Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel https://t.me/InvestmentGuruIndia
Download Telegram App before Joining the Channel
UNION BUDGET 2020-21
The Union Minister for Finance and Corporate Affairs Nirmala Sitharaman presented her first full budget, which aimed at boosting investment at a time when the country is staring at an estimated 5 per cent annual rate of expansion, the slowest pace since 2009. Sitharaman announced slew of measures to boost consumption and revive growth, including change in personal income tax rates, hike in deposit insurance coverage to Rs 5 lakh per depositor, listing of insurance behemoth LIC. In her longest Budget speech, Sitharaman said that this budget is woven around three prominent themes, namely - aspirational India, caring society and economic development. The budget also aims to address hopes and aspiration of all sections.In a major relief to middle class, Finance Minister has proposed to cut income tax rates and change slabs to lower tax incidence for those earning upto Rs 15 lakh a year which can help the middle-class save taxes.
The fiscal expansion is within the provisions of Section 4(2) of the FRBM Act, 2003. A similar variation from the 2020-21 target of 3 per cent of GDP is anticipated on account of the spill over impact of the reforms. It is expected that government will return to the path of fiscal consolidation in the medium term. Fiscal deficit has been limited to the levels of 3.5 per cent in 2020-21.
The GDP growth is expected to pick momentum from 2020-21. In 2020-21, the nominal GDP is expected to grow at a rate of 10 per cent and attain the level of Rs 2,24,89,420 crore. The nominal gross domestic product is projected to grow at 12.6 per cent and 12.8 per cent respectively in 2021-22 and 2022-23. In absolute terms, the GDP for 2021-22 and 2022-23 work out to be Rs 2,53,15,981 crore and Rs 2,85,54,285 crore respectively.
Capital expenditure of the Government in RE 2019-20 has been kept at Rs 3,48,907 crore as compared to Rs 3,38,569 crore in BE 2019-20. This reflects an increase of Rs 10,388 crore (3.1 percent) over BE 2019-20. In BE 2020-21, capex is budgeted at Rs 4,12,085 crore reflecting an increase of 18.1 per cent over RE 2019- 20 level. Capital expenditure as a percentage of GDP is expected to increase by 0.1 per cent in BE 2020-21 (over RE 2019-20) to reach 1.8 per cent of GDP. Capex is expected to reach 1.9 per cent of GDP by 2022-23 on account of government’s push towards infrastructure projects.
To Read Complete Report & Disclaimer Click Here
Please refer disclaimer at https://www.moneysukh.com/Static/disclaimer.aspx
SEBI Registration Number-INZ000164537
Above views are of the author and not of the website kindly read disclaimer