Updated: Feb 7, 2020
Finance Minister Nirmala Sitharaman presented union budget 2020 on Saturday. There was a mix reaction from all the sections of society . The major challenge before Modi government is to revive Indian Economy. Keeping in mind the fact Finance Minister Nirmala Sitharaman announced some relaxation for corporate sector. It is too early to say how fruitful it would be. But it seems that she failed to meet the expectations of corporate sector as stock market witnessed a sharp fall in Sensex and Nifty. Lets have a look on some important points of union budget 2020.
1. No more exemptions and deductions : Finance Minister Nirmala Sitharaman announced to remove deductions and exemptions given to taxpayers U/S 80C and other sections. Although taxpayer has choice to go with old tax regime to claim such deductions. But she made it clear that she want to gradually remove all types of exemptions and deductions.
2. Capital Formation : One major challenge before Modi government is to boost Indian Economy . To give pace to Indian Economy, she removed all types of deductions and exemptions so that savings of middle class can be bring out to market.
3. Continue with disinvestment policy : As per union budget 2020 Government would continue with disinvestment policy while selling their stake in LIC, IDBI, HAL and other public sector enterprises. In her post budget interview Nirmala Sitharaman made it clear that she will continue with disinvestment policy but money will not be used for revenue expenditure.
4. Simplification of GST Return : GST return process will be simplified to increase more tax revenue. New simplified GST process will be implemented from 1st April, 2020 and refund process in GST will be fully automated.
5. More fund for 'UDAN' : Finance Minister announced to develop 100 more airports under the scheme 'UDAN' to make transportation more convenient and cheaper.
6. Continue with PPP Model of development : Government will continue with its policy of Private public Partnership model of development. Government will focus on bringing private sector and public sector together for development.
7. Focus on Infrastructural development : Prime Minister Narendra Modi in his Independence Day speech has already announced his commitment towards infrastructural development . Finance Minister made it clear that government will go in same direction.
8. More fund allocation for PM KUSUM : Government will help 20 lakh farmers to set up standalone solar pumps and 15 lakh farmers for setting up solar irrigation facilities under 'KUSUM' scheme.