Budget 2020

17:42 (ist)

'Budget speech a missed opportunity to revive a floundering economy'

In her record 160-minute long speech, Union Finance Minister Nirmala Sitharaman presented the Budget for fiscal 2020-21 that made all the right noises but lacked a solid action plan. The Union Budget fell way short of expectations at a time when investors were waiting for a substantial fiscal stimulus to help an early recovery in the economy projected to grow 5 percent this year.

17:40 (ist)

Taxpayers opting for new tax regime will have to forego deductions on PF, tuition fee, insurance

17:24 (ist)

Parties in Andhra Pradesh dub budget as disappointing

The ruling YSR Congress and the opposition Telugu Desam Party in Andhra Pradesh on Saturday dubbed the Union budget 2020-21 as disappointing for the state.

Both parties decried non-allocation of grants that were overdue to the state.

"There was no mention of the special category status to the state or various incentives. Neither was there a mention of the special grant for backward districts development nor promises made in the AP Reorganisation Act, 2014," said YSRC Parliamentary Party leader V Vijayasai Reddy.

— PTI

17:17 (ist)

Taxpayer charter announced in Budget will clarify rights of taxpayers: Modi

Prime Minister Narendra Modi said that the budget has further strengthened govt's commitment of minimum government, maximum governance while stating that the taxpayer charter will clarify rights of taxpayers.

17:15 (ist)

Tourism has more possibility of employment: Modi

The goal to develop 100 airports in the country is very important for the tourism sector of the country. In tourism, there is more possibility of employment/income generation with lesser investment, said Prime Minister Narendra Modi

17:06 (ist)

Budget 2020 has vision and action: Narendra Modi

In a televised address after the budget, Prime Minister Narendra Modi said that the Budget 2020 has vision and action and the new reforms announced by Finance Minister Nirmala Sitharaman will give a push to the economy.

16:58 (ist)

Govt proposes 11% hike in farm credit for FY21; announces Krishi Udaan & Kisan Rail

The government on Saturday proposed 11 per cent increase in the farm credit target to 15 lakh crore for 2020-21 and announced special rail and flight services for the transportation of farm produce as its seeks to double farmers' income by 2022.

The government also proposed promoting 'one product one district' for better marketing and export of horticulture crops.

— PTI

16:56 (ist)

BSNL, MTNL to get Rs 37,640 cr from govt in FY21

State-owned telecom firms BSNL and MTNL will get fund infusion of around Rs 37,640 crore mainly for 4G spectrum and implementation of a voluntary retirement scheme, according to Budget document 2020-21.

The government will infuse Rs 14,115 crore in BSNL and Rs 6,295 crore in MTNL for 4G spectrum. Besides, Rs 2,541 crore and Rs 1,133 crore will be provided to BSNL and MTNL, respectively as grant in aid for payment of GST.

— PTI

16:35 (ist)

Govt's claim of 6-6.5% growth astonishing and irresponsible, people didn't deserve such a budget: Chidambaram

Former finance minister and senior Congress leader P Chidambaram slammed the finance ministry during a post-budget press conference on Saturday saying that the govt has given up on reviving economy or accelerating growth rate or creating jobs.

"People did not deserve such a budget, but will have to live with it until govt is forced to revisit it, as in 2019," Chidambaram said, expressing his disappointment over the budget.

"Govt does not believe in reforms, the finance minister has rejected every idea in the Economic Survey," Chidambaram said adding that there was no focus on generating employment in the budget.

Chidambaram that though the finance minister acknowledged that the Indian economy is demand-constrained and investment-starved, the govt in complete denial that the economy faces a grave macro-economic challenge.

The Congress leader also termed the finance minister's claim of 6-6.5 per cent growth next year is not only "astonishing, even irresponsible".

"The growth rate has declined in six successive quarters," he added,

Speaking about the programmes announced during the budget, he said, "It's a laundry list of old programmes; even most loyal BJP supporter cannot latch on to any idea in the Budget speech."

16:18 (ist)

Would wait for a full working day: Sitharaman on Sensex crashing 1,000 points

Finance Minister Nirmala Sitharaman said that she would wait a full working day at the stock market when asked about the Sensex crashing 1,000 points post the budget announcement on Saturday. 

“I would wait for a full working day at the stock market. Not sure if every aspect of the market was open today. We will wait for Monday. I am confident that when the market opens on Monday, we will see a positive reaction,” she said.

