Amid the pandemic, India's finance minister Nirmala Sitharaman on Monday emerged from the finance ministry with a tablet instead of a "bahi khata" which was presented last year as India's Budget goes paperless. Indian Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget 2021 in Lok Sabha on February 1 at 11 AM.

Union Budget 2021 tasked to get India on growth track

Indian Finance Minister Nirmala Sitharaman is presenting the Union Budget 2021 in Lok Sabha. We could not have imagined last year that the global economy would slip into a contraction, said Finance Minister Nirmala Sitharaman.

FM Sitharaman: Preparation of this Budget was undertaken in circumstances like never before

What can we expect from India's Union Budget 2021?

Dr. Harsh Vardhan lauded the Union Budget 2021 that included a ‘remarkable’ 137% increase for health and wellbeing sector.

Budget 2021: Healthcare sector sees highest ever allocation, increased by 137%

Prime Minister Narendra Modi today commended the Union Budget, saying even as it was presented amid unprecedented circumstances

'Focus on this budget was on transparency', says PM Modi in post budget address

Finance Minister Nirmala Sitharaman on Monday unveiled Union Budget 2021-22 that aims to shore up the Indian economy post coronavirus pandemic. In this video, discuss major hits and misses from the Union Budget 2021.

Major hits and misses from the Union Budget 2021

Finance Minister Nirmala Sitharaman on Monday unveiled Union Budget 2021-22 that aims to shore up the Indian economy post coronavirus pandemic.

Key highlights and takeaways from the Union Budget 2021

Finance Minister Nirmala Sitharaman said that "National Education Policy got a good reception. Over 15,000 schools to be qualitatively strengthened under National Education Policy."

Indian Finance Minister: Over 15,000 schools to be qualitatively strengthened under NEP

Indian Finance Minister Nirmala Sitharaman presented the Union Budget 2021 in Lok Sabha today. FM Sitharaman announced the budget for Minimum Government, Maximum Governance.

FM Sitharaman announces budget for Minimum Government, Maximum Governance

Indian Finance Minister Nirmala Sitharaman presented the Union Budget 2021 in Lok Sabha today. Finance Minister proposed the recapitalisation of Rs 20,000 crore for PSBs in FY21.

India's Finance Minister announces recapitalisation of Rs 20,000 crore for PSBs in FY21

Indian Finance Minister Nirmala Sitharaman presented the Union Budget 2021 in Lok Sabha today. Finance Minister announced, seven port projects worth more than Rs 2,000 crore to be offered by major ports in PPP Mode, in FY 2021-2022.

Indian Finance Minister: Seven port projects worth more than Rs 2,000 crore to be offered

Indian Finance Minister Nirmala Sitharaman is presenting the Union Budget 2021 in Lok Sabha. FM said, over 13,000 km length of roads at a cost of Rs 3.3 lakh cr has already been awarded under Rs 5.35 lakh cr Bharatmala project of which 3,800 km have been constructed. By March 2022 we'd be awarding another 8,500 & complete an additional 11,000 km of National Highway Corridor.

Indian FM Sitharaman: 8,500 km of highway projects to be awarded in March 2022

With the Union Budget around the corner, What tax changes can you expect? How will Covid-19 shape India's Budget? What will be the government's spending priorities?

WION Widelange | Budget 2021: What India Wants

Union Budget 2021 will be preceded by presentation of Economic Survey 2020-2021 in the Indian Parliament. The survey will be presented today. Economic survey is an assessment of the year gone by. It measures the effect of various government schemes on the economy and sets the stage for Union Budget to be presented. Economic survey kicks off the budget session of the parliament. Prior to tabling of the survey, President Ram Nath Kovind will address a joint session of both houses of the parliament. WION will bring you all updates of the survey via its LIVE streams

If you want to watch the economic survey online on WION live TV <a href="https://www.wionews.com/live-tv">here is the link</a>.

The LIVE stream will be available on Facebook as well, click here for <a href="https://www.facebook.com/WIONews">WION's FB page</a>

WION will also livestream economic survey on its Youtube channel. <a href="https://www.youtube.com/channel/UC_gUM8rL-Lrg6O3adPW9K1g">Here is the link</a>.

The livestream will be available on Twitter as well. <a href="https://twitter.com/WIONews">Here is the link to Twitter page</a>

All eyes are on this year's economic survey as 2020 saw unprecedented impact on global economy due to coronavirus pandemic. India has the challenge to bring the economy back on track. The budget and economic survey this year are hence important.

Stay tuned to WION for latest updates on Economic Survey 2020-21

Union Budget 2021 will be preceded by presentation of Economic Survey 2020-2021 in the Indian Parliament. The survey will be presented today. Economic survey is an assessment of the year gone by.

Union Budget 2021 will be preceded by presentation of Economic Survey 2020-2021 in the Indian Parliament. The survey will be presented today. Economic survey is an assessment of the year gone by. It measures the effect of various government schemes on the economy and sets the stage for Union Budget to be presented. Economic survey kicks off the budget session of the parliament. Prior to tabling of the survey, President Ram Nath Kovind will address a joint session of both houses of the parliament. WION will bring you all updates of the survey via its LIVE streams If you want to watch the economic survey online on WION live TV here is the link. The LIVE stream will be available on Facebook as well, click here for WION's FB page WION will also livestream economic survey on its Youtube channel. Here is the link. The livestream will be available on Twitter as well. Here is the link to Twitter page All eyes are on this year's economic survey as 2020 saw unprecedented impact on global economy due to coronavirus pandemic. India has the challenge to bring the economy back on track. The budget and economic survey this year are hence important. Stay tuned to WION for latest updates on Economic Survey 2020-21

Budget 2021: How to watch Economic Survey 2020-21 LIVE streaming

According to reports, the government is mulling one-time coronavirus relief cess of upto 2 per cent to garner revenue in the Union Budget for 2021-22.

<a href="https://www.wionews.com/business-economy/union-budget-2021-goes-paperless-hard-copies-not-to-be-printed-for-first-time-in-history-356417">Also Read:&nbsp;Union Budget 2021 goes paperless; hard copies not to be printed</a>

Reports say the cess will be imposed on taxable income on those who earn above Rs 10 lakh. The Indian Revenue Service (IRS) had last year proposed 4 per cent "Covid relief cess" in April as India entered lockdown.

IRS officers had said in its report that it could fetch the exchequer between ₹15,000 crore and ₹18,000 crore. The IRS had also proposed a new tax saving scheme "Covid savings certificates" for investments up to ₹2,50,000 with a 5-year lock-in period.

Experts had also proposed cess on tobacco products amid the pandemic. Several states had imposed COVID tax to boost revenue stream as health services felt the pressure.

The Jharkhand government had introduced COVID cess&nbsp;on minerals and the Delhi's Arvind Kejriwal government had imposed 70 per cent corona cess on liquor which was later withdrawn.&nbsp;

India is set to begin its vaccination drive on January 16 as Asia's third-largest economy has been gradually recovering from a coronavirus-induced recession as the virus shrank the economy in the last two quarters.

According to SBI (State Bank of India) research, the government would need Rs 21,000-27,000 crore to vaccinate 30 crore people in the first phase and would need another Rs 35,000-45,000 crore to vaccinate 50 crore people which is around 0.3-0.4 per cent of India's Gross Domestic Product (GDP).

The government will present its Budget on February 1.&nbsp;

According to reports, the government is mulling one-time coronavirus relief cess of upto 2 per cent to garner revenue in the Union Budget for 2021-22. Also Read: Union Budget 2021 goes paperless; hard copies not to be printed Reports say the cess will be imposed on taxable income on those who earn above Rs 10 lakh.

According to reports, the government is mulling one-time coronavirus relief cess of upto 2 per cent to garner revenue in the Union Budget for 2021-22. Also Read: Union Budget 2021 goes paperless; hard copies not to be printed Reports say the cess will be imposed on taxable income on those who earn above Rs 10 lakh. The Indian Revenue Service (IRS) had last year proposed 4 per cent "Covid relief cess" in April as India entered lockdown. IRS officers had said in its report that it could fetch the exchequer between ₹15,000 crore and ₹18,000 crore. The IRS had also proposed a new tax saving scheme "Covid savings certificates" for investments up to ₹2,50,000 with a 5-year lock-in period. Experts had also proposed cess on tobacco products amid the pandemic. Several states had imposed COVID tax to boost revenue stream as health services felt the pressure. The Jharkhand government had introduced COVID cess on minerals and the Delhi's Arvind Kejriwal government had imposed 70 per cent corona cess on liquor which was later withdrawn. India is set to begin its vaccination drive on January 16 as Asia's third-largest economy has been gradually recovering from a coronavirus-induced recession as the virus shrank the economy in the last two quarters. According to SBI (State Bank of India) research, the government would need Rs 21,000-27,000 crore to vaccinate 30 crore people in the first phase and would need another Rs 35,000-45,000 crore to vaccinate 50 crore people which is around 0.3-0.4 per cent of India's Gross Domestic Product (GDP). The government will present its Budget on February 1.

