Budget 2020 Highlights: Sitharaman’s longest-ever budget speech makes big announcements; Opposition calls it ‘hollow’

• 20 per cent reduction in turn around time for trucks.
• Benefit to MSMEs through enhanced threshold and composition limits.
• Savings of about 4 per cent of monthly spending for an average household.
• In last 2 years, 60 lakh new taxpayers added and 105 crore e-way bills generated

Budget 2020 announcement that insurance behemoth LIC will be listed was well received by market participants who said this will be “IPO of the decade” akin to the Saudi Aramco listing. Finance Minister Nirmala Sitharaman on Saturday said Life Insurance Corporation (LIC) will be listed as part of the government disinvestment initiative. Read experts’ views here

In September 2019, the Prime Minister has launched the Coalition for Disaster Resilient Infrastructure (CDRI) with its Secretariat in Delhi. This global partnership is the second such international initiative after the launch of International Solar Alliance in 2015. This Global Partnership will help in addressing a number of Sustainable Development Goals (SDGs), as also the aims of Sendai framework. It will enhance climate change adaptation with a focus on disaster resilient infrastructure: FM Sitharaman

There’s a lot riding on Prime Minister Narendra Modi’s budget this fiscal year. Once the world’s fastest-growing economy, India is now trying to restart economic growth that’s dipped to an 11-year low. Finance Minister Nirmala Sitharaman said this budget was aimed at boosting incomes and enhancing purchasing power, stressing that the economy’s fundamentals were strong and inflation was well contained. Read full report here

In order to widen and deepen the tax net, it is proposed to provide that e-commerce operator shall deduct TDS on all payments or credits to e-commerce participants at the rate of 1% in PAN/Aadhaar cases and 5% in non-PAN/Aadhaar cases. In order to provide relief to small businessman, it is proposed to provide exemption to an individual and HUF who receives less than Rs. 5 lakh and furnishes PAN/Aadhaar: FM Sitharaman

Union Minister of Commerce & Industry, Piyush Goyal: Rahul Gandhi didn’t seem very enthused with the budget, if he has any issue-based questions I can answer them but if he only wants to use adjectives, I’m seeing 10 times better adjectives that are positive on the television.  (ANI)

FM said that this budget, with the Central Tenet of Ease of Living for all citizens, is woven around three prominent themes:

• Aspirational India in which all sections of the society seek better standards of living, with access to health, education and better jobs. Its components are Agriculture Irrigation and Rural development; Wellness, Water & Sanitation; and Education & Skills.
• Economic Development for all, indicated in the Prime Minister’s exhortation of “Sabka Saath, Sabka Vikas, Sabka Vishwas”. This would entail pervasive economic reforms and yielding more space for the private sector to ensure higher productivity and greater efficiency. Three components of which are Industry, Commerce and Investment; Infrastructure; and the New Economy.
• A Caring Society, based on Antyodaya, which is both humane and compassionate. Three components of which are Women & Child, Social Welfare; Culture and Tourism and Environment & Climate Change.

It is a balanced Budget which prepares India for the decade ahead of us &prepares it to be a 5 trillion dollar economy. It also covers a vast canvas both on the social side, on economic development&ensures that we continue to remain an economic powerhouse. If a small part of Life Insurance Corporation (LIC) goes to the public it will increase transparency & accountability, after all, it is public’s property, I don’t think there is any harm if a small part of it is with the people: Union Minister Piyush Goyal on Budget

FM Nirmala Sitharaman announced that about 150 Higher Educational Institutions will start apprenticeship embedded degree/diploma courses by March 2020-21. This will help to improve the employability of students in the general stream (vis-a-vis services or technology stream). The government will also start a program whereby urban local bodies across the country would provide internship opportunities to fresh engineers for a period of up to one year. National Skill Development Agency will give special thrust to infrastructure-focused skill development opportunities, the Minister explained.

