财政部长尼尔玛拉·西塔拉曼（Nirmala Sitharaman）周六在议会上提交了2020年联邦预算。她宣布启动新的个人所得税制度，该制度可以帮助中产阶级节省税款，并取消股息分配税（DDT）。这是Sitharaman预算演讲的全文。
尊敬的演讲者
我开始提出2020-2021年预算。
介绍
2019年5月，莫迪总理获得了重任，再次成立了政府。在他的领导下，我们将以新的活力，竭尽全力为印度人民服务。
2.印度人民毫不犹豫地给予他们扬扬的敬意，不仅因为政治稳定，而且对我们的经济政策抱有信心。这是增加他们的收入和增加他们的购买力的预算。只有通过更高的增长，我们才能实现这一目标，并让我们的年轻人富有成效地工作。使用技术，让我们的业务创新，健康，有偿付能力。
3.对于在世纪之交出生的当今青年，对于每一个寻求更好生活的等级种姓和等级部落成员，对于每个希望站起来并受到重视的妇女，对于我们社会中少数群体的每个人而言–这份预算案旨在解决您的愿望和希望。
4.我们希望通过轻柔的新技术为蓬勃发展的经济打开远景。这个充满活力的印度将是一个充满爱心的社会，将照顾其弱势群体，老年人和弱势群体。
5.在2014-19年度，我们的政府带来了治理模式的转变。这种转变的特点是双重关注：根本的结构改革和包容性增长。
6.经济基本面强劲，确保了宏观经济稳定。通货膨胀已得到很好控制。银行在过去十年中彻底清理了累积的贷款，然后对其进行了资本重组。通过IBC向公司提供了出口。在经济正规化方面采取了若干步骤。
7.在结构改革中，商品和服务税（GST）是我国历史最悠久的。它的首席建筑师今天不在我们身边。我向有远见的领导人已故的什里·阿伦·贾特利·吉致敬。在推出GST时，他曾说过，我引用：
“这将是印度，中心和各国将为实现共同繁荣的共同目标而协调努力。宪法修正案的一致通过以及商品及服务税委员会的共识，凸显了印度可以为国家利益超越狭narrow的政治。实行商品及服务税后，国家和中心都不会失去主权。相反，他们将把主权集中在间接税的决定上。”
8.秉承这种历史性结构改革的愿景，商品和服务税已逐渐成熟，已成为使国家经济一体化的税种。它已将众多税款和征税合并为一种税，并促进了经济的正规化。这导致了物流和运输部门的效率提高。由于取消了GST中的检查站，卡车的周转时间已大幅减少了20％。可怕的督察拉吉也消失了。
9.它还通过提高阈值和组成限制为MSME带来了显着收益。几乎每种商品的有效税收发生率都大幅下降。通过多次降低税率，每年为消费者带来了10亿克朗的收益。相当于将总税收减少10％。现在，由于降低了商品及服务税的税率，普通家庭每月的开支节省了约4％。
10.在这个成熟阶段，商品及服务税确实面临某些挑战。这是自然而然的，因为过渡令人生畏。 GST理事会一直积极解决过渡期间的问题。在过去的两年中，我们增加了超过600,000名新的纳税人，总共提交了约4亿美元的纳税申报表，上载了80亿美元的发票，并产生了10.5亿美元的电子方式账单。与利益相关者进行了广泛的接触。从2020年4月1日起，将引入简化的新退货系统。
11.一位前任总理曾经对福利计划的成果未能达到预期的公民表示关切–普通的和应得的公民只收到为他送来的每卢比15披萨。在“萨布卡·萨特，萨布卡·维卡斯，萨布卡·维什瓦斯”的指导下，我们的政府和总理加快了速度，扩大了直接使穷人和处境不利者受益的计划和方案的实施。我仅列举几个例子： ）嵌入了直接收益转移（DBT）的福利计划;（b）提供基本需求和预防性保健措施的卫生和水;（c）通过Ayushman Bharat的保健;（d）通过Ujjwala的清洁能源和太阳能；（e）金融包容性，信贷支持，对脆弱群体的保险保护和养老金计划；（f）通过宽带和UPI进行数字渗透；（g）通过PMAY为所有人提供可负担住房。
取得的里程碑是前所未有的，全球认可的并与国际指数相对应。
12.这一战略改变了一些人获得多数利益的既定秩序，并受到了人民的赞赏。这产生了非常积极的成果。我们已经从1950年代的略高于4％的增长率发展到1980年代和1990年代的6％。但是，在2014-19年度，我们预计通货膨胀率平均增长7.4％，平均约为4.5％。值得一提的是，在上一个千年的最后两个十年中，通货膨胀率接近9％，而在2009-14年度期间则为10.5％。在2006-16年间，印度使贫困人口增加了2.71亿，我们都应该为此感到自豪。
13.我们现在是世界第五大经济体。印度的外国直接投资从2009-14年的1900亿美元增加到2014-19年的2840亿美元。一直以来困扰我们经济的中央政府债务，已从2014年3月的52.2％降至2019年3月的GDP的48.7％。
14.在这种背景下，我国政府将努力使国家向前发展，以便我们能够跃升到健康，繁荣和福祉的新高度。我们将努力为每个公民带来轻松的生活。
15.我很想在两个跨领域的发展背景下提出这一预算：
a）技术的扩散，特别是分析，机器学习，机器人技术，生物信息学和人工智能；和
b）处于生产年龄段（即印度的15-65岁）的人数最高。
16.这种结合是当代印度所特有的。同样，在全球范围内，如果全球化程度在不断缩小，货币政策的效力也会引发争议。在过去的五年中，我们所做的努力以及青年人的精力，热情和创新是前进的动力。印度的企业家精神在几百年的风风雨雨中风起云涌，激发了我们的动力。我们认识到需要支持和进一步激发这种精神。
17.该预算围绕三个突出的主题：
第一：有抱负的印度，社会各阶层寻求更好的生活水平，并获得健康，教育和更好的工作。
第二：总理敦促“萨布卡·萨特，萨布卡·维卡斯，萨布卡·维什瓦斯”中指出，人人享有经济发展，这将需要在整个经济领域进行改革，同时，这将意味着为私营部门创造更多的空间，它们将共同确保更高的生产率和更高的效率。
和
第三：我们将成为一个既人道又富有同情心的关爱社会。 Antyodaya是一种信仰。
18.数字革命使印度在全球范围内处于独特的领导地位，将迎来下一波浪潮。我们的目标是：
•通过数字治理实现服务的无缝交付
•通过国家基础设施管道改善生活质量
•通过抗灾能力降低风险
•通过养老金和保险渗透的社会保障。
这些倡议及其组成部分中的每一个都将以国际标准为基准，并且指数将很快公布。
19.总结一下我的介绍性发言，这位预算发言人先生致力为所有公民提供“生活便利”，如前所述，在三个主要主题下，即“有抱负的印度”，“经济发展”和“关爱印度”捧着一束鲜花是两只手–一是无腐败，政策驱动的良好治理，二是干净健全的金融部门。
20.前面所述的三个主题构成了我随后演讲的基础。它们是花束的花朵，凸显了“轻松生活”的总体概念，需要提升我们的总理什里·纳伦德拉·莫迪（Shri Narendra Modi）所说的治理，有关财务的章节以及随后的税收B部分提供了必要的基础。预算为明年及以后奠定了指南。
在此之前，我先详细阐述三个主题，在此我想背诵克什米尔语中的一小节经文：
SaunWatanGulzarShalamaarHyur
达尔·曼兹（Dal Manz）PolvunPamposhHyuv
纳乌万·安洪（VavhunKhumaarHyuv）
MyonWatan，ChyonWatan
南德邦尼SaunWatan
（我们所做的一切，都是我们为这个美丽的国家所做的一切）
潘迪特·迪纳纳特·库尔的诗
理想印度
21.我将介绍与以下方面有关的计划和计划：（1）农业灌溉与农村发展（2）健康，水和卫生与（3）教育和技能
农业，灌溉与农村发展
22.我们的政府致力于实现到2022年农民收入增加一倍的目标。我们通过KUMUM提供了能源主权，并通过Paramparagat Krishi Vikas Yojana提供了主权。我们为在Fasal Bima Yojana项目下受保的611万农民提供了恢复力。专注于豆类的种植，通过Krishi Sinchai Yojana扩大微灌溉，提高了该国的自力更生。通过PM-KISAN直接向农民提供任何年度收入补充。通过PMGSY的连通性，金融包容性有助于提高农场收入。