Union Budget 2021: Government mulls COVID cess to boost revenue

Amid the coronavirus pandemic, the <a href="https://www.wionews.com/business-economy/union-budget-2021-goes-paperless-hard-copies-not-to-be-printed-for-first-time-in-history-356417">Budget</a> session of Parliament will begin on January 29 with all COVID-related protocols including the shift system will be followed.

<a href="https://www.wionews.com/business-economy/union-budget-2021-government-needs-credible-sources-for-additional-revenue-to-boost-economy-356849">Also Read: Government needs credible sources for additional revenue to boost economy</a>

The Budget session will on January 29. President Ram Nath Kovind will address the joint sitting of both Houses of Parliament. The session will conclude on April 8. Both Houses will adjourn on February 15 and meet again on March 8.

The Budget will be presented by the government on February 1. The Economic Survey would be tabled in the Lok Sabha on January 29 after the President's address, according to reports.

India's lower House the Lok Sabha and upper House the Rajya Sabha will operate in shifts with the Rajya Sabha meeting in the forenoon and Lok Sabha in the evening between 4 pm and 9 pm, according to COVID-19 protocol. The Lok Sabha will sit for five hours during the Budget session.

<a href="https://www.wionews.com/business-economy/union-budget-2021-government-mulls-covid-cess-to-boost-revenue-356420">Also Read: Union Budget 2021- Government mulls COVID cess to boost revenue</a>

Question Hour will take place during the Budget session. &nbsp;

According to Lok Sabha secretariat, private members' business which usually takes place on Friday afternoons will also take place. The House members will be allowed to introduce their own bills which will be debated by the House.

Lok Sabha Speaker Om Birla had said earlier that the government will issue guidelines about the vaccination of parliamentarians before the start of the session.

Parliament members will need to compulsorily wear masks and maintain social distancing norms with everyone likely to undergo RT-PCR tests for coronavirus.

The Parliament officials will also undertake sanitisation of cars and other vehicles entering Parliament including various files.

Amid the coronavirus pandemic, the Budget session of Parliament will begin on January 29 with all COVID-related protocols including the shift system will be followed.

Amid the coronavirus pandemic, the Budget session of Parliament will begin on January 29 with all COVID-related protocols including the shift system will be followed. Also Read: Government needs credible sources for additional revenue to boost economy The Budget session will on January 29. President Ram Nath Kovind will address the joint sitting of both Houses of Parliament. The session will conclude on April 8. Both Houses will adjourn on February 15 and meet again on March 8. The Budget will be presented by the government on February 1. The Economic Survey would be tabled in the Lok Sabha on January 29 after the President's address, according to reports. India's lower House the Lok Sabha and upper House the Rajya Sabha will operate in shifts with the Rajya Sabha meeting in the forenoon and Lok Sabha in the evening between 4 pm and 9 pm, according to COVID-19 protocol. The Lok Sabha will sit for five hours during the Budget session. Also Read: Union Budget 2021- Government mulls COVID cess to boost revenue Question Hour will take place during the Budget session. According to Lok Sabha secretariat, private members' business which usually takes place on Friday afternoons will also take place. The House members will be allowed to introduce their own bills which will be debated by the House. Lok Sabha Speaker Om Birla had said earlier that the government will issue guidelines about the vaccination of parliamentarians before the start of the session. Parliament members will need to compulsorily wear masks and maintain social distancing norms with everyone likely to undergo RT-PCR tests for coronavirus. The Parliament officials will also undertake sanitisation of cars and other vehicles entering Parliament including various files.

Budget session of Parliament: Key dates, Covid-19 protocol & more

The government should provide additional funds as well as incentives in the upcoming Budget to promote indigenous farm research, oilseeds production, food processing and organic farming for the overall growth of the agriculture sector, according to industry experts.

The direct benefit transfer (DBT) scheme should be utilised more to support farmers instead of giving subsidies, they added.

"Food processing industry has played an important role in better price realisation for the farmer and reducing the cost of intermediaries. The budget must provide special incentives to food processing through incentives such as interest subvention, lower taxes, access to technology and so on," DCM Shriram Chairman and Senior MD Ajay Shriram said.

Referring to the successful PM-KISAN scheme under which Rs 6,000 is paid annually directly into farmers bank accounts, he said the DBT mechanism should be fine-tuned and gradually should be utilized to support farmers in lieu of other subsidies.

"Let the farmer decide how to judicially use the money. With the benefit of DBT, farmers can then buy better seed, use new-age fertilizers, optimize water usage and so on," Shriram said.

Stating that many Indian startups have invested in the agri-technology space, he advocated for a policy that encourages growth of these companies and adoption of latest techniques.

He said there has not been any significant breakthrough in recent years from indigenous agricultural research and development (R&amp;D) and this could be partly on account of resource crunch.

"Two areas that need immediate attention are firstly linking agricultural research with industry requirements and secondly avoiding ideological resistance to new-age technologies such GM crops," Shriram said.

Consulting firm Deloitte India suggested that more funds should be allocated for research and development as well as for increasing the domestic production of oilseeds to reduce imports of cooking oils.

Stating that livestock farming is one of the key pillars for augmenting farmers' income, the consulting firm said one of the big impediments for development of this sector is the prevalence of various diseases that affect mortality, productivity, and overall production.

"Supply of vaccines is not adequate to address the increasing demand. Funding for developing vaccines and creating necessary infrastructure would be required in this budget," Deloitte said. 
Chirag Arora, Founder, Organisch Overseas, said the government must encourage farmers to adopt organic farming.

"The need of the hour is to encourage the private sector into the space by offering tax incentives to startups venturing into this domain. It also needs to augment investment on creation of cold-chains and increase storage capabilities," Arora said.

Last month, in a virtual pre-budget consultation with the finance ministry, Bharat Krishak Samaj (BKS) had said that the government should incentivise balanced use of fertilisers by increasing urea price and lowering rates of phosphatic and potassic (P&amp;K) nutrients in the upcoming Budget.

BKS Chairman Ajay Vir Jakhar had also sought reduction in taxes on diesel and transport subsidy on fruits and vegetables, but demanded tax on unhealthy foods. He had pitched for tripling investment for micro-irrigation and solar pumps for individual farmers as well as funding for distribution of soil moisture measuring sensors.

"Prioritize investment in human resources over infrastructure. There are about 50 per cent vacancies in agriculture research institutions across India. Target 2 per cent expenditure on agri R&amp;D of agriculture GDP over the next few years," BKS had said.

The government should provide additional funds as well as incentives in the upcoming Budget to promote indigenous farm research, oilseeds production, food processing and organic farming for the overall growth of the agriculture sector, according to industry experts.

