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Budget 2020 Speech: New reforms announced in budget will accelerate economy, says PM Modi

Union Budget 2020 Live Updates: PM Modi says budget will increase income, investment, demand and consumption, and will bring new vigor in financial system and credit flow

twitter-logoBusinessToday.In | February 1, 2020 | Updated 17:20 IST
Budget 2020 Speech: New reforms announced in budget will accelerate economy, says PM Modi
2020 Union Budget Updates: Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman

Union Budget 2020: Budget 2020 Speech: New reforms announced in budget 2020 will accelerate economy, Prime Minister Narendra Modi said on Saturday. The PM said agriculture, infrastructure, textiles and technology are the main areas of employment. "In order to increase the employment generation, these four have been given a lot of emphasis in this budget," he said. Earlier Finance Minister Nirmala Sitharaman said the government had estimated nominal growth of GDP for the year 2020-21 on the trends available, at 10 per cent. Sitharaman, while presenting Budget in Parliament, also announced to sell a part of its holding in LIC by initial public offer. She said the Centre has decided to increase deposit insurance coverage to Rs 5 lakh per depositor from the current Rs 1 lakh.

FULL COVERAGE: Union Budget 2020

Follow all the latest updates on Modi government's Union Budget 2020 on BusinessToday.In live blog

5.13 PM: Modi says the budget will increase income and investment, increase demand and consumption, bring new vigor in financial system and credit flow.

5.12 PM: PM Modi says the budget will fulfill the current needs of the country as well as future expectations.

5.10 PM: We have adopted an integrated approach to agriculture, which along with traditional methods, will increase value addition in Horticulture, Fisheries, Animal Husbandry and will also increase employment: PM

5.09 PM: Under the Blue Economy, youth will also get new opportunities in the field of fish processing and marketing: PM

5.08 PM: With our efforts to double farm income, 16 action points have been created, which would work to increase employment in rural areas: PM 

5.06 PM: The PM said agriculture, infrastructure, textiles and technology were the main areas of employment. "In order to increase the employment generation, these four have been given a lot of emphasis in this budget," he said.

5.04 PM: New reforms announced in budget 2020 will accelerate economy, Prime Minister Narendra Modi said on Saturday.

5.01 PM: I congratulate Finance Minister Nirmala Sitharaman and her team for the first budget of this decade, which also has a vision: PM

3:48 PM: You will see successful disinvestment in next few months, said FM Sitharaman.

3:42 PM: "Other than us going around the country telling tax administrators to ensure that face-to-face engagement with the taxpayer necessarily need not be there, to ensure that they are dealing with them more like wealth creators, and to make sure that they approach them only to gather information. In spite all this you hear some complaint. Our commitment to make sure that taxpayers are respected had to be given an expression of sorts. And therefore we came up with the Tax Charter," said the FM.

3:38 PM: The disinvestment target will specifically come from listing of LIC and IDBI, says Finance Secretary Rajeev Kumar.

3:38 PM: We had announced some things for real estate sector earlier, says the FM.

3:33 PM: Exemptions including retirement benefit, comutation of pension, leave encashment on retirement, amount up to Rs 5 lakh under VRS, employer contribution on EPFO, payment received on NPS, payments of awards instituted will be retained, says Revenue Secretary Ajay Bhushan Pandey

3:32 PM: There are exemptions that are indispensable: said the FM.

3:30 PM: "Those who want the exemptions could go with older rates. Those who simplified, reduced rates could adopt the new," said the Fiannce Minister.

3:28 PM: The intention is to reduce rates as much as to simplify the structure. We wanted to be sure that money is in the hands of the people by not paying a tax they do not need to pay in the sense where the rate can be brought down: FM Sitharaman

3:27 PM: FM Nirmala Sitharaman begins her post-Budget press conference.

1.54 PM:Dividend Distribution Tax shifted to individuals instead of companies, says FM

1.53 PM: Govt extends additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021.

1.30 PM: Finance Minister Sitharaman has announced new income tax rates. Those earning Rs 5-7.5 lakh will now pay just 15 per cent, while those earning up to Rs 5 lakh in a year will pay no tax. Income tax rates will be significantly reduced for those who forego reliefs, exemptions, Sitharaman said.

