Budget 2020 LIVE Updates: FM announces massive tax relief for middle-class, abolished DDT

Copies of Budget 2020 have been brought to the Parliament complex. Finance Minister Nirmala Sitharaman will present Union Budget 2020-21 in the Parliament. The session will kick start at 11 am. With the slipping economy and great rural depression, this budget is touted as most crucial for Modi government

Prime Minister Modi arrives at the Parliament ahead of Union Budget 2020. The Finance Minister and her team also arrived minutes back to attend the cabinet meeting. 

Indian markets came under pressure as Wall Street's major averages tumbled more than 1.5% on Friday as investors got spooked by the deadly Coronavirus spread and its impact on the global economy and mixed corporate earnings of US firms. The BSE opened on a weaker note with benchmark Sensex down nearly 200 points to 40,444 while NSE Nifty 50 plunged by 0.16%.

Amid India's slowing economic growth, with the country staring 45-year high on unemployment, Union Finance Minister Nirmala faces the toughest Budget since the Modi government came into power. While the key challenge the Finance Minister faces is kickstarting market demand, there are several more hurdles she faces to achieve the impossible target of making India a $ 5 trillion economy. Several market analysts have sought loosening of tax laws to attract investment in India, the Finance Minister has promised a 'pro-people' budget to offset the challenges she faces.

Read the top challenges here

Speaking to news agency ANI, Congress leader and LOP Adhir Ranjan Chowdhury said: "Our economy is in shambles. They will do some cosmetic surgery for now. They do not have any magic wand to turn around the shambled economy. Let's see what they do to increase demand and consumption."

The overarching theme of the Economic Survey 2019-20 tabled by Union Finance Minister Nirmala Sitharaman on Friday is wealth creation. Dubbed as an attempt to quantify what a common person pays for a Thali across India, a new concept called ‘Thalinomics’ has been introduced in this year’s survey. 

Ahead of the presentation of the Union Budget 2020-21, the union cabinet under Prime Minister Narendra Modi approved the budget drafted by Finance Minister Nirmala Sitharaman and her team. 

Minutes ahead of Finance Minister Nirmala Sitharaman's budget speech, Arvind Kejriwal, chief minister of poll-bound Delhi, has said that he is hopeful that Delhi will get more in the Budget. 

Ahead of the Union Budget 2020 presentation, Congress spokesperson Jaiveer Shergill on Saturday, February 1, took a jibe at Minister of State (MoS) Finance, Anurag Thakur for his controversial 'Goli Maaro' remark at an election rally a few days ago. Taking to the microblogging site, Shergill stated that Budget 2020 is expected to end rising unemployment, farmer suicides and issues like tax terrorism, inflation, etc. Further taunting Thakur he said budget must not turn into a “Goli Maro Indian Economy Ko exercise." 

Finance Minister Nirmala Sitharaman presents the budget for the year 2020-2021. 

As FM Sitharaman tabled the Budget 2020-21, she pays her homage to Late Arun Jaitley. She said that the visionary of GST is not present but his vision has integrated the states and the nations like never before. 

Finance Minister Nirmala Sitharaman tables Union Budget 2020-2021. She says that this is the budget to boost income and enhance purchasing power. She added that unprecedented milestones were achieved in the last economic year.  Speaking about GST, she says: "GST has resulted in efficiency gains in the transport and logistics sector, inspector raj has vanished, it has benefitted Micro, Small & Medium Enterprises(MSME). Consumers have got an annual benefit of 1 lakh crore rupees by GST."

This budget is woven under three prominent themes:

• Aspirational India
• The economic development of all entailed under PM's Sabka Saath Sabka Vikas, Sabka Vishwas
• A Caring society

Ahead of presenting the Union Budget 2020, Finance minister Nirmala Sitharaman recites Kashmiri poem by Pandit Dinanath Kaul

Union Finance minister Nirmala Sitharaman tabled the Union Budget for the year 2020-2021 on Saturday. Delivering the longest budget speech for over 160 minutes, Sitharaman announced a number of schemes and policies aimed at strengthening the economy under Modi government. In a major decision, the Finance Minister announced a Life Insurance Corporation of India (LIC) will be listed as part of the government disinvestment initiative and the government will sell also its stake in the IDBI bank. 

The government also announced a new 'optional' tax regime by slashing income tax rates and abolished DDT. To safeguard investors she also announced an increase in insurance cover for each depositor from Rs 1 lakh to Rs 5 lakh.  The Finance Minister said that the three themes on which the Budget 2020 was based were: aspirational, economic development, caring society.

