The Budget Session of the Indian Parliament commenced on January 31 with an address by President Ram Nath Kovind to the joint sitting of two Houses of Parliament. Today all eyes will be on the Indian Finance Minister Nirmala Sitharaman as she will present Union Budget for FY 2020-21. This will also be the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India.

Indian Union Budget for FY 2020-21 to be presented today

The Indian economy experienced some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation, but it is not in a recession, International Monetary Fund(IMF) Managing Director Kristalina Georgieva has said.

<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Also read: 'Feel good' budget may see cut in tax rate, sops for social sectors</a>

“The Indian economy indeed has experienced an abrupt slowdown in 2019. We had to revise our growth projections, downwards to 4% for last year. We are expecting 5.8%(growth rate) in 2020 and then an upward trajectory to 6.5% in 2021,” Georgieva told a group of journalists in Washington on Friday.

Also read:&nbsp;<a href="http://wionews.com/business-economy/briefcase-or-bahi-khata-what-will-sitharaman-carry-for-her-second-budget-presentation-277851">Briefcase or 'bahi-khata'&nbsp;- What will Sitharaman carry for her second budget presentation?</a>

“It appears that the main reason for this slowdown was the non-banking financial institutions experiencing a turbulence,” she said on the eve of Union Finance Minister Nirmala Sitharaman presenting the annual budget in Parliament on Saturday.

She said India had undertaken some important reforms that over the longer term would be beneficial for the country, but they do have some short-term impact.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/budget-news-2020-budget-glossary-here-are-key-terms-you-should-know-to-understand-the-budget-273968">2020 Budget Glossary - Here are key terms you should know to understand the Budget</a>

“For example, coming with the unified tax system, and the demonetisation took place. These are steps that over time are beneficial, but of course they might be somewhat disruptive over short term,” Georgieva said in response to a question.

The IMF MD said that there is not a lot of fiscal space in India. But we also recognise that the policies of the government on that side, on the fiscal side have been prudent.

We will see how the reading of the budget, the submission of the budget goes, tomorrow, she said. In the medium-term, she said, the IMF remains optimistic about India. This is why we see that upswing potential for the growth in the country, she said.

Georgieva said that the current economic slowdown cannot be described as a recession.

She noted that the consumption in India also slowed down and that contributed to the overall slowdown in the economy. The IMF would be keen to see what India does to get relatively sound macroeconomic fundamentals to pay off in terms of better growth trajectory, she said ahead of the budget.

The Indian economy experienced some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation, but it is not in a recession, International Monetary Fund(IMF) Managing Director Kristalina Georgieva has said.

The Indian economy experienced some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation, but it is not in a recession, International Monetary Fund(IMF) Managing Director Kristalina Georgieva has said. Also read: 'Feel good' budget may see cut in tax rate, sops for social sectors “The Indian economy indeed has experienced an abrupt slowdown in 2019. We had to revise our growth projections, downwards to 4% for last year. We are expecting 5.8%(growth rate) in 2020 and then an upward trajectory to 6.5% in 2021,” Georgieva told a group of journalists in Washington on Friday. Also read: Briefcase or 'bahi-khata' - What will Sitharaman carry for her second budget presentation? “It appears that the main reason for this slowdown was the non-banking financial institutions experiencing a turbulence,” she said on the eve of Union Finance Minister Nirmala Sitharaman presenting the annual budget in Parliament on Saturday. She said India had undertaken some important reforms that over the longer term would be beneficial for the country, but they do have some short-term impact. Also read: 2020 Budget Glossary - Here are key terms you should know to understand the Budget “For example, coming with the unified tax system, and the demonetisation took place. These are steps that over time are beneficial, but of course they might be somewhat disruptive over short term,” Georgieva said in response to a question. The IMF MD said that there is not a lot of fiscal space in India. But we also recognise that the policies of the government on that side, on the fiscal side have been prudent. We will see how the reading of the budget, the submission of the budget goes, tomorrow, she said. In the medium-term, she said, the IMF remains optimistic about India. This is why we see that upswing potential for the growth in the country, she said. Georgieva said that the current economic slowdown cannot be described as a recession. She noted that the consumption in India also slowed down and that contributed to the overall slowdown in the economy. The IMF would be keen to see what India does to get relatively sound macroeconomic fundamentals to pay off in terms of better growth trajectory, she said ahead of the budget.

Indian economy experienced abrupt slowdown in 2019, but it’s not in a recession: IMF MD

Rajya Sabha Chairman <a href="https://www.wionews.com/india-news/make-people-equal-partners-in-development-process-vice-president-venkaiah-naidu-to-ias-officers-249264">M Venkaiah Naidu</a> suggested to all concerned to ensure submission of reports on Demands for Grants of various Ministries by the Department Related Standing Committees (DRSCs) before the <a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">budget</a> is approved by the Parliament.

He said submission of such reports later would not give time for the government to consider the recommendations made by the committees in respect of various ministries.

Naidu spoke on the need for timely submission of reports at a meeting of leaders of various parties in <a href="https://www.wionews.com/india-news/rajya-sabha-passes-citizenship-amendment-bill-267747">Rajya Sabha</a> at his residence coinciding with the start of the budget session.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">'Feel good' budget may see cut in tax rate, sops for social sectors</a>

The Chairman urged Minister of Parliamentary Affairs Prahlad Joshi to talk to all concerned including Chairmen of various committees regarding timely submission of reports on Demands for Grants.

Naidu said he would also speak to the Lok Sabha Speaker <a href="https://www.wionews.com/india-news/lok-sabha-speaker-om-birla-rejects-ministers-demand-says-there-will-be-no-adjournments-238511">Om Birla</a> in this regard.

Naidu reminded the leaders of the good work done by the Rajya Sabha during the last two sessions in terms of the productivity and quality of debates and urged them to ensure the same positive momentum during the budget session.

He said that the session offers ample opportunities to raise and discuss all issues of wider public concern during the long debates on the Motion of Thanks to the President's Address as also discussion on the budget.

Also read: <a href="https://www.wionews.com/business-economy/briefcase-or-bahi-khata-what-will-sitharaman-carry-for-her-second-budget-presentation-277851">What will Sitharaman carry for her second budget presentation?</a>

He also advised leaders to ensure that members belonging to respective parties come prepared to make an effective contribution to the debates in the House.

Voicing his concern over inadequate attendance during the proceedings of the House and in the meetings of various committees, Naidu urged the leaders of various parties to ensure attendance by their Members.

According to an official release, he noted that a situation of lack of quorum should not arise as it reflects poorly on the functioning of legislatures.

Leader of Opposition <a href="https://www.wionews.com/india-general-elections-2019/azad-does-a-u-turn-219356">Ghulam Nabi Azad </a>said the government should be willing to accommodate concerns of the opposition and enable various issues of public concern to be discussed in the House.

Joshi said the government is always willing to discuss any issue as decided by the Chairman.

Rajya Sabha Chairman M Venkaiah Naidu suggested to all concerned to ensure submission of reports on Demands for Grants of various Ministries by the Department Related Standing Committees (DRSCs) before the budget is approved by the Parliament.