To improve consumption demand, private investment and public spending and since revenue side could not be pressed further, without violating FRBM (Fiscal Responsibility and Budget Management), we had to relax fiscal deficit target by 0.5%: FM Nirmala Sitharaman

The Government intends to introduce major reforms in recruitment to Non-Gazetted posts in governments and public sector banks. At present, candidates have to appear for multiple examinations conducted by multiple agencies at different points of time, for similar posts This places enormous burden on time, effort and cost of young people. To mitigate their hardship faced, it is proposed to set up a National Recruitment Agency (NRA) as an independent, professional, specialist organisation for conduct of a computer-based online Common Eligibility Test for recruitment to NonGazetted posts. A test-centre in every district, particularly in the Aspirational Districts would be set up: FM Sitharaman

For every rupee in govt kitty, 64 paise come from taxes! For every rupee in the government coffer, 64 paise will come from direct and indirect taxes, while states’ share of taxes and duties is the single-largest expense head accounting for 20 per cent of the total spending, Budget documents showed. 

Finance Minister Nirmala Sitharaman is addressing a press conference with MoS Anurag Thakur in New Delhi.

Finance Minister Nirmala Sitharaman on Saturday said that the government would not allow the taxpayers to be harassed at the hands of the tax officials. “We wish to enshrine in the statutes a taxpayer charter through this Budget. Our government remains committed to taking measures to ensure that our taxpayers are free from tax harassment of any kind,” Sitharaman said. Read full report by Ashish Pandey

• Scheme to encourage manufacturing of mobile phones, electronic equipment and semiconductor packaging

• National Technical Textiles Mission for a period of 4 years

• NIRVIK Scheme for higher export credit disbursement launched

• Setting up of an Investment Clearance Cell to provide end to end facilitation

• Extension of invoice financing to MSMEs through TReDs

• A scheme to provide subordinated debt for entrepreneurs of MSMEs

• Scheme anchored by EXIM Bank and SIDBI to handhold MSMEs in exports markets

Finance Minister Nirmala Sitharaman on Saturday announced the development of on-site museums at five archaeological sites in the states of Haryana, Tamil Nadu, Gujarat, Assam and Uttar Pradesh. Check details

• National Logistics Policy to be launched soon National Logistics Policy to be launched soon
• Roads: Accelerated development of Highways
• Railways: Four station redevelopment projects
• 150 passenger trains through PPP mode
• More Tejas type trains for tourist destinations
• Port: Coporatizing at least one major port
• Air: 100 more airports to be developed under UDAAN

Finance Minister Nirmala Sitharaman on Saturday cut short her Budget speech in Lok Sabha as she felt unwell after speaking for a record 160 minutes. Sitharaman had only two pages of her Budget speech unread when she appeared uneasy and was seen wiping sweat from her forehead. Read full report

• More than 6 lakh anganwadi workers equipped with smartphones
• A task force to be appointed to recommend regarding lowering MMR and improving nutrition levels

• Proposal to establish Indian Institute of Heritage and conservation
• 5 archaeological sites to be developed as iconic sites.
• A museum on Numismatics and Trade to be established
• Tribal museum in Ranchi
• Maritime museum to be set up at Lothal

• Concessional corporate tax rate of 15 per cent to new domestic companies in manufacturing and power sector.
• Tax concession for sovereign wealth fund of foreign governments and other foreign investments.
• Tax benefits to Start-ups by way of deduction of 100 per cent of their profits are enhanced by increasing turnover limit and period of eligibility.
• Concessional tax rate for cooperatives proposed.
• Turnover threshold for audit of MSMEs increased.
• Extension of time limits pertaining to the tax benefits for affordable housing.
• Issuance of Unique Registration Number to all charity institutions for easy tax compliance.
• Health cess to be imposed on imports of medical equipment given these are made significantly in India.

In Budget 2020, FM Nirmala Sitharaman has announced that Rs 12.7 lakh crore to be transferred to states and union territories in 2020-21.

In Budget 2020, Union Finance Minister Nirmala Sitharaman has announced Rs 35,600 crore outlay for nutrition-related Programmes for 2020-21, Rs 28,600 Crore allocated for programs specific to women.

Prashant Agarwal, President, Narayan Seva Sansthan: 2020 Budget allocation for healthcare (Rs 69,000 crores) and skill education (Rs 3,000 crore) is a good start to build the future of New India. But 2.68 crore differently-abled in India need more special attention for working on overall health and literacy standards for the betterment who are suffering from the basic needs. As corporates and rising startups need to increase the scope of CSR spending to actually bring some noticeable positive social change for differently-abled.

NGOs like us are investing in the best possible way to strengthen the support system in rural, urban and semi-urban India by running campaigns on the ground without any major financial support. It is high time to support and think more from the perspective of differently abled’s for shaping their future with mainstream society.  