22（1）。可以通过提高农业竞争力来确保农民的繁荣。为此，需要开放农产品市场。农场和牲畜市场的扭曲需要消除。购买农产品，物流和农业服务需要大量投资。需要为诸如牲畜，养蜂场和渔业之类的农场活动提供大量支持和支持。农民希望获得涵盖存储，融资，加工和营销的集成解决方案。
23.采用可持续的种植方式和引进更多技术是我们计划不可或缺的部分。通过与各国合作，可以实现所有这些以及更多。
以下16个行动要点表明了我们的关注重点：
23（1）。我们建议鼓励那些实行以下中央政府已经颁布的示范法的州政府：
a）2016年示范农业土地租赁法
b）《 2017年农产品和牲畜营销示范法（促进和便利化）》;以及
c）2018年《农产品和牲畜合同农业和服务示范法（促进和便利）》
23（2）。现在，与水资源压力有关的问题已成为全国范围内的一个严重问题。我国政府正在对一百个缺水地区提出综合措施。
23（3）。在2019年7月的预算演讲中，我曾说过“annadata”也可以是“urjadata”。 PM-KUSUM计划消除了农民对柴油和煤油的依赖，并将泵组与太阳能相连。现在，我建议扩大该计划，为200万农民提供安装独立太阳能泵的机会。此外，我们还将帮助另外15万名农民对他们的并网泵组进行太阳能照明。此外，一项使农民能够在其荒芜/荒芜的土地上建立太阳能发电能力并将其出售给电网的计划将付诸实施。
23（4）。我国政府应鼓励平衡使用各种肥料，包括传统的有机肥料和其他创新肥料。这是改变现行激励机制的必要步骤，该机制鼓励过度使用化肥。
உண்
ஆத்திச்சூடி–82
布米蒂鲁西翁
-明智的泰米尔老妇圣诗人Aauvaiyar – Sangam时代
“ Aaathichoodi”第81节
这句话的意思是，一个人必须“先耕种然后吃饭”，一个人下班后就必须吃饭。
23（5）。印度估计有1.62亿吨的农业仓储，冷藏，冷藏车设施等产能。NABARD将进行演习，以进行制图和地理标记。此外，我们建议根据仓库发展和监管局（WDRA）规范创建仓储。我们的政府将提供可行性缺口资金，用于在区块/塔鲁克级别建立这样的高效仓库。如果各国可以在土地上提供便利并采用PPP模式，则可以实现这一目标。印度食品公司（FCI）和中央仓库公司（CWC）也应在其土地上进行此类仓库建设。
23（6）。作为一种向后链接，建议由SHG实施“乡村存储计划”。这将为农民提供良好的保管能力，并降低其物流成本。妇女，自助团体应重新担任“ Dhaanya Lakshmi”的职务。
23（7）。为了建立一条无缝的全国性易腐品冷库供应链，包括牛奶，肉和鱼，印度铁路公司将通过PPP安排建立“基桑铁路”，在快车和货运列车中应有冷藏教练也一样
23（8）.KrishiUdaan将由民航部在国际和国内航线上发射。这将极大地帮助提高价值实现，特别是在东北和部落地区。
23（9）。园艺部门目前的产量为3.11亿吨，超过了粮食谷物的产量。为了更好地进行市场营销和出口，我们建议支持国家，这些国家将以集群为基础，将重点放在“一个产品一个地区”。
23（10）。雨育地区的综合农业系统应予以扩大。将增加多层种植，养蜂，太阳能水泵，非作物季节的太阳能生产。零预算自然农业（2019年7月预算中提到）也应包括在内。 “ jaivikkheti”门户网站–全国有机产品在线市场也将得到加强。
23（11）。流通仓库收据（e-NWR）的融资已超过600亿卢比。这将与e-NAM集成。
23（12）。非银行金融公司（NBFC）和合作社活跃于农业信贷领域。 NABARD再融资计划将进一步扩大。 2020-21年的农业信贷目标已定为15千万克朗。 KCC计划将涵盖PM-KISAN的所有合格受益人。
23（13）。我国政府计划到2025年消除口蹄疫，牛布鲁氏菌病以及绵羊和山羊瘟病小反刍动物（PPR）。人工授精的覆盖率将从目前的30％增加到70％。 MNREGS将与发展饲料农场相吻合。此外，到2025年，我们将推动牛奶加工能力从5350万吨增加到1.08亿吨。
23（14）。蓝色经济：我国政府建议建立海洋渔业资源开发，管理和保护的框架。
23（15）。沿海地区的青年通过鱼类加工和销售而受益。我建议到2022-23年将鱼类产量提高到2000万吨。还将促进藻类，海藻和网箱养殖的发展。
我们的政府将通过3477 SagarMitras和500个鱼农生产者组织，使青年参与渔业推广。我们希望到2024-25年将渔业出口提高到10亿克拉。
23（16）。在DeenDayal Antyodaya Yojana减贫计划下，动员了58万户SHG。我们将进一步扩展SHG。
24.现在，对于上述16个不同步骤的资金分配，现将其分为两个不同类别：
对于由农业及相关活动，灌溉和农村发展组成的部门，2020-21财年的拨款约为28.3亿克朗。其分裂，除其他外；
a）农业，灌溉及相关活动-1600000万亿
b）农村发展和潘贾亚蒂（Panchayati Raj）-`123,000万千万
健康，水和卫生
在“有抱负的印度”下，我现在将谈论健康，水和卫生。
25.我们对医疗保健具有整体看法，可以转变为公民的健康。 Indradhanush任务已扩大到涵盖12种此类疾病，包括五种新疫苗。 FIT印度运动是与生活方式问题相关的非传染性疾病斗争的重要组成部分。已经启动了重点突出的安全水（贾尔·杰万任务）和全面卫生计划（斯瓦什·巴拉特任务），以支持健康愿景。这将减轻穷人的疾病负担。
26.目前，在PM Jan Arogya Yojana（PMJAY）的领导下，有20,000多家经验丰富的医院。根据该计划，我们在二级和三级城市中需要更多的贫困人口。
26（1）。建议设置可行性差距资金窗口，用于以PPP模式建立医院。在第一阶段中，将覆盖那些志向高远的地区，目前在该地区没有阿尤什曼（Ayushman）实力雄厚的医院。这也将为青年提供大规模的就业机会。医疗器械税收收入将用于支持这一至关重要的健康基础设施
26（2）。通过使用机器学习和AI，在Ayushman Bharat计划中，卫生当局和医疗兄弟会可以通过适当设计的预防方案来针对疾病。
27.发起了“ TB Harega Desh Jeetega”运动，我建议加强这些努力，以实现我们对在2025年结束结核病的承诺。
28.我建议到2024年将“扬·奥沙迪·肯德拉计划”扩大到所有提供2000种药品和300名外科医师的地区。
我已为卫生部门提供了约690亿卢比的资金，其中包括总理扬·阿罗吉亚·约哈纳（PMJAY）的640亿卢比。
29.我国政府致力于实施ODF Plus，以维持ODF的行为并确保不留下任何人。现在，在液体和灰水管理方面还需要做更多的工作。重点还将放在固体废物收集，源头分类和处理上。
Swachh Bharat任务的总拨款在2020-21财年约为1,230亿卢比。
30.为了向所有家庭提供自来水，总理从红堡宣布了贾尔·杰文特派团。我们的政府已为此任务批准了360亿克朗。该计划还强调增加当地水源，补充现有水源，并将促进集水和淡化海水。在今年本身，将鼓励人口超过一百万的城市实现这一目标。
在2020-21年间，该计划的预算为
1150亿。
教育和技能
《理想印度》下的第三个也是最后一个项目是教育和技能。
31.到2030年，印度将成为世界上工作年龄人口最多的国家。他们不仅需要识字，而且还需要工作和生活技能。与国家教育部，国会议员和其他利益相关者就教育政策进行了对话。还收到了超过20万条建议。新教育政策即将公布。
32.人们认为，我们的教育系统需要更多的资金流入，以吸引有才能的教师，创新和建立更好的实验室。因此，将采取步骤来采购外部商业借款和外国直接投资，以便能够提供更高质量的教育。
33.普通专业（相对于服务或技术专业）的学生需要提高就业能力。到2021年3月，大约150所高等教育机构将开始学徒制嵌入式学位/文凭课程。
34.政府提议启动一项方案，通过该方案，全国各地的城市地方机构将为应聘的工程师提供长达一年的实习机会。