India gears up for the Modi government's second Union Budget which will be presented by Union Finance Minister Nirmala Sitharaman in the Parliament at 11 AM on Saturday- 1 February 2020. In preparation to the budget, the Chief Economic Advisor Krishnamurthy Subramanian on Friday presented the Economic Survey 2020 - charting a path to turn around the current downward trend of GDP growth towards a $5 trillion economy. In a major step, the Survey pegs India's  GDP growth at 6-6.5% rather than the 4.8% projection by the IMF for 2020-21.

Previous interim Budget

In Sitharaman's maiden budget presented on June 5, the newly re-elected Modi government set the ambitious course to achieve a $5 trillion economy by 2024, considering the past 5 years' accelerated growth. Sitharaman, who is the first woman to present the Union Budget since former Prime Minister Indira Gandhi, announced no changes in personal income tax rates but levied an additional surcharge on the super-rich. Moreover, the budget also announced a reduction in corporate tax and subsidies to the housing sector, startups and electric vehicles apart from boosting cashless economy.

Current Union Budget's challenges

Since then the Indian economy's growth has slumped to 4.5%, staring at a 45-year high on unemployment. While the key challenge the Finance Minister faces is kickstarting market demand, she also battles India's job crisis, diminishing FDI, growing inflation. In an attempt at course correction, the Modi government had announced the merger of 9 PSU banks into 4, major corporate tax cuts, policy changes in the automobile sector, reduction in tax regulations to boost foreign income, attract investors and increase the consumer demand during the past year.

FM's schedule

On February 1, FM Nirmala Sitharaman is scheduled to arrive at the Finance Ministry at 9:15 AM to conclude final formalities before heading to the Rashtrapati Bhavan. After taking President Ram Nath Kovind's approval on the Budget papers, Sitharaman will head to the Parliament - where she will hold a cabinet meeting. Whether she will arrive at the House with her 'bahikatha' instead of a budget briefcase, Sitharaman will present the Modi government's second Union budget this year at 11 AM.
 

GST collections have crossed the Rs 1 lakh crore mark for the third month in a row in January with improved compliance and plugging of evasion, said PTI quoting sources on Friday. According to provisional numbers, total GST revenue was Rs 1.1 lakh crore in January, they said.

The GST collection is in line with the target set by Revenue Secretary Ajay Bhushan Pandey after a high-level meeting with senior tax officials earlier this month. Domestic GST collection during the month so far is around Rs 86,453 crore while Rs 23,597 crore has been collected through IGST and cess collection.

The Economic Survey for 2019-2020 tabled in the Parliament had the lavender cover symbolising the blend of the old and the new. Chief Economic Advisor Krishnamurthy V Subramanian said that the theme of the survey was ‘wealth creation’ and the lavender colour captured the new 100-rupee note together with the old note that has been around for very long.

Just hours ahead of the Union budget, International Monetary Fund (IMF) Managing Director Kristalina Georgieva has said that India has experienced an abrupt slowdown in 2019 due to major reforms such as GST and demonetization; however the economy is not in a recession and is expected to set on an upward trajectory in 2020 and 2021.

"The Indian economy indeed has experienced an abrupt slowdown in 2019. We had to revise our growth projections, downwards to four percent for last year. We are expecting 5.8 percent (growth rate) in 2020 and then an upward trajectory to 6.5 percent in 2021," Georgieva told a group of foreign journalists on Friday. 

Minister of State in Finance Anurag Thakur  offers prayer at his residence ahead of Union Budget (Image from ANI).

He said while speaking to news agency ANI, "Modi govt believes in 'sabka sath, sabka vikas.' We received suggestions from across the country. The government is making efforts that this budget is good for all."

Finance Minister Nirmala Sitharaman arrives at Ministry of Finance. She will present her second Budget today

#BREAKING | The Cabinet has 'in-principle' approved disinvestment in various CPSEs (Central Public Sector Enterprises), these will be taken up aggressively to facilitate the creation of fiscal space and improve the efficient allocation of public resources.

 Finance Minister Nirmala Sitharaman left Finance ministry to attend cabinet meeting ahead of presenting Union Budget 2020

Taking to Twitter, Rajasthan CM Ashok Gehlot spoke ahead of Budget 2020. He is hopeful that the budget will create jobs and will focus on the rural economy. 

As Finance Minister Nirmala Sitharaman departs Finance Ministry, she is all set to be the part of the Cabinet meet at 10:15 am in the Parliament House.  India gears up for the Modi government's second Union Budget which will be presented by Union Finance Minister Nirmala Sitharaman in the Parliament at 11 AM on Saturday- 1 February 2020. In preparation to the budget, the Chief Economic Advisor Krishnamurthy Subramanian on Friday presented the Economic Survey 2020 - charting a path to turn around the current downward trend of GDP growth towards a $5 trillion economy. 