The government should provide additional funds as well as incentives in the upcoming Budget to promote indigenous farm research, oilseeds production, food processing and organic farming for the overall growth of the agriculture sector, according to industry experts. The direct benefit transfer (DBT) scheme should be utilised more to support farmers instead of giving subsidies, they added. "Food processing industry has played an important role in better price realisation for the farmer and reducing the cost of intermediaries. The budget must provide special incentives to food processing through incentives such as interest subvention, lower taxes, access to technology and so on," DCM Shriram Chairman and Senior MD Ajay Shriram said. Referring to the successful PM-KISAN scheme under which Rs 6,000 is paid annually directly into farmers bank accounts, he said the DBT mechanism should be fine-tuned and gradually should be utilized to support farmers in lieu of other subsidies. "Let the farmer decide how to judicially use the money. With the benefit of DBT, farmers can then buy better seed, use new-age fertilizers, optimize water usage and so on," Shriram said. Stating that many Indian startups have invested in the agri-technology space, he advocated for a policy that encourages growth of these companies and adoption of latest techniques. He said there has not been any significant breakthrough in recent years from indigenous agricultural research and development (R&D) and this could be partly on account of resource crunch. "Two areas that need immediate attention are firstly linking agricultural research with industry requirements and secondly avoiding ideological resistance to new-age technologies such GM crops," Shriram said. Consulting firm Deloitte India suggested that more funds should be allocated for research and development as well as for increasing the domestic production of oilseeds to reduce imports of cooking oils. Stating that livestock farming is one of the key pillars for augmenting farmers' income, the consulting firm said one of the big impediments for development of this sector is the prevalence of various diseases that affect mortality, productivity, and overall production. "Supply of vaccines is not adequate to address the increasing demand. Funding for developing vaccines and creating necessary infrastructure would be required in this budget," Deloitte said. Chirag Arora, Founder, Organisch Overseas, said the government must encourage farmers to adopt organic farming. "The need of the hour is to encourage the private sector into the space by offering tax incentives to startups venturing into this domain. It also needs to augment investment on creation of cold-chains and increase storage capabilities," Arora said. Last month, in a virtual pre-budget consultation with the finance ministry, Bharat Krishak Samaj (BKS) had said that the government should incentivise balanced use of fertilisers by increasing urea price and lowering rates of phosphatic and potassic (P&K) nutrients in the upcoming Budget. BKS Chairman Ajay Vir Jakhar had also sought reduction in taxes on diesel and transport subsidy on fruits and vegetables, but demanded tax on unhealthy foods. He had pitched for tripling investment for micro-irrigation and solar pumps for individual farmers as well as funding for distribution of soil moisture measuring sensors. "Prioritize investment in human resources over infrastructure. There are about 50 per cent vacancies in agriculture research institutions across India. Target 2 per cent expenditure on agri R&D of agriculture GDP over the next few years," BKS had said.

Union Budget 2021: Govt should provide additional funds, incentives for agriculture sector, say experts

Finance Minister Nirmala Sitharaman on Friday said that if required, the government would take more steps beyond the announcements made in the Union Budget 2020-21 to boost economic activities.

At an interactive session on 'Budget and Beyond' with professionals from asset management, wealth advisory, tax consultancy and other related industries, the minister also said the Budget 2020-21 was a budget where the impact on equity, bond and currency markets was positive.

"If more has to be done beyond the Budget 2020, we are willing to do that," Sitharaman said at the session, where the participants made several suggestions to boost economic activities in the country.

The government announced a host of steps in the Union Budget, presented on February 1 in Parliament, to expand the economic activities at a time when the country is faced with demand slowdown due to several reasons.

The country's GDP growth is estimated to slow to an 11-year low of 5 per cent in the current financial year.

Also read: <a href="https://www.wionews.com/india-news/laid-foundation-for-5-trillion-economy-in-budget-finance-minister-nirmala-sitharaman-279610">Laid foundation for $5 trillion economy in budget - Finance Minister Nirmala Sitharaman</a>

During the interactive session, participants made suggestions for increasing consumption, giving more money into the hands of consumers, measures required to boost liquidity and hosts of suggestions for the capital markets.

Several suggestions were also made on the 'Vivad se Vishwas' scheme to deal with the disputes related to the direct taxes. It was announced in the Budget 2020-21.

She said the finance ministry will provide details of the scheme soon. However, Parliament approval will be required before the scheme is implemented.

The Union Cabinet has approved certain amendments to the scheme.

"In a day or two, we shall be coming with a clear non-paper (on the scheme) because Parliament is yet to pass it," she said.

To a suggestion regarding PAN card, the minister said the issuance process would be simplified further.

She assured the participants that her ministry would look into the suggestions.

The finance minister had similar interactive sessions in Mumbai, Chennai and Kolkata last week.

The meeting was also attended by Niti Aayog Vice-Chairman Rajiv Kumar and CEO Amitabh Kant, besides secretaries of the finance ministry.

Finance Minister Nirmala Sitharaman on Friday said that if required, the government would take more steps beyond the announcements made in the Union Budget 2020-21 to boost economic activities.

Finance Minister Nirmala Sitharaman on Friday said that if required, the government would take more steps beyond the announcements made in the Union Budget 2020-21 to boost economic activities. At an interactive session on 'Budget and Beyond' with professionals from asset management, wealth advisory, tax consultancy and other related industries, the minister also said the Budget 2020-21 was a budget where the impact on equity, bond and currency markets was positive. "If more has to be done beyond the Budget 2020, we are willing to do that," Sitharaman said at the session, where the participants made several suggestions to boost economic activities in the country. The government announced a host of steps in the Union Budget, presented on February 1 in Parliament, to expand the economic activities at a time when the country is faced with demand slowdown due to several reasons. The country's GDP growth is estimated to slow to an 11-year low of 5 per cent in the current financial year. Also read: Laid foundation for $5 trillion economy in budget - Finance Minister Nirmala Sitharaman During the interactive session, participants made suggestions for increasing consumption, giving more money into the hands of consumers, measures required to boost liquidity and hosts of suggestions for the capital markets. Several suggestions were also made on the 'Vivad se Vishwas' scheme to deal with the disputes related to the direct taxes. It was announced in the Budget 2020-21. She said the finance ministry will provide details of the scheme soon. However, Parliament approval will be required before the scheme is implemented. The Union Cabinet has approved certain amendments to the scheme. "In a day or two, we shall be coming with a clear non-paper (on the scheme) because Parliament is yet to pass it," she said. To a suggestion regarding PAN card, the minister said the issuance process would be simplified further. She assured the participants that her ministry would look into the suggestions. The finance minister had similar interactive sessions in Mumbai, Chennai and Kolkata last week. The meeting was also attended by Niti Aayog Vice-Chairman Rajiv Kumar and CEO Amitabh Kant, besides secretaries of the finance ministry.

Government willing to do more beyond Budget to boost growth: Sitharaman

Finance Minister Nirmala Sitharaman on Sunday said that the foundation for achieving the goal of USD 5 trillion economy by 2024-25 has been laid in the union budget which stressed on increasing capital expenditure for infrastructure.

She said that the budget has also focused on increasing consumption and investments towards building assets.

"I think we have laid the foundation for increasing consumption and investments towards building assets such as infrastructure, which should have a cascading effect in the long and short term," Sitharaman told reporters.

She said this will trigger the virtuous cycle for the economy to perform and move forward.

"The majority of government investment is directed towards creating infrastructure and through various windows like health and agriculture to avoid any kind of rural distress. These will create the foundation for the USD 5 trillion economy," she said.

Asked about the rationalisation of rates of Goods and Services Tax, the finance minister said that it is being reviewed every three months by the GST Council.

"If the rates are reviewed every three months, the government cannot make an assessment of revenue collection. Can we consider a situation where rate rationalisation is done once a year and not every three months?. I have proposed the GST Council to consider it," she said.

Rationalisation of GST rates once a year will help the government and businesses, she said.

Also read: <a href="https://www.wionews.com/india-news/no-plans-to-cut-funds-for-states-nirmala-sitharaman-279527">No plans to cut funds for states - Nirmala Sitharaman</a>

"It is not that GST collection is not happening. The indirect tax administration is now getting the benefits of data analytics to prevent fraudulent activities," the finance minister said.

The GST collection has been around Rs one lakh crore per month, she said.

To a query whether GST has been revenue neutral as was envisaged, the finance minister said, "The compensation rate (for states' revenue loss) was fixed at 14 per cent on the basis of a certain level of calculation. However, collections have fallen (short of expectations) and so there will be an impact."

The compensation rate was fixed on the premise that the economy will grow by 12-13 per cent, she said,

"But in the last two months, the economy grew less than that. However, the government will pay compensation (to the states) within a timeline", Sitharaman said.

To a question about bringing petrol and diesel under GST, she said a lot of discussions had taken place when the new law was framed.

"My predecessor late Arun Kr Jaitley made a provision for making petroleum products zero-rated. When states are ready, there is no need for any amendment to bring petroleum products under GST and the Council can do that," the finance minister said.

On liquidity to industry and NBFCs, she said every possible step is being taken to ensure that availability of cash does not become an issue.

"The government is closely monitoring lending by both public and private sector banks. Secretaries are continuously engaged with the banks and every possible step is being taken so that liquidity is available," she said.

Sitharaman also dismissed the fear that the optional direct tax structure, as announced in the budget, will decrease savings and thereby investments.

Regarding partial disinvestment in LIC through an IPO, as announced in the budget, she said, "Indian people will hold shares and there is no reason to believe as to why money in the insurance company will not be secure after the shares will be offered to the public."

