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A to Z: Union Budget 2020 in alphabet
Finance Minister Nirmala Sitharaman presented her second Union Budget in the Parliament today (Feb. 1, 2020). The Budget, which tried to put money in people’s pockets to spur spending, has several hits and misses. Here's a look at the A to Z of the Union Budget 2020:
Read the full report here.
The goal to develop 100 airports in the country is very important for the tourism sector of the country. In tourism, there is more possibility of employment/income generation with lesser investment: PM Modi
The main areas of employment are agriculture, infrastructure, textiles and technology. In order to increase employment generation, these four have been given a lot of emphasis in this budget: PM Modi
I congratulate Finance Minister Nirmala Sitharaman and her team for presenting the first Budget of the decade that has vision as well as action: PM Modi
Watch | DH panel discussion on personal tax
Closing Bell: Bloodbath on D-Street as markets report 4th-biggest fall ever
The Union Budget 2020 came as a disappointment for the Indian stock markets. After gyrating over 450 points in the morning session, the 30-share BSE Sensex closed at 980 points, or 2.43 per cent, lower at 39,735.53 at 3:35 pm. Similarly, the 50-share NSE Nifty fell 318 pts or 2.66 per cent, to 11,643.80.
We took a comprehensive review of all exemptions and found close to 120 exemptions. We took a review of each item. In order to offer a simplified system, now the total exemptions which have been removed from the new system is about 70, saysRevenue Secretary Ajay Bhushan Pandey.
You will see successful disinvestment happening in a few years, says Sitharaman.
We wanted to place money in the hands of the people, particularly the middle class and lower middle classes. We also wanted to simplify income tax process and increase compliance, says FM Sitharaman.
We took steps to simplify income tax. You will definitely benefit with the money in your hand, says Finance Minister at presser.
Budget cuts taxes and boosts spending on LIC stake sale hopes
The Narendra Modi government’s first budget in the new decade, presented in the backdrop of the slowest economy in six years and rampant joblessness, tried to put money in people’s pockets to spur spending but offered no magic bullet to kickstart growth.
Nirmala Sitharaman’s marathon 161-minute speech, which an exhausted finance minister had to truncate with a couple of pages left unread, sought to lift the economy largely on Rs 13-lakh crore government spending and set an ambitious disinvestment target that hinged on a stake sale in crown jewel Life Insurance Corporation of India, which has a net worth of over Rs 31 lakh crore.
Read the full reporthere.
Union Budget 2020: Here are the 20 key takeaways
In her second Union Budget speech, Finance Ministre Nirmala Sitharaman, had introduced various reforms, from income tax slab cuts to16-point action plan for farmers. Here are the 20 key takeaways from Union Budget 2020:
1.Three themes dominated the Budget 2020 -- aspirational India, economic development for all, and caring society.
2. FM Sitharaman presented a mega 16-point action plan for farmers. The government is committed to doubling farmers' income by 2022, she says while proposing to allocate Rs 2.83 lakh crore for agriculture and rural sectors such as irrigation.
Read the full report here.
On our panel for a discussion on Economy and India Inc today are M Govind Rao, Member, 14th Finance Commission and Economist and Madhukar Dhakappa, Partner PwC. Moderating is Anupam Manur, Economist, Takshashila Institution.
Budget 2020: Sitharaman cuts short Budget speech after feeling unwell
Finance Minister Nirmala Sitharaman on Saturday cut short her Budget speech as she felt unwell after speaking for a record 160 minutes in Lok Sabha.
Sitharaman had only two pages of her Budget speech unread when she appeared uneasy and was seen wiping sweat from her forehead.
She was offered candies by her ministerial colleagues, but that did not help and she opted to discontinue the speech asking Speaker Om Birla to consider the remaining part of her speech as read. This was the longest Budget speech by any finance minister.
Read the full report here.
Budget 2020 Reaction: "Startup ESOPs taxation on vesting will be deferred for five years or till exit - whichever is earlier! This is great news as the current system collects taxes too early. This will encourage more startups to get incorporated and create jobs. It will make it easier for startups to incentivize good talent and attract more skilled talent towards working in startups," said Harsh Jain, Co-founder and COO, Groww.
Budget 2020: Allocation for J&K at Rs 30,757 cr; Ladakh at Rs 5,958 cr for FY21
Finance Minister Nirmala Sitharaman on Saturday said the Centre has proposed allocation of Rs 30,757 crore for Jammu and Kashmir, and Rs 5,958 crore for Ladakh for fiscal 2020-21. Presenting the Union Budget for 2020-21, Sitharaman also said the government has earmarked Rs 100 crore for hosting G-20 Summit in the country.
She also said a national policy on statistics will be brought in and added that data must have credibility. The finance minister also proposed major reform in the recruitment of non-gazetted staff.
Budget 2020 Latest Update: Finance Minister Nirmala Sitharaman on Saturday said dividend distribution tax has been shifted to individuals instead of companies.
In her second Budget presentation, the Finance Minister said concessional tax rate of 15 per cent has been extended to power generation companies.
The government plans 100 per cent tax concession to sovereign wealth funds on investment in infra projects, she added.
Budget 2020 Reactions: Vivaad to Vishwas scheme to encourage payment of disputed direct taxes without interest and penalty during the period up to March 31. The scheme will remain open up to June 30, 2020, however, those paying tax amounts beyond March 31 will have to pay additional amounts, says Saraswathi Kasturiranjan, Partner, Deloitte India
"LIC IPO along with current divestments in progress will aid achieving Fiscal Deficit targeted at 3.5% for FY20-21," says Vinay Pandit, Head- Institutional Equities, IndiaNivesh.
Disinvestment target has been raised to Rs 2.10 lakh crore in FY21 from Rs 1.05 lakh crore in FY20.
Budget proposes deferment of tax payment by employees on ESOPs from startups by five years.
PAN to be instantly allocated online soon, says FM.
Pushing of taxation trigger for stock options of startups to sale point in lieu of allotment which is there currently is a welcome measure, says Saraswathi Kasturiranjan, Partner, Deloitte India. Perquisite taxation on ESOP of startups is deferred for a period of 5 years or the date of sale or leaving the company whichever is earlier. This will ease the cash crunch of recipient employees, he adds.
Dividend Distribution Tax to be removed, companies will not be required to pay DDT, dividend to be taxed only at the hands of recipients at applicable rates: FM
Market Update: Sensex tanks 300 points, Nifty below 11,900
Budget 2020 | Income Tax Calculator: New income tax slabs announced; calculate income tax online
Finance Minister Nirmala Sitharaman has announced huge income tax relief for taxpayer across several income tax slabs. This latest online Income tax calculator lets you know your post-Budget 2020income tax liability.
Startups have emerged as the engine of growth used ESOPs plans to attract and retain talent. To ease the tax burden the government has announced tax relief to startups.
FM says that 100 different exemptions are provided under the current Income Tax Act. "I have removed 70 of them," says FM.
Under the newincome tax regime,there will be a significant reduction in tax paid even by those having an annual income of Rs 15 lakh. But the new tax regime will be optional
There was Rs 40,000 crore revenue loss to the government with the new tax regime, says FM.
New income tax regime with lower tax rates:
Income - 0 – 2.5 lakhs – exempt
Income - 2.5 – 5 lakhs – 5%
Income - 5 lakhs – 7.5 lakhs – 10%
Income 7.5 lakhs – 10 lakhs – 15%
Income - 10 lakhs – 12.5 lakhs – 20%
12.5 lakhs – 15 lakhs – 25%
Income above 15 lakhs – 30%
New income tax slabs are as follows:
Budget 2020 Latest Updates: FM says that the tax proposals would bring ease of compliance and reduce litigation. Nirmala Sitharaman says a new personal income tax regime would be reduced who forego deductions and exemptions.