35.为了向社会贫困阶层的学生和那些无法接受高等教育的学生提供优质的教育，建议启动学位级别的全面在线教育计划。仅由在“国家机构排名”框架中排名前100名的机构提供。最初，只有少数此类机构被要求提供此类计划。
36.印度应该是高等教育的首选目的地。因此，根据其“印度研究”计划，拟在亚洲和非洲国家举办Ind-SAT，该标准将用于对获得印度大学高等教育奖学金的外国候选人进行基准评估。
37.在警务科学，法医科学，网络法证学等领域，正在提议建立一所国家警察大学和一所国家司法科学大学。
38.无论是全科医生还是专科医生，都缺乏合格的医生。为了满足这个要求；
38（1）。建议以PPP模式将医学院附接到现有的地区医院。那些完全允许医院为医学院提供设施并希望以优惠价格提供土地的州，将能够获得可行性缺口资金。该计划的细节将得到解决。
38（2）。国家考试委员会授予PG医学资格;国家委员会文凭和研究员（DNB / FNB）。因此，政府将鼓励有足够能力的大型医院向国家考试委员会提供住院医生DNB / FNB课程。
39.国外对教师，护士，医务人员和护理人员的需求巨大。但是，他们的技能往往很多时候都不符合雇主的标准，因此需要提高。我建议由卫生，技能发展部和专业机构共同设计特殊的衔接课程，以实现同等水平。还需要包括各国的语言要求。所有这些都应通过特殊的培训包来实现。
我国政府提议在2020-21财年为教育部门提供约99,300千万卢比，为技能发展提供约300亿卢比。
经济发展
工业，商业和投资
萨拉斯瓦蒂－信德文明和哈拉潘海豹的行会非常出色。它们属于公元前3300年。印度语脚本象形文字已被解密。与贸易和贸易有关的词汇显示了印度在过去的一千年中如何继续发展丰富的技能，冶金，贸易等。进入国库。
40.创业精神一直是印度的力量。即使到了今天，年轻人也放弃了其他地方的绿色牧场，为印度的发展做出了贡献。他们冒险冒险，并提出了破坏性的解决方案来应对不断恶化的挑战。同样，成熟的老工业正在重新适应不断变化的全球和国内形势。我们认识到我们青年的知识，技能和承担风险的能力。他不再是求职者。他是工作的创造者。现在，我们希望创造更多机会，并消除他前进道路上的障碍。
我建议成立一个投资清算小组，该小组将通过门户网站提供“端到端”的便利和支持，包括投资前咨询，与土地储备有关的信息，并促进中心和州一级的清算。
41.有必要最大限度地提高三个单独开展的经济活动的利益：（1）即将到来的经济走廊； （二）振兴制造业活动； （3）技术和理想水平的要求。我们必须从他们的融合中受益。因此，建议以PPP模式与国家合作开发五个新的智慧城市。将选择根据上述原则提供最佳选择的此类站点。
42.印度需要制造网络产品。这将使其成为全球价值链的一部分。反过来，这将获得更多投资，并为我们的青年创造更多就业机会。
42（1）。电子制造业竞争非常激烈，印度已显示出其成本优势。这个行业在创造就业机会方面潜力巨大。印度需要促进国内制造业并吸引电子价值链上的大量投资。在这里，我提出一个计划，重点鼓励手机，电子设备和半导体封装的生产。详细信息将在以后宣布。
42（2）。通过适当的修改，该方案也可以适用于医疗设备的制造
43.印度每年进口大量技术纺织品，价值160亿美元。为了扭转这种趋势并使印度成为技术纺织品的全球领导者，提议设立一个国家技术纺织品代表团，其实施期为2020-21年至2023-24年，为期四年，预计支出为148亿卢比。
44.我国总理在红堡会议上谈到“零缺陷-零影响”制造业时谈到了质量和标准，去年9月，我呼吁工业界有时限采用所有必要的强制性技术。标准及其有效执行：今年所有部门将发布质量标准订单。
45.为了实现更高的出口信贷支付，正在启动一项新的计划，即NIRVIK，该计划提供更高的保险范围，减少小型出口商的保费和简化索赔解决程序。
46.提议以数字方式退还出口商在中央，州和地方各级征收的关税和税款，例如用于运输的燃料的电费和增值税，这些关税和税收在任何其他现有机制下都不会免除或退还。这项针对出口产品的关税和税收返还计划将于今年启动。
47.总理的愿景是每个地区都应发展成为出口枢纽。中心政府和州政府的努力正在加在一起，体制机制正在建立。
48.政府电子市场正在为在该国建立统一采购系统而前进，该系统为货物，服务和工程的采购提供了一个单一的平台。它为中小型和微型企业（MSME）提供了绝佳的机会。该平台上已有32.4万个供应商。它提议将其营业额提高到3千万克朗。
我提议在2020-21财年提供约27,300千万用于发展和促进工商业。
在“经济发展”主题下，第二个重点是基础设施。
基础设施
49.尊敬的议长，主席先生，总理在2019年独立日演讲中强调，未来5年将在基础设施上投资1000亿克朗。作为一项后续措施，我于2019年12月31日启动了1030亿千万美元的国家基础设施管道建设。它由跨部门的6500多个项目组成，并根据其规模和发展阶段进行分类。
这些新项目将包括住房，安全饮用水，获得清洁和负担得起的能源，所有人的医疗保健，世界一流的教育机构，现代化的火车站，飞机场，巴士总站，地铁和铁路运输，物流和仓储，灌溉项目等国家基础设施管道计划改善该国每个公民的生活便利。它还将对这些基础设施项目的开发，运营和维护进行一般性和部门性改革。
印度年轻人在基础设施的建设，运营和维护方面存在巨大的就业机会。国家技能发展局将特别注重基础设施方面的技能发展机会。
50（1）。我建议为基础设施项目建立项目准备设施。该计划将积极吸引来自我们大学的年轻工程师，管理专业毕业生和经济学家。
50（2）。还建议指示政府的所有基础设施机构让青年力量参与初创企业。他们将帮助在公民的优质公共基础设施中推出增值服务。
51.国家后勤政策将很快发布。除其他外；它将阐明联邦政府，州政府和主要监管机构的作用。它将创建一个单一窗口的电子物流市场，并将侧重于创造就业机会，技能和使MSME更具竞争力。
52.将加快发展高速公路。这将包括开发2500公里的出入口控制高速公路，9000公里的经济走廊，2000公里的沿海和陆路港口公路和2000公里的战略高速公路。
德里-孟买高速公路和其他两个项目将在2023年完成。钦奈-班加罗尔高速公路也将启动。
53. FASTag机制鼓励我们使高速公路更加商业化，以便NHAI可以筹集更多资源。我建议在2024年之前将至少十二批超过6000公里的高速公路捆绑货币化。
54.印度铁路公司在履行职责时为国家服务。
a）在本届政府上任100天之内，它已经在许多站点启用了550个Wi-Fi设施。
b）消除无人过境
c）旨在使27000 Km的轨道电气化。
这将要求优化成本。铁路的经营盈余很小。关于印度铁路公司，我想强调以下五项措施：
•在铁路拥有的土地上，在铁轨旁建立大型太阳能发电能力。正在考虑一项提案。
•将通过PPP模式完成四个车站的重建项目，并运营150列旅客列车。邀请私人参与的过程正在进行中。
•更多的Tejas型火车将连接标志性的旅游目的地。
•孟买到艾哈迈达巴德之间的高速火车将得到积极的追赶。
•148公里长的班加罗尔郊区运输项目，成本为
`18,600千万，将是地铁模型的票价。 Central Government would provide 20% of equity and facilitate external assistance up to 60% of the project cost.
55.Our sea-ports need to be more efficient. Technology has to used to improve performance. A governance framework keeping with global benchmarks needs to be put in place.
This government would consider corporatizing at least one major port and subsequently its listing on the stock exchanges.
