Union Budget 2020-21 has been announced. This budget saw some critical announcements being made by the Finance Minister. The announcements made in the budget are expected to have a deep impact on the economic health of the country. Thus, they assume great significance from the point of view of preparation for the GK section seen in various competitive exams.
Vidya Guru, widely considered the Centre for Best Online IBPS Coaching Classes in the student community, has culled out the essence of this year’s budget and provided the highlights below. If you happen to be a competitive exam aspirant, these highlights are an absolute must for you.
Highlights of Budget 2020-21
(I) Union Budget: Themes
(a) Aspirational India
(b) Economic Development for All (Sabka Sath, Sabka Vikas)
(c) Caring Society
(II) Nominal GDP Growth
(a) Estimated Nominal GDP Growth Rate (2020-21): 10 %
Note: Nominal GDP growth rate doesn’t take into account the effect of inflation.
(III) Deficit Statistics
(a) Fiscal Deficit (2019-20): 3.8% of GDP
(b) Fiscal Deficit (2020-21): 3.5% of GDP
Note: Fiscal Deficit is the gap between Non-Debt Capital Receipts (NDCR) plus Revenue Receipts & the total expenditure. It reflects the total borrowing requirements of the Govt.
(c) Revenue Deficit (2019-20): 2.4% of GDP
(d) Revenue Deficit (2020-21): 2.7% of GDP
Note: Revenue Deficit refers to the gap between revenue receipts and revenue expenditure.
(e) Effective Revenue Deficit (2019-20): 1.5% of GDP
(f) Effective Revenue Deficit (2020-21): 1.8% of GDP
Effective Revenue Deficit denotes the amount of capital receipts which are used for actual consumption expenditure of the Govt. It’s the difference between Revenue Deficit and Grants allocated for the creation of Capital Assets.
(g) Primary Deficit (2019-20): 0.7% of GDP
(h) Primary Deficit (2020-21): 0.4% of GDP
Primary Deficit is calculated as Fiscal Deficit minus interest payments.
(IV) Financial Sector
(a) Deposit insurance coverage provided by Deposit Insurance and Credit Guarantee Corporation (DICGC) increased to: Rs. 5 Lakh
(b) Initial Public Offer (IPO) to be issued for: Life Insurance Corporation
(c) Govt. to sell off its balance holding in: IDBI
(d) Eligibility limit for NBFCs for Debt Recovery under the SARFAESI Act, 2002 reduced to: 100 Crore asset
size or 50 Lakh loan size
(V) Tax Proposals
(a) Dividend Distribution Tax has been abolished
(b) Tax on Cooperative Societies has been reduced to: 22%
(c) Corporate Tax rate for new domestic companies in Power & Manufacturing Sector will be: 15%
(d) Sovereign Wealth Funds to get 100% Tax concession on Investment in: Infrastructure
(e) Audit threshold for MSMEs has been increased to: Rs.5 Crore
(f) New scheme for Direct Tax Dispute Settlement: Vivaad se Vishwaas
Note: The scheme will be open till 31st March, 2020. Under this scheme, only the disputed amount needs to be paid. The interest and penalty on the disputed amount has been waived off.
(VI) Agriculture & Rural Development
(a) Plan for doubling farmers’ income by: 2022
(b) PM KUSUM (Pradhan Mantri Kisan Urja Suraksha and Utthan Mahabhiyan) scheme is projected to cover: 20 Lakh farmers (for standalone solar pumps)
(c) Initiatives launched for transporting perishable goods and agriculture products: “KisanRail” & “KrishiUdaan”
(VII) Health Care
(a) Target year for eradication of Tuberculosis (TB Harega Desh Jeetega): 2025
(b) Target year for covering all districts under Jan Aushadhi Kendra Scheme: 2024
(a) Exam to be held in African and Asian countries, under ‘Study in India’ initiative, for allowing foreign students to get admission in Indian universities: IND-SAT
(b) Apprenticeship Embedded Courses to be launched by: 150 Higher Educational Institutes
(IX) Commerce & Infrastructure
(a) Scheme to provide insurance cover for exporters (export credit insurance): NIRVIK (Niryat Rin Vikas Yojana)
(b) National Technical Textiles Mission to be implemented from: 2020-2021 to 2023-2024
(c) National Logistics Policy to be launched envisaging setting up of single window e-logistics marketplace
(d) New Smart cities to be set up under Public Private Partnership Model: 5
(X) Roads & Railways
(a) Delhi-Mumbai Expressway to be launched by: 2023
(b) Chennai-Bengaluru Expressway to be launched soon
(c) 100 more airports to be built by: 2024
(d) Passenger Trains to be started under Public Private Partnership Model: 150
(e) Iconic Tourist Destinations to be connected by: Tejas Type Trains
Five archaeological sites to be developed as iconic tourism destinations with on-site Museums:
(a) Rakhigarhi (Haryana)
(b) Hastinapur (Uttar Pradesh)
(c) Shivsagar (Assam)
(d) Dholavira (Gujarat)
(e) Adichanallur (Tamil Nadu)
(XII) Important Figures
(a) Disinvestment Target (2020-21): 2.1 Lakh Crore
(b) Total Budget Allocation: 30.42 Lakh Crore
(c) Defence sector Allocation: 4.71 Lakh Crore
(d) Health sector Allocation: 69,000 Crore
(e) Education sector Allocation: 99,300 Crore
(f) Agriculture & Allied (Including Irrigation & Rural Development) sector Allocation: 2.83 Lakh Crore
(g) Transport Infra (Including Railways) Allocation: 1.7 Lakh Crore
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This Current GK update methodically covers all the highlights of the Union Budget that was presented recently. In case of any doubts or for seeking guidance from our faculty, you can write to us at email@example.com.