Inclusive, growth-oriented Budget to achieve $5 trillion economy: BSE MD & CEO Ashish Kumar Chauhan on Budget 2020
Finance Minister has rolled out an excellent budget with a thrust to core areas such as agriculture, healthcare, education infrastructure and rural development.
Union Budget 2020 – Inclusive, Growth-Oriented Budget to achieve US$ 5 trillion Economy
Union Budget 2020 – Sabka Saath, Sabka Vikas Budget
Union Budget 2020 –Budget has something for everyone
The Hon’ble finance minister in her budget speech has delivered growth, consumption and job-oriented blueprint for the economy to promote inclusive growth with an aim of “Sabka Saath, Sabka Vikas”.
The Finance Minister has covered every aspect of the economy from:
• Farmers: Expanding ‘PM Kusum Scheme’ to 20 lakh farmers to set up solar pumps, insurance cover, investment in technology and logistics with an aim to double farmer incomes by 2022
• Street Vendors: Ensuring better standards of living, with access to health, education and development.
• Backward Classes: Budget provision of about Rs. 85,000 crores for welfare of Scheduled Castes and Other Backward classes, and Rs. 53,700 crores for their welfare
• Middle-Class: Personal Income Tax cuts for greater disposable income
• Senior citizens and Divyang: Enhanced allocation of Rs. 9,500 crores for ease of living
• Foreign Investors: 100% tax exemption to their interest, dividend and capital gains income in respect of investment made in infrastructure and other notified sectors by Sovereign Wealth Funds, concessional withholding rate of 5% for FPI’s and QFI’s
• MSME’s: Extending invoice financing through TReDS, subordinate debt for entrepreneurs, app-based invoice financing loans product will obviate the problem of delayed payments and consequential cash flows mismatches
• Corporates: Removal of Dividend Distribution Tax. Raising the turnover threshold for audit from the existing Rs 1 crore to Rs. 5 crores, raising of customs duty on select labour intensive sectors will ensure ease of doing business and make MSME’s competitive in the global export markets.
• Start-ups: defer tax payment for ESOP’s, increasing the turnover limit from existing Rs 25 crore to Rs 100 crores, and extension of period of eligibility for claim of deduction from the existing 7 years to 10 years’ augers well for entrepreneurship and start-ups
• Stock Markets: Proposal to divest government stake in IDBI bank and IPO of LIC also will bodes well from the capital market perspective and potentially attract more retail investors
• IFSC Zone: Setting up of Bullion Exchange(s), introduction of rupee derivatives and reduction of the withholding rate from 5% to 4% on interest payment on the bonds listed
• Tax Dispute Mechanism: Tribunals and specialised bodies to ensure Vivad Se Vishwas and to get relief from litigation process.
• NBFCs/HFCs: Partial Credit Guarantee scheme for providing liquidity
• Infrastructure Financing: Rs 103 lakh crore National Infrastructure Pipeline project and equity support to Infrastructure Finance Companies
• Ease of Doing Business: Investment Clearance Cell to boost entrepreneurship via a portal to provide end-to-end facilitation, support and information on land banks will further offer impetus to ease of doing business and make in India.
Overall, the Finance Minister has rolled out an excellent budget with a thrust to core areas such as agriculture, healthcare, education infrastructure and rural development. The Budget is inclusive, growth-oriented, spurs private investment, keeps the government’s fiscal consolidation track record intact and uses a variety of methods to bolster the investment cycle.