Also read: Budget 2020: Sitharaman announces new income tax rates but there's a catch

1.04 PM: Recent announcements by FM

  • Fiscal deficit pegged at 3.8 pc in current fiscal and 3.5 pc in next
  • Receipts for 2020-21 pegged at Rs 22.46 lakh cr, expenditure Rs 30.42 lakh cr
  • Nominal GDP growth for 2020-21 estimated at 10 per cent
  • RE expenditure for FY20 at Rs 26.99 lakh cr, receipts at Rs 19.32 lakh cr

12.54 PM: Govt to sell a part of its holdings in LIC, says Nirmala Sitharaman.

12.44 PM: Recent major highlights on FM's speech

  • Govt proposes Rs 30,757 cr for Jammu and Kashmir, and Rs 5,958 for Ladakh for fiscal 2020-21
  • Rs 100 crore allocated for hosting G-20 Summit: FM
  • Data must have credibility, National Policy on statistics to be brought in, says FM
  • Govt proposes amendments in Companies Act to decriminalise civil offences, says FM

12.44 PM: FM on financial sector

  • Robust mechanism in place to monitor health of all commercial banks: FM
  • Clean, reliable, robust financial sector required to achieve USD 5 trillion economy, says FM

12.17 PM: Govt to spend big on transport and railways infrastructure

  • Rs 1.7 lakh cr provided for transport infrastructure in 2020-21: FM
  • 1,150 trains to be run in PPP mode, also 4 stations to be redeveloped with help of private sector, says FM
  • More Tejas type trains will connect tourist destinations, says FM
  • 550 Wi-Fi facilities have been commissioned at railway stations, says FM

12.11 PM: FM Sitharaman on manufacturing, infrastructure development

  • Govt proposes scheme for manufacturing of cell phones, semi conductors and other electronic devices
  • FM proposes National Technical Textile mission with an outlay of Rs 1,480 crore over 4 years to cut down imports
  • Rs 27,300 crore provided for development and promotion of industry and commerce
  • Rs 103 lakh crore infra project pipeline launched in December end
  • Digital refund of duties and taxes of Centre, states and local bodies to exporters from this year
  • Govt to set up project preparation facilities for infrastructure sector, national logistic policy soon 

11.58 AM: Major announcements so far

  • Rs 99,300 crore allocated for the education sector, Rs 3,000 crore for skill development in FY21, says  FM
  • Steps to be taken to attract external commercial borrowing, FDI in education sector, says FM
  • Govt proposes Rs 3.6 lakh crore towards piped water supply to households
  • Allocation for Swachh Bharat for 2020-21 stands at Rs 12,300 crore: FM

11.54 AM: Govt proposes Rs 3.6 lakh crore towards piped water supply to households: FM

11.53 AM: Centre to announce new education policy soon; govt received over 2 lakh suggestions on it: FM

11.52 AM: Top 100 ranked institutions in India to offer online courses, says the FM.

11.49 AM: Allocation for Swachh Bharat for 2020-21 stands at Rs 12,300 crore, says the FM.

11.47 AM: FM on viability gap funding

  • Viability gap funding will be provided to set up warehouses for agri products, says FM
  • Viability gap funding for setting up hospitals in those districts with no empanelled hospitals under Ayushman Bharat: FM

11.45 AM: Comprehensive measures for 100 water-stressed districts being proposed in this budget; agricultural credit target has been set at Rs 15 lakh crore, says the FM.

11.44 AM: FM on budget for horticulture, NABARD 

  • Horticulture with 311 MT exceeds production of food grains
  • NABARD refinance scheme will be expanded
  • One horticulture crop in one district on cluster basis will be promoted

11.38 AM: Budget 2020 comprises three prominent things -- aspirational India to boost standard of living, economic development for all, and building a humane and compassionate society: Finance Minister

11.35 AM: FM Nirmala Sitharaman: "To build a seamless national cold supply chain for perishables, Indian Railways will set up Kisan Rail through PPP model so that perishable goods can be transported quickly. Krishi Udaan will be launched by MoCA on international and national routes."

11.31 AM: Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) to be expanded to provide 20 lakh farmers in setting up standalone solar pumps.

11.28 AM: Everything that we do, speak through budget, everything that govt does is for country, says FM

11.27 AM: We have insured 6.11 crore farmers under Pradhan Mantri Fasal Bima Yojna: FM

11.25 AM: FM Nirmala Sitharaman recites a verse in Kashmiri

FM Nirmala Sitharaman recites a verse in Kashmiri and translates it in Hindi, 'Humara watan khilte hue Shalimar bagh jaise, humara watan Dal lake mein khilte hue kamal jaisa, nau jawanon ke garam khoon jaisa, mera watan tera watan, humara watan, duniya ka sabse pyara watan'.