16:12 (ist)

Shocked at how govt planning to ambush heritage, legacy of public institutions: Mamata Banerjee

Reacting to the Finane Ministry's announcement to sell part of its equity in the Life Insuranae Copration of India (LIC) in the Budget 2020, West Bengal chief minister Mamata Banerjee said that she is shocked at how the govt is planning to ambush the heritage and legacy of public institutions. She tweeted:

16:01 (ist)

Hope to meet FY21 fiscal gap on higher revenue mop-up: FM Sitharaman

Finance Minister Nirmala Sitharaman said that the govt is hopeful of meeting FY21 fiscal gap on higher revenue mop-up.

"To improve consumption demand, private investment and public spending and since revenue side could not be pressed further, without violating FRBM, we had to relax the fiscal deficit target by 0.5 percent," she said.

Sitharaman added that the corporate tax cut and benefit derived by new companies, as well as improved GST collections will improve revenue generation and give the comfort to bring down fiscal deficit next year, with disinvestment too improving.

15:53 (ist)

Sensex closes at 39,735.53, down by 987.96 points​

15:52 (ist)

Benefits of disinvestment will be seen in FY20-21: Sitharaman

On divestment, Finance Minister Nirmala Sitharaman said the benefits of disinvestment will be seen next year.

“You will see successful divestments in the next few months. Between July (2019) and now, a lot of groundwork has happened. But the benefits will be seen in the next financial year,” she said.

15:44 (ist)

Tax charter is a step to respect honest taxpayers, prevent harassment: Sitharaman

"There are only three countries which have enshrined rights of taxpayers in the law. We hear comments of harassment of taxpayers all the time. The honest taxpayers need to be respected. And that's why the tax charter," Finance Minister Nirmala Sitharaman said at the post-budget press conference.

15:38 (ist)

Want to bring down rates, remove complications in compliance: FM

"In India, the personal income tax rate regime should be simple and rates should be low," says Nirmala Sitharaman at the post-budget press conference. 

She said that the government eventually wants to bring down rates and remove complications in compliance

15:34 (ist)

"Goal was to place money in hands of people:" Nirmala Sitharaman

Finance Minister Nirmala Sitharaman said that the finance ministry wanted to be sure that money is in the hands of the people. "We wanted to place money in the hands of the people, particularly the middle and lower-middle classes. Also wanted to simplify the income tax process, increase compliance," she said.

14:09 (ist)

Customs duty on imported footwear, furniture hiked

14:07 (ist)

Union Budget full of just platitude, says CPM 

Slamming the Union Budget, the CPM said that it consisted of just "platitudes" and did not address the problems faced by the people.  Reacting to the Budget presented by Finance Minister Nirmala Sitharaman, CPM general secretary Sitaram Yechury said that it did nothing to alleviate "people's miseries".  "Just platitudes & slogans. Nothing substantial to alleviate peoples' misery, the growing unemployment, rural wage crash, farmers' distress suicides and galloping prices," he tweeted. 

14:06 (ist)

All talk, no work; longest Budget speech was also hollow, says Rahul Gandhi

Congress leader Rahul Gandhi remained unimpressed with the Budget 2020. He said, "The main issue facing is unemployment. I didn't see any strategic idea that would help our youth get jobs. I saw tactical stuff but no central idea. It describes govt well, lot of repetition,rambling-it is mindset of govt, all talk, but nothing happening. Maybe this was the longest Budget speech in history but it had nothing, it was hollow."

14:03 (ist)

Budget insipid, lacks stimulus for growth; no clear roadmap for job creation: Congress

"Fall in core sector growth is serious; Budget fails to layout roadmap on how to address it," says Congress, news agency PTI has reported. The party's leader, Anand Sharma, meanwhile, said that the Budget was "insipid, lacks stimulus for growth; no clear roadmap for job creation". 

13:57 (ist)

Govt proposes cut in tax on cooperative societies to 22%

13:42 (ist)

Nirmala Sitharaman breaks own record, delivers longest-ever Budget speech  

Finance Minister Nirmala Sitharaman presented India’s longest Budget speech for the fiscal year 2020-21 with two hours thirty seven minutes spent and the speech still underway. In doing so, Sitharaman breached own record of longest Budget speech for fiscal year 2019-2020 that lasted two hours and 17 minutes. Jaswant Singh’s 2003 speech was the third longest at two hour twelve minutes. 

13:31 (ist)

Govt to grant 100% exemption for sovereign wealth funds in infrastructure

Corporate tax cut will be available for power generation companies as well. Government will grant 100% exemptions for sovereign wealth funds in infrastructure and other notified sector with minimum lock-in of three years. The rate of withholding tax has been extended to 2023 for FPIs. 