Rajya Sabha Chairman M Venkaiah Naidu suggested to all concerned to ensure submission of reports on Demands for Grants of various Ministries by the Department Related Standing Committees (DRSCs) before the budget is approved by the Parliament. He said submission of such reports later would not give time for the government to consider the recommendations made by the committees in respect of various ministries. Naidu spoke on the need for timely submission of reports at a meeting of leaders of various parties in Rajya Sabha at his residence coinciding with the start of the budget session. Also read: 'Feel good' budget may see cut in tax rate, sops for social sectors The Chairman urged Minister of Parliamentary Affairs Prahlad Joshi to talk to all concerned including Chairmen of various committees regarding timely submission of reports on Demands for Grants. Naidu said he would also speak to the Lok Sabha Speaker Om Birla in this regard. Naidu reminded the leaders of the good work done by the Rajya Sabha during the last two sessions in terms of the productivity and quality of debates and urged them to ensure the same positive momentum during the budget session. He said that the session offers ample opportunities to raise and discuss all issues of wider public concern during the long debates on the Motion of Thanks to the President's Address as also discussion on the budget. Also read: What will Sitharaman carry for her second budget presentation? He also advised leaders to ensure that members belonging to respective parties come prepared to make an effective contribution to the debates in the House. Voicing his concern over inadequate attendance during the proceedings of the House and in the meetings of various committees, Naidu urged the leaders of various parties to ensure attendance by their Members. According to an official release, he noted that a situation of lack of quorum should not arise as it reflects poorly on the functioning of legislatures. Leader of Opposition Ghulam Nabi Azad said the government should be willing to accommodate concerns of the opposition and enable various issues of public concern to be discussed in the House. Joshi said the government is always willing to discuss any issue as decided by the Chairman.

Naidu suggests giving reports on Demands for Grants before budget approval

Finance Minister Nirmala Sitharaman will present Modi government’s Budget 2020 speech in the Parliament today. Union Budget 2020 on February 1 is seen as an important one, with India Inc and the common man having several expectations.

India Budget 2020: FM Nirmala Sitharaman to present her second consecutive Budget today

The Union Budget turned out to be a major disappointment for the market in the form of a wider fiscal deficit (at 3.8 percent) for FY 2020.

Markets' thumb down to Budget 2020, Sensex tumbles almost 1,000 pts

Budget 2020 proposes a new tax regime that includes reductions of income tax slabs to reduce income tax rates and the total tax payable by individuals. Income between Rs 12.5 lakh and Rs 15 lakh will be taxed 25% less than the current 30%. Income above Rs 15 lakh will be subject to 30% tax.

Major relief for taxpayers, new tax slab proposed | Budget 2020

PM Modi thanks, congratulates the Finance Minister Nirmala Sitharaman and addresses the nation on budget 2020 presented by Finance Minister Nirmala Sitharaman. He said, "This budget is focused on employment generation".

Prime Minister expresses views on Budget 2020 presentation, "Focus on employment generation budget"

Budget 2020: New optional tax regime proposed

Here's what Richard M Rossow, Wadhwani Chair in US-India Policy Studies at CSIS, has to say about the impact of Budget on foreign trade and investment

Union Budget 2020: What it means for foreign investors?

Will the problem of unemployment continue to haunt the Indian economy? Watch analysis by Senior Fellow, CSIS - Jayant Krishna

Does Union Budget 2020 address unemployment?

Union Finance Minister Nirmala Sitharaman on Saturday presented her second Union Budget that focussed towards boosting India's economic growth and maintaining the fiscal disciple. Sitharaman, 60, broke her own record of a 2-hour-17- minute-long maiden Budget speech in July 2019.

Press Conference: Finance Minister Nirmala Sitharaman Speaks On Budget

India's aid to the neighbouring countries for the financial year (FY) 2020-2021 stands at Rs 5084.65 crore. This forms a substantial chunk of India's aid globally which stands at Rs 5863.65 crore.&nbsp;

Bhutan continued to see maximum aid allocation in the budget today at Rs 2884.65 crore with Afghanistan getting Rs 400 crore, Maldives and Myanmar getting Rs 300 crore each and Bangladesh and Sri Lanka getting Rs 200 crore each. Mongolia, which considers India its third neighbour and a spiritual one was allotted Rs 2 crore.

Also read: <a href="https://www.wionews.com/business-economy/union-budget-2020-is-a-progressive-one-focuses-on-skill-development-of-indias-youth-pm-modi-278017">Union Budget 2020 will bolster income and investment; bring vitality in financial system - PM Modi</a>

While three countries saw an increase in aid by India, four countries saw a cut in Indian aid. Myanmar saw an aid increase of Rs 170 crore, Seychelles received an increase of Rs 90 crore while Bangladesh's was an increase of Rs 50 crore.&nbsp;

Nepal saw a cut of Rs 400 crore and will be getting Rs 800 crore as financial aid from India as compared to Rs 1200 crore in the revised budget of last year. One of the major reasons was that funds from the previous allocation was still left. Nepal was allocated around 763 crore in FY 2018-19 and last FY saw a substantial allocation of Rs 1200 crore.

Also read: <a href="https://www.wionews.com/india-news/want-to-increase-spending-capacity-nirmala-sitharaman-278011">Wanted to increase spending capacity - Nirmala Sitharaman&nbsp;</a>

Mauritius, Maldives and Sri Lanka saw a minor aid cut of Rs 75 crore, Rs 26 crore and Rs 5 crore, respectively.&nbsp;

Overall, the Union Budget for the financial year 2020-2021 stands at Rs 17346.71 crore versus the revised budget for the financial year 2019-20 at Rs 17372.27 crore, which can be considered almost unchanged. Rs 150 crore, from the MEA budget, has been allocated for the maintenance cost of Air India aircraft for VVIP travel.&nbsp;

India's aid to the neighbouring countries for the financial year (FY) 2020-2021 stands at Rs 5084.65 crore. This forms a substantial chunk of India's aid globally which stands at Rs 5863.

India's aid to the neighbouring countries for the financial year (FY) 2020-2021 stands at Rs 5084.65 crore. This forms a substantial chunk of India's aid globally which stands at Rs 5863.65 crore. Bhutan continued to see maximum aid allocation in the budget today at Rs 2884.65 crore with Afghanistan getting Rs 400 crore, Maldives and Myanmar getting Rs 300 crore each and Bangladesh and Sri Lanka getting Rs 200 crore each. Mongolia, which considers India its third neighbour and a spiritual one was allotted Rs 2 crore. Also read: Union Budget 2020 will bolster income and investment; bring vitality in financial system - PM Modi While three countries saw an increase in aid by India, four countries saw a cut in Indian aid. Myanmar saw an aid increase of Rs 170 crore, Seychelles received an increase of Rs 90 crore while Bangladesh's was an increase of Rs 50 crore. Nepal saw a cut of Rs 400 crore and will be getting Rs 800 crore as financial aid from India as compared to Rs 1200 crore in the revised budget of last year. One of the major reasons was that funds from the previous allocation was still left. Nepal was allocated around 763 crore in FY 2018-19 and last FY saw a substantial allocation of Rs 1200 crore. Also read: Wanted to increase spending capacity - Nirmala Sitharaman Mauritius, Maldives and Sri Lanka saw a minor aid cut of Rs 75 crore, Rs 26 crore and Rs 5 crore, respectively. Overall, the Union Budget for the financial year 2020-2021 stands at Rs 17346.71 crore versus the revised budget for the financial year 2019-20 at Rs 17372.27 crore, which can be considered almost unchanged. Rs 150 crore, from the MEA budget, has been allocated for the maintenance cost of Air India aircraft for VVIP travel.

Budget 2020: Indian aid to neighbouring countries stands at around 5,000 crore; Nepal sees a cut

Will Budget 2020 put the economy back on track? Watch WION's Business Editor Sumit Chaturvedi's analysis

Union Budget 2020: Hits and Misses

Finance Minister of India, Nirmala Sitharaman today slashed the personal income tax rate for individuals for the fiscal year 2020-21. Under the new regime, taxpayers will pay 10%, 15%, 20% and 25% for incomes between Rs 5-7.5 lakh, Rs 7.5-10 lakh, Rs 10-12.5 lakh and Rs 12.5-15 lakh.