1. Tax of only 10 percent will be charged to Rs 5 lakh-7.5 lakh income as against prevailing 20 percent rate.
2. From Rs 7.5 lakh-10 lakh income, a tax rate of 15 percent against 20 percent prevailing rate.
3. For income Rs 10-12.5 lakh, a rate of 20 percent as against 30 percent earlier.
4. For income between Rs 12.5 lakh-15 lakh will be taxed at 25 percent as against 30 percent.
5. For those at Rs 15 lakh plus income, tax will be 30 percent.
Massive income tax relief for taxpayers | Income tax for income between Rs 5 lakh to Rs 7.5 lakh halved to 10 per cent from 20 per cent.
Budget 2020 Latest Updates: FM Nirmala Sitharaman says there have been loss of substantial revenue in the short term due to a corporate tax rate cut.
The incorporation of the tax payers charter in the statute is a welcome move. The implementation of the charter will be key to improve investors confidence, says Partner - Corporate Tax PwC India
We estimate a fiscal deficit of 3.8% in RE 2019-20 and 3.5% for PE 2020-21.
Nominal growth for FY21 at 10%.
Budget 2020 Latest Updates: Government plans to raise funds via Life Insurance Corporation of India's IPO.
Mention of recapitalisation and governance reforms of the public sector banks by the Fm, but still no mention of privatising them - a move that is long overdue to truly reform the banking sector. Merging PSBs is a shortcut solution, says Anupam Manur, Fellow, Takshashila Institute.
The government proposes to increase the investment limit of FPIs in corporate bonds from 9% to 15%.
Budget 2020 Latest Updates: Power plants with emissions above prescribed limits will be asked to close down, Finance Minister Nirmala Sitharaman said on Saturday.
Presenting the Budget for 2020-21, she said India's commitment towards tackling climate change made at Paris conference kick starts from January 1, 2021.
She said Rs 4,400 crore has been allocated for states that work towards clean air. The Finance Minister also said PM KUSUM scheme will be expanded to help 2 million farmers in setting up standalone solar pumps.
Budget 2020 Latest Updates: FM says the government is planning to sell its stake in IDBI Bank to bidders.
Deposit insurance and credit guarantee for depositors enhanced from Rs 1 lakh to Rs 5 lakh.
India will host G-20 presidency in the year 2022 and Rs 100 crore has been allocated for preparation: FM
Tax harrassments will not be tolerated, says FM. The govt also proposes to amend Companies Act.
She adds that the government will launch a common entrance test for appointment of non-gazetted officers.
"Government to come out with a policy to promote data center parks for development of big data technologies. The important aspect needs to be the focus on skills development in these technologies, given that IT firms face a shortage of digital talent. Long term, the move could potentially benefit all IT firms including TCS, Infosys, Wipro, HCL Technologies, Tech Mahindra, along with mid-sized firms like LTI, Mindtree, Persistent, and Hexaware, among others, given the incremental focus on growing their digital businesses," said Harit Shah, Sr. Analyst- Information technology, IndiaNivesh.
The Modigovernment is clean and corruption-free. It trusts every citizen of the country, the aspirational youth, the risk-taking entrepreneur and hard-working farmers, says FM.
Clean air is a matter of concern in large cities, propose to encourage states to formulate and implement plans to ensure clean air. Allocation for this purpose is Rs 4,400 crore: FM
Finance Minister Nirmala Sitharaman: Indian Institute of Heritage and Culture to be established under Ministry of Culture.
Budget 2020 Latest Updates: FM Nirmala Sitharaman quotes poet Thiruvalluvar. She says there are five jewels for a country, which is one without illness, one with wealth, it will have good crops, it should have happiness as well as safety/security, quoting the poet.
PM Modi intervenes to silence Opposition during the Budget Speech.
Wealth creators will be respected in this country, says FM Sitharaman.
Budget 2020 Latest Updates:FinanceMinister Nirmala Sitharaman says five archaeological sites willbe developed as iconic sites with on-site museums -Rakhigarhi, Hastinapur, Shivsagar, Dholavira and Adichanallur.A tribal museum will be set up in Ranchi, Jharkhand. Maritime site will be set up in Lothal. A total of Rs 3,100 crore has been set aside for Culture Ministry in FY21. A 100 more airports will be developed under UDAN by 2024. A total of Rs 2,500 crore will be allocated for tourism promotion in FY21.
The government allocates Rs 2,500 crore for tourism for FY21.
Rs 85,000 crore allocated for SCs and OBCs in Budget for FY 2020-21: FM
Budget 2020 Latest Updates:The govt is set to appoint a task force in six months.
I propose to provide Rs 35, 600 crore for nutrition-related programmes for 2020-21: FM Sitharaman
Rs 3.6 lakh crore approved for Jal Jeevan Mission: Sitharaman
Stating that the statistics were not to politicise issues, FM says, "'Beti bachao, beti padhao' yielded tremendous results. The gross enrolment ratio of girls across all levels of education now higher than boys."
Will achieve seamless delivery of services through digital governance: Sitharaman
Govt allows tech companies to set up Data Centre parks to provide internet to citizens. It allocates Rs 6,000 crore for BhartatNet.
Budget 2020: FM Sitharaman highlights 16 points to showcase govt’s focus on farmers
The government will launch a campaign to eliminate tuberculosis (TB) by 2025, Finance Minister Nirmala Sitharaman said on Saturday.
Presenting the Budget for 2020-21, Sitharaman proposed to expand Jan Aushadhi Kendras to all districts of the country to provide medicines at affordable rates.
She further said proceeds from taxes on medical devices would be used to support setting up of hospitals.
Read the full report here.
FM urges states to replace traditional metres with smart metres in next three years.
FM proposes National Technical Textile mission with an outlay of Rs 1,480 crore over four years to cut down imports.
I propose to provide Rs 27, 300 crore for development for industry and commence for year 2020-21: FM
A proposal to set up solar plants on the land owned by Railways is under consideration, says FM.
"Finally, the focus has shifted to integrating into the global value chain (GVC). Currently, India’s share in GVCs: Mobile phones (0.19 per cent), integrated circuits (0.01 per cent), computers (0.04 per cent), solar-powered diodes, transistors (0.14 per cent), LCDs (0.04 per cent). With the new measures, these numbers should improve," says Anupam Manur, Fellow, Takshashila Institute.
"With an allocation of Rs 93,000 crore in education sector, focussing on quality education and an additional Rs 3000 crore for skill development, providing internship with local bodies and supply of skilled manpower to the world augurs well in placing India on the global education map," says Saraswathi Kasthuriranjan, Partner, Deloitte India.
Centre to announce new education policy soon. A degree-level full-fledged online education programme to be offered by institutes in top 100 in National Institutional Ranking Framework.
India needs to boost domestic manufacturing in the electronic value chain, says FM. India needs to manufacture net worth products must boost domestic manufacturing. Mobile phones, electronic equipment and semiconductor packaging industries will be promoted, she adds.
FM proposes to set up Investment Clearance cell for end-to-end service.
“Reforms proposed in the education sector including permitting foreign equity and debt will have a major impact on improving quality of education and modernising education infrastructure in the country, with significant long term benefits to the society”, says Suraj Malik, Partner/ Transaction Tax, Tax & Regulatory Services.
"Some good measures for the education sector. The urban local body internship programme, the focus on apprenticeship and the launch of online degree-level programmes is welcome. Allowing foreign universities to set up their branches in India would have been a welcome next step," says Anupam Manur of Takshashila Foundation.