11.23 AM: Under aspirational India plan, the government to focus on

  • Welfare schemes with direct benefit transfer
  • Sanitation care through Ayushman Bharat
  • Clean Energy through Ujjwala and solar power
  • Financial inclusion, credit support, insurance and pension schemes for vulnerable sections of people
  • Digital penetration with broadband and UPI
  • Affordable housing through PMAY

11.18 AM: Sitharaman on GST: "During the maturing of GST, it faced some challneges. GST Council has been proactive in resolving issues during the transition. Over 40 crore returns have been filed, 800 crore invoices uploaded, 105 crore e-way bills generated, simplifies new return being introduced from April 2020."

11.16 AM: Finance Minister Nirmala Sitharaman says Budget 2020 aims to give wings to all, including weak, old and vulnerable citizens.

11.13 AM: FM remembers Arun Jaitley

"I pay homage to the visionary leader later Arun Jaitley. At the time of the rollout of GST, he had said: India will be an India where the centre and states will work harmoniously...will rise out of narrow politics for the country's sake"

10.56 AM: FM Nirmala Sitharaman, PM Modi reach Parliament; Budget speech to start shortly.

10.53 AM: Copies of Budget 2020 documents being brought to Parliament.

10.40 AM: Prime Minister Narendra Modi arrives at Parliament ahead of presentation of Union Budget 2020-21.

10.24 AM: Sitharaman carries Budget document in 'bahi khata'

Union Minister of Finance Nirmala Sitharaman carries Budget document in 'bahi khata' (red cloth-wrapped ledger). Last year too, she carried the Budget document in a similar 'bahi khata', breaking away from the years-long tradition of carrying traditional customary 'briefcase'.

9.59 AM: Market indices Sensex, Nifty have recovered from losses to trade flat with positive bias, ahead of announcement of the Budget 2020. Sensex traded flat at 40,725 and Nifty was flat at 11,962.

9.58 AM: Where to Watch Live Streaming?

One can watch the LIVE telecast of the Union Budget 2020 on national television channels such as Doordarshan, Lok Sabha TV, Rajya Sabha TV. For LIVE telecast, viewers can also tune in to Aaj Tak and India Today TV.

Also read: Where to Watch Live Streaming Of Union Budget 2020

9.57 AM: Where to watch Budget telecast?

One can watch the LIVE telecast of the Union Budget 2020 on national television channels such as Doordarshan, Lok Sabha TV, Rajya Sabha TV. For LIVE telecast, viewers can also tune in to Aaj Tak and India Today TV.

Also read: Budget 2020: Watch Live Streaming on Aaj Tak, India Today, live telecast channels

9.40AM: Economic cancer needs immunotherapy not chemotherapy: Kiran Mazumdar-Shaw

"We need to treat the causality not the symptoms - hope Budget 2020 takes this approach. Wealth creation is a key part of our economic immune system! Waiting eagerly to hear Finance Minister Nirmala Sitharaman," Biocon chairperson said.

9.35 AM: Sensex, Nifty open on bearish note

Domestic equity indices Sensex and Nifty have opened on a bearish note on Saturday, tracking bearish trend from overseas, ahead of Budget 2020, that will be tabled in the Parliament by Finance Minister Nirmala Sitharaman today at 11 AM. BSE 30-share S&P Sensex traded 130 points lower to 40,590 and NSE 50-share index Nifty50 traded 23 points lower at 11,399.

9.34 AM: Cabinet to hold a meeting in Parliament at 10:15 AM, ahead of Union Budget 2020.

9.20 AM: The Finance Minister and her team heading to meet President Ram Nath Kovind ahead of the Budget 2020.

9.12 AM: The Indian economy indeed has experienced an abrupt slowdown in 2019. Amid economic challenges, will Modi 2.0 still present a 'feel good' budget?

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

9.04 AM: Cheer for salaried taxpayers likely?

The Union Budget 2020-21 today is likely to bring cheer for the salaried taxpayers as the government may raise the public provident fund (PPF) threshold from Rs 1.5 lakh to Rs 2.5 lakh. The Finance Ministry is also considering a separate segment under Section 80C (of the Income Tax Act) to provide tax exemptions of up to Rs 50,000 under the National Savings Certificate (NSC).

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

8.50 AM: MoS Finance Anurag Thakur offers prayers at his residence, ahead of the presentation of the Union Budget 2020-21 in the Parliament today.

