Budget 2020 live updates: The finance minister has slashed personal income tax rates in new I-T regime. Those earning between Rs 5 lakh and 7.5 lakh, will now pay 10% as income tax as against the prevailing 20%. Follow live updates here
Union finance minister Nirmala Sitharaman presented the annual Budget 2020 in the Parliament on Saturday. She said that the budget was focused on three themes — aspirational India, economic development for all and caring society.
The reduction in income tax rates remained the highlight of Sitharaman’s budget speech. In the new I-T regime, those earning between Rs 5 lakh and 7.5 lakh, will now pay 10% as personal income tax as against the prevailing 20%. Among other key measures the government said it would spend Rs 99,300 crore on skill development. She also announced reduction corporate taxes and vowed to make India a preferred investment destination.
Follow live updates from the Union Budget 2020 here:
Questioning the Centre if they are ‘ending an era’ with the proposed divestment of the LIC, Mamata Banerjee tweeted her dismay with the union budget 2020 presented by Nirmala Sitharaman.
BS Yeddiyurappa hailed the Budget as ‘pro-people, pro-farmer and pro-poor’. He further added, “Providing Rs 2.83 lakh crore to agriculture sector is a major deviation from the routine budgetary allocations. Kisan Rail and Kisan Udan will facilitate speedy transportation and export of perishable agriculture products and this in turn will boost farmers’ income.”
Finance Minister said that during her speech she was realistic regarding growth projections concerning GDP and fiscal deficit and nominal growth of GDP.
Catch Finance Minister post-budget interview with the media here.
‘Under new scheme, we have reduced taxes but we plan to do away with exemptions entirely’: Sitharaman
The union minister advised Rahul Gandhi to spend more time in the country in order to contribute to the country as opposition.
National Rural Generation Scheme is demand driven said Nirmala Sitharaman and said that MGNREGA will be used for increasing fodder stocks.
FM said that at taluk level NABARD will help SHGs to generate loan disbursement and employment.
People have said that I have sold the family silver when disinvestments have been talked about, that will not happen, money will go into capex and the money will go into public sectors, said Nirmala Sitharaman.
Highlighting the 16 action points for rural areas PM said that an integrated approach has been taken to aid agrarian development.
PM said that new recruitment scheme will aid youth who earlier had to travel miles for employment.
PM said MSMEs and startups have been given a boost in the budget. He said that dividend tax has been slashed to ease constraints on the companies.
The Congress leader said, ‘The finance minister failed to meet any of the key Budget Estimate targets — nominal GDP growth,fiscal deficit,net tax revenue collection, disinvestment revenue or total expenditure.’
The Union minister on the Sensex tumbling said that markets have dipped because there is no clarity yet on exemptions, (stocks of) some banks & insurance companies.
Chidambaram says that money allocated for Jammu and Kashmir will not bear any fruits until there is no basic human rights for the people.
Chidambaram when asked to rate the Union Budget 2020 on a scale of 1-10.
Defence pension budget sees a rise. Modernisation and purchase of new weapon systems gets an allotment of Rs 1,10,734 crore.
The former finance minister said that mining, manufacturing and construction are main boosters for growth and maintained that the Union Budget 2020 didn’t focus on that.
Sitharaman said, the approach was not directed towards sector wise development but it was more or less directed towards generating revenue and infusing capital, while answering a query towards dwindling automobile sector.
Additional demands for rural developments will be met. Officials highlighted that for MGNREGA funds will be increased if there is demand.
The government has slashed funds for India’s flagship rural job guarantee programme by Rs 9500 crore when rural economy has feeling the heat over stagnant wages and high food inflation.
Speaking of bank mergers, Nirmala Sitharaman said that banks will be given money if they need even though no amounts have been specified.
The revenue secretary further add that if taxes are paid pre-31st March, 2020, no penalties will be levied.
Sitharaman said that public spending and revenue generation had to balanced. Corporate spending, public spending had to be boosted. GST spending and disinvestment will allow me to hopefully reduce the deficit from 3.8% to 3.5% and achieve the intended fiscal deficit.
