SECTION — ECONOMICS & ECONOMY

BUDGET — 2020-21

1. Ease of living is basic tenet of the Budget.

2. The Budget has been given the name Jan Jan ka Budget .

3. The three central themes of this budget — Aspirational India, Economic Development and Caring
Society . These themes have something to touch upon the lives of every citizen of the country, be it
a farmer, investor, student, service class or a start-up to name a few.

4. Aspirational India refers to India in which all sections of the society seeks better standards of living,
with access to health, education and better jobs. Economic development for all is indicated in the
Prime Minister’s exhortation of Sabka Saath, Sabka Vikas, Sabka Vishwas and Caring Society refers
to a society that is both humane and compassionate taking development to the last mile.

5. The budget envisages achieving seamless delivery of services through digital governance, improving
physical quality of life through National Infrastructure Pipeline , risk mitigation through disaster
resilience and social security through pension and insurance penetration.

6. It promotes investment through measures including doing away with the Dividend Distribution Tax for
the companies which will now be levied on investors, Vivad se Vishwas to reduce tax litigations and
insurance cover on bank deposits being increased to five lakh rupees.

7. The 16-point action plan focuses on doubling farmer’s income, ensuring storage and logistics,
promoting Blue Economy, Horticulture and Animal Husbandry. A hundred airports planned by 2024
under Udan Scheme, Krish Udan Yojana to be launched on international, national routes bringing
Northeast and tribal districts on the forefront.

8. The new economy is envisioned based on innovations with Artificial Intelligence, Internet of Things
(IoT), quantum computing etc. to enable direct benefit transfers and financial inclusion on a scale never
imagined before.

9. The government is committed to the goal of doubling the farmers income by 2022. To achieve this, the
government has crafted and pinpointed 16 Action Points to boost agriculture by means of ‘energy
sovereignty’ through PM-KUSUM and ‘input sovereignty’ through Paramparagat Krishi Vikas Yojana .

10. The PM-KUSUM scheme removes farmers dependence on diesel and kerosene and linked pump sets
to solar energy.

11. To build a seamless national cold supply chain for perishables, inclusive of milk, meat and fish, the
Indian Railways will set up a “Kisan Rail” - through PPP arrangements. There shall be refrigerated
coaches in Express and Freight trains as well.

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12. Krishi Udaan will be launched by the Ministry of Civil Aviation on international and national routes.
This will immensely help improve value realisation especially in North-East and tribal districts.

13. The following proposals have been presented to promote Blue Economy :

(a) Raising of fish production to 200 lakh tonnes proposed by 2022-23.

(b) Growing of algae, sea-weed and cage culture to be promoted.

(c) Youth to be involved in fishery extension through 3477 Sagar Mitras and 500 Fish Farmer Producer
Organisations.

(d) Fishery exports to be raised to Rs. 1 lakh crore by 2024-25.

14. Samagra Shiksha is an flagship programme of the government to promote holistic education. It was
formulated in 2018 by bringing together three earlier centrally sponsored schemes i.e., Sarva Shiksha
Abhiyan (SSA), Rashtriya Madhyamik Abhiyan (RMSA) and Teacher education. Government also
introdued NISHTHA (National Initiative for School Heads and Teachers Holistic Advancement), an
initiative to train over 4.2 million teachers across the country. For all these programmes, total budget
allocation for school education has been proposed at Rs. 59,845 crore, out of which allocation of Rs.
38,750 crores has been only for Samagra Shiksha which constitutes 64.75 per cent of the school
Budget. The allocation of fund for this scheme has increased to 6.26 per cent from the last year budget.
The allocation to this scheme will improve the quality of education particularly children from rural areas.

15. To strengthen the Cooperative Banks, amendments to the Banking Regulation Act are proposed for
increasing professionalism, enabling access to capital and improving governance and oversight for
sound banking through the RBI.

16. Now, process has been initiated to bring changes in this entire system. With motive towards better
regulation of the cooperative banks, within four days of presentation of the Budget, the Union Cabinet
approved the amendment in Banking Regulation Act, just within four days of budget introduction.
Through this, the Cooperative banks (Multi-State Cooperative Bank) functioning in various states and
UCB will be brought under the jurisdiction of the Reserve Bank of India. It has been clearly demarcated
here. Banking related issues will be under the jurisdiction of the Reserve Bank of India, while the
registrar has been authorised to deal with the administrative issues of cooperative societies.

17. Deposit Insurance coverage has been enhanced from Rs. 1 lakh to Rs. 5 lakh.

18. Lower Corporation tax at 15% for new domestic corporate entities in power and manufacturing sectors.
It is expected to give a fillip to manufacturing activities, particularly when viewed in the light of
“Assemble in India” campaign.

19. Fiscal deficit target has been fixed at 3.5%.

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