13:25 (ist)

Govt to set up investment clearance cell for entrepreneurs

Finance Minister Nirmala Sitharaman proposed to set up an investment clearance cell for entrepreneurs to provide pre-investment advisory, information related to land banks and facilitate clearances.
   
"I propose to set up an investment clearance cell that will provide end-to-end facilitation and support including pre-investment advisory, information related to land banks and facilitate clearances at Centre and also at the state level," Sitharaman said while presenting the Budget for 2020-21 here.

She said that the cell will work through a portal.

The minister said that entrepreneurship has always been the strength of India. "Even today young men and women have given greener pastures elsewhere to contribute to India's growth," Sitharaman said, adding that they take risks and come up with disruptive solutions to festering challenges.

13:21 (ist)

FM indicates taxation rebates will be done away with soon

Finance Minister Nirmala Sitharaman has said that currently, more than 100 exemptions provided in I-T Act. Now around 70 of them have been removed in the simplified regime. The remaining will be reviewed over the coming years to simplify the system, Sitharaman said. 

She also introduced an optional new taxation regime, sans rebates and concessions, but with lower tax rates. This may eventually become the norm given the government has said it will review the rebates to simplify the taxation regime. 

13:13 (ist)

Budget 2020 Lates Updates on Income Tax

Govt proposes alternative taxation regime to simplify I-T; keeps it optional 

"We propose to bring a personal income tax regime, where income tax rates will be reduced, so now, person earning between Rs 5-7.5 lakhs will be required to pay tax at 10% against current 20%," Sitharaman said. 

New Tax slab (without exemptions):
No tax: 0-2.5
5% between 2.5-5 lakh
10% tax between 5-7.5 lakh
15% between 7.5-10 lakh
20% between 10 lakh-12.5 lakh
25% between 12.5-15 lakh
30% between above 15 lakh
 

However, those who wish to claim rebates and concessions are free to file taxation under the old regime. Government claims that individuals will not require help of any professionals to file their TDS under the new regime. 

13:02 (ist)

Govt aims to raise funds through LIC IPO 

Government to list LIC on the stock exchanges. Big news on Life Insurance Corporation of India which is the largest institutional investor. This is likely to be the biggest IPO in the country. 

12:55 (ist)

Market Watch

Budget fails to move Dalal Street; indices down

Sensex was trading at 40,644.59, down 79 points or 0.19 percent at 12.52 pm. Nifty declined  below 12,000- mark  and was trading 29 points down at 11,932.90. The major losers among Sensex pack was L&T, PowerGrid, NTPC, Tata Steel and ONGC. 

12:50 (ist)

Govt sets aside Rs 85,000 cr for welfare of Dalits, OBCs 

12:49 (ist)

J&K, Ladakh get hefty packages from Centre after dissolution of Article 370

The Centre has allocated Rs 30,757 crores for the Union Territory of Jammu and Kashmir and Rs 5,958 crores for Ladakh in the financial year 2020-21. 

12:43 (ist)

Culture and Tourism Budget 2020 Latest Updates:

Good news for museums in Union Budget 2020

Five archaeological sites to be develeoped to iconic sites with museums: Rakhigarhi (haryana), Hastinapur (UP), Shiv Sagar (Assam), Dholavira (Gujarat) and Adishanaloor (Tamil Nadu).

Government to take up recuration of Indian Museum building in Kolkata. Museum on numismatics and trade to be set up in the site. Four more more museums to be taken for recuration. Tribal museum to be set up in Ranchi.

12:42 (ist)

Budget 2020 Latest Updates:

Govt to launch scheme for exporters to reimburse state levies this year: FM

12:39 (ist)

Budget 2020 Latest Updates:

Finance Minister Nirmala Sitharaman says govt will end tax harassment

Indicating that the government is serious about the taxpayers' right, Finance Minister Nirmala Sitharaman said that the government will come up with a taxpayers' charter and make it a part of the statute. "This will be building trust. Government will ensure that citizens need not worry about tax harassment," says FM. "There is a debate on building criminal liabilites for civil acts. Companies Act will be amended to correct this," says Sitharaman.

