Union Budget 2020: GDP growth is estimated at 10 per cent

New Delhi: Finance Minister Nirmala Sitharaman on Saturday presented the Union Budget for the financial year 2020-21 in the Lok Sabha. Presenting the budget, Finance Minister Nirmala Sitharaman said that GDP growth is expected to be 10 percent in the financial year 2020-21. At the same time, the Finance Minister has made many big announcements, announcing new tax rates. After the budget, Defense Minister Rajnath Singh said that the budget gives the outline of a new and confident India, it will make the country healthy and prosperous in the coming years. The budget has a clear focus on the welfare and development of all classes, in which special attention has been paid to the farmers. At the same time, former Congress President Rahul Gandhi said on Saturday that the union budget presented for the financial year 2020-21 was hollow and there was nothing concrete in it and nothing has been said to deal with unemployment. He told the media in the Parliament complex, “The main issue is unemployment. I do not see any idea in it that is meant to generate employment.” Gandhi said that, “this may be the longest budget speech in history but there was nothing concrete in it. Old things have been repeated in this.”

Announcements:

  • Extensive changes have been made in the income tax structure and new slabs have been made. Under the new slabs, people with taxable income up to Rs 5 lakh will not have to pay any tax as before. On taxable income ranging from five lakh rupees to seven and a half lakh rupees, now only 10 percent tax will have to be paid as compared to the 20 percent paid earlier. On the amount between Rs 7.5 lakh and Rs 10 lakh, only 15 percent tax will have to be paid as compared to the 20 percent paid earlier. On taxable income ranging from 10 lakh to 12.5 lakh rupees, only 20 percent tax will have to be paid as compared to 30 percent paid earlier. On taxable income ranging from 12.5 lakh to 15 lakh rupees, only 25 percent tax will have to be paid as compared to 30 percent paid earlier, and 30 percent tax will be paid on taxable income of more than Rs 15 lakh as before.
  • Presenting the budget, the Finance Minister said that the GDP growth rate is estimated to be 10 percent at the market price in the financial year 2020-21. With this, the Finance Minister said that India has now become the fifth largest economy in the world and the central government’s debt has come down to 48.7 percent of gross domestic product (GDP). It was 52.2 percent in March 2014. Finance Minister Nirmala Sitharaman while presenting the budget for the financial year 2020-21 on Saturday said that the average growth rate during 2014-19 was more than 7.4 percent. Average inflation during this period was 4.5 percent.
  • The government has announced the sale of some of its stake in the country’s largest insurance company Life Insurance Corporation of India (LIC) through an initial public offering (IPO) as part of its disinvestment program. Finance Minister Nirmala Sitharaman made this proposal while reading the budget speech of 2020-21 in Lok Sabha on Saturday. He said that LIC will be listed on the stock exchanges. The Finance Minister said that listing increases financial discipline in companies. Sitharaman said that the government proposes to sell some of its stake in LIC through an initial public offering (IPO). At present, the entire stake of LIC is with the government.
  • Nirmala Sitharaman also said that the government will spend Rs 99,300 crore in FY 2021 to promote education sector. This time the government is investing more in education than last year.
  • The Finance Minister has made a big announcement to bring taxpayer charter in the general budget for the taxpayers of the country. The Finance Minister was presenting the General Budget 2020-21 in the Lok Sabha on Saturday. He said that no tax payer will be bothered about the tax.
  • Nirmala Sitharaman also mentioned that it has been proposed to attach a medical college with every district hospital through the Public-Private Partnership (PPP) model.
  • Finance Minister said nominal GDP growth for 2020-21 is estimated at 10 per cent

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