Nirmala Sitharaman’s second Budget, to be presented today, is expected to announce measures to restore economic growth. (Photo Credit: PTI file photo)
Amid the slowdown in economy, the Union Budget 2020 gains prominence as it would seek to boost growth and cater to acute job crisis in the country. The government is expected to meet the disinvestment target, tax revenue, government expenditure, and the primary deficit. Nirmala Sitharaman’s second Budget, to be presented today, is expected to announce measures to restore economic growth and to set out a clear road map for achieving the ambitious target of USD 5 trillion economy by 2025.
Speculations are rife that the Modi government would offer some relaxation in personal tax and may also tweak the Long-Term Capital Gains (LTCG) and the Dividend Distribution Tax (DDT).
Aiming Rural Economy
The modi government looks to push the rural demand by wideninig the ambit of schemes. Doubling farmers' income by 2022 is likely to be on top agenda. Experts are of the view that Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) will show its benefits by 2021.
Containing Fiscal Deficit
The government finds it hard to contain the fiscal deficit target to 3.3 percent however, the deficit slipping to 3.8 percent mark may go positively for the government as far as it is intended in order to ensure growth and kick start investment cycle.
The government has for long been aiming at 'House for all' policy. It is expected to continue its affordable housing idea under the Pradhan Mantri Aawas Yojna. The execution part of the scheme will be likely a major thing post Budget.
The focus of the government could remain on areas that have the potential to generate employment, improve long-term efficiency of the economy and support consumption. According to experts, the amount to be alloted to metro projects should be more than Rs 200 billion while the overall railway capital expenditure might be pegged at Rs 1.74 trillion.