‘To ensure that taxpayers are approached like wealth creators, tax charter is created. Our commitment makes sure that taxpayer is respected. We want to make sure that taxpayer is not harassed’: Sitharaman on post-Budget press conference.
Sitharaman said that Centre does not want to direct the route of money, and allow people to have more economic freedom.
Nirmala Sitharaman said that companies are reduced from paying dividend taxes.
Nirmala Sitharaman, finance minister, in her press conference after presenting the Union Budget, said the whole idea was to lower the tax rate.
Union finance minister Nirmala Sitharaman’s Budget was “repetitive, rambling and hollow”, Congress leader Rahul Gandhi on Saturday said as he hit out at the government for not addressing issues facing the sagging economy.
“The main issue facing is unemployment. I didn’t see any strategic idea that would help our youth get jobs. I saw tactical stuff but no central idea. It describes govt well, lot of repetition,rambling-it is mindset of govt, all talk, but nothing happening,” Congress leader Rahul Gandhi said after finance minister Nirmala Sitharaman presented Budget 2020 in the Parliament.
Dividend Distribution Tax shifted to individuals instead of companies.100% tax concession to sovereign wealth funds on investment in infra projects.Tax on Cooperative societies to be reduced to 22 per cent plus surcharge and cess,as against 30 per cent at present.
Aadhaar-based verification of taxpayers is being introduced, finance minister Nirmala Sitharaman told the Parliament.
The turnover threshold for audit of MSMEs to be increased from Rs 1 crore to Rs 5 crore, to those businesses which carry out less than 5% of their business in cash, the FM said.
To boost startups, tax burden on employees due to tax on Employee Stock Options to be deferred by five years or till they leave the company or when they sell, whichever is earliest, Nirmala Sitharaman said in her budget speech.
Finance minister Nirmala Sitharaman announced that the Dividend Distribution Tax will be removed, companies will not be required to pay DDT and the dividend will be taxed only at the hands of recipients, at applicable rates.
After the finance minister announced tax slabs in Budget 2020, Sensex tanked 452.14 points to 40,271.35 in afternoon trade, while Nifty slumped 111.70 points to 11,850.40.
The finance minister slashed personal income tax rates in new I-T regime. Those earning between Rs 5 lakh and 7.5 lakh, will now pay 10% as income tax as against the prevailing 20%.
“Those earning between Rs 7.5 lakh and Rs 10 lakh will pay an income tax of 15%. For income between Rs 10 to Rs 12.5 lakh, the new tax rate is 20 % and for income between Rs 12.5 lakh and Rs15 lakh, the revised tax rate will be 25 per cent,” said the Finance Minister.
Tax rate of 30% on income above Rs 15 lakh will be continued, she said.
Around 70 of more than 100 income tax deductions and exemptions have been removed, in order to simplify tax system and lower tax rates, she added.
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 government has proposed to sell a part of its holding in LIC by initial public offer.
Robust mechanism is in place to monitor health of all schedule commercial banks and depositors money is absolutely safe: Finance Minister Nirmala Sitharaman:
Govt has asked RBI to extend debt restructuring window for MSME by a year to March 31, 2021.
Finance Minister Nirmala Sitharaman announced the government’s decision to raise the Rs 1-lakh insurance cover limit to Rs 5 lakh for greater protection of depositors’ money in banks.
“Clean air is a matter of concern in large cities, propose to encourage states to formulate and implement plans to ensure clean air. Allocation for this purpose is Rs 4,400 crores,” finance minister Nirmala Sitharaman said ion her budget speech.
“Tax harassment cannot be tolerated,” says FM Nirmala Sitharaman.
A taxpayer charter will be part of the budget. Freedom from harassment, amendments in Companies Act and other laws to ensure some civil offences aren’t treated as criminal ones, she said in her budget speech.
The wealth creaters will be respected in the country, the finance minister said in her budget speech in the Parliament.
The government has allocated Rs 85,000 crore for Scheduled Castes and Other Backward Classes in 2020-21 budget. Rs 53,700 crore rupees have also allocated for Scheduled Tribes and enhanced allocation of 9,500 crore rupees for Senior citizens and Divyangs.
Proposing Rs 2,500 crore for the tourism industry, finance minister Nirmala Sitharaman said that the growth of the tourism industry is directly related to employment.
