The Union Budget of the country is also termed as the Annual Financial Statement, encrypted in the Article of the Constitution of India. The Union budget for the year 2020-2021 has been presented by the Finance minister Nirmala Sitharaman, on the 1st February, 2020.
The three integral ideas of the budget of 2020 remained as the economical development, a caring society and an aspirational India. The three ideas are interwined by a governance that is free from corruption and a clean and sound financial sector.
Union Budget 2020- the background
The slowing down of Indian economy was the basis of the Union Budget of 2020. The suspected reasons behind this slowed down economy of India are international financial issues in market, shadow banker crisis and also the growing epidemic that has affected and is continuing to affect the overall productivity of the country. The significant announcements regarding the allocation of money for different sectors has been done in this union budget. The increase or decrease in any sector, if any, has also been announced ellaborately.
Reactions to the Union Budget 2020
The overall reaction towards the Union budget of the year 2020 was an intermediate one to mixed and positive. The Prime Minister of India, Narendra Modi stated that the budget has both vision as well as mission. Rahul Gandhi claimed that he was disheartened seeing that the budget did no good to the global probem of unemployment. The Chief Minister Mamata Banerjee stated her shock and thrilled reaction seeing the government plans related to the heritage of the country.
The union budget of 2020 resulted in the fall of sensex by more than 2% and also the fall Nifty by over 3%. The budget of this year has also invented new regimes in Income Tax. One may now choose the new regime without the exemptions or with the old regime with the exemption option. Earlier a person could have claimed as many as 70 of the available 100 exemptions in the tax regime. In the new tax slabs, income tax has been raised from 205 Lakh to 5 Lakh.
The Insurance providers and the loan providers (house loan providers) have taken a high hit as personal tex exemptions have been made widely optional. This will lead people to opt for multiple insurance products, to avail exemptions in a fiscal. The realty sector has also been barred from sops.