Finance Minister <a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Nirmala Sitharaman </a>will on Saturday present the budget of the second term of the <a href="https://www.wionews.com/india-news/pm-modi-netanyahu-exchange-pleasantries-on-28th-anniversary-of-establishment-of-india-israel-diplomatic-ties-277605">Narendra Modi</a> government.

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.

<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Sitharaman </a>will present the full-year budget for the year ending March 2021.

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 Budget speech will begin at around 11 am today with Sitharaman beginning it with an address to the speaker of Lok Sabha. Usually, the duration of the presentation ranges from 90 to 120 minutes.

The Finance Minister on Friday tabled in Parliament the pre-Budget Economic Survey for 2019-20, which projected the state of the economy and outlined its challenges.

The survey was released by Chief Economic Adviser Krishnamurthy Subramanian.

Also read:&nbsp;<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>

The Union Budget is the financial statement of the government, detailing its revenue and expenditure in the past, as well as estimated spending and projections for the coming year.

<a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Sitharaman </a>had presented her maiden budget in July last year, shortly after the BJP-led government came back to power in the Centre in the 2019 Lok Sabha elections.

Till 2016, the <a href="https://www.wionews.com/business-economy/feel-good-budget-may-see-cut-in-tax-rate-sops-for-social-sectors-277884">Union Budget </a>was presented on the last working day of February.

Former finance minister Arun Jaitley had changed the tradition in 2017 when the Union Budget was presented on February 1.

Finance Minister Nirmala Sitharaman will on Saturday present the budget of the second term of the Narendra Modi government. 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.

Finance Minister Nirmala Sitharaman will on Saturday present the budget of the second term of the Narendra Modi government. 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. Sitharaman will present the full-year budget for the year ending March 2021. Also read: 'Feel good' budget may see cut in tax rate, sops for social sectors The Budget speech will begin at around 11 am today with Sitharaman beginning it with an address to the speaker of Lok Sabha. Usually, the duration of the presentation ranges from 90 to 120 minutes. The Finance Minister on Friday tabled in Parliament the pre-Budget Economic Survey for 2019-20, which projected the state of the economy and outlined its challenges. The survey was released by Chief Economic Adviser Krishnamurthy Subramanian. Also read: What will Sitharaman carry for her second budget presentation? The Union Budget is the financial statement of the government, detailing its revenue and expenditure in the past, as well as estimated spending and projections for the coming year. Sitharaman had presented her maiden budget in July last year, shortly after the BJP-led government came back to power in the Centre in the 2019 Lok Sabha elections. Till 2016, the Union Budget was presented on the last working day of February. Former finance minister Arun Jaitley had changed the tradition in 2017 when the Union Budget was presented on February 1.

Nirmala Sitharaman to present budget in Parliament today

What was the reaction to the budget? The government is confident that this budget will deliver growth. How are businesses and investors reacting? WION's Palki gets you a report.

Gravitas: The reactions to the 2020 Budget

Major announcements are made on budget day. But, has any progress been made? How are some of the government's flagship initiatives performing? WION's Palki analyses the progress of 5 major government initiatives.

2020 Budget: Is the government living up to its promises? | Gravitas

The Finance Minister covered a lot of ground in her speech. But what was in it for the common man? WION's Palki decodes this year's budget for you.

Gravitas: Budget 2020 and the common man

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.

All eyes on India's Union Budget 2020

Finance Minister Nirmala Sitharaman had a special conversation with WION about the Budget 2020. To know what else she said about the budget, watch this exclusive interview...

Exclusive: Finance Minister speaks to WION after presentation of Budget 2020

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 are on the Indian Finance Minister Nirmala Sitharaman, who will be presenting Union Budget for FY 2020-21. This will 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 FM to present Union Budget 2020 shortly

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

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?

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

Union Budget 2020: Hits and Misses

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

Know how stock market is reacting to Budget 2020

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

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?

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

Delhi Chief Minister Arvind Kejriwal on Thursday demanded the provision of appropriate funds in the upcoming Union Budget for fighting pollution in Delhi, without worrying about the Assembly elections to be held in the national capital next month.

"We demand the provision of adequate funds to tackle pollution in Delhi in the Union Budget to be presented on February 1. We also want the Centre to grant funds to Punjab and Haryana for fighting the stubble burning in the states," Kejriwal said at a press conference.