We propose Rs 99, 300 crore allocated for education sector in 2020-21 and Rs 3,000 crore for skill development: FM
There is a shortage of qualified medical doctors both general practitioners and specialists; it is proposed to attach a medical college to a district hospital in PPP mode; details of the scheme to be worked out soon, says FM.
To start degree level full-fledged online programme by top 100 universities, Study In India and Ind Sat Exam tobenchmark foreign candidates to study in India.
"Focus on promoting traditional organic and other innovative fertilizer with a view to change incentive regime which promotes the use of chemical fertilizers. This comes in after the govt. stressed on zero budget farming in the previous budget. Negative for fertilizer companies as zero-budget farming significantly cuts down on agri-input consumption. However, the concept is still in the nascent stage as the lack of use of chemical inputs results in lower yield an production. The concept is being pioneered in AP and has received mixed reviews from farmers," said Aksh Vashisth, Analyst- Chemicals, IndiaNivesh.
Govt proposes urban local bodies will offer internships to engineers for a year.
"Rs 12,300 crore for Swacch Bharat adds to the focus on holistic health and wellness," says Saraswathi Kasthuriranjan, Partner Deloitte India.
FM says that the govt is commited to open defecation free (ODF) plus to sustain. It allocated Rs 12,300 crore for Swachh Bharat Mission.
India set to have largest working age population by 2030, says FM.
My Budget 2020 is woven around three themes- aspirational India to boost the standard of living; economic development for all; and building a humane and compassionate society, says FM.
For sector comprising agriculture, allied activities, irrigation and rural development, an allocation of Rs 2.83 lakh crores has been made for 2020-21.
Krishi Udaan to be launched by Civil Aviation Ministry to transport agri-products to national as well international destinations: FM
Milk processing capacity to be expanded to 108 tonne from 53.5 tonne, says FM Sitharaman.
FM says fish farmer producer organisation to be set up. Under the Deendayal Antyodaya Scheme, FM says 58 lakh SHGs are mobilised and they will be further expanded.
"Approach to build sustainable growth in agriculture by implementing and executing exsisting schemes for doubling farm income is a good medium term initiative. Integrating the chain of production to cold storage to transportation is a welcome step for building farm income and reducing distress," Pankaj Razdan, Former MD & CEO Aditya Birla Sunlife
NBFCS and cooperatives are active in agriculture. NABARD refinance scheme will be expanded, says FM.
"This is the budget to boost income and enhance purchasing power" at the beginning gives a sign of things to come - expect significant benefits for consumption as the speech progresses.Aspirations, Economic development, Caring Society" - an ACE in the making - aimed towards a $ 5 tn economy by 2024-25 - if achieved with the right efforts, is in the right direction," said Vinay Pandit, Head- Institutional Equities, IndiaNivesh.
Agriculture credit target has been set at Rs 15 lakh crore.
The govt proposes to support states with cluster approach of one product one district.
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FM Nirmala Sitharaman quotes Atichudi of Saint Avaiyar and says that farm land should have sufficientmanure and water and not an excessive one. Will also revise incentives for use of chemical fertilisers, says FM. Warehouse building incentives will also be given by the government for the farmers. The thrust, she says, is to offer viability gap funding and Mudra loans will also be provided for such self-help groups. Here, women will be the 'dhanya Laxmi' in the villages, she added.
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Horticulture sector with a current produce of 311 million metric tonnes exceeds the production of foodgrains, says FM.
"E-way bill mechanism is a great respite and has resulted in improving turnaround time drastically for the logistics industry as a whole,"Gunjan Prabhakaran, Partner/Indirect Tax, BDO India.
Encouraging to hear about social security and insurance penetration, says Saraswathi Kasthuriranjan, Deloitte India.
A quick recap:
FM says Budget is for boosting income, purchasing power of people.
Fundamentals of economy strong, inflation well contained, banks cleaned up accumulated loans: FM.
FM terms GST as historic structural reform; says it integrated country economically.
This Budget aims to fulfil aspirations of people: FM.
During 2014-19, govt brought paradigm shift in governance: FM presenting Budget for 2020-21.
Average household now saves 4 pc in monthly expense after rollout of GST, says FM
GST resulted in Rs 1 lakh crore gains to consumers, removed inspector raj and helped transport sector: FM.
Simplified return for GST is being introduced from April 2020, says FM in Budget speech.
Finance Minister lists out welfare schemes like affordable housing scheme, DBT and Ayushman Bharat.
FM translatesKashmiri poem into Hindi. It says,"Hamara vatan kilte huey Shalimar bagh jaise …hamara vatan dal lake me khilte huey kamal jaisa…naujawanon ke garm khoon jaisa…mera vatan tera vatan hamar vatan duniya ka sabse pyara vatan"
FM pledges to provide 20 lakh farmers stand alone solar pumps.
A total of 6.11 crore farmers insured under Fasal Bima, says finance minister. She says hand-holding of farm-based activities needs to be done. This, she said, can be done in cooperation with states. Presents a 16-point action plan for this purpose.
FM Sitharaman says that the government is committed to doubling farmers' income by 2022.
Central government's debt has come down to 48.7% in March 2019 from 52.2% in March 2014.
Introducing a new simplified GST return filing system from April 1, 2020, says Finance Minister Nirmala Sitharaman.
Job creation has to be one of the top priority for this budget. The latest unemployment rate was at 7.5% according to CMIE. Special focus should be on improving Female Labour Force Participation Rate which is abysmally low at around 21%., says Anupam Manur of Takshashila Foundation.
Finance Minister recites a verse in Kashmiri.
PM helped push the implementation of development manifolds. Rs 1 lakh crore has been extended to consumers as part of incentives. Average household saves one forth of its monthly budget because of GST, says Sitharaman.
Finance Minister pays homage to late Arun Jaitley who was the architect of goods and services tax.
FM Nirmala Sitharaman said this vibrant India will be a caring economy and will attend to weak, old and vulnerable citizens. "GST has matured into a tax that has integrated country," she said.
This budget is to boost income and enhance purchasing power, says FM Sitharaman.
Our people should be gainfully employed, our businesses should be healthy; for all minorities, women and people from SCs and STs, this Budget aims to fulfil their aspirations: FM.
DH PANEL EXPECTATIONS:
The expert, here at DH office with us, expects the following things:
1. Expecting some announcements on the roadmap to GST 2.0 – Mohan R Lavi, Partner K P Rao & Co, Chartered Accountants.
NPS should be made more attractive or aligned for all by increasing exemption for employers’ contribution to 14 percent as was done last year for govt. employees – Ravi Jain, Partner, Personal Tax, PwC India.
2. The FM should look at a dispute resolution scheme for direct taxes to reduce the mounting tax litigation -- Madhukar Dhakappa, Partner - Corporate Tax PwC India
With the slashing of corporate tax rates individual taxpayers are hoping for a reduction in the tax rates. Government will not want the tax-payer base eroded but can reduce the rates. The maximum rate of 30% can kick in at higher levels. More action expected on the Labour law and social security front – Saraswathi Kasthuriranjan, Partner, Personal Tax, Deloitte India.
3. In order to get growth back on track, the FM should look at improving the investment (GFCF) rate in the country. Solving the NPA crisis and introducing measures to have a better functioning corporate bond market can go a long way in this regard – Anupam Manur, Fellow, Takshashila Foundation.
This budget is to boost income and enhance purchasing power, says finance minister.Inflation has been well contained, Sitharaman adds.
Finance Minister Nirmala Sitharaman presented the report of the 15th finance commission. This is the first budget of the new decade, said the Speaker of the House.
