway and other strategic highways to be built under National Infra Pipeline, worth ₹106 Lk cr. To monetize 12 Highway over 6000 km before 2024.

Solar Power generation on the railway’s land. 4 station redevelopment projects, 150 new private trains, and More Tejas trains to connect iconic tourist destinations. Also, to corporatize at least one port and list it on exchange.

100 More Airports till 2024 for Udan scheme, fleet size to be expected to reach 1200 from current 600 airplanes. P vision for ₹1,70,000 cr transport infrastructure.

Manufacturing and export: Scheme for encouraging Manufacturing Mobile Phones, Electronic equipment, and semiconductors. T e same can be adaptable to medical devices.

To reverse some specific imports in the textile, the National Technical Textile mission is proposed with a 4-year implementation. ₹ 480 cr allotted.

New Scheme for achievement higher export credit disbursement, NirVik, Providing Higher Insurance Reduction in premium for the small exporter.

Refund to exporters duties and taxes at state central and local level, like electricity, VAT, Transport, fuel which are not refundable under any other scheme, launched from this year itself.

Provision of ₹27300 cr for the development of industry and commerce. N national Logistics policy, soon to be released, will create a single-window e-logistics market, Like uship.com.

Electricity distribution: Discoms to replace the conventional meter with the intelligent prepaid meter in 3 years, giving consumers independence to choose suppliers.

₹22,000 to renewable energy for 2020-21

Oil and gas: Proposed expansion of national gas greed from 16000 to 27000 km.

Bharat net: Policy to enable private sector companies to set up data center parks soon.

All public institutions at the gram panchayat level will be provided with digital connectivity. ₹ 000 cr for Bharat net program. ₹ 000 for the National Quantum tech plan for four years.

Woman, Schedule Cast, Schedule Tribe: ₹35,600 cr for the nutritional program for 2020-21. ₹28,600 cr For programs related to Women, ₹85,000 cr for Welfare for scheduled cast and Backword classes, and ₹53,700 cr for scheduled tribes. ₹ 500 cr for Senior citizens and Specially abled.

MSME: NBFCs are permitted to finance invoices ( Factoring), making working capital credit easy.

Banks and counts will provide subordinated debt to entrepreneurs as Quasi-equity, 100% guaranteed by Credit Guarantee Trust.

₹1000 cr Finance for midsize MSME for export out of which ₹100 crores will be from EXIM Bank and SIDBI. T e remaining will be a bank loan.

Other: Development of 5 archeological sites as iconic sites with museums. ₹ 50 was allocated to the ministry of culture—₹ 2500 cr for tourism development 2021.

₹4400 for a clean environment. Cl sure of thermal power plant whose emission is above pre-set limits.

National Recruitment agency for the non-gazetted post in banks and government jobs.

India will be hosting the G20 summit in 2022. ₹100 cr allotted for preparation.

₹30,757 cr for Jammu and Kashmir and ₹5958 cr to Ladakh for 2020 – 21.

Deposit Insurance and Credit Guarantee, corporation is permitted to increase deposit insurance cover from ₹1 Lk to ₹ five lk

Divestment of Remaining stake in IDBI bank and IPO of LIC.

Taxation: New Optional tax regime is proposed under which there is No tax for income up to ₹5 Lk. Fo income ₹5-7.5 Lk, proposed to tax 10% against 20% previous.

For ₹7.5 to ₹10 Lk, proposed to tax 15% Against 20% current.

For ₹10 to ₹12.5 Lk, proposed to tax 20% against 30% previous.

For ₹12.5 to ₹15 Lk proposed 25% against 30% previous.

Above ₹15 Lk will continue to be taxed as of right now.

With accepting the new tax regime, around 70 deductions are supposed to be lost by the taxpayer.

Dividend Distribution Tax is abolished, making around ₹25000 cr dent in government income. Ta  Concession for foreign Government investing under Sovereign wealth fund by making 100% tax exemption on any return earned by investment on infrastructure and other specified sectors for a 3-year lock-in period.

Differing the decision of tax payment of ESOP for five years. Re auction in tax for the cooperative. Reduction in tax compliance burden on MSME by increasing the limit for keeping audit books.

The income of charitable trusts is fully exempted, with extra relaxation for a doner.

Special incentives for affordable home loans by giving one more year to apply.

New Tax Dispute settlement for every dispute at every level of jurisdiction.