"I will write a letter to the Centre and ask them to provide as many funds as possible for Delhi as they can without worrying about the elections. We will keep the announcements for the benefit of Delhi separately from the elections," he said.

Kejriwal also refuted allegations of tickets being sold by AAP, which were levied by some of the party's sitting MLAs who were not given a ticket for the Assembly elections.

Speaking on reports that other parties are in touch with 15 sitting AAP MLAs who have been denied tickets, he said, "All parties will try but they (15 MLAs) are a part of our family and I hope they will remain so."

The AAP has denied tickets to 15 MLAs and has fielded 24 new faces. The party has given tickets to 46 sitting MLAs.Elections in Delhi will be held on February 8 and counting of votes will take place on February 11. 
&nbsp;

Delhi Chief Minister Arvind Kejriwal on Thursday demanded the provision of appropriate funds in the upcoming Union Budget for fighting pollution in Delhi, without worrying about the Assembly elections to be held in the national capital next month.

Delhi Chief Minister Arvind Kejriwal on Thursday demanded the provision of appropriate funds in the upcoming Union Budget for fighting pollution in Delhi, without worrying about the Assembly elections to be held in the national capital next month. "We demand the provision of adequate funds to tackle pollution in Delhi in the Union Budget to be presented on February 1. We also want the Centre to grant funds to Punjab and Haryana for fighting the stubble burning in the states," Kejriwal said at a press conference. "I will write a letter to the Centre and ask them to provide as many funds as possible for Delhi as they can without worrying about the elections. We will keep the announcements for the benefit of Delhi separately from the elections," he said. Kejriwal also refuted allegations of tickets being sold by AAP, which were levied by some of the party's sitting MLAs who were not given a ticket for the Assembly elections. Speaking on reports that other parties are in touch with 15 sitting AAP MLAs who have been denied tickets, he said, "All parties will try but they (15 MLAs) are a part of our family and I hope they will remain so." The AAP has denied tickets to 15 MLAs and has fielded 24 new faces. The party has given tickets to 46 sitting MLAs.Elections in Delhi will be held on February 8 and counting of votes will take place on February 11.

Allocate maximum funds to Delhi in Union Budget: Kejriwal to Centre

<a href="https://www.wionews.com/business-economy/budget-2019-key-takeaways-announced-by-nirmala-sitharaman-in-parliament-233179">Union Budget</a> 2020 will be presented by Finance Minister Nirmala Sitharaman on February 1, news agency ANI reported.&nbsp;

As per reports, the first phase of the budget session will be held from January 31 to February 11.

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Sources: First part of budget session to be held from January 31 to February 11. Budget to be presented on February 1. Second phase of budget session to be held from March 2 to April 3. <a href="https://t.co/5LlUQ1gZoE">pic.twitter.com/5LlUQ1gZoE</a>
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The second phase of the budget session will begin from March 2 and will go on till April 3.

Some of the measures included the introduction of 100 per cent FDI in insurance intermediaries. 1 crore loans for MSMEs in 59 minutes, among other features.&nbsp;

Prime Minister Narendra Modi hailed the budget 2019 and said that it had "given hopes to the country".

"It testifies that the path we are on is right and that we will reach our target," PM Modi said, adding that the budget will help facilitate the creation of 'New India'.&nbsp;

Also read: <a href="https://www.wionews.com/business-economy/budget-2019-key-takeaways-announced-by-nirmala-sitharaman-in-parliament-233179">Key takeaways announced by Nirmala Sitharaman in budget 2019</a>

"The middle class will progress with this budget, development work will expedite even more. The tax structure will simply and infrastructure will modernise," PM Modi had said.&nbsp;

Sitharaman will be closely watched with her pronouncements this budget. She is will be expected to come with measures that would drive the economy towards growth and bolster the equilibrium between consumption and investment.&nbsp;

The announcement of cuts in corporate tax and interest rates by the Reserve Bank of India last year didn't bring in much relief.