WATCH | FM Sitharaman's Budget Speech here:
Speaker of the House has come in.Finance Minister Nirmala Sitharaman rises to present the Budget.
President Ram Nath Kovind with FM Nirmala Sitharaman and MoS for Finance Anurag Thakur at Rashtrapati Bhavan, New Delhi, Saturday, Feb 1, 2020. As per tradition, Sitharaman called on the President before presenting the Union Budget 2020-21. (PTI Photo)
Finance Minister Nirmala Sitharaman to present the Union Budget 2020-21 shortly.
IRCTC soars 9% ahead of budget; other railway stocks also gain.
"People of Delhi hope that the Centre will protect the interests of Delhi. In view of the elections, Delhi should get even more. The budget will show how much the BJP cares about Delhi,"said Delhi Chief Minister Arvind Kejriwal in a tweet.
The economic survey, which comes amid an official projection of a decade-low growth, also asked the government to go in for pro-business policies, honouring the wealth creators and markets, whose "invisible hand" could help India become a $5 trillion economy.
"Biggest issue today is job creation for our youth," says Rajasthan Chief Minister Ashok Gehlot on Twitter.
Finance Minister Nirmala Sitharaman is all set to present her second Budget in a few minutes. The government on Friday presented the economic survey for 2019-20, which has projected the economic growth at 6-6.5% for the year 2020-21.
Budget 2020: Will income tax slabs be changed?
The Budget 2020 will be presented on February 1 by Finance Minister Nirmala Sitharaman. This will be the second budget for Prime Minister Narendra Modi-led NDA government after coming back to power for the second consecutive term by gaining landslide victory in the Lok Sabha Elections 2019. Ahead of the Budget presentation, let us take a look at what are the income tax changes that can be expected from Budget 2020:
According toKuldip Kumar, Partner, and Leader, Personal Taxation, PwC India,"The existing tax slabs are, up to 2.5 lakh (nil tax), Rs 2.5-5 lakh (5 percent), Rs 5-10 lakh (20 percent), and above Rs 10 lakh (30 percent). There is an expectation to rationalise these slabs to, up to Rs 5 lakh (Nil tax), Rs 5-10 lakh (10 percent) and Rs 10-20 lakh (20 percent) and above Rs 20 lakh (30 percent). This will benefit the taxpayers at large and will give more money to spend."
Read the full report here.
The Congress on Saturday expressedhope that the Union Budget would provide relief to the salaried class through tax cuts and invest in rural India besides providing a healing touch to the common man and industry facing "hardship" since demonetisation.
In less than 30 minutes the Budget session will kick start in the Parliament. All eyes are set at FM Sitharaman's 'Bahi Khata' and what's stored in it for the economy.
Prime Minister Narendra Modi arrives at the Parliament, ahead of presentation of Union Budget 2020-21.
Economic Survey sources data from Wikipedia, other private entities
TheEconomicSurvey2019-20 has sourced certain data fromWikipedia, which is not considered a reliable source of information. BesidesWikipedia, theSurveyhas also relied on data from other private sources such as Bloomberg, ICRA, CMIE, Indian Institute of Management (Bengaluru), Forbes and the BSE.
Read the full report here.
DH Union Budget Quiz #7
Do you think you know all there is to know about the Budget and its history? Put your budget knowledge to test through DH's Union Budget 2020 quiz series and see where you stand.
Take the fourth quiz here.
Sources in Central Board of Direct Taxes tell DH that only tweaks in Long Term Capital Gains are likely. there are plans to increase the duration from the current 12 months to 24 months. "There is going to nothing much this time. FM has already given so much and there is no room now. Just LTCG probably," a sourcein CBDT tells DH.
Copies of Budget 2020 have been brought to the Parliament. Finance Minister Nirmala Sitharaman will present the Budget in Lok Sabha at 11 am today.
Finance Minister Nirmala Sitharaman holds budget papers during a photo opportunity as she leaves her office to present the federal budget in the parliament in New Delhi, India, February 1, 2020. (Reuters Photo)
Economic Survey 2020: India ranks third in entrepreneurship
Economic Survey 2019-20 was tabled in Parliament after the address of the President inaugurating the budget session. Substantively written by the Chief Economic Advisor — a relatively autonomous post within the government — the Economic Survey is supposed to provide a frank and technocratic assessment of the economy and the ideal policy response to the economic problems confronting the country.
Read the full report here.
Finance Minister Nirmala Sitharaman and MoS Finance Anurag Thakur arrive at the Parliament, to attend Cabinet meeting at 10:15 am.
Union Budget 2020: India to unveil budget for economy in need of growth boost
India’s finance minister is set to deliver her budget speech on Saturday, seeking to give a boost to the economy while keeping fiscal risks under control.
Finance Minister Nirmala Sitharaman will likely outline measures to spur spending in rural areas and lower tax burden for individuals, home buyers and equity market investors. Her budget speech is scheduled to start at 11 amin New Delhi.
Sitharaman is expected to loosen India’s fiscal deficit goal, in line with a recommendation by her top economic adviser. The budget gap for the year to March is likely to widen to 3.8% of gross domestic product from a planned 3.3%. A Bloomberg survey shows the target for the next fiscal year will probably be 3.5%.
Read the full report here.
Finance Minister Nirmala Sitharaman met President Ram Nath Kovind, she will now proceed to the Parliament House to attend the Cabinet meeting.
All hell will break loose if govt fails: Basant Maheshwari on Budget expectation
While the market is having high hopes from Union Budget 2020, market expert, Basant Maheshwari apprehends that it will be a disaster if the government fails to come up to the expectations.
"All hell will break loose, if the government fails this time around. This is the first time in last 25-30 years that I have been tracking markets that India has slowed down on its own without any global issues. The government needs to do something. It cannot sit back and hope for something magical to happen on its own,"Maheshwari told Economic Times.
Read the full report here.
Pre-budget expectations by HDFC Securities on economic growth
FY20 nominal growth could come in at 7.5% and real GDP @4.6-4.7%. For FY21 the numbers could be 10% and 5.3-5.5% respectively.
Some green shoots are visible including better finance availability and high festive sales. Agriculture output could also grow well given the high rabi sowing and sufficient water availability. Scrappage policy for commercial vehicles may be announced with a staggered implementation and limited fiscal impact.
Finance Minister Nirmala Sitharaman holds budget papers during a photo opportunity as she leaves her office to present the federal budget in the parliament in New Delhi, India, February 1, 2020. With her is CEA Krishnamurthy Subramanian (2nd L). (Reuters)
DH Union Budget Quiz #7
Do you think you know all there is to know about the Budget and its history? Put your budget knowledge to test through DH's Union Budget 2020 quiz series and see where you stand.
Take the fourth quiz here:
Union Budget 2020: All you need to know about Nirmala Sitharaman's Bahi Khata
Finance Minister Nirmala Sitharaman arrived at the Parliament with 'Bahi-Khata' ahead of a presentation of Union Budget 2020-21.
Breaking the British stereotype of using a briefcase for the budget documents, Nirmala Sitharaman brought out her 'Bahi-Khata' for the Union Budget 2019. Keeping up with her new tradition, the union minster brought with her this year's Khata for the Union Budget 2020.
Read the full report here.
Meet the brains behind Budget 2020
As Sitharaman prepares to deliver her budget speech today, meet five key people in the government who are working behind the scenes to draw up the income-and-spending plan.
1.Tuhin Kanta Pandey, Disinvestment Secretary | Tuhin Kanta Pandey is responsible for the strategic sale of Air India Ltd. -- bids for which were invited Monday -- and other state-owned companies, with divestment forming a major chunk of the government’s income mobilization efforts. Although the current year’s target of 1.05 trillion rupees is likely to be missed by a mile, a huge target next year isn’t ruled out.