Watch In-depth Analysis of Budget 2020

The Indian Finance Minister Nirmala Sitharaman has proposed an outlay of Rs 22,000 crore for power and renewable energy sector for FY Budget 2020-21. This is the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India.

Union Budget 2020: Rs 22,000 Cr allocated for power and renewable energy sector

The Indian Finance Minister Nirmala Sitharaman while presenting Union Budget for FY 2020-21 announced completely electronic registration of charity institutions. Also, to claim exemptions for donations easily, donations made to charity institutions will now be pre-filled in Income Tax return form.

Union Budget 2020: Charity institutions registration made completely electronic

The Indian Finance Minister Nirmala Sitharaman while presenting Union Budget for FY 2020-21 announced the new income tax slab rate. She announced, "Twenty per cent tax for individuals annually earning between Rs 10 lakh and Rs 12.5 lakh, 25 per cent for income between Rs 12.5 lakh and 15 lakh, 30 per cent for above Rs 15 lakh income under the new slab," For those who are earning upto Rs 5 lakh in a year will pay no tax, "For income between Rs 7.5 lakh and Rs 10 lakh per annum, the tax rate has been reduced to 15 per cent from 20 per cent and 10 per cent tax for income between Rs 5 lakh and Rs 7.5 lakh per anum for those who forego deductions and exemptions. This is the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India.

Union Budget 2020: Relief for Indian taxpayers

The Indian Finance Minister Nirmala Sitharaman while presenting Union Budget for FY 2020-21 said, We have estimated nominal growth of GDP for the year 2020-21 on the trends available at 10%. This is the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India.

Nirmala Sitharaman: Fiscal deficit for FY 2020-21 pegged at 3.5% | Union Budget 2020

A cut in personal income tax, sops for rural and agriculture sectors as well as an aggressive push on infrastructure spending are likely to be part of Finance Minister Nirmala Sitharaman's "feel-good" second Budget.

Facing the worst economic slowdown in more than a decade, Sitharaman is expected to pull out all stops to spur consumer demand and investment, government sources and economists said.

Sitharaman's second Budget, to be presented on February 1, is expected to announce measures to restore economic growth and to set out a clear road map for achieving the ambitious target of USD 5 trillion economy by 2025.

Investments have failed to pick up despite corporate tax cuts and other stimulus measures, higher FDI inflows, plans to consolidate state-owned banks and monetary easing.

Also read: <a href="http://wionews.com/business-economy/briefcase-or-bahi-khata-what-will-sitharaman-carry-for-her-second-budget-presentation-277851">Briefcase or 'bahi-khata' - What will Sitharaman carry for her second budget presentation?</a>

After corporate tax cuts in September last year, speculation is rife about possible reduction in personal income taxes. A combination of an increase in the basic exemption limit and/or the introduction of a differentiated tax rate structure for higher incomes may be on the cards.

To cushion the impact on collections, these tweaks might be accompanied by rationalisation in tax rebates.

"The government announced a slew of stimulus measures in the last four months but consumer confidence is missing. Not many are eager to take loans to buy homes or cars fearing the worst. The feel good factor in the economy is missing," a senior government source said.

"I think the Budget will be a feel-good Budget that will try to restore faith in the economy and spur spending and investments," the source said.

With disbursements under the PM-Kisan scheme to farmers being less than the budgeted amount, the Budget may also see measures to get states to onboard more eligible farmers under the scheme.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/budget-news-2020-budget-glossary-here-are-key-terms-you-should-know-to-understand-the-budget-273968">2020 Budget Glossary - Here are key terms you should know to understand the Budget</a>

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Also, there would be announcements for sectors such as renewable energy, e-vehicle, power, affordable housing, real estate, and exports, they said.

Financial markets are expecting relief on Securities Transaction Tax (STT), Long Term Capital Gains Tax (LTCG) and removal of dividend tax.

Capital infusion in public sector banks and liquidity measures for Non-Banking Finance Companies (NBFC) may also be on the horizon.

Both the government sources and the economists felt the Budget would reaffirm the focus on infrastructure spending after the rollout of an ambitious National Infra Pipeline (NIP) in December.

Social sector schemes such as rural electrification, MGNREGA, healthcare, education and skill training may also find mention in the Budget.

However, all such measures would come at the cost of fiscal slippage.

The Economic Survey for 2019-20, released on Friday, has already laid the ground by suggesting to the government to keep the focus on reviving growth and letting go of fiscal discipline a bit.

The RBI, armed with a favourable inflation backdrop, defended slowdown risks last year with 110 basis points cut in interest rates. As it puts a brake on the easing cycle, due to an unseasonal spurt in food prices leading to above-target inflation, the ball is in the government's court to revive growth.

Sitharaman would have to do a balancing between efforts to boost growth and the need for fiscal restraint. Economists expect a slight policy tilt towards prioritising growth.

Real GDP growth is estimated to fall to an 11-year low of 5 per cent in FY20 from 6.1 per cent in FY19. Estimated nominal growth at 7.5 per cent in FY20 is the lowest since 1975-76 (FY76) as per the FY12-based GDP series.

IIP growth turned positive but remained low at 1.8 per cent in November 2019 after contracting by (-) 4 per cent in October 2019.

CPI inflation increased to a 65-month high of 7.4 per cent in December 2019, its fifth sequential rise, mainly due to persistently rising vegetable prices. 
Also, growth in bank credit fell to a 25-month low of 8 per cent in November 2019

A cut in personal income tax, sops for rural and agriculture sectors as well as an aggressive push on infrastructure spending are likely to be part of Finance Minister Nirmala Sitharaman's "feel-good" second Budget.

A cut in personal income tax, sops for rural and agriculture sectors as well as an aggressive push on infrastructure spending are likely to be part of Finance Minister Nirmala Sitharaman's "feel-good" second Budget. Facing the worst economic slowdown in more than a decade, Sitharaman is expected to pull out all stops to spur consumer demand and investment, government sources and economists said. Sitharaman's second Budget, to be presented on February 1, is expected to announce measures to restore economic growth and to set out a clear road map for achieving the ambitious target of USD 5 trillion economy by 2025. Investments have failed to pick up despite corporate tax cuts and other stimulus measures, higher FDI inflows, plans to consolidate state-owned banks and monetary easing. Also read: Briefcase or 'bahi-khata' - What will Sitharaman carry for her second budget presentation? After corporate tax cuts in September last year, speculation is rife about possible reduction in personal income taxes. A combination of an increase in the basic exemption limit and/or the introduction of a differentiated tax rate structure for higher incomes may be on the cards. To cushion the impact on collections, these tweaks might be accompanied by rationalisation in tax rebates. "The government announced a slew of stimulus measures in the last four months but consumer confidence is missing. Not many are eager to take loans to buy homes or cars fearing the worst. The feel good factor in the economy is missing," a senior government source said. "I think the Budget will be a feel-good Budget that will try to restore faith in the economy and spur spending and investments," the source said. With disbursements under the PM-Kisan scheme to farmers being less than the budgeted amount, the Budget may also see measures to get states to onboard more eligible farmers under the scheme. Also read: 2020 Budget Glossary - Here are key terms you should know to understand the Budget × Also, there would be announcements for sectors such as renewable energy, e-vehicle, power, affordable housing, real estate, and exports, they said. Financial markets are expecting relief on Securities Transaction Tax (STT), Long Term Capital Gains Tax (LTCG) and removal of dividend tax. Capital infusion in public sector banks and liquidity measures for Non-Banking Finance Companies (NBFC) may also be on the horizon. Both the government sources and the economists felt the Budget would reaffirm the focus on infrastructure spending after the rollout of an ambitious National Infra Pipeline (NIP) in December. Social sector schemes such as rural electrification, MGNREGA, healthcare, education and skill training may also find mention in the Budget. However, all such measures would come at the cost of fiscal slippage. The Economic Survey for 2019-20, released on Friday, has already laid the ground by suggesting to the government to keep the focus on reviving growth and letting go of fiscal discipline a bit. The RBI, armed with a favourable inflation backdrop, defended slowdown risks last year with 110 basis points cut in interest rates. As it puts a brake on the easing cycle, due to an unseasonal spurt in food prices leading to above-target inflation, the ball is in the government's court to revive growth. Sitharaman would have to do a balancing between efforts to boost growth and the need for fiscal restraint. Economists expect a slight policy tilt towards prioritising growth. Real GDP growth is estimated to fall to an 11-year low of 5 per cent in FY20 from 6.1 per cent in FY19. Estimated nominal growth at 7.5 per cent in FY20 is the lowest since 1975-76 (FY76) as per the FY12-based GDP series. IIP growth turned positive but remained low at 1.8 per cent in November 2019 after contracting by (-) 4 per cent in October 2019. CPI inflation increased to a 65-month high of 7.4 per cent in December 2019, its fifth sequential rise, mainly due to persistently rising vegetable prices. Also, growth in bank credit fell to a 25-month low of 8 per cent in November 2019

