INDIAN BUDGET

2020 - 2021
 Introduction
O Union Finance Minister Nirmala
Sitharaman’s second Budget is being
presented in 21st Lok Sabha in Indian
Parliament.

O It is expected to announce measures to

restore economic growth and to set out a
clear road map for achieving the ambitious
target of $ 5 trillion economy by 2025.
 Tax Slabs Revised
O Our govt has spearheaded radical fiscal
measures to ensure that the Indian
economy continues to tread the path of high
growth.

O To make sure India stays competitive, we

took the bold decision to reduce corporate
tax rate for new mfg companies to an
unprecedented 15% and 22% for existing
companies, which is the lowest in the world.
O There are three categories of individual
taxpayers:
O Individuals (below the age of 60 years)
which includes residents as well as non-
residents
O Resident Senior citizens (60 years and
above but below 80 years of age)
O Resident Super senior citizens (above 80
years of age)
 Personal Income Tax and
Simplification of Taxation
O For income between ₹5 lakh and ₹7.5 lakh, can now
pay 10% instead of the present 20%.

O For incomes between ₹7.5 lakh to ₹10 lakh, the income

tax rate has been reduced to 15% from 20% presently.

O Similarly, for income between ₹10 lakh to ₹12.5 lakh,

the tax is currently 30% that is now being brought down
to 20%.

O For those earning between ₹12.5-15 lakh will be

charged 25%. Those earning above ₹15 lakh will
continue to pay 30%.
Income (per Proposed Tax
Old Tax Rate
annum) Rate
Upto ₹2.5 lakh No tax No tax
₹2.5 lakh to ₹5
No tax 5%
lakh
₹5 lakh to ₹7.5
10% 20%
lakh
₹7.5 lakh to ₹10
15% 20%
lakh
₹10 lakh to ₹12.5
20% 30%
lakh
₹12.5 lakh to ₹15
25% 30%
lakh
Above ₹15 lakh 30% 30%
Railway Budget 2020 - 2021
O Indian Railways, the lifeline of the country

O Free high-speed WiFi connectivity at 1000s of railway stations

across the country.

O Private participation in Railways.

O 1,150 trains to be run in PPP mode, also 4 stations to be

redeveloped with help of private sector, says FM.

O Proposal for setting up large solar power capacity alongside rail

track is under consideration.

O Rs 100 lakh crore to be invested in India's infrastructure.

 Kisan Rail
O Railway Budget 2020 announced 'Kisan Rail‘. Refrigerated
coaches will be added in Express, for the benefit of farmers.

O Kisan Rail Scheme - A Game Changer If Executed Properly.

O Much of many perishable goods are sent via trucks, which are not
equipped with any sort of a temperature control. Thus by the time it
reaches its destination, the goods were dries up and farmers do not get
good value for their produce.

O It is a PPP(Public-Private-Partnership) mode for the cold supply chain to

transport perishable goods.

O The freight trains will help farmers to transport their perishable products
easily.
 Bullet Train
O Indian Railways is now planning to expand
India's first bullet train project, which eyes
completion by 2023.

O Detailed Project Reports (DPRs) for 6 high-speed

rail projects have already been sanctioned by
our Railway Minister Piyush Goyal.

O Depending on the traffic potential and the

feasibility, train speeds will be finalised for high-
speed over 300 kmph speed and semi-high
speed between 160-250 kmph speed.
 Bullet Train Routes
Train Routes Distance
Delhi-Noida-Agra-Lucknow- 865 kilometres distance
Varanasi
Delhi-Jaipur-Udaipur- 886 kilometres distance
Ahmedabad
Mumbai-Nashik-Nagpur 753 kilometres distance
Mumbai-Pune-Hyderabad 711 kilometres distance
Chennai-Bengaluru-Mysore 435 kilometres distance
Delhi-Chandigarh-Ludhiana- 459 kilometres distance
Jalandhar-Amritsar
Defence Budget 2020 - 2021
O India is the fourth largest military spender in the world.

O Three branches of India’s Ministry of Defence — the Army, the Navy and
the Air Force.

O India's defense budget has marginally been increasing year-on-year.

O The defence budget has been hiked by 6 per cent from Rs 3.18 lakh
crore to Rs 3.37 lakh crore in the Union Budget this year.

O With defence pensions, the total budget would go up to Rs 4.7 lakh

crore.

O But there is a Shortage in the modernisation budget.

No Room for Modernisation
O Nearly one-third went towards acquiring new
weapons.

O The Indian Army is currently struggling to upgrade its

equipment because of the resource crunch.

O In addition to being cautious about bringing new

projects on board, it’s also grappling to pay for past
contracts.

O Majority of the defence budget is spent on salaries

and pensions of defence personnel.
 • The Army was granted Rs 179415
(56% of total defence budget)

• The Navy was given Rs 49623 (15% of

total defence budget)

• The Indian Air Force got an allocation

of Rs 73245 (23% of total defence
budget)

• The Defence Research and

Development Organisation (DRDO)

• Got an allocation of Rs 19327 (6% of

total defence budget)
 MoD’s Budget: Defence, Civil and Pension

MoD
Defence Pension Total
(Civil)
Year Services (Rs in Rs in
(Rs in
Rs in (Crore) Crore) (Crore)
Crore)
2018-19 290802 10881 101775 403457
2019-20 305296 13635 112080 431011
2019-20 316296 14714 117810 448820
2020-21 323053 14500 133825 471378
THANK YOU