Read the full report here.
BSE Sensex falls 200 points; Nifty nears 11,900 ahead of Union Budget 2020
Market benchmark Sensex opened at 223.65 points lower at 40,499.84. Nifty down 11905 points. In the pre-open, BSE Sensex was trading1,202.92 points down at 39,520.57 points. Global factors and nervousness of Budget weighing heavy!
Click here to catch live updates of how markets are reacting on budget day.
Budget 2020 will also include the budget for Indian Railways. For the first time in 92 years, in 2017, the Union Budget was merged with the Rail Budget, which was usually presented separately.
DH Union Budget Quiz #6
Do you think you know all there is to know about the Budget and its history? Put your budget knowledge to test through DH's Union Budget 2020 quiz series and see where you stand.
Take the fourth quiz here.
Here's why Budget 2019 was unique
Every year, Union Budgets are presented as per the tradition -- the printing of the document kickstarts with halwa ceremony, the officials related to the budget document then stay at the Finance Ministry till the budget is presented and so on.
Last year's Union Budget, however, was unique. While, on one hand, it broke away from some of the traditions, on the other hand, it made new history.In 2019, Sitharaman ditched the British tradition of carrying a briefcase and adopted the Indian tradition by carrying a 'bahi khata' (ledger). The budget documents were kept in a four-fold red cloth with the national emblem on it, wrapped with a ribbon. It symbolised India's departure from the slavery of Western thought.
Read the full report here.
Finance Minister Nirmala Sitharaman and her team will now meet President Ram Nath Kovind, ahead of presentation of Budget in the Parliament.
FM Nirmala Sitharaman has arrived with 'Bahi Khata' for the second time. The 'Bahi Khata' marks a breaking away from the British era's brown briefcase tradition.
In 2019, Sitharaman had ditched the British tradition of carrying a briefcase and adopted the Indian tradition by carrying a 'bahi khata' (ledger). The budget documents were kept in a four-fold red cloth with the national emblem on it, wrapped with a ribbon. It symbolised India's departure from the slavery of Western thought.
In the pre-open, BSE Sensex is trading with a down 1,202.92 points at 39,520.57 points. Global factors and nervousness of Budget are weighing heavy!
What is in store for education?
With government’s increasing focus on improving the education system of the country, the industry expects an increase in fund allocations towards higher education research fund and for completing the work of established higher educational institutions such as IITs and central universities. In FY2019-20, budget allocations were around Rs 94,000 crore and this is expected to increase by about 5% in this budget. Scholarships for students in higher education who are from an economically or social weaker section of the society is also a measure that will help.
Modi govt believes in 'sabka sath, sabka vikas.' We received suggestions from across the country. The government is making efforts that this budget is good for all, saysMoS Finance Anurag Thakur.
Budget Trivia | Do you know there were two finance ministers who never presented budget?
C Neogy and HN Bahuguna were the only two finance ministers who did not present any Indian Budget.
With nearly a couple more hours remaining for the Union Budget to be presented, FM Nirmala Sitharaman has arrived at the Ministry of Finance.
Budget 2020: India set for deficit blowout, high borrowing
India’s annual budget on Saturday is Prime Minister Narendra Modi’s second opportunity in seven months to refresh policy priorities to support an economy on a downward spiral.
Finance Minister Nirmala Sitharaman is set to outline fiscal steps that may include higher spending in rural areas and possible tax cuts when she delivers her second budget speech in New Delhi. The government is expected to widen its fiscal deficit target for the year through March to 3.8% of gross domestic product from a planned 3.3%.
Read the full report here.
Budget 2020: India set for deficit blowout, high borrowing
India’s annual budget on Saturday is Prime Minister Narendra Modi’s second opportunity in seven months to refresh policy priorities to support an economy on a downward spiral.
Finance Minister Nirmala Sitharaman is set to outline fiscal steps that may include higher spending in rural areas and possible tax cuts when she delivers her second budget speech in New Delhi. The government is expected to widen its fiscal deficit target for the year through March to 3.8% of gross domestic product from a planned 3.3%.
Read the full report here.
More recap plans for PSBs?
The government is likely to undertake additional capital infusion into public sector lenders to enable these banks to adhere to their capital adequacy norms (capital adequacy ratio of 11.5% from March 2020 as per BASEL III regulations) and facilitate lending. Assuming the growth in bank credit during FY20-25 to be in the range of 13-14% per annum, the total outstanding bank credit as of 2024-25 would be around Rs 200 lakh crore. Although the share of PSBs in bank credit has been declining (from 71% in March 2016 to 57% in September 2019), there is an expectation that PSBs will account for around 60% of incremental bank credit during this period. The total additional capital required over the next five years would be around Rs 7 lakh crore. This additional capital will have to be sourced from retained profits of the bank (including recovery), mobilization of capital from the markets and infusion of funds via the government. The Budget may consider this requirement over the next five years.
DH Union Budget Quiz #5
Do you think you know all there is to know about the Budget and its history? Put your budget knowledge to test through DH's Union Budget 2020 quiz series and see where you stand.
Take the fourth quiz here.
Budget Trivia | Former Finance Minister Morarji Desai has presented the highest number of budgets at 10 times.
Economic Survey paints clear picture of slowdown
Economic Survey 2019-20 was tabled in Parliament after the address of the President inaugurating the budget session. Substantively written by the Chief Economic Advisor — a relatively autonomous post within the government — the Economic Survey is supposed to provide a frank and technocratic assessment of the economy and the ideal policy response to the economic problems confronting the country.
Read the full report here.
Budget Trivia | Finance Minister Nirmala Sitharaman delivered the longest Budget speech ever in independent India's history while presenting Union Budget 2019. She clocked a total time of two hours 15 minutes. (PTI Photo)
Indian economy experienced abrupt slowdown in 2019, but it's not in a recession: IMF MD
The Indian economy experienced some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation, but it is not in a recession, IMF Managing Director Kristalina Georgieva has said.
"The Indian economy indeed has experienced an abrupt slowdown in 2019. We had to revise our growth projections, downwards to four percent for last year. We are expecting 5.8 per cent (growth rate) in 2020 and then an upward trajectory to 6.5 percent in 2021," Georgieva told a group of foreign journalists here on Friday.
Read the full report here.
When and where to watch Budget 2020 live:
Union Budget 2020-21 will be the second Budget of the Narendra Modi-led government after getting re-elected in May 2019 with a sweeping victory. The budget is scheduled to begin at 11 am in the Lok Sabha. Union Budget 2020 live-stream can be watched online on the Lok Sabha's website. Doordarshan will also webcast the Union Budget Live on it's YouTube channel.
Deccan Herald will bring you live updates of Budget 2020. Users can visit our website (www.deccanherald.com) and even check our Budget 2020 section for the latest updates.
Fiscal situation expectations by HDFC Securities
For FY20, lower revenue collections and disinvestment proceeds (less than 20% of FY20E received so far) could be compensated by excess RBI dividend, expenditure cut in the last quarter and subsidy rollover. Date of receipt of Telecom AGR payments could impact FY20 or FY21 fiscal deficit. We expect FY20 to end with a fiscal deficit of 3.5-3.7% vs the original estimate of 3.3% of GDP. For FY21, fiscal deficit may be projected at 3.4-3.5% of GDP. Fiscal consolidation roadmap may be deferred by one more year. However given the effect of higher fiscal deficit on interest rates, ratings and capital markets, the FM may not budget too high fiscal deficits for FY20 and FY21.Though economists hope for cleanup of the fiscal situation by bringing off-balance sheet items (FCI, NHAI etc) on the books, it may not happen in this Budget.