 Sensex at 40,576, down by 140 points; Nifty at 11,910, down by 126.50 points

As per tradition, Finance Minister Nirmala Sitharaman calls on President Ram Nath Kovind at the Rashtrapati Bhavan hours before presenting the Union Budget 2020. 

Ahead of Union Budget, Cabinet Secretary Rajiv Gauba arrived at the Parliament. An Indian Administrative Service (IAS) officer of the 1982 Jharkhand batch and joined the Cabinet Secretariat as an Officer on Special Duty.

In 1860, the then British budget chief William Ewart Gladstone, known for his long speeches, used a red suitcase with Queen's monogram embossed in gold to carry his bundle of papers. As he was asked to 'open the budget' while presenting his statement, the tradition of the 'budget' started. 

This British tradition trickled to its then colony India too. Even after Independence in the first ever budget presented by the then Finance Minister RK Shanmukham Chetty on 26 November 1947, the budget briefcase was carried by Chetty.  Similarly, in 1958, Jawaharlal Nehru who presented that year's budget carried a black briefcase, which was repeated by former prime minister Manmohan Singh in 1991. Singh's finance minister - Pranab Mukherjee carried a red briefcase, which was the preferred choice of this year's interim budget presenter - Piyush Goyal on February 1.

Speaking to Republic TV, during interim budget, the finance minister carried a red 'bahi kahta' instead of a briefcase. When asked on the reason of carrying the red ledger, Sitharaman had said: 

"That briefcase reminded me of British, it reminded me of foreigners. In our budget, in our annual statement why should we use a British tradition? Its not about Hindu Mustim Christian." ("Vo briefcase mujhe British yaad dilate hai, firangi yaad dilate hain. Humare budget ke samay humare statement ke samay hum firangi paddhati ko kyu apnaye. Isme Hindu muslim christian nahi hai.")

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, as per reports.

As FM presents the budget, Sitharaman proposes 16-action plan  

As FM Sitharaman presents Union Budget 2020-2021, she said that Kisan rail. This is a part of 16 Action Points for farmers' welfare. The other points are: 

1. Encourage states to take up model agricultural laws
2. Comprehensive measures for 100 water-stressed districts.
3. PM Kusum scheme removes dependence on kerosene and encourages the use of solar power
4. Our govt will encourage balanced use of fertilisers. This is an important step because the currently the use of chemical fertilisers is incentivesed.
5. NABARD will take up an exercise of mapping and geotagging agricultural warehouses, cold storage and other inventory storages
6. A village storage scheme is proposed to be managed by SHEs. This will help farmers store more and reduce logistics costs. Women in the village will be responsible for managing this seamless storage mechanism.
7. Krishi UDAAN scheme will be launched by the Aviation Ministry.
8. The horticulture sector with its current produce exceeds the production of food grains. We will now take it to, One Product One District.
9. The financing of negotiable warehousing receipts will be integrating other e-services.
10. Agricultural credit availability for 2021 has been set at 15 lakh crore.

As FM tables the Union Budget, she mentions her 16-point action plan for farmers' welfare. She has allocated Rs 2.83 lakh crores in agriculture, allied activities, and irrigation, rural development.  

As FM Sitharaman presented Union Budget 2020, she said that 3.60 lakh crore has been allocated to Jal Jeevan Mission. Earlier, on Mahatma Gandhi's 150th birth anniversary, Prime Minister (PM) Narendra Modi in his address at the Sabarmati Riverfront in Ahmedabad, Gujarat, said that the government has decided to spend Rs 3.5 lakh crore on the Jal Jeevan Mission and that the government will do everything it can for water recycling. 

As FM Sitharaman announced Budget 2020, a whopping Rs 12,300 has been allocated to Swachh Bharat Mission for this economic year.  

As FM Sitharaman presents the Union Budget, 2020, she allocates 99,300 crores for the education sector, 3000 crores for skill development. She also proposed a new education policy, an IND-SAT exam in Asian and African country for a foreign university, a forensic science university. 

An Investment Clearance Cell to be set up to provide end to end facilitation services, including free investment advisory, information related to land banks. It will work through a portal. Five new smart cities have been planned.

As Finance Minister Sitharaman tables Union Budget 2020, she says: "Entrepreneurship is the strength of India. I propose to set up an investment clearance cell that will provide end to end facilitation and support including pre-investment advisory, info on land banks and facilitate clearance at the state level."

As Finance Minister Sitharaman tables the Union Budget 2020, she has announced Rs 69,000 crore for health, Rs 12,300 crore for sanitation under Sawachch Bharat. She also announced TB Harega, Desh Jeetega campaign to end the Tuberculosis in India by 2025.

As Finance Minister Sitharaman tables the Union Budget 2020, she has proposed to provide Rs 27300 crore for development for industry and commence for the year 2020-21.