12:33 (ist)

Power sector Budget 2020 Latest Updates:

Rs 22,000 cr outlay for power, renewable energy sector in FY21: FM

12:30 (ist)

Women and Child Development Budget 2020 Latest Updates:

Nirmala Sitharaman sets aside Rs 35,600 crore for nutrition-related programmes 

Nirmala Sitharaman says that women are a priority for the government, especially pregnant women and lactating women. More than 6 lakh anganwadi workers are equipped to upload status of more than 10 crore households This scale is unprecedented. Overall, FM says there are imperatives to lower maternal mortality rates. FM proposes task-force on six months on this matter. An allocation of Rs 35,600 crore for nutrion-related programmes in FY21. Further, Rs 28,600 crore will be allocated in FY21 by government for women-linked programmes.  

12:26 (ist)

Women Budget 2020 Latest Updates:

Sitharaman says Beti Bachao Beti Padhao made strides; girls' enrolment in schools now more than boys

Finance Minister Nirmala Sitharaman says gross enrollment of girls under Beti Bachao Beti Padhao is higher than boys. Here, she says that gross enrollment of girls is 94.32 percent in elementary levels, 81.32 percent in secondary level and 59.7 prercent in higher secondary level. 

12:22 (ist)

Technology Budget 2020 Latest Updates:

Finance Minister says expect specific policy to build data centre parks under PPP model 

"Soon a policy for private sector to build Data Centre Parks throughout the country will be developed. Our vision is that all public institutions should be provided with digital connectivity," finance minister said.

12:19 (ist)

Technology Budget 2020 Latest Updates:

Sitharaman says high speed broadband connection to be linked to 100,000 gram panchayats

FM Nirmala Sitharaman says India has embraced sharing economy with aggregators displacing regular businesses. Analytics, IoT and AI are changing the world. A policy will bve set up to build data centre parks throughout the country. All public institutions at Gram Panchayat levels will be provided with digital connectivity. Fibre to home through BharatNet will link 100,000 Gram Panchayats in FY21 itself. An allocation of Rs 6,000 crore will be provided for BharatNet. 

11:58 (ist)

Education Budget 2020 Latest Update

Education gets Rs 99,300 cr budgetary allocation 

Degrees can be taken online soon and will be offered by the Top 100 NIRF ranked institutes, says Nirmala Sitharaman. IND-SAT exam will be held for Asian and African students for scholarships to 'Study in India'. Police Academy and Forensic Sciences will be set up, she added.  Government will shell out Rs 99,300 crore for the development of education sector. 

11:54 (ist)

Education Budget 2020 Latest Update

FM proposes bridge course for nurses, health care professionals to match their skills with global market demand

"There is a huge demand for teachers, nurses, paramedical staff and care givers abroad. However, their skill-sets do not match standards and needs to be improved, says FM. A total of Rs 3000 crore will be given for skill development, she added. A total of Rs 99,300 crore is proposed allocation for education," Sitharaman said. 

11:53 (ist)

Market Watch

IRCTC shares soar 9% ahead of Budget; other railway stocks also gain

Shares of Indian Railway Catering and Tourism Corporation (IRCTC) continued its upward journey and hit another life-high on Saturday ahead of annual Union Budget. The stock hit a high of Rs 1,326.45 before coming down marginally. It was up 9.08 per cent to Rs 1324.95 at 10.42 am.

The share price of IRCTC has gained 40 per cent this month. It has surged 30 per cent in the last one week. 

Among other railway stocks, IRCON was up 2.55 per cent to Rs 485, Rail Vikas Nigam 1.64 per cent to Rs 27.85, Texmaco Rail Engineering 3.57 per cent to Rs 39.15, Kernex Microsystems 2.98 per cent to Rs 19 and Rites gained 1.95 per cent to Rs 317.

11:50 (ist)

Agriculture Budget 2020 Latest Update

Indian Railways to set up a ‘Kisan Rail’ through PPP model

While presenting the second general budget of the second term of the Modi government, Finance Minister Nirmala Sitharaman said that the government will run Kisan Rail for the farmers through Public-Private Partnership financing model. Also, Kisan Udaan (Flight Services) will also be started.  

11:48 (ist)

Market Watch

Sensex, Nifty turn cautious as FM reads out speech

11:46 (ist)

Healthcare Budget 2020 latest updates

Govt to expand Mission Indradhanush, add more hospitals to Ayushman Bharat

Finance Minister says there is a holistic vision of healthcare. Mission Indradhanush has been extended to cover new diseases and new vaccines. Fit India is part of it, she said. There are 20,000 empanelled hospitals in Ayushman Bharat and need more in Tier 2 and 3 cities to benefit poor in these areas. PPP mode hospitals will be set up under viability gap funding to look at areas where there are no hospitals. This will be 112 aspitational districts where first priority will be given.