Finance Minister Nirmala Sitharaman on Saturday proposed National Technical Textile Mission with an outlay of Rs 1,480 crore over four years to cut down imports.
Presenting the Budget for 2020-21, Sitharaman said as much as Rs 27,300 crore has been provided for development and promotion of industry and commerce.
The finance minister told the Parliament that the government’s Beti Bachao, Beti Padhao initiative has yielded tremendous results.
In her Budget 2020 speech, Nirmala Sitharaman announced a big push digital connectivity saying data centre parks across the country will be encouraged
“All public institutions at the gram panchayat level will all be given digital connectivity and Fiber to home will link 1 lakh gram panchayats,” she said.
While presenting budget 2020, finance minister Nirmala Sitharaman said that the India’s new economy is based on innovation.
“The government will achieve seamless delivery of services through digital governance,” she said.
Finance minister Nirmala Sitharaman, in her budget 2020 speech emphasised that India needs to boost domestic manufacturing.
A scheme focussed on encouraging manufacture of mobile phones, electronic equipment and semiconductor packaging will be introduced, she said.
The vision of the government is to make each district an export hub, Sitharaman said.
The government aims to facilitate clearances even at the state level and also set up investment clearance cell to give investors free investment advisory, she added.
Entrepreneurship is the strength of India as it an entrepreneur creates jobs in the country, said FM Nirmala Sitharaman. “India’s industry commerce and trade has a deep past, and entrepreneurship has always been a strength of India,” she said.
She also said that India needs to boost domestic manufacturing.
Emphasising on budget’s focus on quality education in the country, Sitharaman announced “degree-level full-fledged online education programme to be offered by institutes in top 100 in National Institutional Ranking Framework.”
“More medical colleges will be built at district levels so as to train and produce more doctors in the country with a special training package,” she said in the Parliament.
Nirmala Sitharaman said the in the current year fiscal government will spend Rs 99,300 crore on skill development, adding that the urban local bodies across the country shall provide internships for young engineers for a period of up to one year.
“For better marketing and export, supporting states will focus on one product for one district, so that high focus is given at district level for horticulture to gain momentum,” finance minister Nirmala Sitharaman said in her 2020 budget speech.
In her budget speech, FM Nirmala Sitharaman has said that the Indian Railways will set up Kisan Rail through PPP model to build a seamless national cold supply chain for perishables and for their quick transportation.
“Krishi Udaan will be launched by MoCA on international and national routes,” she said.
“Farm markets need to be liberalized, farming need to be made more competitive, handholding of farm-based activities need to be provided, sustainable cropping patterns and more tech needed,” finance minister Nirmala Sitharaman said in her budget speech emphasising on agricultural reforms.
“Farmers who have fallow or barren land will be helped to set up solar power generation units and also sell surplus power to the solar grid and also make living out of even barren land,” she said detailing the measures for the farming sector.
In her Budget 2020 speech, the finance minister encouraged the states to adopt three model laws, one on land leading, another amending APMC, and third allowing contract farming.
Finance Minister Nirmala Sitharaman presented her second Budget in Parliament on Saturday, where she presented the Modi government report card and presented the future of the economy for the coming year.
Our first tenure (from 2014 to 19) brought a paradigm shift, added Sitharaman, and hailed the implementation of Goods and Services Tax (GST). She also paid homage to former finance minister Arun Jaitley, who passed away in August last year. “GST has been historic, I pay homage to visionary leader Arun Jaitley who launched it,” said Sitharaman.
“Central government’s debt has come down to 48.7% in March 2019 from 52.2% in March 2014,” finance minister Nirmala Sitharaman told the Parliament.
Nirmala Sitharaman said the three threads on which the Budget is woven are “aspirational India, economic development for all and caring society. ”
The finance minister explained that Budget 2020 aims to boost the income and purchasing power of people.
Finance minister Nirmala Sitharaman hailed the Goods and Services Tax in her Budget 20202 speech. “GST has resulted in efficiency gains in transport and logistics sector, inspector raj has vanished, it has benefitted MSME. Consumers have got an annual benefit of Rs one lakh crore by GST” she said.
