When it comes to the economy, dark days do loom large over India. May it be growth (lowest since 2008), inflation (highest in the last six years), or revenue collection (lowest in 10 years), the Indian economy is faltering. Hence, there is little leeway that can be assumed in the incumbent Union Budget 2020 (the first of the decade) if the economy needs to be boosted.
While presenting the decade's first Budget for India, finance minister Nirmala Sitharaman said on Saturday in Parliament:
Taxation
• AADHAR based tax verification introduced
• Review of customs duty exemptions in September 2020
• GST refund process simplified
• Electronic invoice implementation in phases
• New digital scheme for tax litigation
• PAN to be instantly allotted online against Aadhar
• Vivaad se Vishwas Scheme: Defaulter to pay only disputed tax and no penalty or interest by 31 March 2020, post which additional amount can be paid till June 2020
• Measure to promote affordable housing - tax holiday extended for developers
• Concession on real estate transactions
• Turnover threshold for audit raised to Rs 5 crore from 1 crore
• Company audit requirements eased
• Taxes on ESOPs (employee stock ownership) in start-ups deferred by 5 years
• 100% per cent tax exemption
• Corporate Tax at 15%
• Dividend Distribution Tax removed, dividend taxed only for recipients
• No tax for 0-5 lakh
• 30% above 15 lakh
• 25% for income between Rs 12.5-15 lakh
• 20% for income between Rs 10-12.5 lakh
• 15% for income between Rs 7.5-10 lakh
• 10% for income between Rs 5-7.5 lakh, against the prevailing 20%
• A new, optional simplified personal income tax regime for those not seeking exemptions
Major steps and initiatives taken by the government in finance
• 3.8 percent fiscal deficit estimated
• GDP nominal growth expected at 10 per cent
• Govt to sell part of holding LIC via IPO (initial public offering)- partial LIC disinvestment
• Partial credit guarantee for NBFCs
• New law for netting of financial contracts
• Mechanism to end liquidity crisis
• NRIs (non resident Indians) can invest in certain govt securities
Aspirational India: Caring society
• App-based invoice financing loans for MSMEs
• Amendment to Factoring Regulation Act to aid MSMEs
• Pension Fund Regulatory and Development Authority (PFRDI) Act amendments
• No criminal liabilities for civil acts
• Auto-enrolment in universal pension scheme
• 5958 cr allocated for Ladakh
• 30757 cr allocated for J&K
• Insurance for depositors raised to 5 lakh from 1 lakh
• Robust mechanisms in place to monitor all PSU banks
• Depositors’ money safe
• 100 cr for hosting G20 in 2022
• National Recruitment Agency to be set up
• Tax payers’ charter to be enshrined in statutes
• Amendments for Companies Act
• Tax payer charter proposed to free citizens from tax harassment
• Businesses should have confidence that system is fair
• 4400 crore allocation for clean air and climate change policy
• Aim to reduce carbon footprint - Warning to old thermal plants
• Committed to preserve environment, tackle climate change
• 23150 crore for culture ministry
• 2500 crore for tourism sector
• Institute of Heritage and Conservation to come up soon
• Aim to set up more museums
• 5 archaeological sites to be made iconic
• Proposal to end manual scavenging
• 53700 crore for welfare of STs
• 85000 crore for SCs and OBCs for 2021
• 35600 crore for nutritional schemes
• Gross enrollment ratio of girls higher than boys in elementary level
• Beti Bachao, Beti Padhao - tremendous results
Aspirational India: Infrastructure and economic development
• Further reforms for transparent price discovery for natural gas
• 22000 crore for power sector
• 8000 crore for quantum technology in next 6 years
• Two national level science schemes
• Expand Jan Aushadhi Scheme
• 1 lakh gram panchayats to be connected via Bharat Net
• 6000 crore for Bharat Net
• Data Centre parks to be set up across the country
• National Gas Grid to be expanded
• Reforms to help stressed DISCOMS (distribution companies)
• Delhi-Mumbai Expressway by 2023
• 100 more airports by 2024
• Plans to energise economic activity along river banks
• Need to enhance sea ports
• High Speed Mumbai-Ahmedabad train
• More Tejas-type trains
• 4 station redevelopment projects under PP model
• 2000 km of strategic highways to be built, 11000 km of track electrification