She said, "I do not know what will be the extent of disinvestment. May be eight, ten or 12 per cent. The government will have the remaining shareholding."

Asked about what West Bengal has received from the budget, she said, "I do not know how I answer this question of kisko keya mila (which state gets what). I am looking at the point of macroeconomic stability, building assets in the country, money directly going to hands of individuals because of reduced tax rates and so on."

Announcements were made in the budget about various projects which are happening in different states, the finance minister said.

While interacting with the members of trade and industries here earlier in the day, Sitharaman said the government wants continuous engagement with industries and businesses and will act as a facilitator for hassle-free payments of taxes.

She said the Centre has introduced some features in the budget like "faceless appeals and sorting out of problems while imparting tax administration".

Sitharaman said this will be made possible only with the help of new technology.

At one point of time during the discussion, city-based industrialist Gaurav Swarup complained that promoters of some companies are looking at selling their businesses and many others are "losing interests" as there is no incentive.

Unfazed by such remarks, Sitharaman said, "Tell me, what is the solution? The government reduces the corporate tax rate and keeps it very low for a new one. It takes steps to simplify the tax structure and make the system cleaner and reduce the rates progressively. Tell me what else you want me to do."

Indian Chamber of Commerce director general Rajeev Singh said a delegation from the industry body also expressed concerns over the implication of tax collected at source (TCS) on Indian exports and other issues like ESOP (Employee stock ownership plan).&nbsp;

Finance Minister Nirmala Sitharaman on Sunday said that the foundation for achieving the goal of USD 5 trillion economy by 2024-25 has been laid in the union budget which stressed on increasing capital expenditure for infrastructure.

Finance Minister Nirmala Sitharaman on Sunday said that the foundation for achieving the goal of USD 5 trillion economy by 2024-25 has been laid in the union budget which stressed on increasing capital expenditure for infrastructure. She said that the budget has also focused on increasing consumption and investments towards building assets. "I think we have laid the foundation for increasing consumption and investments towards building assets such as infrastructure, which should have a cascading effect in the long and short term," Sitharaman told reporters. She said this will trigger the virtuous cycle for the economy to perform and move forward. "The majority of government investment is directed towards creating infrastructure and through various windows like health and agriculture to avoid any kind of rural distress. These will create the foundation for the USD 5 trillion economy," she said. Asked about the rationalisation of rates of Goods and Services Tax, the finance minister said that it is being reviewed every three months by the GST Council. "If the rates are reviewed every three months, the government cannot make an assessment of revenue collection. Can we consider a situation where rate rationalisation is done once a year and not every three months?. I have proposed the GST Council to consider it," she said. Rationalisation of GST rates once a year will help the government and businesses, she said. Also read: No plans to cut funds for states - Nirmala Sitharaman "It is not that GST collection is not happening. The indirect tax administration is now getting the benefits of data analytics to prevent fraudulent activities," the finance minister said. The GST collection has been around Rs one lakh crore per month, she said. To a query whether GST has been revenue neutral as was envisaged, the finance minister said, "The compensation rate (for states' revenue loss) was fixed at 14 per cent on the basis of a certain level of calculation. However, collections have fallen (short of expectations) and so there will be an impact." The compensation rate was fixed on the premise that the economy will grow by 12-13 per cent, she said, "But in the last two months, the economy grew less than that. However, the government will pay compensation (to the states) within a timeline", Sitharaman said. To a question about bringing petrol and diesel under GST, she said a lot of discussions had taken place when the new law was framed. "My predecessor late Arun Kr Jaitley made a provision for making petroleum products zero-rated. When states are ready, there is no need for any amendment to bring petroleum products under GST and the Council can do that," the finance minister said. On liquidity to industry and NBFCs, she said every possible step is being taken to ensure that availability of cash does not become an issue. "The government is closely monitoring lending by both public and private sector banks. Secretaries are continuously engaged with the banks and every possible step is being taken so that liquidity is available," she said. Sitharaman also dismissed the fear that the optional direct tax structure, as announced in the budget, will decrease savings and thereby investments. Regarding partial disinvestment in LIC through an IPO, as announced in the budget, she said, "Indian people will hold shares and there is no reason to believe as to why money in the insurance company will not be secure after the shares will be offered to the public." She said, "I do not know what will be the extent of disinvestment. May be eight, ten or 12 per cent. The government will have the remaining shareholding." Asked about what West Bengal has received from the budget, she said, "I do not know how I answer this question of kisko keya mila (which state gets what). I am looking at the point of macroeconomic stability, building assets in the country, money directly going to hands of individuals because of reduced tax rates and so on." Announcements were made in the budget about various projects which are happening in different states, the finance minister said. While interacting with the members of trade and industries here earlier in the day, Sitharaman said the government wants continuous engagement with industries and businesses and will act as a facilitator for hassle-free payments of taxes. She said the Centre has introduced some features in the budget like "faceless appeals and sorting out of problems while imparting tax administration". Sitharaman said this will be made possible only with the help of new technology. At one point of time during the discussion, city-based industrialist Gaurav Swarup complained that promoters of some companies are looking at selling their businesses and many others are "losing interests" as there is no incentive. Unfazed by such remarks, Sitharaman said, "Tell me, what is the solution? The government reduces the corporate tax rate and keeps it very low for a new one. It takes steps to simplify the tax structure and make the system cleaner and reduce the rates progressively. Tell me what else you want me to do." Indian Chamber of Commerce director general Rajeev Singh said a delegation from the industry body also expressed concerns over the implication of tax collected at source (TCS) on Indian exports and other issues like ESOP (Employee stock ownership plan).

Laid foundation for $5 trillion economy in budget: Finance Minister Nirmala Sitharaman

Finance Minister Nirmala <a href="https://www.wionews.com/india-news/union-budget-2020-21-gross-enrolment-ratio-for-girls-is-now-higher-than-boys-says-sitharaman-278001">Sitharaman</a> on Friday said the budget presented by her last week provides a "discreet and considered" stimulus.

Speaking to industry representatives in Mumbai, Sitharaman said the Budget draws on experiences of all the past instances of a slowdown in growth where the government has had to provide for a booster.

<a href="https://www.wionews.com/india-news/want-to-increase-spending-capacity-nirmala-sitharaman-278011">Also Read:&nbsp;Wanted to increase spending capacity, says Nirmala Sitharaman on Budget 2020</a>

It can be noted that some constituencies have expressed disappointment with the Budget for not having any big announcements, especially at a time when growth has slipped to a decadal low.

"Based on the experiences that we had in the last round of government trying to provide stimulus, we've essentially made sure that we are doing it in a very discreet and considered manner," Sitharaman said at the interaction.

"We kept the macroeconomic fundamentals in mind and made sure that the necessary stimulus which was the demand of the time, both for increasing consumption and also for ensuring investments in long-term asset building as a means to providing stimulus will be taken up," she added.

Accompanied by all the secretaries in the ministry, <a href="https://www.wionews.com/india-news/latest-india-news-finance-minister-nirmala-sitharaman-breaks-record-of-longest-budget-speech-278005">Sitharaman </a>said unlike the past instances of providing for a stimulus, the remedies that the budget have provided are "very focused, very clear that it is going in a well chalked out path with a clear intention of spending responsibly in building capital assets".

She pointed out that the rural and farm sector had got attention through the 16-point agenda, startups have been given a fillip and infrastructure investments have also been taken up.

"The remedy is a considered remedy. I'm sure discerning people will be able to see why it is so," she said.

Sitharaman said divestments are necessary to get transparency in the working of companies by making necessary disclosures.

She added that the government will only sell those companies where it sees no strategic rationale in running those.

Finance Minister Nirmala Sitharaman on Friday said the budget presented by her last week provides a "discreet and considered" stimulus. Speaking to industry representatives in Mumbai, Sitharaman said the Budget draws on experiences of all the past instances of a slowdown in growth where the government has had to provide for a booster.