11:43 (ist)

Agriculture Budget 2020 Latest Update

Proposed agri credit target for 2020-21 pegged at Rs 15 lakh crore

Finance Minister Nirmala Sitharaman said, "NBFCs and cooperative banks are active in agriculture lending and the government recognises that." She said NABARD refinance scheme will be expanded. Agri credit target for 2020-21 has been proposed at Rs 15 lakh crore, said Sitharaman.

11:40 (ist)

Agriculture Budget 2020 Latest Update

FM allocates Rs 2.83 lakh crores for agro and allied sectors

"For sector comprising agriculture, allied activities, irrigation and rural development, an allocation of Rs 2.83 lakh crores has been made for 2020-21," Finance Minister Nirmala Sitharaman said. This includes agriculture, irrigation, rural development, Panchayati Raj. 

11:37 (ist)

Budget focuses on hopes and aspirations

Initial comments from FM Sitharaman suggests Budget 2020 will be more of a vision document on aspirations and ambitions rather than a responsive action plan to tackle the economic crisis.

The FM’s inaugural comments suggest that. Sitharaman spoke on how the government has done well on the economic front. There is a reiteration of the commitment of doubling farmer income by 2022. What is expected is an action plan to revive growth.

11:35 (ist)

Agriculture Budget 2020 Latest Update

FM Sitharaman says will double farmer income by 2022, reveals 16-point action plan

"We are committed to double farmer income by 2022," Finance Minister Sitharaman said. She said, "A total of 6.11 crore farmers are insured under Fasal Bima Yojna and said that hand-holding of farm-based activities needs to be done. This, she said, can be done in cooperation with states. She presented a 16-point action plan for this purpose.

Some of the pointers included expansion of PM KUSUM Scheme, which reduces dependence on diesel and kerosene and increases reliance on social energy. "Annadata can be Urjadata too," FM said. She also added that total of 20 lakh farmers can set up standalone solar pumps.

Further, she said that government can help 15 lakh solarise grid-connected pump sets. Farmers can also use barren land for solar energy and have a livelihood out of it, says FM.

11:29 (ist)

Budget 2020 Latest Update

Finance minister quotes Kashmiri poet ahead of revealing Budget action points 

Finance minister Nirmala Sitharaman recited a few verses in Kashmiri ahead of reading out the 16 action points in her Budget, based on three key themes. She said that our country is like a Shalimar garden, it is like a lotus on Dal Lake, like the warm blood of our youth and it is our best country in the world.  In Hindi, this translates to - "Hamara vatan khilte huey Shalimar bagh jaisa…hamara vatan Dal jheel me khilte huey Kamal jaisa…Naujawaanon ke garm khoon jaisa…Mera vatan, tera vatan, hamara vatan Duniya ka sabse pyara vatan" 

11:25 (ist)

Budget 2020 Latest Update

Sitharaman's Budget based on triple themes

Finance Minister Nirmala Sitharaman said that her Budget will have three central themes. First theme that inspired the budget is aspirational India, wherein every section of the society will aspire for better lifestyle, healthcare and job opportunities; second is economic development for all; and third is caring society that looks after the need of the weakest of India's citizens. 

11:22 (ist)

Finance minister Nirmala Sitharaman says central government debt reduced to 48.7 percent of GDP in 2019 from 52.2 percent

11:17 (ist)

Budget 2020 Latest Update

FM claims India raised 217 million people out of poverty between 2006-16

Finance Minister Nirmala Sitharaman said that between 2006-2016 India was able to raise 217 million people out of poverty. 

11:14 (ist)

GST Budget 2020 Latest Update

FM says GST has integrated India economically

Finance Minister Nirmala Sitharaman said, "GST has integrated economically and has consolidated multiple taxes. GST has led to inspector raj vanishing. "Average household now saves 4 percent of monthly spend due to reduced GST rates, she added. Total of 60 lakh new taxpayers and 105 crore e-way bills generated under GST, says FM. She also added that total of 60 lakh new taxpayers and 105 crore e-way bills generated under GST. 

11:11 (ist)

Nirmala Sitharaman pays homage to former FM Arun Jaitley

"I pay homage to the visionary leader later Arun Jaitley. At the time of the rollout of GST, he had said: India will be an India where the centre and states will work harmoniously...will rise out of narrow politics for the country's sake". True to this vision, the GST has been gradually maturing to a tax integrating the country. It has resulted in efficient gains in logistics and transport sector. Turnaround for transport sector has turned down dramatically.. and has led to significant benefits to MSMEs," Sitharaman said. 