• Accelerated development of highways
• National Logistics Policy to be released soon
• Big push on infrastructure - 100 lakh crore
• National Technical Textiles Mission to be set up
• 1480 crore outlay for textile sector
• 27300 crore for industrial development by 2021
• Digital refund of duties for exporters
• Boost domestic manufacturing - electronic equipment, mobile phone, medical devices
• 5 new smart cities in collaboration with states
• Investment clearance cell to be set up for end to end facilitation
• Entrepreneurship has been the strength of India
Aspirational India: Education and skills
• High need for medical teachers and paramedics
• Internships for engineers in panchayats
• Rs 99300 cr for education sector
• Large hospitals to be encouraged to start PG courses
• Attach medical colleges to district hospitals
• National police university to be set up
• IND-SAT programme for overseas students for studying in India
• New courses in 159 universities by 2026
• Focus on education for jobs
• Propose a fresh education policy
• Urban local bodies should give opportunities to new engineers
• Education needs more finances
Aspirational India: Healthcare
• AI (artificial intelligence) to be used for Ayushman Bharat Scheme
• 69000 crore for health sector
• Propose to set up more hospitals
• Holistic vision for national healthcare
Aspirational India: Agriculture, Irrigation and rural development
• Need to liberalise farm markets
• 108 million metric tonne milk production by 2021
• 2.83 lakh cr allocation for agriculture and irrigation
• Propose raising fish production to 200 lakh tonne
• Zero budget national farming
• NABARD refinance scheme to be expanded
• Village credit card scheme
• Agriculture credit target for 2020 set at Rs 15 lakh crore
• Village storage scheme for farmers, zero budget natural farming
• Dhanya Lakshmi scheme for women in villages
• Krishi Udaan by civil aviation ministry for air transport of such commodities over longer distances
• Indian railways to set up 'kisan rail'
• Govt to provide help to geo-tag warehouses
• Financial inclusion has helped raise farm incomes
• Plan for 100 water stressed districts
• Scheme for 20 lakh farmers to set up solar pumps
• Doubling farm income - model agricultural land leasing act, balanced use of fertilisers, solar pumps for 20 lakh farmers
Budget 2020 and its three focuses
• Budget's first focus is 'Aspirational India'. Second focus: economic development for all. Third focus: building a caring society.
• FDI at 284 billion dollars, achieved 7.84% growth
• GST formalised the economy
• Efficiency gained in logistics
• 16 lakh new tax payers added
• Fundamentals of economy hold strong
• Scaled up implementation of pro-poor schemes
Key challenges FM faces
• India needs to grow by 9 per cent to 10 per cent a year to become the $5 trillion economy by 2024, as projected by the government. The government is now forecasting growth will come in at 5 per cent
• The IMF, which had originally predicted 6.1 per cent growth for India in 2019, has revised that downwards to 4.8 per cent
• The government’s likely to miss its fiscal deficit target for the current fiscal year of 3.3 per cent and hike its target to as much as 4 per cent for the next financial year
• India will struggle to achieve 5 per cent GDP growth in 2020 - Economist Steve Hanke, Johns Hopkins University
• Investment is forecast to grow at less than 1 per cent -- the lowest since 2004-05
• India's unemployment rate rose to 7.5 per cent during September-December 2019 quarter, according to data released by think-tank Centre for Monitoring Indian Economy
Comments
May Allah grant him Jannatul Firdous. He was an ideal for many, Respected by both Muslims and Non-Muslims. Loss for Mangalore community, a peace bearer has passed away. Inna lillahi wa inna ilaihi raji'un.
Great personality. I knew Moulana Syed Yusuf Saheb since my college days in 1969 and I have attended many of his Friday Jumaa sermons (Qutbahs) at Kachi Meman Masjid in Bunder, Mangalore. He used keep a good relationships with youngsters and inspire and encourage them to carry out the noble deeds for the betterment of communities and the society.
May Allah forgive him and accept all his good deeds. May Allah bless him with the bounties of Jannatul Firdous. May Allah give sabr to the grieved family to bear the loss of their dear one.