'Feel good' budget may see cut in tax rate, sops for social sectors

The Indian Finance Minister Nirmala Sitharaman is presenting Union Budget for FY 2020-21. This is the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India.

Know how stock market is reacting to Budget 2020

President Ram Nath Kovind on Friday called the Citizenship Amendment Act a historic law during his address to a joint sitting of both houses of Parliament.

"The Citizenship Amendment Act is a historic law. It has fulfilled wishes of our founding fathers including Mahatma Gandhi," he said.

He also said that debate and discussion on any issue strengthen democracy while violence during protests weaken it.

In a reference to abrogation of Article 370, Kovind said there is happiness among people of India that people in Jammu and Kashmir and Ladakh have got rights on par with the rest of the country. 
&nbsp; 
The President said Parliament has created a record in the first seven months of the new government headed by Narendra Modi by enacting several landmark legislations. 
&nbsp; 
"My government is taking strong steps for making this decade as India's decade and this century as India's century," he said.&nbsp;

President Ram Nath Kovind on Friday called the Citizenship Amendment Act a historic law during his address to a joint sitting of both houses of Parliament. "The Citizenship Amendment Act is a historic law.

President Ram Nath Kovind on Friday called the Citizenship Amendment Act a historic law during his address to a joint sitting of both houses of Parliament. "The Citizenship Amendment Act is a historic law. It has fulfilled wishes of our founding fathers including Mahatma Gandhi," he said. He also said that debate and discussion on any issue strengthen democracy while violence during protests weaken it. In a reference to abrogation of Article 370, Kovind said there is happiness among people of India that people in Jammu and Kashmir and Ladakh have got rights on par with the rest of the country. The President said Parliament has created a record in the first seven months of the new government headed by Narendra Modi by enacting several landmark legislations. "My government is taking strong steps for making this decade as India's decade and this century as India's century," he said.

President Ramnath Kovid hails Citizenship Amendment Act, calls it a  'historic law'

Marking the beginning of the Budget Session of the Lok Sabha, President Ramnath Kovind addressed the joint sitting of Parliament and said that violence in the name of protest weakens the society and the country.

"My govt taking strong steps for making this decade as India's decade," said&nbsp;Kovind.

<a href="https://www.wionews.com/india-news/caa-opposers-refuse-to-see-persecution-of-religious-minorities-in-pakistan-pm-modi-277068">Also read: CAA opposers refuse to see persecution of religious minorities in Pakistan — PM Modi</a>

He added that the government is clearly of the view that mutual discussions and debates further strengthen democracy.

"At the same time, any kind of violence in the name of protest weakens the society and the country," he said. ​

Addressing the joint sitting of Lok Sabha, Rajya Sabha, President Kovind said, "Our constitution expects from this Parliament and every member present in this House to fulfil the hopes and aspirations of the countrymen and make necessary laws for them, keeping national interest paramount."

"The abrogation of Article 370 and Article 35A of the Constitution through two-thirds majority by both the Houses of Parliament is not only historic but it has also paved the way for equal development of Jammu and Kashmir and Ladakh."&nbsp;

"The mature way in which the countrymen behaved after the Supreme Court's decision on Ramjanmabhoomi is also praiseworthy," the President said.

Calling this decade as India's decade President Kovind said that "India has made significant improvement in World Bank’s Ease of Doing Business ranking. The government runs on "Sabka Saath, Sabka Vikas, Sabka Vishwas" and policies have been implemented without any religious bias." ​

Marking the beginning of the Budget Session of the Lok Sabha, President Ramnath Kovind addressed the joint sitting of Parliament and said that violence in the name of protest weakens the society and the country.

Marking the beginning of the Budget Session of the Lok Sabha, President Ramnath Kovind addressed the joint sitting of Parliament and said that violence in the name of protest weakens the society and the country. "My govt taking strong steps for making this decade as India's decade," said Kovind. Also read: CAA opposers refuse to see persecution of religious minorities in Pakistan — PM Modi He added that the government is clearly of the view that mutual discussions and debates further strengthen democracy. "At the same time, any kind of violence in the name of protest weakens the society and the country," he said. Addressing the joint sitting of Lok Sabha, Rajya Sabha, President Kovind said, "Our constitution expects from this Parliament and every member present in this House to fulfil the hopes and aspirations of the countrymen and make necessary laws for them, keeping national interest paramount." "The abrogation of Article 370 and Article 35A of the Constitution through two-thirds majority by both the Houses of Parliament is not only historic but it has also paved the way for equal development of Jammu and Kashmir and Ladakh." "The mature way in which the countrymen behaved after the Supreme Court's decision on Ramjanmabhoomi is also praiseworthy," the President said. Calling this decade as India's decade President Kovind said that "India has made significant improvement in World Bank’s Ease of Doing Business ranking. The government runs on "Sabka Saath, Sabka Vikas, Sabka Vishwas" and policies have been implemented without any religious bias."

Violence in name of protests weakens country: President Ramnath Kovind

The Budget Session of the Indian Parliament commenced on Friday (January 31) with an address by President Ram Nath Kovind to the joint sitting of two Houses of Parliament. Now all eyes will be on Indian Finance Minister Nirmala Sitharaman tomorrow as she will present her second budget as the country's finance minister. Trade pundits and businesses are waiting with a baited breath, expecting her to bail out the economy of the ongoing slump.

Expectations from the Indian Union Budget 2020

The Budget Session of Parliament will commence on Friday with an address by President Ram Nath Kovind to the joint sitting of two Houses of Parliament.

President Kovind will deliver a speech in the Central Hall of Parliament at 11 am. Vice President Venkaiah Naidu will also chair a meeting of floor leaders of Rajya Sabha at his residence today.

The Union Budget will be presented on Saturday. The first phase of the session will conclude on February 11, while the second part of the session will begin from March 2 and end on April 3.

The Bharatiya Janata Party Executive Committee meeting will be held in Parliament Library at 2 pm, while the National Democratic Alliance (NDA) meeting is expected in Parliament Library at 3:30 pm today.

An all-party meeting called by Parliamentary Affairs Minister Pralhad Joshi was held on Thursday in Parliament ahead of the Budget Session. Prime Minister Narendra Modi also attended the meeting along with other Union Ministers, namely, Rajnath Singh, Thawar Chand Gehlot, Arjun Meghwal, V Muraleedharan, and others.