11:10 (ist)

Budget 2020 Latest Update

A Budget that cares for all? FM Sitharaman makes tall promises in Budget statement

Finance Minister Nirmala Sitharaman said that the Budget will have something for everyone, and it will be such that it will attend to weak, old and vulnerable citizens. "For every member of the schedule caste and schedule tribe, for every woman, for every individual from minority section of the society, this budget aims to give wings to your aspirations," says Sitharaman

11:07 (ist)

Budget 2020 Latest Update

FM says Budget will aim to boost growth, enhance purchase power

"This is the Budget to boost growth and enhance purchase power," Sitharaman said. She said that this vibrant India will be a caring economy and will attend to weak, old and vulnerable citizens. 

11:03 (ist)

Finance Minister Nirmala Sitharaman begins reading out her speech 

Speaker Om Birla invited Finance Minister Nirmala Sitharaman to present the first Union Budget of the decade. The FM has risen to give her speech. 

10:47 (ist)

Market Watch 

35 stocks hit 52-week lows ahead of Budget 2020

Indian shares got off to a choppy start in a special trading session on Saturday ahead of the annual budget. In early trade shares slipped in reaction to an overnight shakeout in global markets on growing concerns about the economic impact of the coronavirus outbreak in China, but focus is set to shift to the domestic budget.

Around 35 stocks fell to touch their 52-week lows on NSE in Saturday's session ahead of Union Budget scheduled to be announced today. 

10:35 (ist)

India forecasts faster economic growth, warns of fiscal challenge

India’s government predicted that economic growth will pick up to between 6% and 6.5% in the fiscal year beginning April 1, after falling to more than a decade-low this financial year.  

India saw growth drop to 4.5% in the July-September quarter - its lowest level in 26 quarters. Consequently, the budget deficit for the upcoming fiscal year may need to exceed this year’s target of 3.3% of gross domestic product, the government said in an economic survey released on Friday. The government estimates gross domestic product will grow 5% this fiscal year, which ends on March 31. That would be the slowest growth since the global financial crisis of 2008-09.

The survey urged the government to use its majority in parliament to speed reforms to boost investments and recovery.

10:32 (ist)

Govt may implement import quality standards, says report

10:23 (ist)

Budget Expectations: Cong hopes govt will provide relief to salaried class, invest in rural India

The Congress on Saturday expressed  hope that the Union Budget would provide relief to the salaried class through tax cuts and invest in rural India besides providing a healing touch to the common man and industry facing "hardship" since demonetisation. Congress chief spokesperson Randeep Surjewala said the last budget led to crashing consumption levels, soaring unemployment and falling GDP.

10:20 (ist)

Over 100 fin min officials remain sequestered at a basement press to Budget's secrecy

The union budget, before it is presented by the Finance Minister in the Parliament, is shrouded under a cloak of secrecy. The security is so foolproof that around 100 officials from the finance ministry are cloistered inside a basement for at least 10 days.

The whole exercise kicks off with a customary ritual where halwa, an Indian dessert, is distributed among the Finance Ministry staff. The ceremony takes place in the presence of the Finance Minister. Soon after the sweets are served, the officials who are tasked with printing of budget are locked up in a basement in North Block. 

10:13 (ist)

Budget 2020 Latest update on import duty

India likely to raise import duties on more than 50 items, says report

India plans to increase import duties on more than 50 items including electronics, electrical goods, chemicals and handicrafts, targeting about $56 billion worth of imports from China and elsewhere, Reuters reported citing officials and industry sources. 

Higher customs duties are likely to hit goods such as mobile phone chargers, industrial chemicals, lamps, wooden furniture, candles, jewellery and handicraft items, two government sources with direct knowledge of the matter said.

The move could hit smartphone manufacturers that still import chargers or other components such as vibrator motors and ringers, along with retailers such as giant IKEA that is in the process of expanding its footprint in India. The government had identified items and decided to increase import tariffs by 5%-10% as recommended by a panel of trade and finance ministry officials, among others, the second government official said.

09:52 (ist)

Why markets remain open on Budget days

As per the notifications by exchanges, trading will be from 9.15 am to 3.30 pm. Pre-opening will be between 9.00-9.08 am and matched between 9.08-9.15 am. The decision was made after traders requested the exchanges to keep trading hours so that quick buys based on Budget initiatives can be made.

Notably, the last time the market was open for trading on a Saturday was when former finance minister, the late Arun Jaitley presented the Budget on February 28, 2015. 