Finance Minister Nirmala Sitharaman on Friday said the budget presented by her last week provides a "discreet and considered" stimulus. Speaking to industry representatives in Mumbai, Sitharaman said the Budget draws on experiences of all the past instances of a slowdown in growth where the government has had to provide for a booster. Also Read: Wanted to increase spending capacity, says Nirmala Sitharaman on Budget 2020 It can be noted that some constituencies have expressed disappointment with the Budget for not having any big announcements, especially at a time when growth has slipped to a decadal low. "Based on the experiences that we had in the last round of government trying to provide stimulus, we've essentially made sure that we are doing it in a very discreet and considered manner," Sitharaman said at the interaction. "We kept the macroeconomic fundamentals in mind and made sure that the necessary stimulus which was the demand of the time, both for increasing consumption and also for ensuring investments in long-term asset building as a means to providing stimulus will be taken up," she added. Accompanied by all the secretaries in the ministry, Sitharaman said unlike the past instances of providing for a stimulus, the remedies that the budget have provided are "very focused, very clear that it is going in a well chalked out path with a clear intention of spending responsibly in building capital assets". She pointed out that the rural and farm sector had got attention through the 16-point agenda, startups have been given a fillip and infrastructure investments have also been taken up. "The remedy is a considered remedy. I'm sure discerning people will be able to see why it is so," she said. Sitharaman said divestments are necessary to get transparency in the working of companies by making necessary disclosures. She added that the government will only sell those companies where it sees no strategic rationale in running those.

We ensured discreet and considered stimulus in Union Budget: Nirmala Sitharaman

During the Union Budget announcement on February 1, Twitter witnessed 11 lakh related tweets between January 30 and February 3, 2020. According to Twitter, The Economic Survey, which was also released during the same, also continued to trend on the website for a while.

Also read:&nbsp;<a data-ctorig="https://www.wionews.com/business-economy/20-key-budget-highlights-you-must-know-278059" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/20-key-budget-highlights-you-must-know-278059&amp;sa=U&amp;ved=2ahUKEwiL5tvTrrznAhU0yzgGHfqYAg4QFjAAegQIBRAB&amp;usg=AOvVaw11NKz5U2TGTn-UBDdYbWP-" dir="ltr" href="https://www.wionews.com/business-economy/20-key-budget-highlights-you-must-know-278059" target="_blank">20 key Budget highlights you must know</a>

According to Twitter, there were 12 live streams of the budget on the website using a feature called the ''caurosel'', which facilitated conversations among policymakers, influencers, and journalists.

This year's Budget speech was also the longest speech ever made by a Finance Minister in the history of India.

The conversation on Twitter wasn't restricted just to the English language, as local languages including Hindi, Marathi, and Tamil also brought some traction to the portal.

<h6><img alt="ppppp" data-entity-type="file" data-entity-uuid="f017a6ad-5004-495e-9a2a-805de1e7a432" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%284%29_31.jpg" /> 
In this handout photograph taken and released by India's Presidential Palace on February 1, 2020, Finance Minister Nirmala Sitharaman (R) poses for photographs along with President Ram Nath Kovind (C) at Rashtrapati Bhavan - the Presidential Palace, before presenting at the Parliament the 2020 union budget, in New Delhi | AFP 
&nbsp;</h6>

In the budget, over Rs&nbsp;17,300 crore has been allocated for the Ministry of External Affairs, with Rs 100 crore earmarked for the strategic Chabahar Port project in southeastern Iran that gives India connectivity to Afghanistan bypassing Pakistan.

The total aid to countries has decreased by about Rs 56 crore from Rs 6,963 revised estimates of 2019-20 to Rs 6,907crore in Budget 2020-21.

While Nepal saw a cut of Rs 400 crore in aid by India from Rs 1,200 crore in 2019-20 to Rs 800 crore in 2020-21, Myanmar saw a hike in allocation from Rs 170 crore in 2019-20 to Rs 300 crore for the next fiscal.

The aid for the strategically-important Chabahar Port which was zero in the revised estimates of 2019-20 has gone up to Rs 100 crore for the next fiscal.

<img alt="pp" data-entity-type="file" data-entity-uuid="792929c5-cf3c-431d-bd05-c0d1e7c23aad" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%285%29_23.jpg" />

The Port complex, backed by India, on Iran's coast along the Gulf of Oman is being developed to provide an alternative trade route between India and Afghanistan.

The aid allocation for Bhutan has gone up from Rs 2,674.51 crore in 2019-20 to Rs 2,884.65 crore in the next fiscal.

Aid allocation to the Maldives has been reduced by Rs 75 crore to Rs 1,025 crore in the next fiscal.

Also read:&nbsp;<a data-ctorig="https://www.wionews.com/business-economy/budget-2020-find-out-what-will-you-lose-in-new-tax-regime-278054" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/budget-2020-find-out-what-will-you-lose-in-new-tax-regime-278054&amp;sa=U&amp;ved=2ahUKEwj68vjErrznAhX8yzgGHalIAocQFjAAegQIABAC&amp;usg=AOvVaw0NoV-JcE2LclL0h_tPbNtt" dir="ltr" href="https://www.wionews.com/business-economy/budget-2020-find-out-what-will-you-lose-in-new-tax-regime-278054" target="_blank">Budget 2020:&nbsp;Find out&nbsp;what&nbsp;will you lose&nbsp;in&nbsp;new tax regime</a>

In the budget 2020-21, aid allocation for African countries is Rs 350 crore, Rs 200 crore for Bangladesh and Sri Lanka, Rs 140 crore for Seychelles, Rs 20 crore to Latin American countries and Rs 2 crore to Mongolia.

The primary hashtag used to consolidate all things budget, users employed #UnionBudget2020 and #IndiaBudget2020.

During the Union Budget announcement on February 1, Twitter witnessed 11 lakh related tweets between January 30 and February 3, 2020. According to Twitter, The Economic Survey, which was also released during the same, also continued to trend on the website for a while.

During the Union Budget announcement on February 1, Twitter witnessed 11 lakh related tweets between January 30 and February 3, 2020. According to Twitter, The Economic Survey, which was also released during the same, also continued to trend on the website for a while. Also read: 20 key Budget highlights you must know According to Twitter, there were 12 live streams of the budget on the website using a feature called the ''caurosel'', which facilitated conversations among policymakers, influencers, and journalists. This year's Budget speech was also the longest speech ever made by a Finance Minister in the history of India. The conversation on Twitter wasn't restricted just to the English language, as local languages including Hindi, Marathi, and Tamil also brought some traction to the portal. In this handout photograph taken and released by India's Presidential Palace on February 1, 2020, Finance Minister Nirmala Sitharaman (R) poses for photographs along with President Ram Nath Kovind (C) at Rashtrapati Bhavan - the Presidential Palace, before presenting at the Parliament the 2020 union budget, in New Delhi | AFP In the budget, over Rs 17,300 crore has been allocated for the Ministry of External Affairs, with Rs 100 crore earmarked for the strategic Chabahar Port project in southeastern Iran that gives India connectivity to Afghanistan bypassing Pakistan. The total aid to countries has decreased by about Rs 56 crore from Rs 6,963 revised estimates of 2019-20 to Rs 6,907crore in Budget 2020-21. While Nepal saw a cut of Rs 400 crore in aid by India from Rs 1,200 crore in 2019-20 to Rs 800 crore in 2020-21, Myanmar saw a hike in allocation from Rs 170 crore in 2019-20 to Rs 300 crore for the next fiscal. The aid for the strategically-important Chabahar Port which was zero in the revised estimates of 2019-20 has gone up to Rs 100 crore for the next fiscal. The Port complex, backed by India, on Iran's coast along the Gulf of Oman is being developed to provide an alternative trade route between India and Afghanistan. The aid allocation for Bhutan has gone up from Rs 2,674.51 crore in 2019-20 to Rs 2,884.65 crore in the next fiscal. Aid allocation to the Maldives has been reduced by Rs 75 crore to Rs 1,025 crore in the next fiscal. Also read: Budget 2020: Find out what will you lose in new tax regime In the budget 2020-21, aid allocation for African countries is Rs 350 crore, Rs 200 crore for Bangladesh and Sri Lanka, Rs 140 crore for Seychelles, Rs 20 crore to Latin American countries and Rs 2 crore to Mongolia. The primary hashtag used to consolidate all things budget, users employed #UnionBudget2020 and #IndiaBudget2020.

Twitter recorded 11 lakh-Budget related tweets between Jan 30-Feb 3

Prime Minister Narendra Modi on Tuesday said attempts were made to mislead people on the Union Budget, however, even critics now accept that it is the best budget under the prevailing global economic scenario.

Speaking at the BJP parliamentary party meeting here, Modi hailed the Bodo accord and the agreement to settle the members of Bru-Reang tribe in Tripura, terming them “historic” successes of his government in this decade.