Samajwadi Party MP Ram Gopal Yadav was also present in the meet. BJD's Prasanna Acharya, NCP MP Supriya Sule, Congress MP Adhir Ranjan Chowdhury, RJD leader Manoj Jha, and many other MPs were present in the meeting.

The Prime Minister said that the government was open for discussion on all issues during the Budget Session of Parliament and agreed with the demand of MPs that there should be a discussion on economic issues.

In his remarks at the all-party meeting on the eve of the Budget Session, he welcomed suggestions of most members that the session should focus on the prevailing economic situation in the country.

"Most of the members have asked for discussion on the economic situation concerning the country. I welcome this and we need to discuss the economic issues as suggested by you all," he said.

Modi urged members to see how the country can gain from the prevailing global economic scenario.

"We should focus on how we can turn the global scenario in favour of India. And in this Budget Session, and at the beginning of the New Year if we can give a proper direction to the country's economy, it would be in the best interest of the country," he said.

The Prime Minister also agreed with members on other important issues raised by them and said there should be an open discussion on all such issues.

"I agree with you all on the other important issues raised by you. And I would like to say that there should be an open discussion on all such issues," he said.

The Budget Session of Parliament will commence on Friday with an address by President Ram Nath Kovind to the joint sitting of two Houses of Parliament. President Kovind will deliver a speech in the Central Hall of Parliament at 11 am.

The Budget Session of Parliament will commence on Friday with an address by President Ram Nath Kovind to the joint sitting of two Houses of Parliament. President Kovind will deliver a speech in the Central Hall of Parliament at 11 am. Vice President Venkaiah Naidu will also chair a meeting of floor leaders of Rajya Sabha at his residence today. The Union Budget will be presented on Saturday. The first phase of the session will conclude on February 11, while the second part of the session will begin from March 2 and end on April 3. The Bharatiya Janata Party Executive Committee meeting will be held in Parliament Library at 2 pm, while the National Democratic Alliance (NDA) meeting is expected in Parliament Library at 3:30 pm today. An all-party meeting called by Parliamentary Affairs Minister Pralhad Joshi was held on Thursday in Parliament ahead of the Budget Session. Prime Minister Narendra Modi also attended the meeting along with other Union Ministers, namely, Rajnath Singh, Thawar Chand Gehlot, Arjun Meghwal, V Muraleedharan, and others. Samajwadi Party MP Ram Gopal Yadav was also present in the meet. BJD's Prasanna Acharya, NCP MP Supriya Sule, Congress MP Adhir Ranjan Chowdhury, RJD leader Manoj Jha, and many other MPs were present in the meeting. The Prime Minister said that the government was open for discussion on all issues during the Budget Session of Parliament and agreed with the demand of MPs that there should be a discussion on economic issues. In his remarks at the all-party meeting on the eve of the Budget Session, he welcomed suggestions of most members that the session should focus on the prevailing economic situation in the country. "Most of the members have asked for discussion on the economic situation concerning the country. I welcome this and we need to discuss the economic issues as suggested by you all," he said. Modi urged members to see how the country can gain from the prevailing global economic scenario. "We should focus on how we can turn the global scenario in favour of India. And in this Budget Session, and at the beginning of the New Year if we can give a proper direction to the country's economy, it would be in the best interest of the country," he said. The Prime Minister also agreed with members on other important issues raised by them and said there should be an open discussion on all such issues. "I agree with you all on the other important issues raised by you. And I would like to say that there should be an open discussion on all such issues," he said.

Budget 2020 News: Lok Sabha Budget Session commences today

All eyes will be on Nirmala Sitharaman tomorrow as she will present her second budget as the country's finance minister.

Trade pundits and businesses are waiting with a baited breath, expecting her to bail out the economy of the ongoing slump.

On a lighter vein, it also remains to be seen if she would carry documents in a briefcase or a traditional bahi-khata which she used for her maiden budget presentation. On the day of the Union Budget presentation in 2019, Sitharaman broke away from long-standing traditions of colonial-era when she ditched the briefcase and opted for traditional bahi khata, which is a kind of a ledger wrapped in a red coloured cloth.

The word 'budget'&nbsp;has its origin in the French word Bougette, which means leather briefcase. Traditionally, budget documents -- which primarily include papers related to revenue receipt and expenditure as well as the speech of finance minister -- were carried in a brown briefcase, a legacy passed on by the British.

However, traditional Indian businessmen used bahi-khata to maintain their books of account. Commenting on the shift from a briefcase to bahi-khata during the 89th Union Budget, Chief Economic Advisor, Krishnamurthy Subramanian had told ANI in July last year: "The government is following Indian tradition and bahi khata symbolises our departure from the slavery of Western thought."

Also read: <a href="https://www.wionews.com/business-economy/budget-news-2020-budget-glossary-here-are-key-terms-you-should-know-to-understand-the-budget-273968">Here are key terms you should know to understand the Budget</a>

On being asked about the replacement of the briefcase, Subramanian had said, "It is not a Budget, but a Bahi-Khata (ledger)."

"Sitharaman believes that leather made products are not auspicious for the big occasion, so she avoided the leather bag and took the bahi khata wrapped in the red cloth. This is considered to be auspicious," he had said.

In July last year, Sitharaman had said that Modi government is not a "suitcase-carrying government".In a veiled attack on Congress, she connected her idea of carrying budget documents wrapped in a red cloth instead of a briefcase with alleged corruption in the previous UPA government at the Centre.

"For Budget 2019, I did not carry a suitcase. We are not a suitcase-carrying government. A suitcase also denotes something else: suitcase-taking, suitcase-giving. Modi ji's government is not a suitcase government," she had said at the International Business Conference of Nagarathar in July 2019.

Before Sitharaman, a long-standing tradition in connection with the budget presentation was broken during the Atal Behari Vajpayee government with the then Finance Minister Yashwant Sinha presenting the budget at 11 am rather than at the traditional time of 5 pm. Since then all governments have been presenting the budget at 11 am.&nbsp;

All eyes will be on Nirmala Sitharaman tomorrow as she will present her second budget as the country's finance minister. Trade pundits and businesses are waiting with a baited breath, expecting her to bail out the economy of the ongoing slump.

All eyes will be on Nirmala Sitharaman tomorrow as she will present her second budget as the country's finance minister. Trade pundits and businesses are waiting with a baited breath, expecting her to bail out the economy of the ongoing slump. On a lighter vein, it also remains to be seen if she would carry documents in a briefcase or a traditional bahi-khata which she used for her maiden budget presentation. On the day of the Union Budget presentation in 2019, Sitharaman broke away from long-standing traditions of colonial-era when she ditched the briefcase and opted for traditional bahi khata, which is a kind of a ledger wrapped in a red coloured cloth. The word 'budget' has its origin in the French word Bougette, which means leather briefcase. Traditionally, budget documents -- which primarily include papers related to revenue receipt and expenditure as well as the speech of finance minister -- were carried in a brown briefcase, a legacy passed on by the British. However, traditional Indian businessmen used bahi-khata to maintain their books of account. Commenting on the shift from a briefcase to bahi-khata during the 89th Union Budget, Chief Economic Advisor, Krishnamurthy Subramanian had told ANI in July last year: "The government is following Indian tradition and bahi khata symbolises our departure from the slavery of Western thought." Also read: Here are key terms you should know to understand the Budget On being asked about the replacement of the briefcase, Subramanian had said, "It is not a Budget, but a Bahi-Khata (ledger)." "Sitharaman believes that leather made products are not auspicious for the big occasion, so she avoided the leather bag and took the bahi khata wrapped in the red cloth. This is considered to be auspicious," he had said. In July last year, Sitharaman had said that Modi government is not a "suitcase-carrying government".In a veiled attack on Congress, she connected her idea of carrying budget documents wrapped in a red cloth instead of a briefcase with alleged corruption in the previous UPA government at the Centre. "For Budget 2019, I did not carry a suitcase. We are not a suitcase-carrying government. A suitcase also denotes something else: suitcase-taking, suitcase-giving. Modi ji's government is not a suitcase government," she had said at the International Business Conference of Nagarathar in July 2019. Before Sitharaman, a long-standing tradition in connection with the budget presentation was broken during the Atal Behari Vajpayee government with the then Finance Minister Yashwant Sinha presenting the budget at 11 am rather than at the traditional time of 5 pm. Since then all governments have been presenting the budget at 11 am.

