Budget 2020: Nominal GDP growth for FY21 estimated at 10%, says Sitharaman

Finance Minister Nirmala Sitharaman on Saturday said nominal GDP growth for 2020-21 is estimated at 10 per cent.

Presenting the Budget for 2020-21, Sitharaman said receipts for 2020-21 are pegged at Rs 22.46 lakh crore while expenditure at Rs 30.42 lakh crore.

The revised estimated expenditure for FY20 has been pegged at Rs 26.99 lakh crore and receipts at Rs 19.32 lakh crore, she said.

The net market borrowings would be at Rs 4.99 lakh crore in FY 2019-20 and are estimated at Rs 5.36 lakh crore in the next fiscal.

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She however, said the government expected tax buoyancy to take time and the recent cut in corporate tax to cause loss of substantial revenue in short run, economy to reap huge returns in due course.

Sitharaman said income tax rates will be significantly reduced for those who forego reliefs, exemptions.

To address liquidity constraints of NBFCs and housing finance corporations, partial credit guarantee scheme will be launched by government, Sitharaman added.

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The finance minister said amendments will be made to enable NBFCs to extend invoice financing to MSMEs.

Sitharaman said the government has accepted recommendations of interim report of 15th Finance Commission and the final report will be submitted later.

All flagship schemes of the government are provided for in Budget, the finance minister said.

The government will sell part of its holding in LIC, she said adding an international bullion exchange will be set up in IFSC GIFT City.