Sitharaman will be closely watched with her pronouncements this budget. She is will be expected to come with measures that would drive the economy towards growth and bolster the equilibrium between consumption and investment.&nbsp;

The announcement of cuts in corporate tax and interest rates by the Reserve Bank of India last year didn't bring in much relief.&nbsp;

Meanwhile, as per a <a href="https://www.wionews.com/india-news/world-bank-pegs-indias-growth-at-5-in-financial-year-2020-projects-recovery-next-year-273104">World Bank report</a>, India's growth is projected at five per cent in the current financial year 2019-20 which is set to recover to 5.8 per cent in the following fiscal year. 
&nbsp;

&nbsp;

&nbsp;

Union Budget 2020 will be presented by Finance Minister Nirmala Sitharaman on February 1, news agency ANI reported. As per reports, the first phase of the budget session will be held from January 31 to February 11.

Union Budget 2020 will be presented by Finance Minister Nirmala Sitharaman on February 1, news agency ANI reported. As per reports, the first phase of the budget session will be held from January 31 to February 11. Sources: First part of budget session to be held from January 31 to February 11. Budget to be presented on February 1. Second phase of budget session to be held from March 2 to April 3. pic.twitter.com/5LlUQ1gZoE — ANI (@ANI) January 9, 2020 × The second phase of the budget session will begin from March 2 and will go on till April 3. Some of the measures included the introduction of 100 per cent FDI in insurance intermediaries. 1 crore loans for MSMEs in 59 minutes, among other features. Prime Minister Narendra Modi hailed the budget 2019 and said that it had "given hopes to the country". "It testifies that the path we are on is right and that we will reach our target," PM Modi said, adding that the budget will help facilitate the creation of 'New India'. Also read: Key takeaways announced by Nirmala Sitharaman in budget 2019 "The middle class will progress with this budget, development work will expedite even more. The tax structure will simply and infrastructure will modernise," PM Modi had said. Sitharaman will be closely watched with her pronouncements this budget. She is will be expected to come with measures that would drive the economy towards growth and bolster the equilibrium between consumption and investment. The announcement of cuts in corporate tax and interest rates by the Reserve Bank of India last year didn't bring in much relief. Sitharaman will be closely watched with her pronouncements this budget. She is will be expected to come with measures that would drive the economy towards growth and bolster the equilibrium between consumption and investment. The announcement of cuts in corporate tax and interest rates by the Reserve Bank of India last year didn't bring in much relief. Meanwhile, as per a World Bank report, India's growth is projected at five per cent in the current financial year 2019-20 which is set to recover to 5.8 per cent in the following fiscal year.

Union Budget 2020 to be presented on February 1

The last one year has been a reality check for non-banking financial companies (NBFCs). With a decline in supply of money, rising cost of borrowing, increasing questions on governance following high-profile defaults and slowdown in consumption impacting auto sector the most, the lending industry is faced with a number of challenges. &nbsp;

Adding to the troubles are difficulties faced by fintech companies with new models, emergence of machine-learning based analytics and a traditionally uneven playing field between banks and NBFCs with lower support levels to NBFCs.

The first two challenges – supply and cost of money – are cyclical. For many years, the NBFC space had access to funds at a few basis points above sovereign debt cost. Easy access to cheap liquidity probably spurred less vibrant and sustainable business models. &nbsp;

As results that have panned out over the last year or so reveal, banks have withdrawn unused credit lines to NBFCs, showing their reluctance to renew existing credit lines. &nbsp;

Maybe it is a bit sudden and extreme, but in the near future, this situation will correct itself and good companies will continue to access adequate lines of credit at reasonable prices.

In order to address these challenges, companies will need to take a hard look at operating models based on cheaper distribution, better underwriting and sharper collections, all backed by a firm layer of analytics to adjust to a new normal. &nbsp;

If borrowing costs drop, it will augment profitability, but lending models cannot be built purely on the back of easy and cheap funds. To that extent, the challenge is good and will only strengthen lending models in the medium term.

The industry will need to address the challenge of asset-liability mismatch by potentially re-engineering product portfolios in line with the tenure of borrowing. &nbsp;

The challenge of governance is more a perception than reality. Regulatory framework, audits by the regulator, board participation in implementing governance and implementation of company-level risk heads, the wireframes are all in place. &nbsp;

Lenders that intend developing and sustaining robust models have always paid adequate heed to good governance. What the industry needs to do is to work on far stronger interaction forums with the regulators and government ministries that look at this ecosystem, showcasing implementation of governance models more robustly. &nbsp;

The challenge of an uneven playing field remains, though the gaps are closing. Accounting standards and asset-side benchmarks are areas where banks and NBFCs are starting to resemble each other more and more.