DH Union Budget Quiz #4
Do you think you know all there is to know about the Budget and its history? Put your budget knowledge to test through DH's Union Budget 2020 quiz series and see where you stand.
Take the fourth quiz here.
Budget Trivia | Indira Gandhi was the first woman to have presented the Union Budget in the parliament. (DH File Photo)
Now, you may have to pay the DDT
The dividend distribution tax (DDT) may be abolished to do away with the multiplicity of taxes for companies. However, this would be taxable at the hands of the receiver of the benefit which would be taxable at the existing slabs for the concerned individuals. Removal of tax on dividend income which currently is 10% for dividend income above Rs 10 lakh as this would no longer be applicable.
What if there is no tweaking in tax slabs?
Amid revenue shortfall, if the government decides not to go for rationalization of the tax rate, it can look at following exemptions:
Increase in the standard deduction from the current Rs. 50,000 to Rs 75,000 per annum. In the 2019-20 Budget, the limit was raised by Rs.10,000.
2. Deduction for investments under sections 80C could be increased from Rs 1.5 lakh to Rs 2 lakh.
3. Deduction for contribution to National Pension Scheme could be increased from Rs 50,000 to Rs 1 lakh.
4. Deduction of interest paid on housing loan could be increased from Rs 2 lakh to Rs 2.5 lakh. There could also be an increase in the additional interest deduction for first time home buyers who have borrowed from April 1, 2019, to March 31, 2020, from the current Rs 1.5 lakh to Rs 2 lakh. This would provide a boost to the real estate sector.
A day before the budget, foreign funds pulled out heavily out from the Indian equities. FIIs withdrew Rs 4,179.12 crore on a net basis on Friday.
Economic Survey 2020 bets on 'invisible hand' to help India achieve $5 trillion economy by 2025
A decade-low growth forecast for India in 2019-20 notwithstanding, the Economic Survey Friday said the economic slowdown had troughed but asked the government to take up bold reforms, cut subsidies, including Rs 1.84 lakh crore on food, and, go in for pro-business policies, honouring the wealth creators and markets, whose “invisible hand” could help India become a $5 trillion economy.
Read the full report here.
Budget Trivia | Till 1955, budget was only printed in English language. However, from 1955-56, budget started getting printed in both languages, Hindi and English.
Stock markets to remain open for trading today
Indian markets -- BSE and NSE -- will be open for trading today, despite it being a Saturday. The Union Budget is expected to keep the stock traders on their toes. The stock markets generally remain shut on Saturdays and Sundays, except for special circumstances. Catch live updates of how the markets react on the Budget day here.
Budget FAQs: What is Fiscal Responsibility and Budget Management Act?
As the buzz around the upcoming budget is rising, DH explains what an FRMB Act is. The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2003 which set targets for the government to reduce fiscal deficits. After the government failed to adhere to the targets even after multiple attempts, claiming that the goals were very inflexible, a committee to review the Act was set up under the economist and former Indian Administrative Service officer NK Singh.
Citing the NK Singh committee report, the government was pulled up by the Comptroller and Auditor General of India (CAG) during Arun Jaitley's tenure, as the fiscal deficit target of 3% of the GDP and chose a target of 3.2%. CAG said that borrowing was higher than the targets under the Fiscal Responsibility and Budget Management Act, maybe by as much as 2 percentage points of GDP, in the current fiscal year.
Do you know who presented independent India's first Budget?
The first Budget of Independent India was presented by the then Finance Minister R K Shanmukham Chetty on November 26, 1947?
As India witnesses yet another budget, here are some lesser-known facts:
1. The first Indian Budget was presented by James Wilson on February 18, 1869 after Indian Budget was introduced on April 7, 1860 by the East India Company. (Photo: Wikimedia Commons)
69% Indians want tax-free income limit raised to Rs 5 lakh, finds survey
Around 69 per cent respondents to a LocalCircles poll want the annual income tax exemption limit to be increased to Rs 5 lakh from the current Rs 2.5 lakh. This is as per a survey of 44,000 participants across over 250 cities of India.
Bond Yields expectations by HDFC Securities
Bond yields could remain high for some time due to inflationary and fiscal pressures and large amount of G-sec maturity in the coming few years. Ongoing sluggish growth in revenues have raised the possibility of additional borrowings in Q4FY20. However if growth does not resume due to any reason including global events, the pressure on yields could reduce. However if the Govt taps the foreign borrowing route, it could reduce the pressure on domestic yields.
Will your tax burden reduce this year?
Higher allocations towards capital expenditure
Based on the trend growth rate, the total expenditure of the government could increase from Rs 27.8 lakh crore in 2019-20 to around Rs 30.5 lakh crore in 2020-21 (B). Consequently, the capital expenditure which on an average accounts for 13% of total expenditure would see an increase from Rs 3.38 lakh crore to around Rs 4 lakh crore. If the fiscal deficit target is relaxed (by 0.5 – 1%) and assuming that the additional fiscal deficit is entirely used for infrastructure development, the capital expenditure would be in the range of Rs 5.1-6.2 lakh crore. This will be a substantial sum of money to provide a stimulus on the fiscal side. It must be kept in mind that of the Rs 3.36 lakh crore of capex projected for FY20 (B), a little more than 30% is for defence a part could be import-based.
The increased capital expenditure would be towards infrastructure projects viz. those that have been detailed in theNational Infrastructure Pipeline (NIP). Nearly 40 % of the capex would be towards the rail and road transport sector.Housing and urban development is the other important component with share of around 6%.
Expansionary fiscal policy likely in the budget
In order to stimulate economic growth, the government could incur higher expenditure in 2020-21 given that domestic economic growth in recent times has been largely led by government/public spending amid subdued private consumption and investment. This would require the government to reconsider the fiscal consolidation roadmap of bringing down the fiscal deficit to 3% of GDP by 2020-21.
The intended fiscal consolidation plan would have to be pushed forward to later years when domestic economic growth picks up. With revenue collections being lower than expected due to weakness in economic growth, the central government is most likely to breach the gross fiscal deficit target of 3.3% of GDP for 2019-20 by 0.6-0.8% which would essentially take the revised fiscal deficit to 3.9-4.1% of GDP for the year. If the government is to adopt a flexible fiscal policy for 2020-21 and increase the fiscal deficit by 0.5%, then assuming a nominal GDP growth of 10% for the year (FY21 projection to be around Rs 225 lakh crore) the quantum of incremental fiscal deficit would be higher by around Rs 1.10 lakh crore which can be directed towards capex. In case the fiscal deficit is increased by 1% above the currently stated target, the quantum of increase in fiscal deficit would be Rs 2.2 lakh crore. This would be an interesting call to be taken by the government.
With just four more hours remaining before Finance Minister Nirmala Sitharaman presents Union Budget 2020, here are some of the wish-lists and expectations from the Budget:
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1. The real estate industry hopes for favourable financial decisions in budget 2020
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As the countdown to the budget 2020-21 has begun, the real estate sector is expecting several measures from the government to stimulate growth prospects in the coming financial year. Real Estate contributes to about 8% to country’s GDP and creates huge employment opportunities. Considering the role of the sector in economy, there is intense speculation and simultaneous optimism that the government would announce some growth measures for the segment. -Ashish Sarin,CEO,AlphaCorp
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2.Focus on connectivity infrastructure investment in tier 2 -5 cities
The availability of inexpensive data plans and smooth connectivity along with safer and easier online cashless transaction apps are driving sales upwards in the e-commerce industry in smaller cities all over India. The consulting firm RedSeer estimates that 19 million more online shoppers will be added in 2018 from Tier II+ cities. In contrast, four million shoppers will be added from Tier 1 cities. Currently, 56 million digital shoppers from smaller cities and rural areas are online. Regional air connectivity in hitherto unconnected Tier- 2 to 5 cities is in for a major boost with at least 56 airports and 31 heliports getting ready. These airports and helipads being developed as a part of the Government's efforts to provide connectivity to unserved cities and towns with the potential to offer aviation services will be a boon in times to come. However, the budget should cut down duties on Oil to reduce transportation costs so that the cost of distribution in Tier-II- V cities comes down. The government needs to continue showing strong support to these cities by trying to upgrade the urban infrastructure by upgrading the MRTS, airports; introducing SEZs etc. -Nalin Agrawal,CEO, Snapmint
Budget 2020: Who has got what under Modi govt?