It will usher in an era of peace in the North East which has suffered decades of bloodshed and violence, he said.

Referring to the Union Budget, which was presented by Union Finance Minister Nirmala Sitharaman on Saturday, Modi said attempts were made to mislead people on it. However, people have now realised that it is a very good budget and even critics have acknowledged that this is the best budget under the prevailing global economic scenario, he said.

BJP president JP Nadda, who attended the first parliamentary party meet after becoming the party chief, was felicitated by Modi and others. Nadda expressed confidence about the BJP’s win in the February 8 Delhi Assembly polls and added that over 240 party MPs are spending several days in the poor colonies of the national capital to reach out to voters.

Prime Minister Narendra Modi on Tuesday said attempts were made to mislead people on the Union Budget, however, even critics now accept that it is the best budget under the prevailing global economic scenario.

Prime Minister Narendra Modi on Tuesday said attempts were made to mislead people on the Union Budget, however, even critics now accept that it is the best budget under the prevailing global economic scenario. Speaking at the BJP parliamentary party meeting here, Modi hailed the Bodo accord and the agreement to settle the members of Bru-Reang tribe in Tripura, terming them “historic” successes of his government in this decade. It will usher in an era of peace in the North East which has suffered decades of bloodshed and violence, he said. Referring to the Union Budget, which was presented by Union Finance Minister Nirmala Sitharaman on Saturday, Modi said attempts were made to mislead people on it. However, people have now realised that it is a very good budget and even critics have acknowledged that this is the best budget under the prevailing global economic scenario, he said. BJP president JP Nadda, who attended the first parliamentary party meet after becoming the party chief, was felicitated by Modi and others. Nadda expressed confidence about the BJP’s win in the February 8 Delhi Assembly polls and added that over 240 party MPs are spending several days in the poor colonies of the national capital to reach out to voters.

Attempts made to mislead people on Union Budget: PM Modi

On February 1, 2020, the Union Finance Budget was introduced in the Lok Sabha by the Finance Minister of India, Nirmala Sitharaman. Before the introduction of the budget, the main issues concerning the economy were the decline in consumer spending and investments. The government has aimed to remedy these problems by bringing changes in the taxation structure and by providing for disinvestment in government-owned assets with the objective of infusing more money in the economy. This is definitely a bold step taken by the Ministry of Finance to spur the economy back on track.&nbsp;

An attempt has been made by the government to place more money in the hands of the general public and certain specific policies have been introduced by placing a few key sectors into prominence. The Agricultural, Rural Sectors along with the Infrastructure Sector, coupled with new policies of taxation and disinvestment have prominently been placed in the budget to accomplish the objectives of the government.

Agricultural and Rural Sectors

In the budget presented for the fiscal year 2020-2021, Agricultural and Rural sectors have been allotted a total of Rs.2.83 lakh crores, out of which, Rs.1.6 lakh crores are being dedicated to the betterment of irrigation facilities available to the farmers and Rs.1.23 lakh crores being allotted for rural development. Specific yojanas such as the PM-KUSUM have been revisited and subsequently strengthened by enlarging the applicability of the Yojna to twenty lakh farmers and by providing for additional benefits under the aforementioned Scheme. In addition to this, the budget has additionally come to the help of the farmers by providing for Krishi Rail Services and Krishi Udaan Services, through which the transportation of perishable goods has been aimed to be bolstered. The government has also focussed on the 'blue economy' of the country by aiming to involve the youth of the country in the fishery sector by providing for 3477 Sagar Mitras and 500 fish farmer organisations, aiming to increase the export of the aforementioned sector to Rs.1 lakh crore by 2024-2025.&nbsp;

Taxation

There are major changes to the taxation sector of the economy by the government by revamping the income tax slabs, applicable earlier. Under the new scheme, two additional sub-divisions in the taxation bracket have been introduced by bifurcating the tax bracket. The tax rates that were applicable at 20 per cent for income slab between Rs.5 lakhs to Rs.10 lakhs under the old scheme has been revisited by the government at 10 per cent for income slab between Rs.5 lakhs to Rs.7.5 lakhs. Similarly, for Income slab between Rs.7.5 lakhs to Rs.10 lakhs, a tax rate has been fixed at 15 per cent. Likewise, the tax rate applicable for the income slab of Rs.10 Lakhs to Rs. 15 Lakhs was at 30 per cent under the old scheme has been changed to 20 per cent for the income slab of Rs.10 lakhs to Rs.12.5 lakhs and 25 per cent for the income slab of Rs.12.5 lakhs to Rs.15 lakhs.&nbsp;

Additional provisions have been made wherein the tax assessees have the option of subscribing to the old tax rates in case they want to claim certain benefits, but in order to claim the benefit of the new tax brackets, assessees would have to conform to the new scheme. &nbsp;

The government has also brought a notable change by changing the applicability of Dividend Distribution Tax. The tax was earlier imposed on companies but is now liable to be paid by individuals. In another boost to the companies, the threshold for exemption on the taxes payable by startups on the profits has been increased to Rs.100 crores from Rs.25 crores. Furthermore, previously the exemption on tax on profits of start-ups was limited to three years out of seven assessment years. This has also been proposed to be revamped to seven years out of ten years.&nbsp;

Another welcome change that been brought about by the government through the present Union Budget is that the Deposit Insurance Cover has been increased for the first time since the year 1993 from Rs.1 lakh to Rs.5 lakhs.&nbsp; 
 
WATCH: Budget 2020 - what it means for foreign investors?

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Infrastructure Sector

The government has allocated a total of Rs.100 lakh crores to be invested into the sector of infrastructure over the next four years. This has been sought to be materialised by focussing on the development of 100 airports under the 'Udaan Scheme' and the development of 55 new smart cities.&nbsp;

&nbsp;Women and Child Development, Social Welfare

The Union Budget has made an attempt to bolster this section of the society by providing enhanced funds for the citizens falling under this category. The amount allocated to accomplish the objectives of the 'Poshan Abhiyan' stands at Rs.35,600 crores. A task force has been formed to deal with the issue of young women entering into motherhood and their desire to pursue higher education at that stage. The task force is to report back within six months' time with their recommendations. Additionally, Rs. 28,600 crores have been specifically allotted for programmes specific to women.&nbsp;

Moreover, under the head of Social Welfare Sector, the Central Government has allocated Rs.85,000 Crores and Rs.53,700 Crores for Scheduled Class and OBC's and Scheduled Tribes respectively, to honour their commitments towards this section of the society.&nbsp;

Defence Sector

The expenditure of the government on <a href="https://www.wionews.com/opinions-blogs/union-budget-2020-defence-sector-needs-more-money-for-modernisation-278261">defence and its ancillary services </a>has been hiked by 6 per cent from Rs.3.18 lakh crores to Rs.3.37 lakh crores at present. A material change in the form of increased defence pension has been brought about by the Current Union Budget by increasing the defence pension for the defence forces from Rs.1.17 lakh crores to Rs.1.33 lakh crores. Therefore, the total defence budget amounts to Rs.4.7 lakh crores.&nbsp;

In view of the major highlights of the Union Budget as explained above, the government has aimed at increasing the purchasing power of the general public by coming out with such policies and schemes which aim to increase consumer expenditure and subsequently, the volume of investments made in the economy. Overall, the budget presented has focused on some key areas of the economy and&nbsp;society. Efficient utilisation of the allocated resources will lead to the accomplishment of socio-economic objectives of the government.&nbsp; 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;

On February 1, 2020, the Union Finance Budget was introduced in the Lok Sabha by the Finance Minister of India, Nirmala Sitharaman. Before the introduction of the budget, the main issues concerning the economy were the decline in consumer spending and investments.

