Budget 2020 Live: FM Sitharaman Revises Personal Income Tax Slabs, Scraps DDT; Announces LIC IPO
Finance Minister Says:
- Have Not Said No Money For Recap After PSB Amalgamation
- If Capital Need Arises Along With PSB Amalgamation, Will Consider
- Private Investment Was Not Happening At Desired Pace
- GST Revenues Were Not At Par With Expectations
- Had To Ramp Up Government Spending In 2019, Hence Deficit Change
- Revenue Generation Improvement Gives Confidence On FY21 Deficit
- Divestment Groundwork Done In FY20 Will Reflect In FY21
- Government's Intent Is Not To Harass Taxpayers
- Tax Charter Meant To Honour Honest Taxpaying Entrepreneurs
- Addressed Real Estate's Needs With 1-Year Extension Of Sops
- Those Who Want To Continue Availing Exemptions Can Stay With Old Regime
- Want To Remove Income Tax Exemptions In The Long-Run
- Ideal Situation Would Have Been Scheme With No Exemptions
- Want To Bring Rates Down, Ease Complications That Exist In Compliance
- Optional Approach Similar To That Done With Corporate Tax Changes
- New Personal Tax Regime Meant To Simplify Structure
Revenue Secretary Says
- More Than 4.9 Lakh Cases Are In Dispute
- Settlement Post-Mar. 31 Can Be Done With Small Fee Over Tax Amount
- Non-Resident Status Now After 240 Days Overseas, Vs 182 Earlier
- Donation To Charitable Trust Not Deductible Under New System
- Exemption On Payment Received From NPS Retained
- Exemption On Retirement Gratuity Retained
- Retained Retirement Benefit Exemptions In New System
- Total Of 120 Exemptions To Income Tax Existed
- Donation To Charitable Trust Not Deductible Under New System
Finance Secretary Says
- Timeline On LIC IPO To Be Given A Later Point
- Revenue Generation Improvement Gives Confidence On FY21 Deficit
- PSB Mergers To Yield Synergy Savings Of Rs 1,900 Crore
DIPAM Secretary Says
- Some Of The Big-Ticket Disinvestments Will Spill Over Into FY21
- Expect Expressions Of Interest For BPCL Very Soon
Winners and Losers: Who Got What in India’s Federal Budget
I think this budget takes a lot of small and important steps in the the right direction. Great thing is, there are no negatives as far as this is concerned. I think this budget is a very big positive for that part of the industry. Hopefully this starts the virtuous loop.VS Parasarathy, CFO, Mahindra Group
However,on the negative side, the budget gave no relief to the NBFC sector, he pointed out. “That's obviously a big deal as the ecosystem is challenged at the moment,” reasoning the equity market’s negative reaction.
The request to the Reserve Bank of India to extend the MSME restructuring window was a little worrisome, he added. “This is basically saying the government does not have the money to recapitalise the state-owned banks and therefore asking RBI to kick the can down the road.”
The market recovered partially, after reaching the day’s low post Finance Minister Nirmala’s budget speech today.
Speaking about the Rs 5 lakh deposit insurance, Arundhati Bhattacharya said along with that, depositors must also be aware that this will mean paying a much larger premiums by the banks. "The cost of servicing accounts will rise accordingly,” she told BloombergQuint.
“On infrastructure fund, I was keen to see one unified authority,” Bhattacharya said. However, the creation of an authority for all investment proposals is a step towards this, she said.
The former SBI Chairman expressed her approval over the government’s decision to take LIC public, saying “For anyone in the finance sector, it’s going to stare them in the eye. It’s in the right direction. I congratulate the government for taking such a step”.
When asked about the budget’s ability to retract India from its current state of slowdown, Bhattacharya said, "If you're looking for the big, bold things that's going to quickly release animal spirits, I don't see that".
- Give Up Exemptions, And Pay Income Tax At Lower Rates
- DDT Abolished, Tax Burden Shifts From Companies To Investors
- Government Pegs FY21 Fiscal Deficit At 3.5%; Invokes Escape Clause
- India To Take LIC Public
- Fifteenth Finance Commission Retains Devolution Formula With Some Adjustments
- Bank Deposit Insurance Hiked To Rs 5 Lakh
- Government Sets Agri Credit Target For FY21 At Rs 15 Lakh Crore
- Government To Monetise 6,000 Km Of Highways
- Government Vows To Boost Purchasing Power In Budget To Revive Growth
- Government Slashes Taxes, Widens Budget Deficit To Spur Economy
The government plans to increase the investment limit of foreign portfolio investors in corporate bonds from 9 percent to 15 percent, Sitharaman said.