56.Inland Waterways received a boost in the last five years. The Jal Vikas Marg on National Waterway-1 will be completed. Further, the 890 Km Dhubri-Sadiya connectivity will be done by 2022.
Developing waterways has its impact on the eco-system on both the banks of the river. Our Prime Minister has conceptualised “Arth Ganga”. Plans are afoot to energise economic activity along river banks.
57.Air traffic has been growing rapidly in the country as compared to global average. One hundred more airports would be developed by 2024 to support Udaan scheme. It is expected that the air fleet number shall go up from the present 600 to 1200 during this time.
I propose to provide about ` 1.70 lakh crore for transport Infrastructure in 2020-21.
58.Taking electricity to every household has been a major achievement. However, the distribution sector, particularly the DISCOMS are under financial stress. The Ministry intends to promote “smart” metering. I urge all the States and Union Territories to replace conventional energy meters by prepaid smart meters in the next 3 years. Also, this would give consumers the freedom to choose the supplier and rate as per their requirements.
Further measure to reform DISCOMs would be taken.
I propose to provide about ` 22,000 crore to power and renewable energy sector in 2020-21
59.In the upstream sector of oil and gas, the Open Acreage Licensing Policy (OALP) is a success having awarded 1,37,000 sq km for exploration to private sector and to the CPSEs. City gas distribution rights are also awarded.
60 (1).Further, it is proposed to expand the national gas grid from the present 16200 km to 27000 km, and
60 (2).To deepen gas markets in India, further reforms will be undertaken to facilitate transparent price discovery and ease of transactions.
New Economy
61.The new economy is based on innovations that disrupt established business models. Artificial intelligence, Internet-of-Things (IoT), 3D printing, drones, DNA data storage, quantum computing, etc., are re-writing the world economic order. India has already embraced new paradigms such as the sharing economy with aggregator platforms displacing conventional businesses. Government has harnessed new technologies to enable direct benefit transfers and financial inclusion on a scale never imagined before.
62.It is now a cliché – “data is the new oil” and it is true that Analytics, Fintech and Internet of Things (IOT) are changing the way we deal with our lives. To take advantage of this, I propose:
62 (1).To bring out soon a policy to enable private sector to build Data Centre parks throughout the country. It will enable our firms to skilfully incorporate data in every step of their value chains.
62 (2). Our vision is that all “public institutions” at Gram Panchayat level such as Anganwadis, health and wellness centres, government schools, PDS outlets, post offices and police stations will be provided with digital connectivity. So, Fibre to the Home (FTTH) connections through Bharatnet will link 100,000 gram panchayats this year.
It is proposed to provide ` 6000 crore to Bharatnet programme in 2020-21.
63.We need to expand the base for knowledge-driven enterprises. Intellectual property creation and protection will play an important role. Several measures are proposed in this regard, which will benefit the Start-ups.
63 (1). A digital platform would be promoted that would facilitate seamless application and capture of IPRs. Also, in an Institute of Excellence, a Centre would be established that would work on the complexity and innovation in the field of Intellectual Property.
63 (2). Knowledge Translation Clusters would be set up across different technology sectors including new and emerging areas.
63 (3).For designing, fabrication and validation of proof of concept, and further scaling up Technology Clusters, harbouring such test beds and small scale manufacturing facilities would be established.
63 (4). Mapping of India’s genetic landscape is critical for next generation medicine, agriculture and for bio-diversity management. To support this development, we will initiate two new national level Science Schemes, to create a comprehensive database.
63 (5). The government proposes to provide early life funding, including a seed fund to support ideation and development of early stage Start-ups.
64.Quantum technology is opening up new frontiers in computing, communications, cyber security with wide-spread applications. It is expected that lots of commercial applications would emerge from theoretical constructs which are developing in this area.
It is proposed to provide an outlay of ` 8000 crore over a period five years for the National Mission on Quantum Technologies and Applications.
Caring Society
In our third theme we focus on Women &Child, Social Welfare; Culture and Tourism and also on Environment and Climate Change.
Women & Child, Social Welfare
65.I am pleased to inform the House that “Beti Bachao Beti Padhao” has yielded tremendous results. Gross enrolment ratio of girls across all levels of education is now higher than boys. At elementary level, it is 94.32 % as against 89.28% for boys. At Secondary level, it is 81.32 % as compared to 78 %, At higher secondary level girls have achieved a level of 59.70 % as compared to 57.54 % for boys.
66.Health of mother and child are closely corelated. Nutrition is the critical component of health. To improve the nutritional status of children (0-6 years), adolescent girls, pregnant women and lactating mothers, our Prime Minister launched a “Poshan Abhiyan” in 2017-18. More than six lakh anganwadi workers are equipped with smart phones to upload the nutritional status of more than 10 crore households. The scale of these developments is unprecedented.
67.Women’s age of marriage was increased from fifteen years to eighteen years in 1978,by amending erstwhile Sharda Act of 1929. As India progresses further, opportunities open up for women to pursue higher education and careers. There are imperatives of lowering MMR as well as improvement of nutrition levels. Entire issue about age of a girl entering motherhood needs to be seen in this light. I propose to appoint a task force that will present its recommendations in six months’ time.
I propose to provide `35600crore for nutrition-related programmes for the financial year 2020-21.
68.In continuing with our government’s commitment to the welfare of women, this budget provides for about ` 28,600crore for programs that are specific to women.
69. Our government is determined that there shall be no manual cleaning of sewer systems or septic tanks. Suitable technologies for such tasks have been identified by the Ministry of Housing and Urban Affairs. The Ministry is working with urban local bodies for the adoption of these technologies. We will now take this to its logical conclusion through legislative and institutional changes. Financial support for wider acceptance of such technologies will be provided.
70In furthering this government’s commitment towards the welfare of Scheduled Castes and Other Backward classes, I propose a budget provision of about`85,000crore for 2020-21.
71. In furthering development and welfare of Scheduled tribes, I provide in the Budget for the year 2020-21 an amount of about `53,700crore.
72.This government is mindful of the concerns of senior citizens and Divyang. Accordingly, an enhanced allocation of about `9,500 crore is being provided for 2020-21.
Culture & Tourism
73.Our government proposes to establish an Indian Institute of Heritage and Conservation under Ministry of Culture; it shall have the status of a deemed University to start with. Acquisition of knowledge in disciplines such as museology and archaeology are essential for collecting and analysing scientific evidence of such findings and for dissemination through high quality museums. Currently lack of trained man-power is a handicap for both these disciplines. This also affects tourism.
74.Five archaeological sites would be developed as iconic sites with on-site Museums. They are: Rakhigarhi (Haryana), Hastinapur (Uttar Pradesh) Shivsagar (Assam), Dholavira (Gujarat) and Adichanallur (Tamil Nadu).
75.Our Prime Minister in January 2020 announced re-curation of the Indian Museum in Kolkata, which is the oldest in the country.
75 (1).In the historic Old Mint building Kolkata, a museum on Numismatics and Trade will also be located. Four more museums from across the country shall be taken up for renovation and re-curation so that a world class experience can be offered to visitors. Our government shall also support setting up of a Tribal Museum in Ranchi (Jharkhand).
75 (2).A maritime museum would be set up at Lothal- the Harrapan age maritime site near Ahmedabad, by Ministry of Shipping.
I propose to provide ` 3,150crore for Ministry of Culture for
2020-21.
76.India has moved up from rank 65 in 2014 to 34 in 2019 in the Travel & Tourism Competitive Index (World Economic Forum). Foreign exchange earnings grew 7.4% to `1.88 lakh crores for the period January to November 2019 from `1.75 lakh crores
Growth of tourism directly relates to growth and employment. States have a critical role to play. I expect the State governments to develop a roadmap for certain identified destinations and formulate financial plans during 2021 against which specified grants will be made available to the States in 2020-21.
For purpose of tourism promotion, I propose to allocate ` 2,500 crore for 2020-21.
Environment & Climate Change
77.In September 2019, the Prime Minister has launched the Coalition for Disaster Resilient Infrastructure (CDRI) with its Secretariat in Delhi. This global partnership is the second such international initiative after the launch of International Solar Alliance in 2015. This Global Partnership will help in addressing a number of Sustainable Development Goals (SDGs), as also the aims of Sendaiframework. It will enhance climate change adaptation with a focus on disaster resilient infrastructure
78.India submitted its Nationally Determined Contribution, under the Paris Agreement in 2015 on a “best effort” basis, keeping in mind the development imperative of the country. Its implementation effectively begins on 1st January 2021. Our commitments as action will be executed in various sectors by the Departments/Ministries concerned through the normal budgeting process.