On February 1, 2020, the Union Finance Budget was introduced in the Lok Sabha by the Finance Minister of India, Nirmala Sitharaman. Before the introduction of the budget, the main issues concerning the economy were the decline in consumer spending and investments. The government has aimed to remedy these problems by bringing changes in the taxation structure and by providing for disinvestment in government-owned assets with the objective of infusing more money in the economy. This is definitely a bold step taken by the Ministry of Finance to spur the economy back on track. An attempt has been made by the government to place more money in the hands of the general public and certain specific policies have been introduced by placing a few key sectors into prominence. The Agricultural, Rural Sectors along with the Infrastructure Sector, coupled with new policies of taxation and disinvestment have prominently been placed in the budget to accomplish the objectives of the government. Agricultural and Rural Sectors In the budget presented for the fiscal year 2020-2021, Agricultural and Rural sectors have been allotted a total of Rs.2.83 lakh crores, out of which, Rs.1.6 lakh crores are being dedicated to the betterment of irrigation facilities available to the farmers and Rs.1.23 lakh crores being allotted for rural development. Specific yojanas such as the PM-KUSUM have been revisited and subsequently strengthened by enlarging the applicability of the Yojna to twenty lakh farmers and by providing for additional benefits under the aforementioned Scheme. In addition to this, the budget has additionally come to the help of the farmers by providing for Krishi Rail Services and Krishi Udaan Services, through which the transportation of perishable goods has been aimed to be bolstered. The government has also focussed on the 'blue economy' of the country by aiming to involve the youth of the country in the fishery sector by providing for 3477 Sagar Mitras and 500 fish farmer organisations, aiming to increase the export of the aforementioned sector to Rs.1 lakh crore by 2024-2025. Taxation There are major changes to the taxation sector of the economy by the government by revamping the income tax slabs, applicable earlier. Under the new scheme, two additional sub-divisions in the taxation bracket have been introduced by bifurcating the tax bracket. The tax rates that were applicable at 20 per cent for income slab between Rs.5 lakhs to Rs.10 lakhs under the old scheme has been revisited by the government at 10 per cent for income slab between Rs.5 lakhs to Rs.7.5 lakhs. Similarly, for Income slab between Rs.7.5 lakhs to Rs.10 lakhs, a tax rate has been fixed at 15 per cent. Likewise, the tax rate applicable for the income slab of Rs.10 Lakhs to Rs. 15 Lakhs was at 30 per cent under the old scheme has been changed to 20 per cent for the income slab of Rs.10 lakhs to Rs.12.5 lakhs and 25 per cent for the income slab of Rs.12.5 lakhs to Rs.15 lakhs. Additional provisions have been made wherein the tax assessees have the option of subscribing to the old tax rates in case they want to claim certain benefits, but in order to claim the benefit of the new tax brackets, assessees would have to conform to the new scheme. The government has also brought a notable change by changing the applicability of Dividend Distribution Tax. The tax was earlier imposed on companies but is now liable to be paid by individuals. In another boost to the companies, the threshold for exemption on the taxes payable by startups on the profits has been increased to Rs.100 crores from Rs.25 crores. Furthermore, previously the exemption on tax on profits of start-ups was limited to three years out of seven assessment years. This has also been proposed to be revamped to seven years out of ten years. Another welcome change that been brought about by the government through the present Union Budget is that the Deposit Insurance Cover has been increased for the first time since the year 1993 from Rs.1 lakh to Rs.5 lakhs. WATCH: Budget 2020 - what it means for foreign investors? × Infrastructure Sector The government has allocated a total of Rs.100 lakh crores to be invested into the sector of infrastructure over the next four years. This has been sought to be materialised by focussing on the development of 100 airports under the 'Udaan Scheme' and the development of 55 new smart cities. Women and Child Development, Social Welfare The Union Budget has made an attempt to bolster this section of the society by providing enhanced funds for the citizens falling under this category. The amount allocated to accomplish the objectives of the 'Poshan Abhiyan' stands at Rs.35,600 crores. A task force has been formed to deal with the issue of young women entering into motherhood and their desire to pursue higher education at that stage. The task force is to report back within six months' time with their recommendations. Additionally, Rs. 28,600 crores have been specifically allotted for programmes specific to women. Moreover, under the head of Social Welfare Sector, the Central Government has allocated Rs.85,000 Crores and Rs.53,700 Crores for Scheduled Class and OBC's and Scheduled Tribes respectively, to honour their commitments towards this section of the society. Defence Sector The expenditure of the government on defence and its ancillary services has been hiked by 6 per cent from Rs.3.18 lakh crores to Rs.3.37 lakh crores at present. A material change in the form of increased defence pension has been brought about by the Current Union Budget by increasing the defence pension for the defence forces from Rs.1.17 lakh crores to Rs.1.33 lakh crores. Therefore, the total defence budget amounts to Rs.4.7 lakh crores. In view of the major highlights of the Union Budget as explained above, the government has aimed at increasing the purchasing power of the general public by coming out with such policies and schemes which aim to increase consumer expenditure and subsequently, the volume of investments made in the economy. Overall, the budget presented has focused on some key areas of the economy and society. Efficient utilisation of the allocated resources will lead to the accomplishment of socio-economic objectives of the government. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Union Budget 2020: Government has taken bold steps to put economy back on track

Former Finance Minister P Chidambaram stated that the Union Budget was one that lacked a narrative similar to a movie which bombed after its first show. He said that the news on Budget had disappeared from media discussions just after two days of it having been tabled.&nbsp;

Speaking to industry leaders at an event hosted by the Southern India Chamber of Commerce and Industry, Chidambaram shared his explanation that the two major reasons for the slowdown were demand constraint and the economy being investment starved.

The former finance minister began by stating that he would speak for 160 minutes, in an apparent dig at Finance Minister Nirmala Sitaraman’s marathon Budget speech, that lasted as long and was also the longest Budget speech.&nbsp;

Making a mention of the six quarters of growth decline and rising inflation rates, he referred to the economy as a patient who required radical surgery and a doctor (the government) who wasn’t ready to acknowledge how bad the situation was.&nbsp;

Also read: <a href="https://www.wionews.com/opinions-blogs/union-budget-2020-government-has-taken-bold-steps-to-put-economy-back-on-track-278226">Union Budget 2020 - Government has taken bold steps to put economy back on track</a>

“None of the growth engines are firing and we have a 0.1 per cent decline in mining, negative growth of 5.3 per cent in coal, 3.1 per cent in gas and 1.1 per cent in refining. Imports are on the decline for 8 months in a row while exports are on the downward slide for 5 months in a row. Every sector is facing this including leather, agriculture, handicrafts et cetera. In the auto sector alone 296 workshops have shut and 2 lakh people lost their jobs. The finance minister must ask her team for an economic explanation for what’s happening,” Chidambaram said.&nbsp;

Sharing his reading of the situation, Chidambaram said that there is a demand constraint where people are not buying, don't have an inclination to buy and nobody is willing to invest be it domestic or foreign.&nbsp;

"The natural reaction of the government should be what shall we do to make people buy and invest, how to stimulate demand and promote investment," he added.

On the decline in investments, he said, “Nobody is investing as their inventory piling up, as the production capacity utilization is 49 per cent. When one has nearly 50 per cent idle capacity why would they invest?”&nbsp;

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">Budget will bolster income and investment; bring vitality in financial system - PM Modi</a>

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Solutions and the way ahead&nbsp;

Chidambaram said that the best way to stimulate demand is by putting more money in the hands of the common man and ensure that they buy everything ranging from eggs to shoes, clothes and toothpaste. He stated that only mass consumption drives demand and that it isn’t enough to give corporate tax cuts that benefit 200 rich people, whereas growth can be driven only when there is money in the hands of crores of people.&nbsp;

“The Government doesn't need to go too far to understand that if the demand picks up, people will start buying more”, he said.

Chidambaram recommended that the government must consider reviving the 4 engines of growth - government expenditure, private investment, private consumption and exports. He added that the engines can't be fired at full speed from their current stuttering state. Chidambaram furthered that the government redraw its expenditure pattern and spend in ways that can take money directly to the people.

Also read: <a href="https://www.wionews.com/business-economy/20-key-budget-highlights-you-must-know-278059">20 key Budget highlights you must know</a>

“I am with the government on cleaning the rivers, but it gets polluted as it is getting cleaned and it is a long gestation project. They expect to open 100 more airports under Udaan, but 50 per cent of airports opened in the last year have no flights and no passengers. Instead, the government must take money from long-gestation projects and fund MNREGA and the PM Kisan scheme as money would be available in people’s hands in around 3 months and they can spend it," Chidambaram reasoned.&nbsp;

The former finance minister added that the other solution would be to revive exports as the goods produced in India can be pushed out and higher volume of exports can generate jobs.&nbsp;

He urged associations and industry bodies to speak up and express their concerns to the government. “We believe that they will take our advice, not all of the opposition's advice is ill-meaning. We hope they will do something to revive our economy. It is possible to touch six or even seven per cent growth,” Chidambaram stated.&nbsp;

Former Finance Minister P Chidambaram stated that the Union Budget was one that lacked a narrative similar to a movie which bombed after its first show. He said that the news on Budget had disappeared from media discussions just after two days of it having been tabled.