Briefcase or 'bahi-khata': What will Sitharaman carry for her second budget presentation?

Indian retail and institutional investors shied away from domestic equity markets last year as a slowing economy ate into stock valuations and earnings. Their purchases of equity mutual funds in 2019 were the lowest in three years.

Data from the Association of Mutual Funds in India (AMFI) showed local investors bought a net 712.7 billion rupees&nbsp;in equity funds last year, a 36 per cent&nbsp;fall from 2018, and the lowest net purchase since 2016.

The drop in domestic investment was due to worries over the economy which is forecast to grow at its slowest pace in 11 years in the current fiscal year ending March, analysts said.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/sharp-slwodown-in-india-a-drag-on-world-economy-275527">Sharp slowdown in India drag on the world economy, says IMF</a>

Purchases of mutual funds by domestic investors have traditionally been a support for the Indian stock market, particularly in recent years as concerns over the country's accelerating consumer prices, rising global yields and a falling rupee caused overseas investments to turn fickle.

Foreigners made cumulative purchases of 2.97 trillion rupees worth of Indian stocks in the last five years, less than the 3.5 trillion rupees bought by domestic investors, data from Refinitiv Eikon and Central Depository Services Ltd showed.

Investors who normally conduct large transactions in equity mutual funds have been taking out their money in recent months, said Deepak Jasani, head of retail research at HDFC Securities Ltd.

Also read: <a href="https://www.wionews.com/business-economy/india-can-end-up-with-5-real-gdp-growth-this-fiscal-chairman-of-pms-economic-advisory-council-277423">India can end up with 5% real GDP growth this fiscal: Chairman of PM's Economic Advisory Council</a>

The redeemed money "is instead being used to buy debt products or used for individual&nbsp;business&nbsp;needs," he said.

The AMFI data showed debt funds witnessed an inflow of 696.9 billion rupees last year, compared with outflows worth 349.9 billion rupees in 2018.

India's NSE Nifty 50 index has fallen more than 1 per cent&nbsp;so far this year, however, some analysts said government reforms and lower interest rates could lift the market.

Also read: <a href="https://www.wionews.com/business-economy/latest-business-news-nifty-sensex-end-lower-ahead-of-budget-energy-stocks-lead-losses-277789">Nifty, Sensex end lower ahead of budget</a>

The Nifty index gained 12 per cent last year, helped by a rally after the government cut the corporate tax rate in September.

The government is likely to cut tax on long-term capital gains from equity investments in its next budget, in an attempt to boost economic growth, Reuters reported in December.

Finance Minister <a href="https://www.wionews.com/business-economy/finance-minister-nirmala-sitharaman-tables-economic-survey-in-parliament-gdp-growth-projected-at-6-65-for-2020-21-277715">Nirmala Sitharaman</a> will present the budget for the 2020-21 fiscal year on February&nbsp;1.

Indian retail and institutional investors shied away from domestic equity markets last year as a slowing economy ate into stock valuations and earnings. Their purchases of equity mutual funds in 2019 were the lowest in three years.

Indian retail and institutional investors shied away from domestic equity markets last year as a slowing economy ate into stock valuations and earnings. Their purchases of equity mutual funds in 2019 were the lowest in three years. Data from the Association of Mutual Funds in India (AMFI) showed local investors bought a net 712.7 billion rupees in equity funds last year, a 36 per cent fall from 2018, and the lowest net purchase since 2016. The drop in domestic investment was due to worries over the economy which is forecast to grow at its slowest pace in 11 years in the current fiscal year ending March, analysts said. Also read: Sharp slowdown in India drag on the world economy, says IMF Purchases of mutual funds by domestic investors have traditionally been a support for the Indian stock market, particularly in recent years as concerns over the country's accelerating consumer prices, rising global yields and a falling rupee caused overseas investments to turn fickle. Foreigners made cumulative purchases of 2.97 trillion rupees worth of Indian stocks in the last five years, less than the 3.5 trillion rupees bought by domestic investors, data from Refinitiv Eikon and Central Depository Services Ltd showed. Investors who normally conduct large transactions in equity mutual funds have been taking out their money in recent months, said Deepak Jasani, head of retail research at HDFC Securities Ltd. Also read: India can end up with 5% real GDP growth this fiscal: Chairman of PM's Economic Advisory Council The redeemed money "is instead being used to buy debt products or used for individual business needs," he said. The AMFI data showed debt funds witnessed an inflow of 696.9 billion rupees last year, compared with outflows worth 349.9 billion rupees in 2018. India's NSE Nifty 50 index has fallen more than 1 per cent so far this year, however, some analysts said government reforms and lower interest rates could lift the market. Also read: Nifty, Sensex end lower ahead of budget The Nifty index gained 12 per cent last year, helped by a rally after the government cut the corporate tax rate in September. The government is likely to cut tax on long-term capital gains from equity investments in its next budget, in an attempt to boost economic growth, Reuters reported in December. Finance Minister Nirmala Sitharaman will present the budget for the 2020-21 fiscal year on February 1.

Indian investors eschew equity funds as economy falters

Indian shares gave up early gains to settle lower on Friday, dragged down by energy stocks, a day ahead of the federal budget that comes amid the country's worst economic slowdown in a decade.

The NSE <a href="https://www.wionews.com/business-economy/sensex-nifty-end-lower-on-coronavirus-fears-metals-drag-277556">Nifty </a>50 index ended 0.61 per cent lower at 11,962.12, while the S&amp;P BSE <a href="https://www.wionews.com/business-economy/sensex-nifty-end-lower-on-coronavirus-fears-metals-drag-277556">Sensex </a>closed 0.47 per cent weaker&nbsp;at 40,723.49.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/sharp-slwodown-in-india-a-drag-on-world-economy-275527">Sharp slowdown in India drag on the world economy, says IMF</a>

The Nifty on Friday closed below the 12,000 level for the first time since December&nbsp;12, ending the month 1.70 per cent&nbsp;lower.

Markets have been volatile ahead of the 2020-2021 budget on February&nbsp;1, when Prime Minister <a href="https://www.wionews.com/videos/eu-defers-anti-caa-resolution-vote-relief-for-modi-govt-277447">Narendra Modi'</a>s government is expected to raise spending on infrastructure and cut some personal tax, to spur consumer demand and investment, government sources and economists have said.

Indian stock markets will be open for trading on Saturday on account of the budget, but debt and forex markets will remain shut.

Record profit from India's largest lender State Bank of India (SBI) failed to lift sentiment as energy stocks fell sharply, led by a 2.2&nbsp;per cent drop in <a href="https://www.wionews.com/business-economy/mukesh-ambanis-reliance-posts-record-profit-on-consumer-strength-274936">Reliance </a>Industries Ltd, the country's biggest company by market value.