In the last five years of the Modi government, the Agriculture sector was the biggest beneficiary in the budget allocation with annual growth of 59%, followed by urban development (24%) and energy (21%).
Surprisingly, despite the pro-military attitude of PM Narnedra Modi, the allocation in the defence sector has shown a paltry CAGR of just 8% over the past five years. To give a perspective, even to marginally modernise the armed forces, the government needs an allocation of at least 2.5% of the GDP, according to the experts. Similarly, the allocation of the subsidies has gone up by just 6% in the past five years. The subsidies and the defence allocations have shown the lowest CAGR in the critical sectors.
Check out our infograph here.
Budget 2020: Nudge towards job creation is an urgent need of the hour!
Budget 2020 is around the corner and the Government has a Herculean task cut out for itself of performing a tough balancing act that ensures economic development in the backdrop of a dipping economy, increasing fiscal deficit, rising inflation and rising unemployment rates.
Studies reveal that India entered demographic dividend in 2018, and that this bulge in working-age population is going to last till 2055! As per the United Nations Population Fund, countries can only harness the economic potential of the youth bulge if they are able to provide good health, quality education and decent employment to its entire population. This in sorts is an irony in the Indian context, where the demographic dividend runs the risk of turning into a demographic liability. -- Shalini Pillay, Office Managing Partner, Bengaluru, KPMG in India
Focus on connectivity infrastructure investment in tier 2 -5 cities
The availability of inexpensive data plans and smooth connectivity along with safer and easier online cashless transaction apps are driving sales upwards in the e-commerce industry in smaller cities all over India. The consulting firm RedSeer estimates that 19 million more online shoppers will be added in 2018 from Tier II+ cities. In contrast, four million shoppers will be added from Tier 1 cities. Currently, 56 million digital shoppers from smaller cities and rural areas are online. Regional air connectivity in hitherto unconnected Tier- 2 to 5 cities is in for a major boost with at least 56 airports and 31 heliports getting ready. These airports and helipads being developed as a part of the Government's efforts to provide connectivity to unserved cities and towns with the potential to offer aviation services will be a boon in times to come. However, the budget should cut down duties on Oil to reduce transportation costs so that the cost of distribution in Tier-II- V cities comes down. The government needs to continue showing strong support to these cities by trying to upgrade the urban infrastructure by upgrading the MRTS, airports; introducing SEZs etc. -Nalin Agrawal Founder and CEO, Snapmint
When and where to watch Budget 2020 live:
Union Budget 2020-21 will be the second Budget of the Narendra Modi-led government after getting re-elected in May 2019 with a sweeping victory. The budget is scheduled to begin at 11 am in the Lok Sabha.
Union Budget 2020 live-stream can be watched online on the Lok Sabha's website. Doordarshan will also webcast the Union Budget Live on it's YouTube channel.
Deccan Heraldwill bring you live updates of Budget 2020. Users can visit our website (www.deccanherald.com) and even check our Budget 2020 section for the latest updates.
DH Union Budget Quiz #3
Do you think you know all there is to know about the Budget and its history? Put your budget knowledge to test through DH's Union Budget 2020quiz seriesand see where you stand.
Take the third quiz here:
Budget 2020 FAQs: Who presented highest number of union budgets?
Budget 2020 | Income Tax Calculator: Calculate income tax easily
Calculate your post-Budget 2020income tax liability with this latest income tax calculator 2020. In her maiden Budget in 2019, Finance Minister Nirmala Sitharaman made no changes to the income tax slabs but hiked surcharge on the super-rich. Those with a taxable income of Rs 2 to Rs 5 crore now pay 39 percent tax while those with more than Rs 5 crore income shell out 42.47 percent tax.
Check out our income tax calculator to know how much tax you will pay in FY21:
Thirukkural and ‘Thalinomics’
The Economic Survey presents an overly optimistic picture, projecting a 6-6.5% GDP growth in 2020-21, indicating green shoots in the economy when none are visible and indeed new worries such as the potential impact of the spread of Coronavirus have to be reckoned with. Last year, Chief Economic Adviser (CEA) KV Subramanian had projected 7% growth in 2019-20. It is now expected to be 5%. The Survey articulated the Centre’s economic philosophy, calling for ‘ethical wealth creation’ as against scam-ridden businesses, complete with quotes from Kautilya’s Arthashastra and Thirukkural.
Read the full report here.
Budget 2020: Here's why Budget date, time was changed
Finance Minister Nirmala Sitharaman will present Union Budget 2020 of the Narendra Modi-led government on Feb. 1. She was given the crucial Finance Ministry portfolio after the Narendra Modi-led NDA government gained a landslide victory in 2019 Lok Sabha elections and came to power for the second consecutive term.
Nirmala Sitharaman, who is only the second woman to present the Budget after former Prime Minister Indira Gandhi, has a big task at hand. She needs to address issues such as the economic slowdown, an auto sector crisis, a severe agrarian crisis and Non-Performing Assets marring the banking sector.
Read the full report here.
Another change took place in 2017 during the NDA government, this time led by Prime Minister Modi. Departing from the colonial-era tradition of presenting the Union Budget on the last working day of February, then Finance Minister Arun Jaitley announced that it would henceforth be presented on Feb 1.
Did you know earlier, the Union Budget used to be announced at 5 pm on the last working day of February, and the practice was in vogue till 1999? The tradition was inherited from the colonial era but it was not the only reason. More often than not, the Budget invariably brings changes in the tax system, and a presentation in the evening used to give producers and the tax collecting agencies the night to work out the change in prices.
Yashwant Sinha, who was India's Finance Minister from 1998 to 2002 during the Atal Bihari Vajpayee-led NDA government, changed the ritual by announcing the 1999 Union Budget at 11 am.
DH Union Budget Quiz #2
Finance Minister Nirmala Sitharaman will present the Union Budget 2020 today.
Think you know all there is to know about the Budget and its history? Put your budget knowledge to test through DH's Union Budget 2020 quiz series and see where you stand.
Take the quiz here.
Budget FAQs: What is Fiscal Responsibility and Budget Management Act?
Finance Minister Nirmala Sitharaman is set to present her second Union Budget on February 1, 2020. This is the second budget that Sitharaman will be presenting under the Prime Minister Narendra Modi's government.
As the buzz around the upcoming budget is rising, DH explains what an FRMB Act is.
The Fiscal Responsibility and Budget Management (FRBM) Act was enacted in 2003 which set targets for the government to reduce fiscal deficits.
Read the full report here.
Budget 2020: What are different types of govt budgets?
Union Budget 2020 will be presented in Parliament on February 1 by Finance Minister Nirmala Sitharaman. As the country awaits the Budget, here are the different types of budget that one should know about.
Balanced Budget: In a balanced budget, the government's expenditure is not more than the revenue it has generated. This means the government spends within its limits. It appears easier in theory but hard to implement practically.
