Budget 2020

Allocation raised for UPA’s flagship scheme

Devolution to States is budgeted for Rs. 5,23,958 crore.

Following the 14th Finance Commission award, the devolution to States is budgeted for Rs. 5,23,958 crore. Overall transfers to States are estimated at Rs. 9,19,842 crore.

In what came as a surprise after Prime Minster Narendra Modi’s remarks about the MGNREGS in Parliament on Friday, the budget raised the allocation for the UPA government’s flagship scheme. The overall rural development budget is estimated at Rs. 77,526 crore.

The Finance Minister listed five major challenges the Indian economy is facing — agricultural income under stress, weak private sector investments in infrastructure, slump in manufacturing and a resource crunch in view of higher devolution in taxes to States. In addition, he said, there was the challenge of maintaining fiscal discipline.

Proposing rationalisation of subsidies, Mr. Jaitley said: “Well-intentioned schemes introduced in the past, have often been ill-targeted, riddled with leakages and delivered with inefficiency… The same is true of subsidies…Subsidies are needed for the poor and those less well off.”

Mr. Jaitley also spelt out 13 targets – similar to the UPA Government’s Bharat Nirman flagship scheme — to be met by the 75th year of Indian independence, 2022, which he called the ‘AmrutMahotsav.’ These include 2 crore houses in urban areas and 4 crore houses in rural areas each with 24-hour power supply, clean drinking water, a toilet, and connected to a road. Also included are access for at least one member per household to the means for livelihood and substantial reduction of poverty.

The budget proposed a universal social security net, which could benefit the over 80 crore Indians below 35 years of age. “A large proportion of India’s population is without insurance of any kind — health, accident or life. Worryingly, as our young population ages, it is also going to be pension-less,” Mr. Jaitley said, proposing the universal social security system for all Indians, especially the poor and the under-privileged comprising three separate schemes.

A controversial proposal, however, was the creation of a Senior Citizen Welfare Fund, in the Finance Bill, for appropriation of unclaimed deposits of about Rs. 3,000 crore in the Public Provident Fund, and approximately Rs. 6,000 crore in the Employees Provident Fund corpus.

The budget proposed a new comprehensive law providing for a jail term of up to 10 years for hiding foreign assets and a 300 per cent penalty on undisclosed income and assets abroad, to intensify the government’s battle against black money.



budget 2015

Here are sector-wise highlights

Taxation

1 Abolition of Wealth Tax.
2 Additional 2% surcharge for the super rich with income of over Rs. 1 crore.
3 Rate of corporate tax to be reduced to 25% over next four years.
4 Total exemption of up to Rs. 4,44,200 can be achieved.
5 100% exemption for contribution to Swachch Bharat, apart from CSR.
6 Service tax increased to14 per cent.

Infrastructure

1 Rs. 70,000 crores to Infrastructure sector.
2 Tax-free bonds for projects in rail road and irrigation
3 PPP model for infrastructure development to be revitalised and govt. to bear majority of the risk.
4 Atal Innovation Mission to be established to draw on expertise of entrepreneurs, and researchers to foster scientific innovations; allocation of Rs. 150 crore.
5 Govt. proposes to set up 5 ultra mega power projects, each of 4000MW.

Education

1 AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.
2 IIT in Karnataka; Indian Institute of Mines in Dhanbad to be upgraded to IIT.
3 PG institute of Horticulture in Armtisar.
4 Kerala to have University of Disability Studies
5 Centre of film production, animation and gaming to come up in Arunachal Pradesh.
6 IIM for Jammu and Kashmir and Andhra Pradesh.

Welfare schemes

1 GST and JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile) to improve quality of life and to pass benefits to common man.
2 Six crore toilets across the country under the Swachh Bharat Abhiyan.
3 MUDRA bank will refinance micro finance orgs. to encourage first generation SC/ST entrepreneurs.
4 Housing for all by 2020.
5 Upgradation 80,000 secondary schools.
6 DBT will be further be expanded from 1 crore to 10.3 crore.
7 For the Atal Pension Yojana, govt. will contribute 50% of the premium limited to Rs. 1000 a year.
8 New scheme for physical aids and assisted living devices for people aged over 80 .
9 Govt to use Rs. 9,000 crore unclaimed funds in PPF/EPF for Senior Citizens Fund.
10 Rs. 5,000 crore additional allocation for MGNREGA.
11 Govt. to create universal social security system for all Indians.

Agriculture

Rural Infrastructure Development Bank Micro Irrigation Programme Targeted for farmer credit
Rs. 25,000 c
Rs. 5,300 cr
Rs. 8.5 lakh cr

Defence

allocated for defence
(an increase of 9.87 per cent over last year)
Rs. 2,46,726 cr
Focus on Make in India for quick manufacturing of Defence equipment.

Renewable energy

electric cars production Solar power Wind power Bio Mass Small Hydro
Rs. 75 cr
2022: 100K MW
60K MW
10K MW
5K MW

Tourism

Develpoment schemes for churches and convents in old Goa; Hampi, Elephanta caves, Forests of Rajasthan, Leh palace, Varanasi , Jallianwala Bagh, Qutb Shahi tombs at Hyderabad to be under the new toursim scheme.
Visa on Arrival for 150 countries


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Printable version | Feb 19, 2020 12:10:45 PM | https://www.thehindu.com/business/budget/allocation-raised-for-upas-flagship-scheme/article6946249.ece

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