At a time when the country is going through an economic crisis and requires big, bold reforms, Budget 2020 serves to be one that is ordinary. Many experts have even called it ‘disappointing’ and ‘disastrous.’
The share market fell sharply in the last five days, incurring losses of four lakh crores. There were expectations that the budget would provide the much needed respite, but that didn’t happen.
There have been no special plans for mining, manufacturing and real estate and so, there will not be any drastic change in infrastructure and creation of jobs. Instead of taking proactive measures to revive economic growth, the budget seems to to be content with giving a push to the stakeholders of the economy – investors and entrepreneurs – to spur economic growth.
The government has removed around 70 exemptions in the new income tax regime in order to simplify the process and ensure that citizens are able to file their tax returns without the help of any advisers. The personal tax changes, the minister claims will result in a loss of Rs 40,000 crore to the exchequer.
The Finance Minister has scrapped the Dividend Distribution Tax, which could see a loss of revenue. The government hasn’t thought of structural factors; instead it appears to be in denial about the economy being demand-constrained and investment-starved. The idea of reforms seems restricted to giving small dollops of tax relief to tax payers.
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