Union Budget 2020-21

Prominent Themes of Union Budget 2020-2021

Key Points of the Union Budget 2020-21:-

GOVERNANCE

  1. STRUCTURAL REFORMS
IBC :
  • Honourable exit through IBC for companies.
GST :
  • 20 percent 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

DIGITAL REVOLUTION

Shift to DBT :
  • During 2018- 19, `7 lakh crore transferred through DBT.
Next wave   :
  • Improve physical quality of life through National Infrastructure Pipeline.
  • Disaster Resilience.
  • Social Security through Pension and Insurance penetration.
  • Digital Governace

INCLUSIVE GROWTH

Governance guided by “Sabka Saath, Sabka Vikas, Sabka Vishwas” with focus on:
  • Preventive Healthcare: Provision of sanitation and water
  • Healthcare: Ayushman Bharat
  • Clean energy: Ujjawala and Solar Power
  • Financial Inclusion Credit support and Pension Financial Inclusion, Credit support and Pension
  • Affordable Hosuing
  • Digital penetration

FINANCIAL SECTOR

  • Deposit Insurance Coverage to increase from `1 lakh to `5 Lakh per depositor.
  • Eligibility limit for NBFCs for debt recovery under SARFAESI Act proposed to be reduced to asset size of `100 crore or loan size of `50 Lakh.
  • Proposal to sell balance holding of government in IDBI Bank Proposal to sell balance holding of government in IDBI Bank.
  • Separation of NPS Trust for government employees from PFRDAI
  •  Specified categories of government securities would be opened for non-resident investors
  • FPI Limit for corporate bonds to be increased to 15 per cent.
  • New debt ETF proposed mainly for government securities