79.There are yet, thermal power plants that are old and their carbon emission levels are high.
For such power plants, we propose that utilities running them would be advised to close them, if their emission is above the pre-set norms. The land so vacated can be put to alternative use.
80.In large cities having population above one million, clean air is a matter of concern. The government proposes to encourage such States that are formulating and implementing plans for ensuring cleaner air in cities above one million. Parameters for the incentives would be notified by the Ministry of Environment, Forests and Climate change. Allocation for this purpose is `4400 crore for 2020-21.
நல்ல நாடு
பிணியின்மை, செல்வம் விளைவின்பம் ஏமம்
அணியென்ப நாட்டிவ் வைந்து.
குறள்- 738
(The meaning of this kural is that Freedom from illness, wealth, produce, happiness and protection (to subjects); these five, are the ornaments of a kingdom).
Governance
81.Hon’ble Speaker, Sir, all the while I have explained the colour and composition of the bouquet of flowers – schemes and programmes. They were grouped under Aspirational India, Economic Development and Caring India. Now I speak about the two hands that will hold them. One such hand is Governance – clean, corruption-free, policy driven and good in intent and most importantly trusting in faith. Trusting every citizen, the aspirational youth, the hard-working women, the risk-taking entrepreneur, the ever hopeful and untiring farmer or the wise and old senior citizen. Many among them are taxpayers. Others may not be taxpayers today. Our Prime Minister has laid before us Ease of Living as a goal to be achieved on behalf of all citizens. An important aspect of both ease of living and ease of doing business is fairness and efficiency of tax administration. We wish to enshrine in the statutes a “taxpayer charter” through this budget. Our government would like to reassure taxpayers that we remain committed to taking measures so that our citizens are free from harassment of any kind.
82.There has been a debate about building into statutes, criminal liability for acts that are civil in nature. Hence, for Companies Act, certain amendments are proposed to be made that will correct this. Similarly, other laws would also be examined, where such provisions exist and attempts would be made to correct them.
83.The Government intends to introduce major reforms in recruitment to Non-Gazetted posts in governments and public sector banks. At present, candidates have to appear for multiple examinations conducted by multiple agencies at different points of time, for similar posts This places enormous burden on time, effort and cost of young people. To mitigate their hardship faced, it is proposed to set up a National Recruitment Agency (NRA) as an independent, professional, specialist organisation for conduct of a computer-based online Common Eligibility Test for recruitment to Non-Gazetted posts. A test-centre in every district, particularly in the Aspirational Districts would be set up.
84.For speedy disposal of commercial and other disputes, Government has constituted various Tribunals and specialised bodies. It is proposed to evolve a robust mechanism for appointment including direct recruitment to these bodies to attract best talents and professional experts.
85.A stable and predictable business environment is a key objective of this government. There is also a strong argument for ensuring that contracts are honoured. India has a sound framework related to Contracts Act. We shall deliberate upon strengthening it.
86.There is a growing need for the Indian Statistical system to meet the challenges of real time monitoring of our increasingly complex economy. Data must have strong credibility. The proposed new National Policy on Official Statistics would use latest technology including AI. It would lay down a road-map towards modernised data collection, integrated information portal and timely dissemination of information.
87.I am happy to inform that India will host G 20 presidency in the year 2022- the year of 75th anniversary of independence of Indian Nation. During this presidency, India would be able to drive considerably the global economic and development agenda. For this historic occasion, I allocate a sum of ` 100 crore to begin the preparations.
88.North Eastern region has a very high priority in Government’s Developmental agenda. Government is ensuring smooth access to financial assistance from multilateral and bilateral funding agencies to help introduce innovative and global best practices. Central Government has effectively used an online portal to reduce gestation period of online. This has improved the flow of funds to the northeast region.
89.The Government is fully committed to supporting the all-round development of the newly formed Union Territories of J&K and the Union Territory of Ladakh. Accordingly, an amount of `30,757 crore has been provided for the Financial Year 2020-21. An amount of `5,958 crore has been provided for the Union Territory of Ladakh.
Financial Sector
90.If Governance was described as one of the pair of hands holding the bouquet consisting of Aspirational India, Economic Development and Caring India, the other is the Financial Sector. A clean, reliable and robust financial sector is critical to the economy. In our efforts to achieve the USD 5 trillion economy, the financial architecture should keep evolving and move from strength to strength.
91.We had earlier approved consolidation of 10 banks into four. In the last few years, Government of India has infused about` 3,50,000 crore by way of capital into Public Sector Banks for regulatory and growth purposes. Governance reforms would be carried out in these banks, so that they become more competitive.
A few among them will be encouraged to approach capital market to raise additional capital.
92.I wish to inform this august House that robust mechanism is in place to monitor the health of all Scheduled Commercial Banks and that depositors’ money is safe.
Further, the Deposit Insurance and Credit Guarantee Corporation (DICGC) has been permitted to increase Deposit Insurance Coverage for a depositor, which is now `one lakh to `five lakh per depositor.
93.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.
94.The limit for NBFCs to be eligible for debt recovery under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002 is proposed to be reduced from ` 500 crore to asset size of ` 100 crore or loan size from existing ` 1 crore to ` 50 lakh.
95.In the last few years, the government has taken concrete steps to bring our banking system to be robust. However, there is a need for greater private capital. Accordingly, it is proposed to sell the balance holding of Government of India IDBI Bank to private, retail and institutional investors through the stock exchange.
96.There is a need to take further steps to bring in transparency and greater professionalism in Public Sector Banks. The government will take appropriate measures.
97.To help easy mobility while in jobs, we wish to infuse into the Universal Pension coverage with auto enrolment; also, we wish to place such mechanisms which can enable inter-operability and provide safeguards for the accumulated corpus.
Regulating role of PFRDAI requires strengthening. Necessary amendments would be carried out in Pension Fund Regulatory Development Authority of India Act that will also facilitate separation of NPS trust for government employees from PFRDAI. This would also enable establishment of a Pension Trust by the employees other than Government. I am confident that this will motivate citizens to plan for their old age.
98.MSMEs are vital to keep the wheels of economy moving. They also create job, innovate and are risk takers. Several measures for the MSMEs have been taken in the past few years. There are more steps proposed in this budget also.
98(1).I propose to make necessary amendments to the Factor Regulation Act 2011. This will enable NBFCs to extend invoice financing to the MSMEs through TReDS, thereby enhancing their economic and financial sustainability.
98(2).Working capital credit remains a major issue for the MSMEs. It is proposed to introduce a scheme to provide subordinate debt for entrepreneurs of MSMEs. This subordinate debt to be provided by banks would count as quasi-equity and would be fully guaranteed through the Credit Guarantee Trust for Medium and Small Entrepreneurs (CGTMSE). The corpus of the CGTMSE would accordingly be augmented by the government.
98(3).More than five lakh MSMEs have benefitted from restructuring of debt permitted by RBI in the last year. The restructuring window was to end on March 31, 2020. Government has asked RBI to consider extending this window till March 31, 2021.
98(4).An app-based invoice financing loans product will be launched. This will obviate the problem of delayed payments and consequential cash flows mismatches for the MSMEs.
99.Many mid-size companies are successful domestically but not in export markets. For selected sectors such as pharmaceuticals, auto components and others, we propose to extend handholding support – for technology upgradations, R&D, business strategy etc. A scheme of ` 1000 crore will be anchored by EXIM Bank together with SIDBI. Both these institutions would contribute ` 50 crore each. This ` 100 crore would be achieved towards equity and technical assistance. Debt funding of `900 crore from banks would be made available.
Financial Markets
100.Last year, in the budget speech, I had mentioned about deepening the bond market. To achieve the aspirational growth rate,we would require flow of capital in our financial system. A lot of work has been done on this in consultation with the RBI.
Hon’ble Speaker, Sir, I am pleased to inform this House of the developments:
100(1).Certain specified categories of Government securities would be opened fully for non-resident investors, apart from being available to domestic investors as well.
100(2).The limit for FPI in corporate bonds, currently at 9% of outstanding stock, will be increased to 15% of the outstanding stock of corporate bonds.