The Nifty energy index shed 2.66 per cent, marking its worst day since early September, as oil prices were set for a fourth consecutive weekly loss on Friday.&nbsp;

Shares in <a href="https://www.wionews.com/business-economy/slowdown-in-india-expected-to-hit-job-sector-sbi-report-274275">SBI </a>ended 2.5&nbsp;per cent firmer, while those in private-sector lender <a href="https://www.wionews.com/business-economy/kotak-mahindra-bank-q4-profit-rises-14-to-rs-2038-crore-214769">Kotak Mahindra</a> Bank gained 3.9 per cent after the central bank eased rules around the shareholding of its billionaire-founder.

Indian shares gave up early gains to settle lower on Friday, dragged down by energy stocks, a day ahead of the federal budget that comes amid the country's worst economic slowdown in a decade.

Indian shares gave up early gains to settle lower on Friday, dragged down by energy stocks, a day ahead of the federal budget that comes amid the country's worst economic slowdown in a decade. The NSE Nifty 50 index ended 0.61 per cent lower at 11,962.12, while the S&P BSE Sensex closed 0.47 per cent weaker at 40,723.49. Also read: Sharp slowdown in India drag on the world economy, says IMF The Nifty on Friday closed below the 12,000 level for the first time since December 12, ending the month 1.70 per cent lower. Markets have been volatile ahead of the 2020-2021 budget on February 1, when Prime Minister Narendra Modi's government is expected to raise spending on infrastructure and cut some personal tax, to spur consumer demand and investment, government sources and economists have said. Indian stock markets will be open for trading on Saturday on account of the budget, but debt and forex markets will remain shut. Record profit from India's largest lender State Bank of India (SBI) failed to lift sentiment as energy stocks fell sharply, led by a 2.2 per cent drop in Reliance Industries Ltd, the country's biggest company by market value. The Nifty energy index shed 2.66 per cent, marking its worst day since early September, as oil prices were set for a fourth consecutive weekly loss on Friday. Shares in SBI ended 2.5 per cent firmer, while those in private-sector lender Kotak Mahindra Bank gained 3.9 per cent after the central bank eased rules around the shareholding of its billionaire-founder.

Nifty, Sensex end lower ahead of budget; energy stocks lead losses

The Budget Session of the Indian Parliament commenced on Friday (January 31) with an address by President Ram Nath Kovind to the joint sitting of two Houses of Parliament. Indian President Kovind delivered a speech in the Central Hall of Parliament at 11 am. The Union Budget 2020-21 will be presented on Saturday (February 1). The first phase of the session will conclude on February 11, while the second part of the session will begin from March 2 and end on April 3.

Indian Union Budget Session 2020 commences today

We are just days away from Budget 2020 where the Modi government will present its fiscal roadmap. It is one of the most anticipated budgets because of the global economic slowdown. This week we are speaking to experts to get a sense of what next. We have an expert opinion on that from Gautam Chikermane, Vice President, ORF

India gears up for Budget 2020

We are just days away from Budget 2020 where the Modi government will present its fiscal roadmap. It is one of the most anticipated budgets because of the global economic slowdown. The expectations are high but the choices are limited. We have an expert opinion on that from Dr. WPS Sidhu, Professor of New York University.

Budget 2020: Populist or Progressive?

The Union Budget is just around the corner.&nbsp;With Finance Minister Nirmala Sitharaman getting ready to present the Budget on February 1, it’s also time for us to learn and ready ourselves for the Budget speech.&nbsp;

To make things easier, WION digital simplifies the important Budget items for its readers.&nbsp;

Here is a glossary of commonly used terms in the Budget:

Union Budget

Union Budget Union Budget is the most comprehensive report of the Government's finances in which revenues from all sources and outlays for all activities are consolidated. The Budget also contains estimates of the Government's accounts for the next Fiscal year called Budgeted Estimates.

Union Budget actually lays down the statement of the estimated receipts and expenditure of the Govt. of India for the coming financial year.&nbsp; It sets out exactly how the govt proposes to allocate the financial resources among the various agencies that make claim on it and how it proposes to raise the finances for this.&nbsp; &nbsp;&nbsp;

Union Budget is undoubtedly the most extensive account of the government's finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget.

Gross Domestic Product

GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year. GDP growth rate is an important indicator of the economic performance of a country.&nbsp;

Direct and Indirect Taxes

Direct taxes are the one that fall directly on individuals and corporations. For example, income tax, corporate tax etc. Indirect taxes are imposed on goods and services. They are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.

GST

The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government.

“Goods” means every kind of movable property other than money and securities but includes the actionable claim, growing crops, grass and things attached to or forming part of the land which is agreed to be severed before supply or under a contract of supply.

“Services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.

Customs Duty

These are levies charged when goods are imported into, or exported from, the country, and they are paid by the importer or exporter. Usually, these are also passed on to the consumer.

Fiscal Deficit&nbsp;

When the government's non-borrowed receipts fall short of its entire expenditure, it has to borrow money from the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called the fiscal deficit.

Revenue Deficit&nbsp;

The difference between revenue expenditure and revenue receipt is known as revenue deficit. It shows the shortfall of government's current receipts over current expenditure.

Primary Deficit

The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Government's borrowings are going towards meeting expenses other than interest payments.

Fiscal policy

It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented through the budget and is the primary means by which the government can influence the economy.

Monetary Policy

This comprises actions taken by the central bank (i.e. RBI) to regulate the level of money or liquidity in the economy or change the interest rates.

Inflation

A sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level.

Capital Budget

The Capital Budget consists of capital receipts and payments. It includes investments in shares, loans and advances granted by the central Government to State Governments, Government companies, corporations and other parties.

Revenue Budget

The revenue budget consists of revenue receipts of the Government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies. The non-tax revenue sources include interest on loans, dividend on investments.

Finance Bill

The Bill produced immediately after the presentation of the Union Budget detailing the Imposition, abolition, alteration or regulation of taxes proposed in the Budget.

Vote on Account

The Vote on Account is a grant made in advance by the parliament, in respect of the estimated expenditure for a part of&nbsp;new&nbsp;financial year, pending the completion of procedure relating to the voting on the Demand for Grants and the passing of the Appropriation Act.

Excess Grants

If the total expenditure under a Grant exceeds the provision allowed through its original Grant and Supplementary Grant, then, the excess requires regularization by obtaining the Excess Grant from the Parliament under Article 115 of the Constitution of India. It will have to go through the whole process as in the case of the Annual Budget, i.e. through the presentation of Demands for Grants and passing of Appropriation Bills.

Budget Estimates

Amount of money allocated in the Budget to any ministry or scheme for the coming financial year.

Revised Estimates

Revised Estimates are the mid-year review of possible expenditure, taking into account the rest of expenditure, New Services and New instrument of Services etc. Revised Estimates are not voted by the Parliament, and hence by itself do not provide any authority for expenditure. Any additional projections made in the Revised Estimates need to be authorized for expenditure through the Parliament's approval or by Re-appropriation order.

Re-appropriations

Re-appropriations allow the Government to re-appropriate provisions from one sub-head to another within the same Grant. Re-appropriation provisions may be sanctioned by a competent authority at any time before the close of the financial year to which such grant or appropriation relates. The Comptroller &amp; Auditor General and the Public Accounts Committee reviews these re-appropriations and comments on them for taking corrective actions.

Outcome Budget

From the fiscal year 2006-07, every Ministry presents a preliminary Outcome Budget to the Ministry of Finance, which is responsible for compiling them. The Outcome Budget is a progress card on what various Ministries and Departments have done with the outlays in the previous annual budget. It measures the development outcomes of all Government programs and whether the money has been spent for the purpose it was sanctioned including the outcome of the fund usage.

Guillotine

Parliament, unfortunately, has very limited time for scrutinising the expenditure demands of all the Ministries. So, once the prescribed period for the discussion on Demands for Grants is over, the Speaker of Lok Sabha puts all the outstanding Demands for Grants, Whether discussed or not, to the vote of the House. This process is popularly known as 'Guillotine'.