The finance minister said certain government securities will be open for foreign investors.
She also proposed debt-exchange traded funds comprising mainly government securities, while stating that Rs 22,000 crore has already provided as support to infrastructure project pipeline.
To address liquidity constraints of NBFCs and housing finance corporations, a partial credit guarantee scheme will be launched by the government, she added.
Budget 2020: Government Asks RBI To Extend MSME Restructuring Scheme Till March 2021
Budget 2020: Government Abolishes Dividend Distribution Tax
Budget 2020: Government Cuts Income Tax Rates For Those Willing To Give Up Exemptions
Budget 2020: Government Pegs FY21 Fiscal Deficit At 3.5%; Invokes Escape Clause In FY20
Budget 2020: India To Take LIC Public
A clean, reliable and robust financial sector is critical to the economy.
In our effort to achieve the $5 trillion economy, the financial architecture should move from strength to strength, she said. In the last few years, the government has infused Rs 3.5 lakh crore into public sector banks. Reforms will be carried out in these banks to make them more competitive and a few will be encouraged to approach the capital market to raise additional capital, she added.
"Robust mechanism is in place to monitor the health of all commercial banks and depositors money is safe."
The deposit insurance and credit guarantee corporation have been allowed to increase deposit insurance coverage to Rs 5 lakh per depositor compared to the current Rs 1 lakh, she said.
Amendments are being proposed to the Banking Regulation Act to strengthen cooperative banks, she said.
India widened its budget deficit target for a third straight year. The budget shortfall will be widened to 3.8 percent from a planned 3.3 percent in the year ending March, Bloomberg reported quoting people familiar, who asked not to be identified as the data isn’t public yet. The deficit will be 3.5 percent for the year starting April, the people said.
- Agri credit target: Rs 15 lakh crore
- Agri, rural development outlay: Rs 2.83 lakh crore
- Health sector: Rs 69,000 crore
- Swachh Bharat Mission: Rs 12,300 crore
- Jal Jeevan Mission: Rs 11,500 crore
- Education: Rs 99,300 crore
- Skills: Rs 3,000 crore
- Industry, Commerce: Rs 27,300 crore
- Transport infrastructure: Rs 1.7 lakh crore
- Power, Renewables: Rs 22,000 crore
- Bharatnet: Rs 6,000 crore
- Schemes for Scheduled tribes: Rs 53,700 crore
- Schemes for Scheduled caste, OBCs: Rs 85,000 crore
- Nutrition programmes: Rs 35,600 crore
- Women-related projects: Rs 28,600 crore
- Senior citizens and Divyang citizens: Rs 9,500 crore
- Culture: Rs 3,150 crore
- Tourism: Rs 2,500 crore
The government will provide Rs 4,400 crore towards its climate change plans in FY21.
The Finance Minister proposed reforms and amendments to improve confidence of entrepreneurs, in an effort to increase ease of doing business and to show the government's faith in them.
"We are trusting that every citizen, the aspirational youth, the hard-working women, the risk-taking entrepreneur, the ever hopeful and untiring farmer, and the wise and old elder citizens, are all taxpayers."
- To Enshrine A Taxpayer Charter In The Statutes
- Tax Harassment Will Not Be Tolerated
- National Security Is The Top Priority Of This Government
- Amendments In Companies Act To Correct Criminal Action On Civil Offences
- Propose To Amend Rules For Hiring In Non-Gazetted Posts
- Propose To Set Up Independent National Recruitment Agency
- Economic Data Must Have Strong Credibility
Moreover, around Rs 3,150 crore will be provided to the Ministry of Culture in FY21.
FM Sitharaman has proposed setting aside Rs 85,000 for SC/OBC relief for FY21. For STs, Rs 53,700 crore will be provided. Allocation of Rs 9,500 crore for senior citizens for FY21.
A total allocation of Rs 27,300 crore for development of industry and commerce in FY21.
Finance Minister proposed a scheme for the manufacturing of cell phones, semiconductors, and other electronic devices. It can also be used for the manufacture of medical devices as well.
A detailed scheme with details will be released soon.