Talking of positives, there is clear visible support. The Union Budget acknowledged and appreciated the role of NBFCs in the financial system and the need to provide funding support to them.

It also announced that the government of India shall provide the first loss guarantee to banks on NBFCs’ pool of assets up to the total value of Rs 1 lakh crore, thereby reposing immense confidence in the strength of the sector.

Recently, the RBI allowed all bank lending to NBFCs to be treated as priority sector lending (PSL) by banks. This gave a huge incentive to the banks to lend to NBFCs. While it ensured sufficient bank funding to NBFCs at a reasonable cost, it also facilitated banks to meet their PSL targets. &nbsp;

A challenge that comes as an opportunity is the emergence of fintech players, who are backed by deep neural learning and AI. This is indeed a wake-up call for the NBFC segment. Companies with older models will learn to disrupt their templates from within or will co-opt new-age players through strategic partnerships or tie-ups. &nbsp;

All this will mean better access to customers, leaner operating models and speed of delivery at a very different level. &nbsp;

It is worth mentioning that in a country with 1.3 billion people, India’s household-to-debt ratio is 11 per cent&nbsp;as compared to a staggering 60-120 per cent&nbsp;in many developed and emerging economies.

With such a vast canvas and growing appetite for credit, NBFCs will continue to play a key role, catering to the needs of the customers in Tier II and III towns, addressing first-time borrowers, clientele with little or no proper documents or banking history and truly being part of the journey to create an inclusive financial ecosystem. 
&nbsp;

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-nbfc-key-caterer-to-tier-ii-and-iii-towns-first-time-borrowers-2783809">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

The last one year has been a reality check for non-banking financial companies (NBFCs). With a decline in supply of money, rising cost of borrowing, increasing questions on governance following high-profile defaults and slowdown in consumption impacting auto sector the most, the lending industry is faced with a number of challenges.

The last one year has been a reality check for non-banking financial companies (NBFCs). With a decline in supply of money, rising cost of borrowing, increasing questions on governance following high-profile defaults and slowdown in consumption impacting auto sector the most, the lending industry is faced with a number of challenges. Adding to the troubles are difficulties faced by fintech companies with new models, emergence of machine-learning based analytics and a traditionally uneven playing field between banks and NBFCs with lower support levels to NBFCs. The first two challenges – supply and cost of money – are cyclical. For many years, the NBFC space had access to funds at a few basis points above sovereign debt cost. Easy access to cheap liquidity probably spurred less vibrant and sustainable business models. As results that have panned out over the last year or so reveal, banks have withdrawn unused credit lines to NBFCs, showing their reluctance to renew existing credit lines. Maybe it is a bit sudden and extreme, but in the near future, this situation will correct itself and good companies will continue to access adequate lines of credit at reasonable prices. In order to address these challenges, companies will need to take a hard look at operating models based on cheaper distribution, better underwriting and sharper collections, all backed by a firm layer of analytics to adjust to a new normal. If borrowing costs drop, it will augment profitability, but lending models cannot be built purely on the back of easy and cheap funds. To that extent, the challenge is good and will only strengthen lending models in the medium term. The industry will need to address the challenge of asset-liability mismatch by potentially re-engineering product portfolios in line with the tenure of borrowing. The challenge of governance is more a perception than reality. Regulatory framework, audits by the regulator, board participation in implementing governance and implementation of company-level risk heads, the wireframes are all in place. Lenders that intend developing and sustaining robust models have always paid adequate heed to good governance. What the industry needs to do is to work on far stronger interaction forums with the regulators and government ministries that look at this ecosystem, showcasing implementation of governance models more robustly. The challenge of an uneven playing field remains, though the gaps are closing. Accounting standards and asset-side benchmarks are areas where banks and NBFCs are starting to resemble each other more and more. Talking of positives, there is clear visible support. The Union Budget acknowledged and appreciated the role of NBFCs in the financial system and the need to provide funding support to them. It also announced that the government of India shall provide the first loss guarantee to banks on NBFCs’ pool of assets up to the total value of Rs 1 lakh crore, thereby reposing immense confidence in the strength of the sector. Recently, the RBI allowed all bank lending to NBFCs to be treated as priority sector lending (PSL) by banks. This gave a huge incentive to the banks to lend to NBFCs. While it ensured sufficient bank funding to NBFCs at a reasonable cost, it also facilitated banks to meet their PSL targets. A challenge that comes as an opportunity is the emergence of fintech players, who are backed by deep neural learning and AI. This is indeed a wake-up call for the NBFC segment. Companies with older models will learn to disrupt their templates from within or will co-opt new-age players through strategic partnerships or tie-ups. All this will mean better access to customers, leaner operating models and speed of delivery at a very different level. It is worth mentioning that in a country with 1.3 billion people, India’s household-to-debt ratio is 11 per cent as compared to a staggering 60-120 per cent in many developed and emerging economies. With such a vast canvas and growing appetite for credit, NBFCs will continue to play a key role, catering to the needs of the customers in Tier II and III towns, addressing first-time borrowers, clientele with little or no proper documents or banking history and truly being part of the journey to create an inclusive financial ecosystem. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Non-banking financial companies will continue to play a key role