Former Finance Minister P Chidambaram stated that the Union Budget was one that lacked a narrative similar to a movie which bombed after its first show. He said that the news on Budget had disappeared from media discussions just after two days of it having been tabled. Speaking to industry leaders at an event hosted by the Southern India Chamber of Commerce and Industry, Chidambaram shared his explanation that the two major reasons for the slowdown were demand constraint and the economy being investment starved. The former finance minister began by stating that he would speak for 160 minutes, in an apparent dig at Finance Minister Nirmala Sitaraman’s marathon Budget speech, that lasted as long and was also the longest Budget speech. Making a mention of the six quarters of growth decline and rising inflation rates, he referred to the economy as a patient who required radical surgery and a doctor (the government) who wasn’t ready to acknowledge how bad the situation was. Also read: Union Budget 2020 - Government has taken bold steps to put economy back on track “None of the growth engines are firing and we have a 0.1 per cent decline in mining, negative growth of 5.3 per cent in coal, 3.1 per cent in gas and 1.1 per cent in refining. Imports are on the decline for 8 months in a row while exports are on the downward slide for 5 months in a row. Every sector is facing this including leather, agriculture, handicrafts et cetera. In the auto sector alone 296 workshops have shut and 2 lakh people lost their jobs. The finance minister must ask her team for an economic explanation for what’s happening,” Chidambaram said. Sharing his reading of the situation, Chidambaram said that there is a demand constraint where people are not buying, don't have an inclination to buy and nobody is willing to invest be it domestic or foreign. "The natural reaction of the government should be what shall we do to make people buy and invest, how to stimulate demand and promote investment," he added. On the decline in investments, he said, “Nobody is investing as their inventory piling up, as the production capacity utilization is 49 per cent. When one has nearly 50 per cent idle capacity why would they invest?” Also read: Budget will bolster income and investment; bring vitality in financial system - PM Modi × Solutions and the way ahead Chidambaram said that the best way to stimulate demand is by putting more money in the hands of the common man and ensure that they buy everything ranging from eggs to shoes, clothes and toothpaste. He stated that only mass consumption drives demand and that it isn’t enough to give corporate tax cuts that benefit 200 rich people, whereas growth can be driven only when there is money in the hands of crores of people. “The Government doesn't need to go too far to understand that if the demand picks up, people will start buying more”, he said. Chidambaram recommended that the government must consider reviving the 4 engines of growth - government expenditure, private investment, private consumption and exports. He added that the engines can't be fired at full speed from their current stuttering state. Chidambaram furthered that the government redraw its expenditure pattern and spend in ways that can take money directly to the people. Also read: 20 key Budget highlights you must know “I am with the government on cleaning the rivers, but it gets polluted as it is getting cleaned and it is a long gestation project. They expect to open 100 more airports under Udaan, but 50 per cent of airports opened in the last year have no flights and no passengers. Instead, the government must take money from long-gestation projects and fund MNREGA and the PM Kisan scheme as money would be available in people’s hands in around 3 months and they can spend it," Chidambaram reasoned. The former finance minister added that the other solution would be to revive exports as the goods produced in India can be pushed out and higher volume of exports can generate jobs. He urged associations and industry bodies to speak up and express their concerns to the government. “We believe that they will take our advice, not all of the opposition's advice is ill-meaning. We hope they will do something to revive our economy. It is possible to touch six or even seven per cent growth,” Chidambaram stated.

P Chidambaram likens Budget to flop movie; suggests steps for growth revival

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Individuals having an annual salary income of over Rs 13 lakh and availing deductions of up to Rs 2 lakh will save on their tax outgo if they opt for the new tax regime proposed in the Budget, government sources said on Sunday.

For those earning a salary of Rs 12 lakh and less and availing deductions of up to Rs 2 lakh, the old tax system will be beneficial as the tax outgo will be less compared to the proposed new structure.

As per data, as many as 5.3 crore taxpayers out of 5.78 crore claimed deductions of less than Rs 2 lakh (standard deduction, provident fund, home loan interest, contribution to national pension scheme, life insurance, medical insurance etc.) while filing income tax returns.

This means that about 90 per cent of taxpayers actually claim deduction of less than Rs 2 lakh.

Offering an optional lower rate of income tax to individuals, Finance Minister Nirmala Sitharaman in the Budget 2020-21 proposed new tax slabs of 15 per cent and 25 per cent in addition to the existing 10 per cent, 20 per cent and 30 per cent.

Under the proposed tax slab, annual income up to Rs 2.5 lakh is exempt from tax. Those individuals earning a salary between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax. Income between Rs 5 and 7.5 lakh will be taxed at 10 per cent, while earning of Rs 7.5 and 10 lakh to attract 15 per cent tax.

Those earning a salary between Rs 10 and 12.5 lakh will pay tax at the rate of 20 per cent, while income between Rs 12.5 and Rs 15 lakh will be liable to pay 25 per cent tax. Income above Rs 15 lakh will be taxed at 30 per cent.

The new slabs would be for individuals not availing certain specified deductions or exemptions.

While individuals with an annual salary income of Rs 13 lakh and above will pay Rs 1.43 lakh tax under the proposed tax structure; in the old regime, they would have paid a tax of Rs 1.48 lakh, thereby saving Rs 5,200, a source said.

On salary of Rs 14 lakh a year, savings would be Rs 10,400; and for those with income of Rs 15 lakh and above, savings would be Rs 15,600, provided the deductions claimed are up to Rs 2 lakh.

In case of non-salary earners, who do not get standard deduction of Rs 50,000, the new tax structure is beneficial for those earning Rs 9.5 lakh annually and availing deductions up to Rs 1.5 lakh. They would save Rs 5,200 in their annual income tax outgoing.&nbsp;

Individuals having an annual salary income of over Rs 13 lakh and availing deductions of up to Rs 2 lakh will save on their tax outgo if they opt for the new tax regime proposed in the Budget, government sources said on Sunday.

Individuals having an annual salary income of over Rs 13 lakh and availing deductions of up to Rs 2 lakh will save on their tax outgo if they opt for the new tax regime proposed in the Budget, government sources said on Sunday. For those earning a salary of Rs 12 lakh and less and availing deductions of up to Rs 2 lakh, the old tax system will be beneficial as the tax outgo will be less compared to the proposed new structure. As per data, as many as 5.3 crore taxpayers out of 5.78 crore claimed deductions of less than Rs 2 lakh (standard deduction, provident fund, home loan interest, contribution to national pension scheme, life insurance, medical insurance etc.) while filing income tax returns. This means that about 90 per cent of taxpayers actually claim deduction of less than Rs 2 lakh. Offering an optional lower rate of income tax to individuals, Finance Minister Nirmala Sitharaman in the Budget 2020-21 proposed new tax slabs of 15 per cent and 25 per cent in addition to the existing 10 per cent, 20 per cent and 30 per cent. Under the proposed tax slab, annual income up to Rs 2.5 lakh is exempt from tax. Those individuals earning a salary between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax. Income between Rs 5 and 7.5 lakh will be taxed at 10 per cent, while earning of Rs 7.5 and 10 lakh to attract 15 per cent tax. Those earning a salary between Rs 10 and 12.5 lakh will pay tax at the rate of 20 per cent, while income between Rs 12.5 and Rs 15 lakh will be liable to pay 25 per cent tax. Income above Rs 15 lakh will be taxed at 30 per cent. The new slabs would be for individuals not availing certain specified deductions or exemptions. While individuals with an annual salary income of Rs 13 lakh and above will pay Rs 1.43 lakh tax under the proposed tax structure; in the old regime, they would have paid a tax of Rs 1.48 lakh, thereby saving Rs 5,200, a source said. On salary of Rs 14 lakh a year, savings would be Rs 10,400; and for those with income of Rs 15 lakh and above, savings would be Rs 15,600, provided the deductions claimed are up to Rs 2 lakh. In case of non-salary earners, who do not get standard deduction of Rs 50,000, the new tax structure is beneficial for those earning Rs 9.5 lakh annually and availing deductions up to Rs 1.5 lakh. They would save Rs 5,200 in their annual income tax outgoing.

Individuals earning salary of over Rs 13 lakh a year to save under new tax regime

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. This is the Budget to boost income and enhance the purchasing power of the people. This budget aims to address hopes and aspirations of all sections of India, said Finance Minister Sitharaman.

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