With the announcement of the Budget 2020-21, the Expectations of reforms for reviving India’s economic growth came true.
The bases of the Union Budget was on three prominent themes:
- Creation of a caring Society
- Economic Development
- Aspirational India
“This Budget is to boost people’s income and enhance their purchasing power. Let Businesses be healthy, solvent, and tech-led.
All people should be gainfully employed, and businesses should be healthy for all the minorities, including women and people from SCs and STs. This Budget will help them fulfill their aspirations.”
The proposed Budget 2020 gets changes in the Tax slabs and cut income tax rates for the earnings up to 15 lakhs per year, and this makes it optional for taxpayers who will let go 70 exemptions.
The list of another 30 exemptions that will be allowed is not known yet. With the new Income Tax structure, those earning up to 5 lakhs will not have to pay any Tax.
The major announcement from the Narendra Modi Government was selling the part of its stake in LIC(Life Insurance Corporation), Launching an IPO, Nirmala Sitharaman added that the insurance cover of each individual depositor would be increased from an amount of Rs 1 Lakh to Rs 5 Lakh.
The Government relaxed the Fiscal deficit for FY20 to 3.8 percent of the GDP(Gross Domestic Product), and for FY21, it increased to 3.5 percent.
For the empowerment of Scheduled Caste and OBCs, the Modi Government has allocated 85,000 crores and 53,700 crores for the Scheduled Tribes.
In Infrastructure, a Chennai-Bangalore expressway will come up soon, and over 100 new Airports will be built by 2024. The Government is likely to increase the state spending on Infrastructure and will offer income tax incentives, aiming to get growth back from the lowest of its decade.
In a budget special, a circular from BSE said that the stock market would open for trading on February 1, on account of Union Budget for the financial year 2020-21.
India being the Third largest economy holder in ASIA, is facing strong Headwinds with contraction of investments where India needs to create jobs for the 1.2 million new entrants.