Union Budget for 2020 - 2021

Highlights for Industry

Key Budgetary Allocations

• Budgetary outlay towards Scheme for “Enhancement of Competitiveness in the Indian Capital Goods Sector” by Department of Heavy Industry, amounting to Rs. 173.11 crores in 2020 - 2021, as against Rs. 102.30 crores in 2019 - 2020 revised estimates.
• Budgetary outlay towards Scheme for “Faster Adoption and Manufacturing of Hybrid & Electric Vehicle in India” {FAME - India} by Department of Heavy Industry, amounting to Rs. 692.94 crores in 2020 - 2021, as against Rs. 500.00 crores in 2019 - 2020.
• Output Target from realisation of budgetary allocation to FAME - India in 2020 - 2021 :
  • Target for Electric Buses to be supported through demand incentives : 5,000 numbers.
  • Target for Four-wheelers to be supported through demand incentives : 3,000 numbers.
  • Target for Three-wheelers / E-Rickshaws to be supported through demand incentives : 15,000 numbers.
  • Target for Two-wheelers to be supported through demand incentives : 40,000 numbers.
  • Target for Charging Stations to be set-up in Cities & Highways: 2,600 numbers.

• Capital outlay for Ministry of Defence, amounting to Rs. 1,13,734.00 crores in 2020 - 2021, as against Rs. 1,10,394.31 crores in 2019 - 2020 revised estimates.
• Budgetary outlay towards machinery procurement {‘Renewal and Replacement’} by Indian Ordnance Factories, amounting to Rs. 400.00 crores in 2020 - 2021, as against Rs. 475.00 crores in 2019 - 2020.
• Budgetary outlay towards machinery and plant procurement by Indian Railways, amounting to Rs. 624.00 crores in 2020 - 2021, as against Rs. 434.65 crores in 2019 - 2020 revised estimates.
• Internal-&-extra-budgetary-resources given to Bharat Heavy Electricals Limited by Department of Heavy Industry, amounting to Rs. 372.00 crores in 2020 - 2021, as against Rs. 353.00 crores in 2019 - 2020.
• Budgetary outlay towards Scheme for “Credit Linked Capital Subsidy and Technology Upgradation” {CLCSS-TUS} by Ministry of MSME, amounting to Rs. 653.91 crores in 2020 - 2021, as against Rs. 805.58 crores in 2019 - 2020 revised estimates.
• Customs Duty increased on semi-knocked down (SKD) units on all auto segments in 2020 - 2021.
• Budgetary allocation of Rs. 3.60 lakh crores for “Jal Jeevan Mission”.
• Budgetary allocation of Rs. 1.70 lakh crores for transport Infrastructure in 2020 - 2021.
• Budgetary allocation of Rs. 22,000 crores to power and renewable energy sector in 2020 - 2021.
• Budgetary allocation of Rs. 8,000 crores, over a period five years for “National Mission on Quantum Technologies and Applications”.

Address of Union Finance Minister 

• Union Government receipts for fiscal year 2020 - 2021 estimated at Rs. 22.46 lakh crores. Union Government expenditure for fiscal year 2020 - 2021 estimated at Rs. 30.42 lakh crores.
• Fiscal deficit of Union Government for fiscal year 2020 - 2021 estimated at 3.5 %, as against 3.8 % in 2019 - 2020.
• Capital expenditure of Union Government scaled up by more than 21 %.
• Proposal to establish “Investment Clearance Cell”, through portal, to provide ‘end-to-end’ facilitation and support, including pre-investment advisory, information related to land banks and facilitate clearances at Union and State levels. 
• Proposal for new “National Policy on Official Statistics” – through use of latest technology including artificial intelligence.
• Changes to Customs Act envisaged, so as to contain rise of imports under free trade agreements. Review also of ‘Rules of Origin’ requirements for certain sensitive items.
• Scheme for Reversion of duties and taxes on exported products to be launched this year, to digitally refund to exporters, duties and taxes levied at the Union, State and Local levels.
• Accelerated development proposed of highways – development of 2,500 km of access control highways; 9,000 km of economic corridors; 2,000 km of coastal and land-port roads; and 2,000 km of strategic highways.
• Proposal for developing 148 km Bengaluru-suburban transport project at a cost of Rs. 18,600 crore – with 20 % equity from Union Government, and facilitation of external assistance up to 60 % of project cost. 
• Development of one hundred more airports under “Udaan” Scheme, by the year 2024.
• Expansion of national gas grid from present 16,200 km to 27,000 km.
• About 150 higher educational institutions to start apprenticeship-embedded degree / diploma courses services or technology stream, by March 2021.
• Programme proposed for internship opportunities to fresh engineers for one year, by urban local bodies across India.
• Proposal to commence degree-level full-fledged online education programme – offered only by institutions who are ranked within top 100 in the National Institutional Ranking framework.
• New policy to enable private sector to build Data Centre parks throughout the country. Budgetary allocation of Rs. 6,000 crores for “Bharatnet” by 2020 - 2021.
• Viability-gap funding window for setting up hospitals in 112 ‘aspirational districts’ of India – currently devoid of ‘Ayushman-empanelled hospitals’ – funded by proceeds from taxes on medical devices.
• “PM-KUSUM” Scheme expanded to provide 2.0 million farmers for setting up stand-alone solar pumps and help another 1.5 million farmers solarise their grid-connected pump sets.
• New Scheme to be operationalised to enable farmers to set up solar power-generation capacity on their fallow / barren lands and to sell it to the grid.
• Viability-gap funding for setting up such efficient warehouses at Block / Taluk level under PPP mode, with land facilitation by State Governments.
• “Kisan Rail” by Indian Railways to build seamless national cold supply chain for perishables. Provision for refrigerated coaches in express and freight trains.
• Scheme proposed for encouraging manufacture of mobile phones, electronic equipment and semi-conductor packaging. Scheme to be made adaptable for also manufacture of medical devices.
• Development of a “Taxpayer Charter”.
• Revenue foregone on account of new structure for Personal Income Tax estimated at Rs. 40,000 crores per year.
• Revenue foregone on account of removal of dividend distribution tax estimated at Rs. 25,000 crores per year.