100(3).To improve investors’ confidence and to expand the scope of credit default swaps, we propose to formulate a legislation, to be placed soon before the House, for laying down a mechanism for netting of financial contracts.
101.The Debt-based Exchange Traded Fund (ETF) recently floated by the government was a big success. Government proposes to expand this by floating a new Debt-ETF consisting primarily of government securities.
This will give retail investors access to government securities as much as giving an attractive investment for pension funds and long-term investors.
102.To address the liquidity constraints of the NBFCs/HFCs, post the Union budget 2019-20, the government formulated a Partial Credit Guarantee scheme for the NBFCs. To further this support of providing liquidity, a mechanism would be devised. Government will offer support by guaranteeing securities so floated.
Infrastructure Financing
103.Government’s commitment for investment in infrastructure was reiterated when `103 lakh crore National Infrastructure Pipeline projects were announced. I would also like to inform that about ` 22,000 crore has already been provided, as support to Infrastructure Pipeline. This would cater for equity support to Infrastructure Finance Companies such as IIFCL and a subsidiary of NIIF. They would leverage it, as permissible, to create financing pipeline of more than `1,00,000 crore. This would create a major source of long term debt for infrastructure projects and fulfil a long awaited requirement.
104.IFSC, GIFT city has the potential to become a centre of international finance as well as a centre for high end data processing:
104 (1).GIFT IFSC has an approved Free Trade zone for housing vaults. It already has 19 insurance entities, 40 banking entities. It has also provided for setting up of precious metals testing laboratories and refining facilities. With the approval of the regulator, GIFT City would set up an International Bullion exchange(s) in GIFT-IFSC as an additional option for trade by global market participants. This will enable India to enhance its position worldwide, create jobs in India and will lead to better price discovery of gold.
104 (2).In recent years there has been a surge in trading volumes of Indian rupee in the offshore financial centres. The Government and RBI has taken various measures to permit Rupee derivatives to be traded in the International Financial Services Centre at GIFT city, Gujarat.
Disinvestment
105.Listing of companies on stock exchanges discipline a company and provides access to financial markets and unlocks its value. It also gives opportunity for retail investors to participate in the wealth so created. The government now proposes to sell a part of its holding in LIC by way of Initial Public Offer (IPO).
Fiscal Management
106.XV Finance Commission has given its first report pertaining to Financial Year 2020-21. In the spirit of co-operative federalism, I am pleased to announce that we have, in substantial measure, accepted the recommendations of the Commission. The commission would submit its final report to the President during the latter part of the year, for five years beginning 2021-22.
107.It is decided to transfer to the GST Compensation Fund balances due out of collection of the years 2016-17 and 2017-18, in two instalments. Hereinafter, transfers to the fund would be limited only to collection by way of GST compensation cess.
108. A fundamental overhaul of Centrally Sponsored Schemes and Central Sector Schemes is necessary, to align them with emerging social and economic needs of tomorrow, and to ensure that scarce public resources are spent optimally.
109.Recently there has been a debate over transparency and credibility of the projected fiscal numbers. Let me assure the House that the procedure adopted is compliant with the FRBM Act. This is also consistent with the practices hitherto followed.
However, for greater clarity, I have enumerated those central Government debt that are not part of market borrowing and are used to fund the expenditure at the annexes. Servicing of interest and repayment of these debts as hitherto, are done out of Consolidated fund of India.
110.Revised Estimates of Expenditure for the Financial Year 2019-20 are at a level of ` 26.99 lakh Crore and the receipts are estimated at `19.32lakh crore.
We have estimated nominal growth of GDP for year 2020-21, on the basis of trends available, at 10%. Accordingly, receipts for the year 2020-21 are estimated at ` 22.46 lakh cr and, keeping in mind commitment of the Government towards various schemes and need for improvement in quality of life, level of expenditure has been kept at ` 30.42 lakh crore.
During the year Government has unfailingly worked towards keeping up the capital expenditure. Actually, there is substantial enhancement. All the flagship schemes of the government have been fully provided for. Details may be seen at the annexes to the printed copy of my speech.
111.Every budget must appropriately address the issue of fiscal deficit. Recently Government has undertaken very significant tax reforms for boosting investments. However, expected tax buoyancy will take time.
We estimate a fiscal deficit of 3.8% in RE 2019-20 and 3.5% for
BE 2020-21. This estimation is consistent with Government’s abiding commitment to macroeconomic stability. It comprises of,
(a)3.3% for year 2019-20, and 3% for the 2020-21 budget estimate;
(b)Section 4 (2) of the FRBM Act provides for a trigger mechanism for a deviation from the estimated fiscal deficit on account of structural reforms in the economy with unanticipated fiscal implications. Therefore, I have taken a deviation of 0.5%, consistent with Section 4(3) of FRBM Act, both for RE 2019-20 and BE 2020-21.
Accordingly, the return path is being laid before the parliament as a part of Medium Term Fiscal Policy cum Strategy Statement. This fiscal path commits us to the path of fiscal consolidation without compromising the needs of investment out of public funds.
Accordingly, net market borrowings for the year 2019-20 would be
` 4.99 lakh crore and for the year 2020-21, it would be `5.36 lakh crore.
112.A good part of the borrowings for the financial year 2020-21 would go towards Capital expenditure of the Government that has been scaled up by more than 21%. As, I had previously mentioned another about ` 22,000 crore have been allocated for equity to fund certain specified infrastructure finance companies, who would leverage it manifold and provide much needed long-term finance to Infrastructure sector. That should spur growth impulses in the economy.
I would, now, move to Part B of my speech.
PART B
Direct Tax
113.Mr Speaker, Sir, our Government has spearheaded radical fiscal measures to ensure that India’s economy continues to tread the path of high growth. These are times when countries are competing with each other like never before to become the most attractive destination for doing business. Therefore, to make sure that India stays globally competitive and a favoured destination for investment, we took a bold historic decision of reducing the corporate tax rate for new companies in the manufacturing sector to an unprecedented level of 15%. Similarly, for the existing companies, the rate has also been brought down to just 22%. As a result, our corporate tax rates are now amongst the lowest in the world. This will enable companies to expand their businesses and make fresh investments in the coming future. Though we will have loss of substantial revenue due to these measures in the short-run, I am certain that our economy will reap huge returns on this score in due course.
प्रजानामेवभूत्यर्थंसताभ्योबलिमग्रहीत्।
सहस्रगुणमुत्स्रष्टुमादत्तेहिरसंरविः॥
Surya, the Sun, collects vapour from little drops of water. So does the King.
They give back copiously. They collect only for people’s wellbeing.
[Verse 18, Sarga 1 Raghuvamsa by Kalidasa]
114.In continuation of the reform measures already taken so far, the tax proposals in this budget will introduce further reforms to stimulate growth, simplify tax structure, bring ease of compliance, and reduce litigations.
115.Personal Income Tax and simplification of taxation
•In the interim Budget of 2019, our government exempted individuals having income up to ` 5 Lakh from paying any income tax. Presently, an individual pays 20% on income between ` 5 Lakh to ` 10 Lakh and 30% on income above ` 10 Lakh. Further, currently the Income Tax Act is riddled with various exemptions and deductions which make compliance by the taxpayer and administration of the Income Tax Act by the tax authorities a burdensome process. It is almost impossible for a taxpayer to comply with the Income-tax law without taking help from professionals.
•In order to provide significant relief to the individual taxpayers and to simplify the Income-tax law, I propose to bring a new and simplified personal income tax regime wherein income tax rates will be significantly reduced for the individual taxpayers who forgo certain deductions and exemptions.
•Under the new regime, an individual shall be required to pay tax at the reduced rate of 10% for income between ` 5 Lakh to ` 7. 5 Lakh against the current rate of 20%.
•For income between ` 7.5 Lakh to ` 10 Lakh he will pay at the reduced rate of 15% against the current rate of 20 %.
•Similarly for the income between ` 10 Lakh to ` 12.5 Lakh the taxpayer will pay at the reduced rate of 20% against the current rate of 30 %.
•The income between ` 12.5 Lakh to ` 15 Lakh will be taxed at the reduced rate of 25% against the existing rate of 30 %. Incomes above ` 15 lakh will be continued to be taxed at the rate of 30 %.
•Those earning up to ` 5 lakhs shall not pay any tax either in the old regime or in the new regime.
