Video Editor: Abhishek Sharma
The 2020 Union Budget is undoubtedly a crucial one for the country’s economy amid a crashing GDP, lack of foreign investments and several other factors which have contributed to the economic slowdown.
The slowdown of the Indian economy has also gone on to affect a global economic slowdown.
“If there is a decline in Indian GDP, then it will also have an impact on the economic development of the whole world. Therefore, we have also reduced the estimate of global growth by 0.1 percent. Most of which is due to the reduction in India’s growth rate.”Gita Gopinath, Chief Economist, IMF
Prime Minister Narendra Modi met with industrialists, economists and international experts, ahead of the budget.
This budget, thus, can be a ‘big bang’ budget, with several inputs from the PM himself.
There can be reduction in personal income tax. Direct tax collection has already fallen short. Corporate tax was reduced earlier, but in spite of that, the economy didn't witness a big boost.
The government might tweak tax rates for the Rs. 5-15 lakh income group and it might lead to the Rs. 5-10 crore income group being hit with a new tax.
It is of interest to see what plans the government has for rural India farmers and landless agricultural labourers. The Kisaan Yojna is underfunded, along with some other schemes. Experts suggest investing more in the rural and sub-urban sectors.
What is important to note is that public expenditure not enough, and private investment is crucial amidst the given circumstances. If you investments are done in infrastructure and the rural sector, that can increase activity and thereby employment.
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