09:52 (ist)

Market Watch 

Sensex slumps over 200 points in opening session, ahead of Union Budget today

Market benchmark Sensex slumped over 200 points in opening session on Saturday ahead of the release of the Union Budget to be presented by Finance Minister Nirmala Sitharaman later in the day.
   

After shedding 279 points in early trade, the 30-share BSE index was trading 124.96 points or 0.31 percent lower at 40,598.53, and the broader NSE slipped 23.10 points, or 0.19 percent, to 11,939.

In the previous session, Sensex settled 190.33 points, or 0.47 per cent, lower at 40,723.49, after the Economic Survey suggested relaxing fiscal deficit target to boost growth from a decade low.

Likewise, the broader NSE Nifty shed 73.70 points, or 0.61 per cent, to finish at 11,962.10.

On a net basis, foreign institutional investors sold equities worth Rs 4,179.12 crore, while domestic institutional investors purchased shares worth Rs 3,816.44 crore on Friday, data available with stock exchanges showed.

09:38 (ist)

Market Watch 

Sensex plunges 279.01 points ahead of Union Budget; Nifty drops 81.45 pts to 11,880.65 

The market has open weak ahead of the Budget 2020, with the Sensex and Nifty down 0.48 percent each. The Nifty Bank has fallen below its 100-Daily Moving Average (DMA), which is a bearish indicator. It is currently trading down 0.59 percent. 

09:23 (ist)

Govt likely to trim PM-KISAN allocation by 20% to Rs 60,000 cr

A poll-time sop, the PM-KISAN yojna is likely to suffer budget cuts now that the government is safely installed and is dealing with one of the worst economic crunches. 

The government may reduce allocation for the PM-KISAN scheme by 20 percent to around Rs 60,000 crore in the upcoming Budget due to implementation hurdles in some states, according to sources. The Centre had allocated Rs 75,000 crore in the Budget Estimate (BE) for 2019-20 to implement the PM-KISAN scheme, under which Rs 6,000 is being provided to farmers per year in three equal instalments.

However, sources said the allocation is estimated to have come down to Rs 61,000 crore in the Revised Estimate (RE) for the current fiscal as some states, including West Bengal, have not rolled out this scheme and many others do not have proper data of the farmers. The projection of the number of beneficiary farmers has also been pegged lower at 14 crore from the earlier 14.5 crore.

09:20 (ist)

Budget 2020 Latest update on Railways

Railways Budget today: Hike in rail fare unlikely, govt may privatise more stations, venture into FDI in railways

Union Finance Minister Nirmala Sitharaman is likely to make announcements related to Railways in the Union Budget 2020 on 1 February. Beyond infrastructural boost, the Centre may this time focus on public-private-partnership programmes. There are expectations that apart from announcing new routes, the government may announce privatisation of various railway stations.

"The sector could also be opened to foreign investors. Additionally, investors can be allowed to run commercial and real estate business and railways could monetise its assets. While the scale may not be large, it would provide a firm roadmap for the future," 
suggests Care Ratings.

After the success of India's first private train Tejas, the Centre may also consider privatising other trains and railway operations. The Centre's railway station modernisation plan will also boost steel consumption in the country. Experts believe the Centre could come up with measures to help Railways achieve its 2024 target of a complete transition to electricity.

Chances of a hike in passenger fare seem low as the government had raised fares recently. The Centre may not consider increasing freight rates either. The Railways increased basic passenger fare by up to 4 paise for various classes of Indian Railways from January 1.

09:10 (ist)

Budget 2020 Latest update on real estate sector

Major impetus to realty sector expected; govt may do away with capital gains 

The breakthrough measure, if it materializes, will be doing away with capital gains on sale of property. The move has the potential to revive the real estate sector which is in the doldrums and facing immense stress.

The government is considering a proposal to do away with capital gains on selling of property. Currently, one has to pay 30 per cent capital gains on the sale of a property, if the property holder doesn't re-invest it back in property within 3 years. If property is sold within 24 months, one has to pay a short term capital gains tax (STCG) on the gains as per an individual's income-tax slab.

After 24 months, one has to pay an LTCG tax, which is charged at 20 per cent with indexation benefits. Section 54 gives an exemption if there is sale of a property and then another one is bought. This exemption under section 54 is available when the capital gains from property sale are reinvested into buying or constructing maximum two houses.

However, the capital gains on the sale of house property must not exceed Rs 2 crore in order to claim exemption for reinvesting in two properties. This benefit can be claimed only once in the lifetime.

