As it happened: Union Budget 2020-21 — Finance Minister rejigs taxation, Sensex tanks over 600 points

After a budget speech of 2 hours 40 minutes, the Finance Minister has submitted the budget and the remaining part of it has been considered read, thus concluding her speech. 

Sensex dips over 600 points, Nifty below 12,000-mark

Finance Minister Nirmala Sitharaman breaks Budget speech time record.

Lowest in the world: Corporate tax for existing companies slashed to 22%.

New Income tax rates

Banking and finance | Union Budget 2020-21 Live Updates:

Deposit insurance for depositors increased to Rs 5 lakh from Rs 1 lakh.

Rs 3.50 lakh cr infused as capital in public sector banks in past years.

The robust mechanism in place to monitor the health of banks, depositors' money is safe.

Balance govt holding in IDBI banks to be sold to Pvt retail investors.

Rs 3.50 lakh cr infused as capital in public sector banks in past years.

The robust mechanism in place to monitor the health of all commercial banks.

Clean, reliable, robust financial sector required to achieve USD 5 trillion economy.

Govt proposes amendments to facilitate separation of govt pension trust from PFRDA.

Need for greater private capital in banks.

Budget allocations for the environment and climate change | Union Budget 2020-21 Live Updates

Rs 4,400 crore allocated for states that work towards clean air.

India's commitment towards tackling climate change made in Paris conference kick starts from January 1, 2021.

PM KUSUM to be expanded to provide 2 million farmers in setting up standalone solar pumps.

Union Budget 2020-21 Live Updates: Information and telecommunication related announcements in the budget

Government to bring out a policy for data centre parks throughout the country.

Fibre to home through BharatNet to link 1 lakh gram panchayats this yr; Rs 6,000 cr provided for BharatNet in FY21.

All public institutions at gram panchayat levels such as police stations and post offices to be connected digitally.

Rs 8,000 cr outlay provided for National Mission on Quantum Technology and Application over 5 yrs.

Gross enrolment ratio for girls across all levels of education is higher than boys.

Union Budget 2020-21 Live Updates: Electricity and energy sector announcements

State governments need to replace conventional electricity meters with prepaid smart meters in 3 years.

Rs 22,000 crore to Power and Renewable Energy sector in 2020-21.

Natural gas pipeline grid to be expanded to 27,000 km from over 16,000 km now.

Further reforms for transparent price discovery for natural gas will be undertaken.

Government proposes distribution companies of India (DISCOMs) replace conventional meters with smart pre-paid meters, the option to consumers to choose electricity suppliers.

Rail, Road, ports and Air transport announcements

550 wi-fi facilities have been commissioned at railway stations.

Proposal for setting up large solar power capacity alongside rail track is under consideration.

More Tejas type trains will connect tourist destinations

1,150 trains to be run in PPP mode, also 4 stations to be redeveloped with help of the private sector.

100 more airports to be developed by 2025 to support Udaan scheme.

Govt to consider corporatisation of at least one major port and listing it on stock exchanges.

Rs 1.7 lakh cr provided for transport infrastructure in 2020-21. 

Important announcements

FM proposes National Technical Textile mission with an outlay of Rs 1,480 crore over 4 years to cut down imports.

Govt proposes a scheme for manufacturing of cell phones, semiconductors and other electronic devices.

Milk processing capacity to be doubled by 2025. India needs to boost domestic manufacturing and attract investment in electronics manufacturing.

Govt to set up project preparation facilities for the infrastructure sector, national logistic policy soon.

Govt proposes a scheme for manufacturing of cell phones, semiconductors and other electronic devices.

FM proposes National Technical Textile mission with an outlay of Rs 1,480 crore over 4 years to cut down imports.

Rs 27,300 crore provided for the development and promotion of industry and commerce.

Rs 103 lakh crore infra project pipeline launched in December end.

Digital refund of duties and taxes of Centre, states and local bodies to exporters from this year.

Govt to set up project preparation facilities for the infrastructure sector, national logistic policy soon.

Delhi-Mumbai Expressway to be completed by 2023, Chennai-Bengaluru Expressway to be launched.

Key points from the Finance Minister's Budget Speech

Rs 99,300 crore allocated for the education sector, Rs 3,000 crore for skill development in FY21.

Govt proposes to start a programme for urban local bodies to provide opportunities for an internship to young engineers.

Steps to be taken to attract external commercial borrowing, FDI in the education sector.

Centre to announce new education policy soon; govt received over 2 lakh suggestions on it.

Govt proposes Rs 3.6 lakh crore towards piped water supply to households.

Allocation for Swachh Bharat for 2020-21 stands at Rs 12,300 crore.

Viability gap funding will be provided to set up warehouses for agri products.