•The proposed tax structure will provide significant relief to taxpayers and more so to those in the middle class.
Taxable Income
Slab (`)Existing Tax RatesNew Tax Rates
0-2.5 LakhExemptExempt
2.5-5 Lakh5%5%
5-7.5 Lakh20%10%
7.5-10 Lakh20%15%
10-12.5 Lakh30%20%
12.5-15 Lakh30%25%
Above 15 Lakh30%30%
•In the new tax regime, substantial tax benefit will accrue to a taxpayer depending upon exemptions and deductions claimed by him. For example, a person earning ` 15 lakh in a year and not availing any deductions etc. will pay only `, 1,95,000 as compared to `, 2,73,000 in the old regime. Thus his tax burden shall be reduced by 78,000 in the new regime. He would still be the gainer in the new regime even if he was taking deduction of ` 1.5 Lakh under various sections of Chapter- VI-A of the Income Tax Act under the old regime.
•The new tax regime shall be optional for the taxpayers. An individual who is currently availing more deductions & exemption under the Income Tax Act may choose to avail them and continue to pay tax in the old regime.
•The new personal income tax rates will entail estimated revenue forgone of ` 40,000 crore per year. We have also initiated measures to prefill the income tax return so that an individual who opts for the new regime would need no assistance from an expert to file his return and pay income tax.
•In order to simplify income tax system, I have reviewed all the exemptions and deductions which got incorporated in the income tax legislation over the past several decades. It was surprising to know that currently more than one hundred exemptions and deductions of different nature are provided in the Income-tax Act. I have removed around 70 of them in the new simplified regime. We will review and rationalise the remaining exemptions and deductions in the coming years with a view to further simplifying the tax system and lowering the tax rate.
116.Dividend Distribution Tax
•Currently, companies are required to pay Dividend Distribution Tax (DDT) on the dividend paid to its shareholders at the rate of 15% plus applicable surcharge and cess in addition to the tax payable by the company on its profits.
•It has been argued that the system of levying DDT results in increase in tax burden for investors and especially those who are liable to pay tax less than the rate of DDT if the dividend income is included in their income.
•Further, non-availability of credit of DDT to most of the foreign investors in their home country results in reduction of rate of return on equity capital for them. In order to increase the attractiveness of the Indian Equity Market and to provide relief to a large class of investors, I propose to remove the DDT and adopt the classical system of dividend taxation under which the companies would not be required to pay DDT. The dividend shall be taxed only in the hands of the recipients at their applicable rate.
•Further, in order to remove the cascading effect, I also propose to allow deduction for the dividend received by holding company from its subsidiary. The removal of DDT will lead to estimated annual revenue forgone of ` 25,000 Crore.
• This is another bold move which will further make India an attractive destination for investment.
117.Concessional tax rate for Electricity generation companies
•In order to give boost to the manufacturing sector, new provisions were introduced in September 2019 offering a concessional corporate tax rate of 15% to the newly incorporated domestic companies in the manufacturing sector which start manufacturing by 31st March, 2023.
•In order to attract investment in power sector, I propose to extend the concessional corporate tax rate of 15% to new domestic companies engaged in the generation of electricity.
118.Tax concession for foreign investments
•In order to incentivise the investment by the Sovereign Wealth Fund of foreign governments in the priority sectors, I propose to grant 100% tax exemption to their interest, dividend and capital gains income in respect of investment made in infrastructure and other notified sectors before 31st March, 2024 and with a minimum lock-in period of 3 years.
•In order to make available foreign funds at a lower cost, I propose to extend the period of concessional withholding rate of 5% under section 194LC for interest payment to non-residents in respect of moneys borrowed and bonds issued up to 30th June, 2023.
•I also propose to extend the period up to 30th June, 2023 for lower rate of withholding of 5% under section 194LD for interest payment to Foreign Portfolio Investors (FPIs) and Qualified Foreign Investors (QFIs) in respect of bonds issued by Indian companies and government securities.
•I further propose to extend the concessional rate of withholding of 5% under section 194LD to the interest payment made on the Municipal Bonds.
•In order to incentivise listing of bonds at IFSC exchange, I propose to further reduce the withholding rate from 5% to 4% on interest payment on the bonds listed on its exchange.
119.Start-ups
Start-ups have emerged as engines of growth for our economy. Over the past year, our Government has taken several measures to hand-hold them and support their growth. During their formative years, Start-ups generally use Employee Stock Option Plan (ESOP) to attract and retain highly talented employees. ESOP is a significant component of compensation for these employees. Currently, ESOPs are taxable as perquisites at the time of exercise. This leads to cash-flow problem for the employees who do not sell the shares immediately and continue to hold the same for the long-term. In order to give a boost to the start-up ecosystem, I propose to ease the burden of taxation on the employees by deferring the tax payment by five years or till they leave the company or when they sell their shares, whichever is earliest.
•Further, an eligible Start-up having turnover up to 25 crores is allowed deduction of 100% of its the profits for three consecutive assessment years out of seven years if the total turnover does not exceed 25 crore rupees. In order to extend this benefit to larger start-ups, I propose to increase the turnover limit from existing ` 25 crore to ` 100 crores. Moreover, considering the fact that in the initial years, a start-up may not have adequate profit to avail this deduction, I propose to extend the period of eligibility for claim of deduction from the existing 7 years to 10 years.
120.Concessional tax rate for Co-operatives
•Co-operative societies play an extremely important role in our economy in facilitating access to credit, procurement of inputs and marketing of products to their members. These cooperatives are currently taxed at a rate of 30% with surcharge and cess. As a major concession and in order to bring parity between the co-operative societies and corporates, I propose to provide an option to cooperative societies to be taxed at 22% plus 10% surcharge and 4% cess with no exemption/deductions. Further, I also propose to exempt these co-operative societies from Alternative Minimum Tax (AMT) just like companies under the new tax regime are exempted from the Minimum Alternate Tax (MAT).
121.Medium, Small and Micro Enterprises (MSME)
•Currently, businesses having turnover of more than one crore rupees are required to get their books of accounts audited by an accountant. In order to reduce the compliance burden on small retailers, traders, shopkeepers who comprise the MSME sector, I propose to raise by five times the turnover threshold for audit from the existing ` 1 crore to ` 5 crore. Further, in order to boost less cash economy, I propose that the increased limit shall apply only to those businesses which carry out less than 5% of their business transactions in cash.
122.Affordable housing
•For realisation of the goal of ‘Housing for All’ and affordable housing, in the last budget I had announced an additional deduction of up to one lakh fifty thousand rupees for interest paid on loans taken for purchase of an affordable house. The deduction was allowed on housing loans sanctioned on or before 31st March, 2020. In order to ensure that more persons avail this benefit and to further incentivise the affordable housing, I propose to extend the date of loan sanction for availing this additional deduction by one more year.
•Further, in order to boost the supply of affordable houses in the country, a tax holiday is provided on the profits earned by developers of affordable housing project approved by 31st March, 2020. In order to promote the affordable housing projects, I propose to extend the date of approval of affordable housing projects for availing this tax holiday by one more year.
123.Concession to real estate transactions
•Currently, while taxing income from capital gains, business profits and other sources in respect of transactions in real estate, if the consideration value is less than circle rate by more than 5 percent, the difference is counted as income both in the hands of the purchaser and seller. In order to minimize hardship in real estate transaction and provide relief to the sector, I propose to increase the limit of 5% to 10%.
124. Charity institutions
•Acknowledging the important role played by the charitable institutions in the society, the income of these institutions is fully exempt from taxation. Further, donation made to these institutions is also allowed as deduction in computing the taxable income of the donor.
•Currently, a taxpayer is required to fill the complete details of the donee in the income tax return for availing deduction.
•In order to ease the process of claiming deduction for donation, it is proposed to pre-fill the donee’s information in taxpayer’s return on the basis of information of donations furnished by the donee. This would result in hassle-free claim of deduction for the donation made by the taxpayer.
•Further, in order to claim the tax exemption, the charity institutions have to be registered with the Income Tax Department. In the past, the process of the registration was completely manual and scattered all over the country.
•In order to simplify the compliance for the new and existing charity institutions, I propose to make the process of registration completely electronic under which a unique registration number (URN) shall be issued to all new and existing charity institutions. Further, to facilitate the registration of the new charity institution which is yet to start their charitable activities, I propose to allow them provisional registration for three years.
