Budget 2020: Nirmala Sitharaman to present her 2nd budget at 11 AM; middle class hopes for income tax relief

Union Finance Minister Nirmala Sitharaman, who will be presenting her second budget of the Narendra Modi government, today at 11 AM has arrived at the Ministry of Finance. She will present her second Budget today.

The Modi government is likely to increase state spending on infrastructure and offer some income tax incentives. Finance Minister Nirmala Sitharaman will read her Budget 2020 speech in the Parliament.

On the other hand, the Union government has predicted that the economic growth would pick up to 6.0% to 6.5% in the fiscal year beginning April 1, but warned that it may have exceed its deficit target to revive growth.

On Friday (January 31) the Economic Survey projected India's economic growth at 6 per cent to 6.5 per cent in the next financial year starting April 1, saying growth has bottomed out. The growth in 2020-21 compares to a projected 5 per cent expansion in 2019-20.

Weak global growth impacting India as well as investment slowdown due to financial sector issues had led to growth dropping to a decade low in current fiscal, it said, adding 5 per cent growth projected for 2019-20 is the lowest it could fall for now.

Growth slipped to 4.5 per cent in the July-September quarter.

The Survey this year has been printed in lavender color - the same as the colour of the new 100 rupee currency note, the oldest currency note in circulation in the country.

The pre-Budget Survey said for wealth to be distributed, it first has to be created and called for looking at wealth creators with respect.

The Survey said government interventions seem to be ineffective in stabilizing prices of commodities such as onions.

For boosting growth, it called for new ideas for manufacturing such as 'assemble in India for the world' which will create jobs.

To further make it easier to do business, the Survey called for removing the red tape at ports to promote exports as well as measures for easing the start of business, register property, pay taxes and enforcing contracts.

It also called for improving governance in public sector banks and the need for more disclosure of information to build trust. It also talks about dwarfism in the banking sector.

Economic Survey advocates 10 new ideas that benefit markets as well as the economy.

(With PTI Inputs)

Also Read: Union Budget 2020: Nirmala Sitharaman arrives at Finance Ministry