Viability gap funding for setting up hospitals in those districts with no empanelled hospitals under Ayushman Bharat.

Proceeds from taxes on medical devices would be used to support setting up of hospitals.

Govt allocated Rs 1.23 lakh for rural development and panchayati raj, and Rs 1.6 lakh crore for agriculture and allied activities.

Govt proposes to expand coverage of artificial insemination to 70 pc from 30 pc to increase livestock productivity.

Fish production to be raised to 200 lakh tonnes by 2022.

One horticulture crop in one district on cluster basis will be promoted.

NABARD refinance scheme will be expanded.

Horticulture with 311 MT exceeds the production of food grains.

Indian Railways to set up Kisan Rail in PPP mode for the cold supply chain to transport perishable goods.

"For sector comprising agriculture, allied activities, irrigation and rural development, an allocation of Rs 2.83 lakh crores has been made for 2020-21," Finance Minister Nirmala Sitharaman said. This includes agriculture, irrigation, rural development, Panchayati Raj.

'Krishi Udaan' will be launched by the ministry of civil aviation. 

Indian Railways will launch 'Kisan Rail' in the PPP model. 

NABARD to geo-tag warehouses. Warehouses to be created; Viability gap funding at

Block and Taluq level.

Expansion of Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) Scheme: 20 Lakh farmers will get standalone solar pumps; 15lakh farmers' pump sets which are grid-connected to be solarised.

Keypoints of the Budget Speech

Aim to double farmers' income by 2022.

The need to promote entrepreneurship.

An easy version of GST will come in 2020.

Budget Theme 'Sabka Saath Sabka Vikas'.

Infrastructure will be improved.

Digital governance improves delivery.

From the Budget Speech of Finance Minister Nirmala Sitharaman

Finance Minister Sitharaman paid tributes to late BJP veteran Arun Jaitley, under whose tenure as the FM, India transitioned from a multi-system indirect tax regime to a "simplified GST".

FM Nirmala Sitharaman begins her budget speech

FM Nirmala Sitharaman has taken her Bahi Khata out and has started her budget speech in the Lok Sabha.  

Finance Minister Nirmala Sitharaman's family including her daughter Parakala Vangmayi arrive in Parliament.(ANI Photo)

PM Narendra Modi has arrived in the Parliament ahead of Budget 2020 to be presented by FM Nirmala Sitharaman. PM Modi is heading the customary cabinet meeting.

Also read: Cabinet meets at 10.15 am ahead of Union Budget

Union Cabinet meeting will be held at 10:15 am on Saturday here, ahead of the presentation of the Union Budget 2020-21 in Parliament.Finance Minister and Corporate Affairs Minister Nirmala Sitharaman will present the Union Budget. It will be her second Budget.

Sensex, Nifty shaky ahead of Budget

In early trade shares slipped in reaction to an overnight shakeout in global markets on growing concerns about the economic impact of the coronavirus outbreak in China, but the focus is set to shift to the domestic Budget.

Also read: Sitharaman back with traditional 'bahi khata' for Budget 2020-21

For her second budget presentation, Union Finance Minister Nirmala Sitharaman on Saturday carried documents in a traditional 'Bahi-Khata' (ledger) wrapped in a red cloth, similar to what she carried last year.
 

Sensex slumps over 200 points in opening session, ahead of Union Budget today

Market benchmark Sensex slumped over 200 points in opening session on Saturday ahead of the release of the Union Budget to be presented by Finance Minister Nirmala Sitharaman later in the day.
   

After shedding 279 points in early trade, the 30-share BSE index was trading 124.96 points or 0.31 percent lower at 40,598.53, and the broader NSE slipped 23.10 points, or 0.19 percent, to 11,939.

Union Budget: 5 basics

What is Union Budget? 
The Union Budget is an exercise carried out by the central government every year. The government makes an estimate of revenue and expenses for the forthcoming financial year. The exercise is similar to the monthly budget making one does for our household expenditure and earnings. 

When is the Budget presented? 
Date of Budget presentation has varied throughout the history of Independent India. Since 2017, the Union Budget has usually been presented on the first of February, every year. Before that, it used to be presented on the last day of February. 

Who presents the Budget? 
The Union Budget is presented by the Finance Minister. The last budget was presented by Nirmala Sitharaman. She will also present the next Budget on February 1, 2020.
 
When was India’s first Budget presented? 
The first Union Budget of Independent India was presented by RK Shanmukham Chetty on November 26, 1947. It was a review of the economy and no new taxes were proposed. From when do Budget proposals take effect? Proposals made in the Budget, if passed by Parliament, take effect from April 1 of every year, which is when the financial year starts. They are valid till March 31 of the next year.