Source: Internet
Kolkata 1 February: It was a day of anticipation before Union Finance Minister Nirmala Sitharaman presented the budget. Though the longest 2020 budget has simplified the personal tax regime, the Opposition parties are criticising Union government’s attempt to disinvest LIC, Railways that was proposed by Union finance minister in her budget speech.
Sitharaman said that Union government is going to sell part of its holdings on LIC through an IPO. She also proposed privatisation of the Railways. She also pointed out that the budget boosts investments without compromising on fiscal consolidation. The fiscal deficit target of 3.3 per cent is possible and that too without any cut in allocations.
She said that there has been a complete control over inflation and the government has not done any inconvenience to the consumers.
Soon after the budget speech ended Trinamool Congress chief Miss Mamata Banerjee tweeted and said that she is shocked and appalled to see how Central government is ambushing the heritage and legacy of the public institutions.
Here is a tweet of Miss Banerjee on this regard.
Amit Mitra, West Bengal finance minister, said: “The budget failed to highlight the steps taken by the government to improve the economic slowdown . Moreover the budget also proposed that Union government will disinvest on LIC through IPO , but it did not mention how much will be disinvested. The budget failed to provide a clear vision.”
According to Congress the budget did not provide a clear picture on how jobs can be created .
Adhir Chowdhury, Congress leader, said: “The budget 2020 lacks direction and goal . It only provided long term measures that will be taken by the Union government .There is nothing for promoting investment and employment, but the ruling BJP claimed that budget is a pro-poor and pro-farmer budget which will boost the economy. The budget failed to highlight the structural reforms needed to take the weak economy on a fast-track growth.
Key highlights of the budget
1)A simple personal tax regime has been introduced. The income tax has been slashed from 20 percent to 10 percent for those earning between Rs 5 lakh to Rs 7.5 lakh. For those earning between Rs 7.5 lakh to Rs 10.5 lakh, income tax reduced from 20 percent to 15 percent . No income tax for income below Rs 5 lakh. Those earning above Rs 15 lakh tax deduction is 30 perecent. The dividend distribution tax has been removed to boost investment . The corporate tax cut for power generation companies has been reduced . Reduced tax rate is 15 percent.
2) Nearly Rs 2.83 lakh crore has been allocated for agriculture and rural development.
3)Allocation of Rs. 27,300 crore for development of industry and commerce in financial year 2021, which includes more opportunities for the start up companies and a new Nirvik scheme will be launched to be offered to exporters – lower premiums and faster claim settlements.
4) For upgradation of digital connectivity , Rs. 8,000 crore has been allocated to set up National Mission on Quantum Computing and Technology.
5) Rs. 69,000 crore has been provided for the healthcare sector, PM Jan Arogya Yojana will get Rs. 6,400 crore.
6) Rs. 93,300 crore was allocated for education and Rs. 3,000 crore allocated for skill development.
7) Allocation of Rs. 1.7 lakh crore for transport infrastructure to be provided in financial year 2021.
8) Rs. 28,600 crore to be allocated in financial year 2021 for women-linked programmes.
9) Allocation of Rs. 93,300 crore for education.