125. Faceless appeals
Our government is committed to bringing in transformational changes so that maximum governance is provided with minimum government. In order to impart greater efficiency, transparency and accountability to the assessment process, a new faceless assessment scheme has already been introduced. Currently, most of the functions of the Income Tax Department starting from the filing of return, processing of returns, issuance of refunds and assessment are performed in the electronic mode without any human interface. In order to take the reforms initiated by the Department to the next level and to eliminate human interface, I propose to amend the Income Tax Act so as to enable Faceless appeal on the lines of Faceless assessment.
126. No Dispute but Trust Scheme – ‘Vivad Se Vishwas’Scheme
•Sir, in the past our Government has taken several measures to reduce tax litigations. In the last budget, SabkaVishwas Scheme was brought in to reduce litigation in indirect taxes. It resulted in settling over 1,89,000 cases. Currently, there are 4,83,000 direct tax cases pending in various appellate forums i.e. Commissioner (Appeals), ITAT, High Court and Supreme Court. This year, I propose to bring a scheme similar to the indirect tax SabkaVishwas for reducing litigations even in the direct taxes.
•Under the proposed ‘Vivad Se Vishwas’ scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get complete waiver of interest and penalty provided he pays by 31st March, 2020. Those who avail this scheme after 31st March, 2020 will have to pay some additional amount. The scheme will remain open till 30th June, 2020.
•Taxpayers in whose cases appeals are pending at any level can benefit from this scheme.
• I hope that taxpayers will make use of this opportunity to get relief from vexatious litigation process.
127. Losses of merged banks
•As a part of consolidation of the financial sector, our Government has brought out schemes for merger and amalgamation of public sector banks. In order to ensure that the amalgamated entities are able to take the benefit of unabsorbed losses and depreciation of the amalgamating entities, I propose to make necessary amendments to the provisions of the Income-tax Act.
128. Taxpayer’s Charter
•Any tax system requires trust between taxpayers and the administration. This will be possible only when taxpayer’s rights are clearly enumerated. Towards this end, and with the objective of enhancing the efficiency of the delivery system of the Income Tax Department, I propose to amend the provisions of the Income Tax Act to mandate the Central Board of Direct Taxes (CBDT) to adopt a Taxpayers’ Charter. The details of the contents of the charter shall be notified soon.
129.Instant PAN through Aadhaar
•In the last Budget, I had introduced the interchangeability of PAN and Aadhaar for which necessary rules were already notified. In order to further ease the process of allotment of PAN, soon we will launch a system under which PAN shall be instantly allotted online on the basis of Aadhaar without any requirement for filling up of detailed application form.
130.Our Government brought in the GST as a historic reform of the indirect taxes in 2017. We also took a path-breaking step of simplifying and rationalising corporate tax in September, 2019. More importantly, we offered a rate of corporate tax, which perhaps is the lowest in the world. Continuing on this path, we have now put the personal income tax at its lowest ever rate and totally removed DDT at the company’s hands. Further, the direct taxes are now the lowest, simplest, and smoothest. Direct tax on the Start-ups also has seen many reformatory steps in quick succession. Even ease of compliance is seeing unprecedented changes. Last but not the least, personal interface with tax administration is at the minimum ever.
Indirect Tax
131.As I mentioned earlier in Part A of my speech, reforms are continuing in GST. A simplified return shall be implemented from the 1st April, 2020. This is under pilot run. It will make return filing simple with features like SMS based filing for nil return, return pre-filling, improved input tax credit flow and overall simplification.
132.Refund process has been simplified and has been made fully automated with no human interface.
133.Electronic invoice is another innovation wherein critical information shall be captured electronically in a centralized system. It will be implemented in a phased manner starting from this month itself on optional basis. It will facilitate compliance and return filing.
134.Several measures have been taken for improving compliance. Aadhaar based verification of taxpayers is being introduced. This will help in weeding out dummy or non-existent units. Dynamic QR-code is proposed for consumer invoices. GST parameters will be captured when payment for purchases is made through the QR-code. A system of cash reward is envisaged to incentivise customers to seek invoice. Deep data analytics and AI tools are being used for crackdown on GST input tax credit, refund, and other frauds and to identify all those who are trying to game the system. Invoice and input tax credit matching is being done wherein returns having mismatch more than 10 percent or above a threshold are identified and pursued. Significant policy level changes have also been made. GST rate structure is also being deliberated so as to address issues like inverted duty structure.
135.On Customs side, a number of measures have been taken for ease of doing business. India’s quantum leap in the Trading Across Border parameter of Ease of Doing Business rankings by the World Bank is a testimony to these efforts. India’s rank on this parameter improved from 146 to 80 in 2018 and further to 68 in 2019. Measures have also been taken for providing a level playing field to our domestic manufacturers, particularly the MSME sector and for securing borders.
136.It has been observed that imports under Free Trade Agreements (FTAs) are on the rise. Undue claims of FTA benefits have posed threat to domestic industry. Such imports require stringent checks. In this context, suitable provisions are being incorporated in the Customs Act. In the coming months we shall review Rules of Origin requirements, particularly for certain sensitive items, so as ensure that FTAs are aligned to the conscious direction of our policy.
137.We are also strengthening provisions relating to safeguard duties which are applied when surge in imports causes serious injury to domestic industry. Amended provisions shall enable regulating such surge in imports in a systematic way. The provisions for checking dumping of goods and imports of subsidized goods are also being strengthened for ensuring a level playing field for domestic industry. These changes are in line with the international best practices.
138.Exemptions from customs duty have been given in public interest from time to time. However, a number of these have outlived their utility or have become outdated. On review, certain such exemptions are being withdrawn. Remaining custom duty exemptions shall be comprehensively reviewed by September, 2020 for taking a view on their relevance. I propose to crowd source suggestions for such reviews. Suggestions would also be invited in respect of the Customs laws and procedures for aligning them with the needs of changing times and ease of doing business.
139.Labour intensive sectors in MSME are critical for employment generation. Cheap and low-quality imports are an impediment to their growth. Special attention has been taken to put measured restraint on import of those items which are being produced by our MSMEs with better quality. Keeping in view the need of this sector, customs duty is being raised on items like footwear and furniture.
140.Our policy of Make in India has started giving dividends. India is now making world class goods and exporting such products. We have made considerable progress in medical equipment too. Till few years back we were dependent on imports for medical equipment. Now, not only we are manufacturing medical equipment but also exporting them in large quantities. This sector deserves further fillip. Government has also been committed to provide health services to all. Ayushman Bharat has made it possible. To achieve the twin objectives of giving impetus to the domestic industry and also to generate resource for health services, I propose to impose a nominal health cess, by way of a duty of customs, on the imports of medical equipment keeping in view that these goods are now being made significantly in India. The proceed from this cess shall be used for creating infrastructure for health services in the aspirational districts.
141.Under Make in India initiative, well laid out customs duty rates were pre-announced for items like mobile phones, electric vehicles and their components. This has ensured gradual increase in domestic value addition capacity in India. Customs duty rates are being revised on electric vehicles, and parts of mobiles as part of such carefully conceived Phased Manufacturing Plans.
142.In other changes, customs duty is being reduced on certain inputs and raw materials while it is being revised upward on certain goods which are being made domestically. In the previous budget, basic custom duty of 10% was imposed on the news print and lightweight coated paper. However, since then I have received several references that this levy has put additional burden on print media at a time when it is going through a difficult phase. I, therefore, propose to reduce basic customs duty on imports of news print and light-weight coated paper from 10% to 5%.
143.Chemicals are crucial feed stocks for downstream users. PTA, for example, is a critical input for textile fibres and yarns. Its easy availability at competitive prices is desirable to unlock immense potential in textile sector which is a significant employment generator. Therefore, in the larger public interest, anti-dumping duty on PTA is being abolished.
144. As a revenue measure, I propose to raise excise duty, by way of National Calamity Contingent Duty on Cigarettes and other tobacco products. However, no change is being made in the duty rates of bidis.
145.Finally, continuing the tax reform is an ongoing challenge and we propose to pursue them with full vigour.
146. Details of my budget proposals relating to direct and indirect taxes are in the Annexure to my speech.
147.Mr. Speaker Sir, with these words I commend the Budget to this august House.
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