In her budget speech at the Parliament, finance minister Nirmala Sitharaman said Budget 2020 aims for India to become a dynamic and vibrant economy. With an emphasis on making businesses innovative, she said that the budget is aimed at bringing a budget that fulfils the aspirations of all sections of the society.
“Working for a common goal of shared prosperity,” she said.
Finance minister Nirmala Sitharaman on Saturday began her Budget 2020 speech in Lok Sabha.
“Real estate sector should become an industry& I think they will do something about it. Real Estate is still struggling. There are liquidity crisis. It should be taken care of. Once real estate picks up it is good for employment too,” Amit Gossain, MD, Kone Elevators ahead of Budget 2020, according to news agency ANI.
The Union Cabinet on Saturday approved finance minister Nirmala Sitharam’s budget for the year 2020-21. She will present the budget in Lok Sabha at 11 am.
Ahead of budget presentation, Union minister Anurag Thakur offered prayers at his residence and said the government has attempted to bring the best for the people and for the country.
“The Modi government believes in ‘sabka sath, sabka vikas.’ We received suggestions from across the country. The government has made efforts to ensure that this Budget will be good for all, good for the people and the country,” Thakur told ANI.
In about 20 min from now, finance minister Nirmala Sitharaman will present her second budget in the Parliament.
Finance Minister Nirmala Sitharaman’s family members including her daughter Parakala Vangmayi arrived in Parliament ahead of her Budget presentation at 11 am.
Ahead of budget 2020 presentation by Nirmala Sitharaman at 11 am, copies of the document were brought to the Parliament.
Prime Minister Narendra Modi and home minister Amit Shah arrived at the Parliament ahead of Nirmala Sitharaman’s budget presentation at 11am.
“The people of Delhi are hopeful that the Union Government will protect the interests of Delhi in the budget. Delhi should get more in view of elections. The budget will show how much BJP cares for us Delhiites,” Delhi CM Arvind Kejriwal tweeted on Saturday ahead of the Budget 2020 presentation the Parliament.
The Union cabinet is set to meet at 10:15 am before the budget. Union ministers including Nirmala Sitharaman, Prakash Javadekar, Jitendra Singh and Anurag Thakur were seen reaching the Parliament premises.
Nirmala Sitharaman will present the annual budget for 2020-21 fiscal year at 11 am today. In an hour from now, India will know the government’s road map to get closer to the $5 trillion economy goal by 2025.
In an hour from now, finance minister Nirmala Sitharaman will present the budget in the Parliament. For a cabinet meeting scheduled before the presentation, Union cabinet secretary Rajiv Gauba arrived at the Parliament.
Ahead of finance minister’s budget presentation, N Hiranandani,the CMD of Hiranandani Group said that he had never seen a liquidity crisis as bad as this day’s and also highlighted the need for push to the oil mechanism for economic recovery. “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,” Hiranandani told news agency ANI.
Before heading to the Parliament for a cabinet meeting ahead of Budget presentation, finance minister Nirmala Sitharaman, accompanied by minister of state for finance & corporate affairs Anurag Thakur, called on President Ram Nath Kovind.
Ahead of Nirmala Sitharaman’s budget presentation at 11 am, Congress spokesperson Randeep Surjewala on Saturday tweeted, “Let #Budget2020 give tax cuts to Salaried Class & invest in Rural India.”
The government released the Economic Survey on Friday that projected the India’s growth rate at 6%-6.5% for 2020-21 fiscal year.
Ahead of finance minister Nirmala Sitharaman’s Union budget speech at 11 am, in early trade Sensex plunged 279.01 points to 40,444. while Nifty dropped 81.45 points to 11,880.65.
Finance minister Nirmala Sitharaman’s second budget is likely to bring cuts in personal income tax and sops, especially for rural and agriculture sectors, in order to give a push to the sliding Indian economy.
For those waiting to see if finance minister Nirmala Sitharaman will carry a bahi-khata or brief case this budget, the wait is over. Sitharaman was seen carrying a ‘bahi khata’ in her hand as she reached the finance ministry ahead of presenting Budget 2020 in Parliament. For a second time, Sitharaman again opted for a bahi khata, a ledger wrapped in a red-coloured cloth