8.46 AM: What investors, companies are hoping?

  • Rollback of long-term capital gains tax
  • Relief to real estate sector
  • Cut income tax to boost consumption
  • Push for rural demand

8.44 AM: Will Sitharaman liberalise insurance sector?

Union Finance Minister Nirmala Sitharaman may announce steps to liberalise insurance sector and foreign direct investment (FDI) in today's Budget speech. With 15 per cent growth ($26 billion), the first half of the year 2019-2020 saw a steady flow of FDI into India, despite slower growth in the global and Indian economy.

8.40 AM: What's in store for real estate?

The year 2019 was a not a particularly great for real estate sector, especially the residential market. Commercial or office real estate boomed in 2019 and is likely to further excel in 2020, while residential sales in the second half of 2019 plummeted 22 per cent compared the first half of the year. Real estate stakeholders hope for support from Modi government, especially in easing liquidity, amid the ongoing slowdown.

8.30 AM: Union Finance Minister Nirmala Sitharaman, in her Budget speech today, may raise the divestment target for the next financial year to Rs 1.5-lakh crore from Rs 1.05 lakh crore. The tarket is likely to be raised keeping in mind the upcoming sale of Air India and BPCL  Bharat Petroleum Corp Ltd.

8.18 AM: Indian economy experienced abrupt slowdown but it's not in a recession: IMF

The Indian economy experienced some abrupt slowdown in 2019 due to turbulence in non-banking financial institutions and major reform measures such as GST and demonetisation, but it is not in a recession, IMF Managing Director Kristalina Georgieva has said.

7.55 AM: Here are three things to watch out for the financial services sector:

  • Boost credit growth
  • As per a recent ICRA report, bank credit growth may decelerate to 6.5-7 per cent in the current financial year, compared to 13.3 per cent in 2018-19, which will be the lowest in the last 58 years. A major reason for a decline in the bank credit growth is low capital requirements by companies and risk aversion among banks.
  • Ease tension in the NBFC sector
  • A total of 40 per cent incremental consumer financing last year was done by the NBFCs. However, the crisis in the NBFC sector has left a big dent in the crucial sector, with genuine shadow banks struggling to get funds. The crisis in NBFCs sprang to light last year when the IL&FS -- a major lender in the infrastructure and financial services with a debt of Rs 91,000 crore, out of which Rs 57,000 crore are bank loans -- defaulted. Soon after, DHFL also defaulted.
  • Better regulation, more security
  • Industrialists are hoping Modi government will bring back the controversial Financial Resolution and Deposit Insurance (FRDI) Bill back on the table to tackle problems plaguing the financial sector.

7.48 AM: Who started Budget?

The Budget was first introduced by Scotsman James Wilson in 1860. Wilson was also the founder of the global giant Standard Chartered Bank and business magazine 'The Economist'. While he became one of the biggest names in the field of Economics, Wilson started as a modest hat-maker.

Read more here: James Wilson, the man who brought budget, income tax to India

7.40 AM: Anurag Thakur shares budget speeches of previous Union Finance Ministers

"On the eve of Budget 2020, we're sharing...amongst the oldest books in the Budget Press Library; it narrates India's economic transition since 1947," says the junior minister.

7.30 AM: Union Minister of Finance and Corporate Affairs Nirmala Sitharaman to present the Union Budget 2020-21 in the Parliament. You can watch it live here.

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7.18 AM: Will the FM cut income tax?

After corporate tax cuts in September last year, speculation is rife about possible reduction in personal income taxes. A combination of an increase in the basic exemption limit and/or the introduction of a differentiated tax rate structure for higher incomes may be on the cards.

7.13 AM: Experts say middle class has borne the brunt of the plateauing of incomes in the past 4-5 years even as inflation has continued unabated. Budget 2020 has little choice but to focus on the only section largely neglected in both the previous Budgets-the Indian middle class.

Also read: Budget 2020: Abki baar, Middle Class

7.07 AM: Budget 2020: Where to watch live streaming?

Budget 2020 will be live-streamed on Lok Sabha and Rajya Sabha TV. You can also watch Budget 2020 live online on BusinessToday.In, India Today TV, AajTak. Budget 2020: Key expectations- Taxpayers, corporates, tax experts, everyone has some expectations from FM Sitharaman. However, one of the biggest challenges the Modi government 2.0 needs to address urgently is the slowing Indian economy.

7.02 AM: There are high expectations that Modi government will come up with several measures to boost the demand to beat the ongoing economic slowdown.

7.00 AM: Nirmala Sitharaman's second Budget is expected to announce measures to restore economic growth and to set out a clear road map for achieving the ambitious target of $5 trillion economy by 2025.

Also read: Budget 2020: Date, timings, where to watch, expectations from Modi govt's most challenging Budget

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