Innaa Lillahi Wa Innaa Ilaihi Rajivoon. Heartfelt Condolences.
Inna lillahi wa inna ilihi rajiwoon . Alhamdulillah, I am fortunate enough to have met & benefited from both of you. May Almighty bless today's imams/moulana's with wisdom similar to that of Moulana Yusuf saheb.
Allah SWT please accept his service to islam, to mankind, may grant him magfirah and cause him to enter highest level of Jannah. Aameen.
May Allah reward my grandfather with Jannatul Firdaus!!
Alhumdulillah, he has done so much good in his life.
He was one of the most generous and pious people I've ever known.
May Allah give us the guidance like my grand father to follow the righteous path to practice n preach! Indeed he was is n insha Allah vl b a grt personality ! Very soft spoken very humble down to earth personality !! May Allah accept his good deeds his work n forgive his mistakes n save him from fitnah of barzaq n grant him peace in his abode n grant him the glad tidings of jannah !! Ameen !! We will miss our nana dearly
*Inna lillahi wa inna ilaihi raajioun*, may almighty allah bless late moulana syed yusuf saheb,
With jannathul firdouse, aameen. He was one of the rare islamic scholars, with rich bundle & store of knoweldge of deen and duniya, keeping a very low profile and non-controversial & a broad minded humanitarian. Indeed, in his death the muslims of mangalore / d.k.dist / udupi dist, in particular and others in general, are deprived of a high thinking and simple living scholar in this modern era. As holy quran says *kullu nafsin zaayikathul mouth*(every living soul has to taste death)., each & every one of us has to face & taste death, when our living term ends in this world. But in this joureny between life and death, we have to live with our noble living and leave this temporary world to the ever lasting eternal world, with the memory to be cherished with, by the living masses. May almighty allah give strength, patience and forebearance to the family members of late moulana syed yusuf saheb, to bear the bear the brunt of bereavement, aameen. May almighty allah guide & protect all of us, aameen.
Very true brother
Aameen.. absolutely true
Exactly.. absolutely true
Very well said.. absolutely true...
Inna lillahi wa Inna ilaihi raajioon. He certainly was a testament of not just an amazing Muslim but also an amazing human being. he was a man of complete integrity.. he was someone who did not have even an ounce of pride and was an extremely down to earth person.... I consider myself extremely fortunate to have known him so very well and to have learnt all the immense knowledge from him.. he has departed from this dunya but he will remain in our hearts perennially. May Allah grant him jannathul Firdous. Aameen
End of era. No Muslim youth who attended his sermons can go astray. We need scholars like him to educate and enlighten Muslim youth and prevent them from going astray. May allah accept all his deeds and reward him immensely.
يَا أَيَّتُهَا النَّفْسُ الْمُطْمَئِنَّةُ ارْجِعِي إِلَى رَبِّكِ رَاضِيَةً مَرْضِيَّةً فَادْخُلِي فِي عِبَادِي وَادْخُلِي جَنَّتِي
Moulana was great personality. Embodiment of simple living high thinking. Lived upto what he preached. Remained non controversial all his life. Very knowledgeable but extremely humble. His moderate and unique style of delivering khutbah impressed many,including me . He was taking keen interest in current affairs and concerned about global status of ummah. He always motivated me with his superlative appreciation and generous words. Always encourged me to deliver khutbas in his place , whenever I was in Mangalore. May Allah give him highest abode in Jannah
Innalillahi Wa Inna Ilahi Rajivoon. May Allah grant him magfirath and mashrat. I remember Moulavi Saab as a soft spoken, kind hearted,highly knowledable person but with down to earth approach. Moulavi Saab always make it a point to attend " Bearys Welfare Forum "- Abu Dhabi, arranged mass marriages at Mangalore ,and encouraged us to do more to the poor and needy in the society.
My usthad. The one who guided me and helped me to change my life. Inna lillahi va inna ilaihi rajivoon. May allah grant him one of the highest positions in jannah.
Very said. This is a loss not only for Muslim community, but also for all communities in Mangaluru. He was a true religious leader. May his soul rest in peace.
Innalillahi Wa Inna Ilaihi Rajiwoon.
Add new comment