09:01 (ist)

Market Watch 

BSE, NSE to remain open for trade on Budget day

The National Stock Exchange and Bombay Stock Exchange (BSE) will remain open for trading today. The last time the market was open for trading on a Saturday was when former Finance Minister Arun Jaitley presented the Budget on 28 February, 2015. 

08:53 (ist)

Stock market reaction during Nirmala Sitharaman’s last Budget
 

On 5 July, 2019, Nirmala Sitharaman presented the first full Budget of the National Democratic Alliance’s (NDA) second term. The Sensex fell 0.98 percent on 5 July (Friday) and dropped a massive two percent in the subsequent trading session (8 July-Monday), giving a thumbs down to Budget proposals such as tax on share buybacks and a hike in minimum public shareholding of listed companies to 35 percent from 25 percent.

08:38 (ist)

Budget 2020 Latest update on taxation

Govt may aim for a 'feel good' Budget amid economic difficulties, likely to cut income tax rates

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. 

08:17 (ist)

Better to focus on growth in current situation: CEA

Ahead of Finance Minister Nirmala Sitharaman's second Budget, Chief Economic Adviser KV Subramanian on Friday suggested the government should focus on growth rather than being rigid on fiscal deficit in times of slowing economy.The government can look at option of increasing market borrowing to fund higher expenditure by the government in 2020-21, he said adding that if need be, the government can resort to higher market borrowing this fiscal. "So, we've delineated the overall stance that needs to be taken in times like this. India has been in such situations earlier as well. There's always a delicate balance between spurring growth and keeping the fiscal (situation) in order," Subramanian said.

08:16 (ist)

Budget 2020 Latest update on taxation

BJP recommends tax tweaks to attract foreign investors 

In pre-Budget consultations with the finance minister and the prime minister’s office (PMO), Bharatiya Janata Party (BJP) leaders have urged the government to consider industry demands and listed measures to revive investments, Gopal Krishna Agarwal, economic affairs spokesman of BJP, told Reuters in an interview. “There is a concern on LTCG and DDT...as a lot of financial transactions are moving out of the country to Singapore, Hong Kong and London,” Agarwal said.

The long-term capital gain tax of 10 percent on the sale of equity shares was re-introduced in 2018 by former finance minister Arun Jaitley after a gap of 14 years, much to the disappointment of market participants and has been a major hindrance to foreign investment.

08:08 (ist)

Budget 2020 Latest update on food subsidy

Rationalisation of food subsidy necessary to pick up slump in economy

The government should rationalise food subsidies to create additional fiscal space, push exports and adopt "counter-cyclical fiscal policy" to boost the sluggish demand and consumer sentiments, Krishnamurthy Subramanian, chief economic adviser to the finance ministry, said.

In last year’s budget, food subsidy was provisioned at Rs 1.84 lakh crore. But, the Food Corporation of India (FCI) had uncleared dues from the government to the tune of Rs 1.86 lakh crore. 

The government is expected to earmark around 1.90 trillion rupees for food subsidies in the next financial year, though the food ministry has sought more than 2 trillion rupees to run the world’s biggest food welfare programme. 

07:55 (ist)

Budget 2020 Latest update on FMCG sector: 

FMCG sector expects stimulus package:

Fast moving consumer goods (FMCG) companies is expecting a revival in demand largely depend on the stimulus package announced in the Budget. It is seeking a boost in demand via Budget announcements pertaining to pricing support and incentives/subsidies, reconsideration of personal income tax slabs, labour reforms and reduction in GST slabs. 

07:43 (ist)

FM likely to increase spending to spur growth:

Prime Minister Narendra Modi’s government is likely to increase state spending on infrastructure on Saturday, aiming to get growth back up from its lowest in a decade. Finance Minister Nirmala Sitharaman is expected to announce plans to spend over 102 trillion rupees (1.09 trillion pounds) on roads, ports, airports, irrigation and other infrastructure over the next five years. 

These expectations were spurred after Krishnamurthy Subramanian, chief economic adviser to the finance ministry, said the government could push economic reforms to boost growth. 

07:33 (ist)

Nirmala Sitharaman to present her second Budget today at 11 am:

Union finance minister Nirmala Sitharaman will present Budget 2020 today - 1 February. This will be Sitharaman's second budget as finance minister. Sitharaman will present the Budget for fiscal 2020-21 in the Lok Sabha at 11 am.

This is the second Budget of the Narendra Modi government after it retained power for the second time in a row in the May 2019 general elections. Sitharaman was appointed the first full-time finance minister of the country. Indira Gandhi is the only woman who presented the Union Budget before her and that was in 1970.