India's current account deficit (CAD) is expected to remain largely steady at 16 billion to 17 billion dollars or 2.3 per cent of GDP in the first quarter (April to June) of the current fiscal year 2019-20 despite the recent contraction in merchandise exports and imports, according to investment information firm ICRA.

This de-growth is likely to persist in the immediate term, given the year-on-year decline in crude oil prices and impact of recent customs duty hike on gold and precious metals.

Such factors in addition to the threat imposed by global trade wars as well as sluggish domestic demand are likely to restrict the overall growth of both merchandise exports and imports to low single digits.&nbsp;

ICRA forecasts India`s CAD to widen to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 while remaining steady at around 2.1 per cent of GDP.

"The widening in the merchandise trade deficit is likely to be absorbed by a mildly higher services trade surplus and remittance flows in Q1 FY20," said ICRA`s Principal Economist Aditi Nayar.

&nbsp;"As a result, the CAD is expected to remain largely steady at 16 to 17 billion dollars or 2.3 per cent of GDP in the just-concluded quarter relative to 15.8 billion dollars in Q1 FY19."

Recently released data indicates that India`s merchandise exports and imports contracted by 1.7 per cent and 0.3 per cent respectively in Q1 FY20."The prevailing year-on-year decline in crude oil prices and a temporary dip in gold imports following the tax changes introduced in the Union Budget may well result in a contraction in aggregate merchandise imports as well as exports in July 2019," said Nayar.

"However, both these factors will contribute to a sizeable reduction in the size of the trade deficit in July 2019 to about 16 to 16.5 billion dollars from 18.6 billion dollars recorded on July 2018, which was the highest monthly print for FY19," she said in a statement.

An anticipated decline in the average price of the Indian basket of crude oil to 65 dollars a barrel in FY20 from 70 dollars a barrel in FY19, the risk related to global trade wars and signs of moderation in domestic consumption and industrial demand will exert a drag on the headline pace of expansion of merchandise exports and imports in the ongoing year.&nbsp;

Moreover, high gold prices may restrict growth in demand for imports of the precious metal.&nbsp;

At present, ICRA anticipates that merchandise exports and imports will grow by a low two to three per cent and four to five per cent respectively in FY20.&nbsp;

Nevertheless, with the pace of growth of inbound shipments likely to exceed that of exports.

ICRA expects the merchandise trade deficit to widen to about 193 billion to 198 billion dollars in FY20 from 180 billion dollars in FY18.&nbsp;

A revival in gold imports closer to the festive season may push up the CAD size to 28 billion to 30 billion dollars in the second half of FY20, relative to the 21.5 billion dollars recorded in the second half of FY19.

Overall, ICRA expects India`s CAD to widen at an absolute level for the third year in a row to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 &nbsp;while remaining steady at around 2.1 per cent of the GDP.

A sustained pick-up in the price of crude oil, which appears to be an unlikely scenario at present, remains a risk to the CAD size.&nbsp;

According to ICRA, every one dollar a barrel increase in the average price of crude oil in FY20 is likely to expand the CAD by about 1.6 billion dollars.

India's current account deficit (CAD) is expected to remain largely steady at 16 billion to 17 billion dollars or 2.3 per cent of GDP in the first quarter (April to June) of the current fiscal year 2019-20 despite the recent contraction in merchandise exports and imports, according to investment information firm ICRA.