To catch how markets are reacting to the budget click here
- Aim To Attach Medical College To District Hospital In PPP Mode
- There Is Huge Overseas Demand For Teachers, Nurses, Caregivers
- Rs 3,000 Crore Allocated For Skill Development In FY21
- Aspirational India
- Caring Society
- Economic Development
- Got FDI Of $284 Billion In 2014 To 2019
- Economic Development To Involve Yielding More Space For Private Sector
Humara vatan, khilte hue shalimaar bagh jaise
Humara vatan, khilte hue shalimaar bagh jaise
Humara vatan, dal lake mein khilte hue kamal jaisa
Navjawanon ke garam khoon jaisa
Mera vatan, tera vatan, humara vatan, duniya ka sabse pyaara vatan
- GST Has Been Gradually Maturing In India
- GST Amounts To 10% Reduction In Tax Incidence
- Simplified GST Returns System Will Be Implemented From April 1
- GST Council Has Been Proactive In Resolving Issues
This is the budget to boost their income and enhance their purchasing power. Only through higher growth can we achieve that and have our youth gainfully and meaningfully employed. Let our businesses be innovative, healthy and solvent with use of technology.Finance Minister Nirmala Sitharaman
The Cabinet has approved Budget 2020, according to ANI. Finance Minister Nirmala Sitharaman to present the budget in Lok Sabha shortly.
N Hiranandani,CMD,Hiranandani Group: I've never seen a liquidity crisis as bad as it is today. No matter how good the budget is if the oil in the mechanism of the economy is not working, the economy can't move.If the oil comes back&we get boost of budget then we will see recovery pic.twitter.com/bZK69uS0gI
— ANI (@ANI) February 1, 2020
#WATCH Delhi: Copies of #Budget2020 have been brought to the Parliament. Finance Minister Nirmala Sitharaman will present the Budget in Lok Sabha at 11 AM today. pic.twitter.com/z3gD0IkLO4
— ANI (@ANI) February 1, 2020
FM Nirmala Sitharaman with 'Bahi-Khata' ahead of presentation of #Budget2020.
— BloombergQuint (@BloombergQuint) February 1, 2020
Catch all the budget updates: https://t.co/ig2EOjOUkv pic.twitter.com/0TpbCpCSQ3
Escorts' total sales for January rise 1.2%, year-on-year.
— BloombergQuint (@BloombergQuint) February 1, 2020
Catch all the market updates in our live blog: https://t.co/gmH0tRVOoN pic.twitter.com/0khmcVLwMy
- Ideas For Growth: Tax Cut Or Spending Increase?
- Ideas For Growth: Avoiding The Stagflation Trap
- Ideas For Growth: VS Parthasarathy On How Private Sector Can Contribute To Growth Revival
- Invoking Fiscal ‘Escape Clause’ May Allow RBI To Buy Government Bonds Directly
- Government’s Austerity Drive - Where Can It Cut Spending?
- Budget 2020 — Improving The Tax Environment
- Doing More With PM-Kisan In Its Second Year
- India Is Headed For Its Biggest Tax Shortfall In A Decade
- India’s Economic Slump: Should Policymakers Go Above And Beyond?
- Giving NREGA Workers Their Due
- Is It Realistic To Expect Changes To Personal Income Tax Rate?
- Government Should Focus On Real Estate And Infrastructure, Mihir Vora Says
- Government May Trim PM-KISAN Scheme Allocation By 20% To Rs 60,000 Crore
- Not Fiscal Stimulus, Alternate Measures Needed To Boost Economy, Says NITI Aayog’s Rajiv Kumar
- Modi’s Many Stalemates Are a Drag on Indian Budget
- India Set for Deficit Blowout, High Borrowing: Budget Guide
- What State-Run Oil Firms Can Pay In Dividend To Help India Bridge Budget Gap
- Invoking Fiscal ‘Escape Clause’ May Allow RBI To Buy Government Bonds Directly
- How Budget 2020 May Offer Respite To Various Sectors
- What Top Brokerages Expect From Budget 2020
- Budget 2020 Ideas For Growth: Overhauling Revenue Expenditure
From Yesterday’s Economic Survey
Budget 2020 Ideas For Growth: Avoiding The Stagflation Trap
Budget 2020: Is It Realistic To Expect Changes To Personal Income Tax Rate?
India Favors Subsidy Cuts to Expand Fiscal Room
Finance Minister Nirmala Sitharaman is set to present the Union Budget for the financial year 2020-21 in the Parliament at 11 a.m. today. This is Sitharaman’s second budget after Prime Minister Narendra Modi’s government returned to power in the 2019 general elections with a bigger mandate.
The state of the economy, however, has deteriorated under the Modi government. Growth took a hit in 2016 after demonetisation, only to be further disrupted by the implementation of the Goods and Services Tax in April 2017. India has since seen its GDP growth fall from over 8 percent—making the fastest-growing major economy—to an estimated 5 percent this fiscal.
Today’s budget is expected to reveal measures to boost economic growth while keeping some cognizance of the fiscal deficit path chalked out by the FRBM Act.
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