FM Nirmala Sitharaman presented a record-breaking longest-ever Budget speech which was clocked at 2 hours 41 min beating her own previous record of 2019. Interestingly, she could complete her speech today and submitted the rest of budget as read. 

Now pay more for Tobacco, cigarettes and your shoes and furniture from abroad

Maybe this was the longest Budget speech in history but it had nothing, it was hollow. The main issue facing is unemployment. I didn’t see any strategic idea that would help our youth get jobs. I saw tactical stuff but no central idea. It describes govt well, a lot of repetition, rambling-it is the mindset of govt, all talk, but nothing happening: Rahul Gandhi on Budget 2020 (ANI)

Concessional corporate tax cut to be extended to new domestic companies engaged in power generation. Option to be provided to cooperative societies to be taxed at 22% + 10% surcharge and 4% cess, with no exemptions or deductions; to be exempted also from Minimum Alternative Tax: FM Nirmala Sitharaman

I propose to impose a nominal health cess on imports of medical equipment: FM Nirmala Sitharaman

The Budget may not have gone down well with the markets as Bombay Stock Exchange’s Sensex was trading over 700 points lower at 40,009.71.

There was brief disruption in the Budget speech as the FM Sitharaman read a tiring over 2 hours 40 minutes speech, a record. FM has submitted the budget and the remaining part of it has been considered read, thus concluding her speech. 

Under Vivad Se Vishwas Scheme, taxpayer to pay only amount of disputed tax, will get a complete waiver on interest and penalty, if the scheme is availed by March 31, 2020: FM Nirmala Sitharaman

Registration of charity institutions to be made completely electronic, donations made to be pre-filled in IT return form to claim exemptions for donations easily: FM Nirmala Sitharaman

Govt to further ease the process of allotment of PAN. Govt to launch system for instant allotment of PAN on basis of Aadhaar: FM Nirmala Sitharaman

Beti Bachao Beti Padhao has given tremendous results, gross enrolment Ration us now higher for girls than for boys at all levels: FM Nirmala Sitharaman

Budget Deloitte Insta analysis: New scheme to refund almost all kinds of input Central and State levies incurred for exports including VAT on fuel will bring relief to taxpayers. Building on the economic survey released yesterday, this Move is likely to improve India’s place on the ease of doing business ranking from the current 115 under the head ‘Paying Taxes’, says Amit Bablani, Director, Deloitte India.

“Focus on aviation, infrastructure, logistics, health, data centre park, renewable energy sectors and domestic manufacturing of network products should support the government to achieve expected GDP of 6.5% in FY 21,” says. Krishnan Agarwal, Director, Deloitte Haskins & Sells.

Reassurance to taxpayers that they would be free from harassment by authorities would lead ease of doing business in India.

Building on the economic survey, FM notes that wealth creators would be respected in our country. Fairness in tax administration is the cornerstone of ease of living and ease of doing business. Tax harassment cannot be tolerated – citizens charter to be added to statute. This, along with the faceless assessment scheme introduced last year, is likely to boost taxpayers confidence and can go a long way in reducing uncertainty”.

A clean, reliable and robust financial sector is a precondition for USD 5 trillion economy by 2024. Government has capitalized by INR 3.5 trillion into PSBs. Some of the PSBs would be encouraged to access capital markets. Seeking to allay concerns of small depositors, insurance for deposit is proposed to be raised. Focus of the government on the financial sector is expected to improve credit growth and provide much-needed impetus to India’s banking industry.

“Reduction in corporate tax rate done last year to keep India competitive with other economies. This Budget is building on these themes to reduce tax litigation, make compliances easy and make India more competitive.

Rejig in the tax rates by introduction of New simplified personal tax regime with lower tax rates by excluding certain exemptions and deductions.

In order to promote affordable housing projects, I propose to extend date of approval of affordable housing projects for availing tax holiday by one more year: FM Nirmala Sitharaman

• Income of charitable institutions fully exempt from taxation; Donation to such institutions allowed as a deduction in computing taxable income of the donor.
• Concessional corporate tax cut to be extended to new domestic companies engaged in power generation
• Dividend Distribution Tax to be removed, companies will not be required to pay DDT, dividend to be taxed only at the hands of recipients at applicable rates