Read the full report here.
DH Union Budget Quiz #1
Finance Minister Nirmala Sitharaman will present the Union Budget 2020 today.
Think you know all there is to know about the Budget and its history? Put your budget knowledge to test through DH's Union Budget 2020 quiz series and see where you stand.
Take the first quiz here.
With Finance Minister Nirmala Sitharaman set to present the Union Budget 2020, check out our exhaustive coverage with insights, budget trivia, explainers and the impact of the budget in various sectors such as defence, agriculture, finance among others here.
Budget 2020 FAQs: What is Foreign Direct Investment?
Budget 2020: India set for deficit blowout, high borrowing
India’s annual budget on Saturday is Prime Minister Narendra Modi’s second opportunity in seven months to refresh policy priorities to support an economy on a downward spiral.
Finance Minister Nirmala Sitharaman is set to outline fiscal steps that may include higher spending in rural areas and possible tax cuts when she delivers her second budget speech in New Delhi. The government is expected to widen its fiscal deficit target for the year through March to 3.8% of gross domestic product from a planned 3.3%.
Read the full report here.
Economic Survey 2020 bets on 'invisible hand' to help India achieve $5 trillion economy by 2025
A decade-low growth forecast for India in 2019-20 notwithstanding, the Economic Survey Friday said the economic slowdown had troughed but asked the government to take up bold reforms, cut subsidies, including Rs 1.84 lakh crore on food, and, go in for pro-business policies, honouring the wealth creators and markets, whose “invisible hand” could help India become a $5 trillion economy.
Read the full report here.
As per the tradition, the government released the Economic Survey 2020 yesterday. The government projected the GDP growth for the financial year 2020-21 at 6-6.5%.Look at our full coverage here.
Budget 2020 FAQs: What is trade deficit?
When finance ministers weaved poems in Budget speech
Budget speeches are long. And for years now, finance ministers presenting Budgets have taken to poetry to make their Budget speeches come alive and ensure the Parliamentarians and the country don’t fall asleep. Finance ministers have often surprised us by reciting poems by diverse poets from Urdu poets.
Allama Iqbal to Tamil poet and philosopher Thiruvalluvar. Here are some of the poems that were recited during the Union Budget speeches:
1. Budget 2019 | Nirmala Sitharaman
Last year, Finance Minister Nirmala Sitharaman quoted a couplet by Urdu writer Manzur Hashmi while outlining India's bold and audacious target of becoming a $5 trillion economy in the next few years.
"Yaqin ho to koi rasta nikalta hai
hawa ki ot bhi le kar chirag jalta hai"
Read the full report here.
Meet the brains behind Budget 2020
India’s Prime Minister Narendra Modi has taken a keen interest in the preparation of the government’s upcoming budget to help spur growth in Asia’s third-largest economy. Modi and his Finance Minister Nirmala Sitharaman have separately held meetings with dozens of economists, industry leaders and farmers’ groups, among others, to hear views on measures needed to solve the growth slowdown puzzle.
As Sitharaman prepares to deliver her budget speech on Feb. 1, Bloomberg lists five key people in the government who are working behind the scenes to draw up the income-and-spending plan.
Read the full report here.
What could change in this year’s budget?
Jaitley presented all the five Budgets of the Modi government's first tenure. He missed out presenting the interim Budget in February 2019 due to ill-health. Stand-in Finance Minister Piyush Goyal presented the pre-general election Interim Budget on February 1, 2019.
In the post-liberalisation era, Chidambaram presented the most number of Budgets at eight. Manmohan Singh, Yashwant Sinha, and Arun Jaitley presented five Budgets each while Pranab Mukherjee presented four. Jaswant Singh presented only one Budget.
Prior to Sitharaman, six Finance Ministers: Manmohan Singh (1991-1996), Yashwant Sinha (1998-2003), Jaswant Singh (2003-2004), P Chidambaram (1996-1998, 2004-2009, 2013-2014), Pranab Mukherjee (2009-2013), and Arun Jaitley (2014-2019) had presented 28 Budgets.
Sitharaman is the first full-time woman Finance Minister to present the Budget in India. Indira Gandhi was the Prime Minister who also held the Finance portfolio.
Finance Minister Nirmala Sitharaman, in 2019, became the second woman in the history of independent India to present the Union Budget. Breaking away from the brown Budget briefcase, Sitharaman, 60, held a red parcel, like a bag, with a keyhole on the emblem. She presented the Modi 2.0 government's maiden Budget in the Lok Sabha.
Gandhi held the portfolio for a year before appointing her Home Minister, Yashwantrao Chavan, as the Finance Minister. Morarji Desai holds the distinction of presenting the most number of Budgets -- 10.
Former Prime Minister Indira Gandhi was the first woman to have presented the Union Budget. In 1970, she presented the Union Budget of India for 1970-71 after she took over the Finance portfolio following the resignation of Morarji Desai as Finance Minister.
As the Finance Minister gears up to present the Union Budget 2020 today, let us take a look at the women who have presented the Budget in the past years.
10 lesser-known facts about the Union Budget
Finance Minister Nirmala Sitharaman is set to present Union Budget 2020 in a few hours. This is the second full-time budget of the re-elected NDA government, which got a landslide victory in the 2019 Lok Sabha elections under the leadership of Prime Minister Narendra Modi. As India witnesses yet another budget, here are some lesser-known facts:
1. Finance Minister Nirmala Sitharaman is set to present Union Budget 2020 on February 1. This is the first budget of the re-elected NDA government, which got a landslide victory in the 2019 Lok Sabha Elections under the leadership of PM Narendra Modi.
Read the full report here.
Budget 2020 FAQs: What is trade deficit?
Budget 2020: An opportune time to change focus from growth to jobs
Growth is important, but not crucial. Budget 2020 may be an opportune time to change the focus. Instead of decisions to just help India Inc and dole subsidies to the poor, it would be desirable for government actions to create an environment that enables the poor to earn more to consume more, and put more money in their pockets to spend on education and health.
Read the full report here.
Union Budget 2020: 5 movies to get you in the mood for the big day
Finance Minister Nirmala Sitharaman is gearing up to present the Union Budget 2020 on Saturday (February 1, 2020). The government is expected to roll out schemes aimed at infusing new life into various key sectors, which makes this a red-letter affair for all concerned. With excitement in the air, here are some popular movies that might set the mood for the big day.
Read the full report here.
Hello readers and welcome to our live coverage of Union Budget 2020. All eyes are on Finance Minister Nirmala Sitharaman, who will table her second budget in Parliament at 11 am. Since the Budget comes at a time when the Indian economy is facing a slowdown, stakeholders are expecting economy-boosting measures in this budget. Stay tuned for live updates.
Budget 2020: A struggling economy, in need of boost
With falling GDP estimates and a slow-down in the economy, the Fiscal Budget 2020 is strife with speculations and expectations from the Hon’ble Finance Minister for actions to boost the Indian economy.
In my opinion, the corporate sector is struggling due to credit crunch and demand slowdown, and confidence is at an all-time low. There is a need to give strong stimulus through continued and even more aggressive export incentives policy and boost R&D through tax holidays for R&D investments. Huge funds of corporate sector are blocked in tax refunds such as GST refunds, or pre-GST CENVAT credit, or earlier sales tax regime. --Sulajja Firodia Motwani,Founder and CEO of Kinetic Green and Vice Chairperson, Kinetic group
Since the budget comes at a time when the country is facing an economic slowdown, Finance Minister Nirmala Sitharaman will outline fiscal steps that may include higher spending in rural areas and possible tax cuts when she delivers her second budget speech in New Delhi.