UNION BUDGET 2020-21
1. INTRODUCTION
The Union Budget of India 2020-21 was a pivotal movement, presented by the Finance Minister Nirmala Sitharaman on February 1st, 2020. This movement poised to steer the nation's economic status during global uncertainties and other domestic challenges. This budget sought to address the various aspects of India's economic landscape through development and social welfare. Three of the cornerstone initiatives made by this budget was 'aspirational India', 'economic development for all' and 'caring society'[1]. This budget sought to address the the various aspects of India's economic landscape through a realistic approach, whilst using aspirations, devlopment and social welfare as mentioned above.
Some highlights of the budget included-
1.1 Restructuring of Income Tax
The income tax restructuring introduced in the Union Budget 2020-21 aimed to simplify the tax system and offer taxpayers an alternative tax regime with revised rates. The budget presented a new optional tax regime with reduced tax rates and the taxpayers were given the choice to opt for this regime. This new regime provided lower tax rates but eliminated many exemptions and deductions available under the existence tax structure. It ranged from 'up to Rs. 2.5 Lakh-no tax' to 'above Rs. 10 Lakh- 30%' for individuals whether incorporated or not to pay tax. The existing tax structure allowed various exemptions and deductions such as the HRA or the House Rent Allowance, investments under Section 80C, 80D which is the health insurance premium, and 80E which is the education loan interest, etc. The new tax regime, as mentioned earlier, offered reduced rates but required taxpayers to forgo most exemptions and deductions. Individuals had the flexibility to select the structure that best suited their financial situation and tax-saving preferences. And factors such as income level, investment patterns, and utilizations of exemptions played a crucial role in helping the taxpayers in deciding which regime to opt for[2].
1.2 Infrastructure Development (NIP)
The NIP or the National Infrastructure Pipeline was a significant initiative taken in the Union Budget 2020-21. The primary goal of the NIP was to accelerate infrastructure in the country by channelling substantial investments into crucial sectors over a five-year period. The investment target of the National Infrastructure Pipeline was to inject 100 lakh crore into infrastructure projects across various structures such as transportation (roads, railways, ports, airports, and urban public transport), energy (power generation, transmission, and renewable energy projects), water resources (irrigation, drinking water, and sanitation projects), infrastructure (rural infrastructure, Agriculture and food processing infrastructure, and social infrastructure), reforms (general reforms and financial sector reforms), Infrastructure financing, and Business Models. Allocations and fundings for each project of the NIP were distributed across the 5-year period based on the needs and priorities of each sector[3]. The government was set to play a facilitative role by providing initial funding, streaming regulations, and creating an enabling environment for private sector participation. Encouragement was provided for PPPs or public-private partnerships to leverage private investment in all the infrastructure projects. The role of the NIP was to generate significant employment opportunities across sectors, contributing to economic growth and development. It aimed to improve productivity, efficiency and networking, creating a conducive environment for businesses and industries. Its improved infrastructure was envisioned to enhance the quality of life for citizens, boost economic activities, and attract investments. The anticipated outcomes of this included better connectivity, efficient transportation, reliable power supply, improved healthcare, and education facilities.
1.3 Agriculture Sector Boost
The Union Budget 2020-21 introduced significant resources and various measures to boost the agriculture in India. The first scheme; the PM-KISAN or the extension of the Pradhan Mantri Kissan Samman Nidhi scheme. This was aimed at providing support to small and marginal farms. Under this scheme, eligible farmers received direct income support of Rs 6000 per year in three equal installments. Other moves made by the budget was that it also invested in irrigation by increasing allocations and focusing on irrigation projects to enhance agricultural productivity. There was also funding towards the creation of new irrigation projects and the rennovation of existing projects. It gave fundings for warehousing and market infrastructure to support agricultural growth and emphasised on developing storage facilities to prevent post-harvest losses. It supported Fisheries and Animal Husbandry by providing allocations for the development and expansion of both these sectors and also emphasised on providing adequate and timely credit to farmers. And also introduced measures to improve access institutional credit for farmers. It enhanced crop insurance schemes and aimed at providing financial protection to farmers against crop loss due to pests, natural calamities, or diseases. It encouraged the adoption of modern technology and innovation in farming practices, and focused on promoting agri-export to global markets and increasing farmers' income. It also aimed at mitigating water scarcity and improving crop yields[4].
1.4 Healthcare and Education Allocations
In the healthcare sector, significant funding was allocated for the expansion and development of new hospitals, upgrading existing facilities, and strengthening healthcare services across the country. Its measures aimed at improving affordability and accessibility of healthcare services, and continued support for health insurance to provide financial protection against medical expenses for vulnerable sections of the society. It made allocations for preventive healthcare measures and disease control programs and focused on disease prevention, immunisation drives, and public health awareness campaigns[5]. In the Education Sector, it focused on enhancement of educational infrastructure, Education quality and access, Skill development and Vocational training, and Technology Integration in education. It made allocations to make all of the above possible and also provided emphasis on digital infrastructure and e-learning initiatives to facilitate access to quality education by mentioning it in the Budget Speech made by the Finance Minister, Nirmala Sitharaman on the same day, February 1st, 2020.[6].
2. CONCLUSION
Overall, the Union Budget 2020-21 was a comprehensive endeavour that addressed diverse factors of the economy as mentioned earlier. It sought to navigate challenges while harnessing opportunities for inclusive growth and development of all the infrastructures, underscoring the government's commitment to fostering a thriving, equitable, and resilient society. Not only the above mentioned factors were covered in this budget, but also other important factors such as Disinvestment and Ease of doing a business, Support for startups and MSMEs or The Ministry of Micro, Small and Medium Enterprises, Renewable Energy and the Environment, Custom duties and 'Make it India' to boost domestic manufacturing and reducing reliance on imports. And in the educational aspect, its aim was to improve infrastructure, enhance accessibility and ensure quality services and education for all, thereby manifesting societal development and human capital increasement.
3.CITATIONS
1. KEY HIGHLIGHTS OF UNION BUDGET 2020-21, available at (https://www.indiaspend.com/wp-content/uploads/2020/06/eallrel.pdf), last visited(24-12-2023).
2. Finance Bill 2020, available at (https://incometaxindia.gov.in/Budgets%20and%20Bills/2020/memo.pdf), last visited(24-12-2023).
3. National Infrastructure Pipeline, available at, (https://dea.gov.in/sites/default/files/Report%20of%20the%20Task%20Force%20National%20Infrastructure%20Pipeline%20%28NIP%29%20-%20volume-ii_1.pdf)
,last visited(24-12-2023).
4. Agriculture and Farmers' welfare, available at (https://prsindia.org/budgets/parliament/demand-for-grants-2020-21-analysis-agriculture-and-farmers-welfare ),
last visited(24-12-2023).
5. Health and Family Welfare, available at (https://prsindia.org/files/budget/budget_parliament/2020/DfG_2020%20Health%20for%20upload.pdf ), last visited(24-12-2023).
6. Education and Skills, available at ( https://incometaxindia.gov.in/Budgets%20and%20Bills/2020/Budget_Speech.pdf), last visited(24-12-2023).
