Budget 2020: 'Budget will boost income and enhance purchasing power'

By D K Aggarwal,

President, PHD Chamber of Commerce and Industry

We congratulate Mrs. Nirmala Sitharaman, Hon’ble Finance Minister for presenting a dynamic budget and meeting aspirations of all sections of the society for the improvement of standards of living, in a press statement issued here today.

The focus of the Budget on the Agriculture sector with pinpointed 16 action points to double farmers’ income by 2022 is highly encouraging. The focus on agriculture will create tremendous demand in the economy, boost manufacturing and services sector activities and rebound the economic growth trajectory of the country, said Dr. D K Aggarwal.

The three themes of aspiration, development, and compassion would become the pillars of strong and sustainable growth of the country, said Dr. Aggarwal.

Aspirational India will facilitate in providing a better standard of living to the people, said Dr. Aggarwal.

The focus on economic development is the need of the hour to rejuvenate the growth momentum of the country, he said.

The sub-theme of caring and compassion is essential to ensure sustainable growth, going forward, he added.

Schemes such as the Dhanlakshmi scheme, Krishi Udaan Scheme will certainly change the sentiments of the agriculture sector from distress to prosperity, added Dr. Aggarwal.

The Dhanya Laxmi Scheme will enhance the participation of women in the agriculture sector. The Krishi Udaan Scheme would help in reducing wastages in the food sector thereby facilitating farmers in enhancing their farm income, said Dr. Aggarwal.

Focus on the New Education Policy in the coming times will improve the outreach of the education to the needy people, said Dr. D K Aggarwal.

The increase in the allocation on education to 4.7% is in line with the expectations and we expect this to be increased further to 10% in the coming times, said Dr. Aggarwal.

The fiscal deficit at 3.5% of GDP in FY21 is also in line with the expectations as we look forward to the government remaining strict to maintain fiscal consolidation at this level, said Dr. D K Aggarwal.

The exemption from income tax for people with income of up to Rs 5 lakhs and rationalization of taxes to 10% for people with income between Rs 5 lakh to Rs 7.5 lakh, 15% income tax rate for income between 7.5-10 lakhs, 20% income tax rate for income between 10 -12.5 lakhs and 25% income tax rate for income between 12.5-15 lakhs are encouraging and are expected to boost the demand in the economy, said Dr. D K Aggarwal.

The abolition of DDT, a long-standing demand of the industry, is highly encouraging as it will further make India an attractive destination for investment, said Dr. Aggarwal.

Overall the budget is growth provoking and welfare inducing. We look forward to the continuation of reforms, going forward, said Dr. D K Aggarwal