Cut Motions

Motions for reduction to various Demands for Grants are made in the Form of Cut Motions seeking to reduce the sums sought by Government on grounds of economy or difference of opinion on matters of policy or just in order to voice a grievance.

Consolidated Fund of India

All revenues raised by the Government, money borrowed and receipts from loans given by the Government ?ow into it. All Government expenditure other than certain exceptional items met from Contingency Fund and Public Account are made from this account. No money can be appropriated from the Fund except in accordance with the law.

Contingency Fund of India

A fund placed at the disposal of the President to enable him/her to make advances to the executive/Government to meet urgent unforeseen expenditure.

Public Account

Under provisions of Article 266(1) of the Constitution of India, Public Account is used in relation to all the fund flows where Government is acting as a banker. Examples include Provident Funds and Small Savings. This money does not belong to the government but is to be returned to the depositors. The expenditure from this fund need not be approved by the Parliament.

Corporate Tax

This is the tax paid by corporations or firms on the incomes they earn.

Minimum Alternative Tax (MAT)

The Minimum Alternative Tax is a minimum tax that a company must pay, even if it is under zero tax limits.

Disinvestment

By disinvestment, we mean the sale of shares of public sector undertakings by the Government. The shares of government companies held by the Government are earning assets at the disposal of the Government. If these shares are sold to get cash, then earning assets are converted into cash, So it is referred to as disinvestment.

The Union Budget is just around the corner. With Finance Minister Nirmala Sitharaman getting ready to present the Budget on February 1, it’s also time for us to learn and ready ourselves for the Budget speech.

The Union Budget is just around the corner. With Finance Minister Nirmala Sitharaman getting ready to present the Budget on February 1, it’s also time for us to learn and ready ourselves for the Budget speech. To make things easier, WION digital simplifies the important Budget items for its readers. Here is a glossary of commonly used terms in the Budget: Union Budget Union Budget Union Budget is the most comprehensive report of the Government's finances in which revenues from all sources and outlays for all activities are consolidated. The Budget also contains estimates of the Government's accounts for the next Fiscal year called Budgeted Estimates. Union Budget actually lays down the statement of the estimated receipts and expenditure of the Govt. of India for the coming financial year. It sets out exactly how the govt proposes to allocate the financial resources among the various agencies that make claim on it and how it proposes to raise the finances for this. Union Budget is undoubtedly the most extensive account of the government's finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget. Gross Domestic Product GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year. GDP growth rate is an important indicator of the economic performance of a country. Direct and Indirect Taxes Direct taxes are the one that fall directly on individuals and corporations. For example, income tax, corporate tax etc. Indirect taxes are imposed on goods and services. They are paid by consumers when they buy goods and services. These include excise duty, customs duty etc. GST The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumers, but it is remitted to the government by the businesses selling the goods and services. In effect, GST provides revenue for the government. “Goods” means every kind of movable property other than money and securities but includes the actionable claim, growing crops, grass and things attached to or forming part of the land which is agreed to be severed before supply or under a contract of supply. “Services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. Customs Duty These are levies charged when goods are imported into, or exported from, the country, and they are paid by the importer or exporter. Usually, these are also passed on to the consumer. Fiscal Deficit When the government's non-borrowed receipts fall short of its entire expenditure, it has to borrow money from the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called the fiscal deficit. Revenue Deficit The difference between revenue expenditure and revenue receipt is known as revenue deficit. It shows the shortfall of government's current receipts over current expenditure. Primary Deficit The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Government's borrowings are going towards meeting expenses other than interest payments. Fiscal policy It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented through the budget and is the primary means by which the government can influence the economy. Monetary Policy This comprises actions taken by the central bank (i.e. RBI) to regulate the level of money or liquidity in the economy or change the interest rates. Inflation A sustained increase in the general price level. The inflation rate is the percentage rate of change in the price level. Capital Budget The Capital Budget consists of capital receipts and payments. It includes investments in shares, loans and advances granted by the central Government to State Governments, Government companies, corporations and other parties. Revenue Budget The revenue budget consists of revenue receipts of the Government and its expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies. The non-tax revenue sources include interest on loans, dividend on investments. Finance Bill The Bill produced immediately after the presentation of the Union Budget detailing the Imposition, abolition, alteration or regulation of taxes proposed in the Budget. Vote on Account The Vote on Account is a grant made in advance by the parliament, in respect of the estimated expenditure for a part of new financial year, pending the completion of procedure relating to the voting on the Demand for Grants and the passing of the Appropriation Act. Excess Grants If the total expenditure under a Grant exceeds the provision allowed through its original Grant and Supplementary Grant, then, the excess requires regularization by obtaining the Excess Grant from the Parliament under Article 115 of the Constitution of India. It will have to go through the whole process as in the case of the Annual Budget, i.e. through the presentation of Demands for Grants and passing of Appropriation Bills. Budget Estimates Amount of money allocated in the Budget to any ministry or scheme for the coming financial year. Revised Estimates Revised Estimates are the mid-year review of possible expenditure, taking into account the rest of expenditure, New Services and New instrument of Services etc. Revised Estimates are not voted by the Parliament, and hence by itself do not provide any authority for expenditure. Any additional projections made in the Revised Estimates need to be authorized for expenditure through the Parliament's approval or by Re-appropriation order. Re-appropriations Re-appropriations allow the Government to re-appropriate provisions from one sub-head to another within the same Grant. Re-appropriation provisions may be sanctioned by a competent authority at any time before the close of the financial year to which such grant or appropriation relates. The Comptroller & Auditor General and the Public Accounts Committee reviews these re-appropriations and comments on them for taking corrective actions. Outcome Budget From the fiscal year 2006-07, every Ministry presents a preliminary Outcome Budget to the Ministry of Finance, which is responsible for compiling them. The Outcome Budget is a progress card on what various Ministries and Departments have done with the outlays in the previous annual budget. It measures the development outcomes of all Government programs and whether the money has been spent for the purpose it was sanctioned including the outcome of the fund usage. Guillotine Parliament, unfortunately, has very limited time for scrutinising the expenditure demands of all the Ministries. So, once the prescribed period for the discussion on Demands for Grants is over, the Speaker of Lok Sabha puts all the outstanding Demands for Grants, Whether discussed or not, to the vote of the House. This process is popularly known as 'Guillotine'. Cut Motions Motions for reduction to various Demands for Grants are made in the Form of Cut Motions seeking to reduce the sums sought by Government on grounds of economy or difference of opinion on matters of policy or just in order to voice a grievance. Consolidated Fund of India All revenues raised by the Government, money borrowed and receipts from loans given by the Government ?ow into it. All Government expenditure other than certain exceptional items met from Contingency Fund and Public Account are made from this account. No money can be appropriated from the Fund except in accordance with the law. Contingency Fund of India A fund placed at the disposal of the President to enable him/her to make advances to the executive/Government to meet urgent unforeseen expenditure. Public Account Under provisions of Article 266(1) of the Constitution of India, Public Account is used in relation to all the fund flows where Government is acting as a banker. Examples include Provident Funds and Small Savings. This money does not belong to the government but is to be returned to the depositors. The expenditure from this fund need not be approved by the Parliament. Corporate Tax This is the tax paid by corporations or firms on the incomes they earn. Minimum Alternative Tax (MAT) The Minimum Alternative Tax is a minimum tax that a company must pay, even if it is under zero tax limits. Disinvestment By disinvestment, we mean the sale of shares of public sector undertakings by the Government. The shares of government companies held by the Government are earning assets at the disposal of the Government. If these shares are sold to get cash, then earning assets are converted into cash, So it is referred to as disinvestment.

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