India's current account deficit (CAD) is expected to remain largely steady at 16 billion to 17 billion dollars or 2.3 per cent of GDP in the first quarter (April to June) of the current fiscal year 2019-20 despite the recent contraction in merchandise exports and imports, according to investment information firm ICRA. This de-growth is likely to persist in the immediate term, given the year-on-year decline in crude oil prices and impact of recent customs duty hike on gold and precious metals. Such factors in addition to the threat imposed by global trade wars as well as sluggish domestic demand are likely to restrict the overall growth of both merchandise exports and imports to low single digits. ICRA forecasts India`s CAD to widen to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 while remaining steady at around 2.1 per cent of GDP. "The widening in the merchandise trade deficit is likely to be absorbed by a mildly higher services trade surplus and remittance flows in Q1 FY20," said ICRA`s Principal Economist Aditi Nayar. "As a result, the CAD is expected to remain largely steady at 16 to 17 billion dollars or 2.3 per cent of GDP in the just-concluded quarter relative to 15.8 billion dollars in Q1 FY19." Recently released data indicates that India`s merchandise exports and imports contracted by 1.7 per cent and 0.3 per cent respectively in Q1 FY20."The prevailing year-on-year decline in crude oil prices and a temporary dip in gold imports following the tax changes introduced in the Union Budget may well result in a contraction in aggregate merchandise imports as well as exports in July 2019," said Nayar. "However, both these factors will contribute to a sizeable reduction in the size of the trade deficit in July 2019 to about 16 to 16.5 billion dollars from 18.6 billion dollars recorded on July 2018, which was the highest monthly print for FY19," she said in a statement. An anticipated decline in the average price of the Indian basket of crude oil to 65 dollars a barrel in FY20 from 70 dollars a barrel in FY19, the risk related to global trade wars and signs of moderation in domestic consumption and industrial demand will exert a drag on the headline pace of expansion of merchandise exports and imports in the ongoing year. Moreover, high gold prices may restrict growth in demand for imports of the precious metal. At present, ICRA anticipates that merchandise exports and imports will grow by a low two to three per cent and four to five per cent respectively in FY20. Nevertheless, with the pace of growth of inbound shipments likely to exceed that of exports. ICRA expects the merchandise trade deficit to widen to about 193 billion to 198 billion dollars in FY20 from 180 billion dollars in FY18. A revival in gold imports closer to the festive season may push up the CAD size to 28 billion to 30 billion dollars in the second half of FY20, relative to the 21.5 billion dollars recorded in the second half of FY19. Overall, ICRA expects India`s CAD to widen at an absolute level for the third year in a row to 63 billion to 68 billion dollars in FY20 from 57.2 billion dollars in FY19 while remaining steady at around 2.1 per cent of the GDP. A sustained pick-up in the price of crude oil, which appears to be an unlikely scenario at present, remains a risk to the CAD size. According to ICRA, every one dollar a barrel increase in the average price of crude oil in FY20 is likely to expand the CAD by about 1.6 billion dollars.

Current account deficit to print at 16-17 billion dollar in Q1 FY20: ICRA

In a veiled attack on Congress, Union Finance Minister Nirmala Sitharaman 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.

Speaking at the International Business Conference of Nagarathar, she said, "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. Modiji's government is not a suitcase government."

For the presentation Union Budget for 2019-20, Sitharaman decided to go with the swadeshi 'bahi khata'&nbsp;in line with Indian traditions, instead of the Budget briefcase which she said belonged to the British colonial era.

She flashed the 'bahi khata,'&nbsp;which is a kind of a ledger, wrapped in a red cloth containing her Budget speech and other related papers outside the North Block.

The picture went viral on social media.

In a veiled attack on Congress, Union Finance Minister Nirmala Sitharaman 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.

In a veiled attack on Congress, Union Finance Minister Nirmala Sitharaman 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. Speaking at the International Business Conference of Nagarathar, she said, "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. Modiji's government is not a suitcase government." For the presentation Union Budget for 2019-20, Sitharaman decided to go with the swadeshi 'bahi khata' in line with Indian traditions, instead of the Budget briefcase which she said belonged to the British colonial era. She flashed the 'bahi khata,' which is a kind of a ledger, wrapped in a red cloth containing her Budget speech and other related papers outside the North Block. The picture went viral on social media.

We are not a suitcase-carrying government: Nirmala Sitharaman

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