As Finance Minister Sitharaman tabled the Union Budget 2020, she proposed setting up a large solar power capacity alongside the rail tracks on the railway owned lands. She also said that the process of inviting private partnership is underway, the FM said. 

Earlier, clearing the air on privatization of Railways, Railway & Commerce Minister Piyush Goyal at the Republic Summit had said that the Modi government has no plans on privatization. Explaining the difference between privatisation and public-private partnership, Goyal said that better services require investment and through a public-private partnership, the government is thinking about the benefits of people.

As FM tables Union Budget 2020-2021, she says that Data is the new oil. She then proposes building of Data Centre Park.

Budget 2020 LIVE: Beti Bachao Beti Padhao has shown tremendous results. Don't politicize the issue related to women. Gross enrollment at the elementary level of girls is higher than boys. 

As FM tables the Union Budget 2020, she says that the government will adopt technology to ensure no manual scavenging. The legislation will be built for a ban on manual scavenging.

As FM tabled the Union Budget 2020, she has proposed to build the Indian Institute of Heritage and Conservation under the Ministry of Culture. Five archaeological sites are to be developed as iconic sites. They are:

Rakhigarhi, Haryana 

Sivasagar, Assam 

Hastinapur, UP

Adichanallur, Tamil Nadu

Dholavira, Gujarat

In the first budget after bifurcation of the state of Jammu and Kashmir into Jammu-Kashmir and Ladakh, the FM has announced 30,757 crores for J-K,  and 5958 crores to Ladakh.

As the FM tables Union Budget 2020, she has announced that India will host the G20 presidency in the year 2022, which is the 75th year of independence. She has allocated 100 crores for preparation. 

As FM tables the Union Budget 2020-2021, Fiscal deficit for Financial Year 2021 is pegged at 3.5% of GDP. 

FInance Minister Nirmala Sitharaman has proposed a scheme of subordinate debt for MSMEs. Govt requested RBI to extend the debt recast window of MSME by one year to 31 March 2021. Certain specified categories of government securities will be opened for non-resident investors. Limit of FPI in Corp bond increased to 15%, she said

As FM tables the Union Budget 2020, she has proposed to sell a part of LIC.  As she announced the decision, a ruckus erupted in the House from Opposition.

As the FM tables the Union Budget 2020, she said that the nominal growth of GDP at 10% in the financial year 2021.

Sensex, Nifty decline as Finance minister Nirmala Sitharaman tables the Union Budget 2020-2021. The government has taken a big decision to sell part of its stake in LIC. LIC’s shares will be listed on stock exchanges. Along with it, the announcement was made to sell the government stake in IDBI Bank. Fiscal deficit estimate expected at 3.8 percent in FY20 and 3.5 percent in FY21 on expected lines.

As Finance Minister tables the Union Budget 2020-2021, she has proposed to bring a personal income tax regime, where income tax rates will be reduced, so now, a person earning between Rs 5-7.5 lakhs will be required to pay tax at 10% against current 20%.

The FM announced a new tax regime: "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%."

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
   

Around 70 of more than 100 income tax deductions and exemptions have been removed, in order to simplify tax system and lower tax rates, FM 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. 

Finance Minister says cooperatives can choose a 22 percent tax with 10 percent surcharge and 4 percent cess with no exemptions.

Finance Minister Nirmala Sitharaman announced the decision to end Dividend Distribution Tax (DDT). Soon after the announcement, Milind Deora took to Twitter and said that it was a "welcome step." 

Govt to further ease the process of allotment of PAN. Govt to launch system for instant allotment of PAN on the basis of Aadhaar. proposes to amend the income tax act. 

Finance Minister announced the scheme and said it is done to reduce litigation in the direct tax. Under Vivaad Se Vishwas Scheme, taxpayer to pay the only amount of disputed tax will get a complete waiver on interest and penalty, if the scheme is availed by March 31, 2020

Finance Minister Nirmala Sitharaman proposes to impose a nominal health cess on imports of medical equipment.

Finance Minister Nirmala Sitharaman on Saturday cut short her Budget speech as she felt unwell after speaking for a record 160 minutes in Lok Sabha. Sitharaman had only two pages of her Budget speech unread when she appeared uneasy and was seen wiping sweat from her forehead. 

Finance Minister Nirmala Sitharaman on Saturday presented the second Union Budget of the Narendra Modi government. Reacting to the Budget speech, former Congress president Rahul Gandhi said, "The main issue is unemployment. I didn't see any concrete idea, any strategic idea that would help our youngsters get a job. I saw a lot of tactical stuff but I didn't see any central idea."

For modernisation and buying new weapon systems, defence forces allocated Rs 1,10,734 crore which is Rs 10, 340 more than what was provided in last year’s budget.