Budget 2020 LIVE Updates: Modi govt  has given up on reviving economy or creating jobs, says P Chidambaram

The BSE Sensex plummeted over 1000 points to 39,710. Nifty sinks 378 points to 11,657 on Saturday, tracking a massive selloff in capital goods and financial stocks after Finance Minister Nirmala Sitharaman presented the Union Budget for 2020-21.

Addressing a press conference over Union Budget P Chidambaram said, We have just heard the longest Budget speech delivered by a Finance Minister in recent years. It lasted all of 160 minutes. If, therefore, all of you are exhausted — as I am — I would not blame you. The only way I can help is by keeping the Opening Statement brief.

I am at a loss to understand what was the message intended to be conveyed by Budget 2020-21. I am also not able to recall any memorable idea or statement in the speech.

The take way from the Budget speech are the following:

1. The government has given up on reviving the economy or accelerating the growth rate or promoting private investment or increasing efficiency or creating jobs or winning a greater share of world trade.

2. There were multiple themes, segments and programmes, leaving the listener dazed and confused. It was a laundry list of old (that is current) programmes. I am pretty certain that even the most loyal BJP MP or supporter cannot latch on to any idea or statement in the Budget speech and take it to the people. If the ongoing programmes have failed the people, how can throwing more (or in some cases less) money into the ongoing programmes change anything?

3. The BJP government has been identified with debatable positions like self-reliance, protectionism, control and aggressive taxation. The Budget affirms those positions. The government does not really believe in a market economy, competition or higher trade intensity. The Chief Economic Adviser must be a very disappointed man.

4. The government is in complete denial that the economy faces a grave macro economic challenge and the growth rate has declined in six successive quarters. There is nothing in the Budget that leads us to believe that growth will revive in 2020-21. The claim of 6 to 6.5. per cent growth next year is astonishing and even irresponsible.

5. The Indian economy is demand-constrained and investment-starved. The FM has not acknowledged these two challenges, and that is a pity. Consequently, she has proposed no measures or solutions to those two challenges. If the twin challenges remain, the economy will not turn around and there will be no relief to the millions of poor and the middle class.

6. Food subsidy has been reduced, Fertilizer subsidy has been reduced. Petroleum subsidy shows a marginal increase because of anticipated increase in oil prices. It appears that the people will not get any relief on the price front. Please remember that CPI inflation is over 7 per cent and food inflation is over 10 per cent.

7. The Finance Minister failed miserably on marksmanship. In 2019-20 (the current year), she failed to meet any of the key BE targets — nominal GDP growth, fiscal deficit, net tax revenue collection, disinvestment revenue or total expenditure. There is no assurance that she will meet the targets set for 2020-21.

8. The government does not believe in reforms and certainly not in structural reforms, The FM has outright rejected every — and I repeat, every — reform idea contained in the Economic Survey. Did the FM read the Economic Survey? Was the Chief Economic Adviser privy to the contents of the Budget speech? I think the answer to both questions is in the negative.

So, that is your Budget for 2020-21. You did not ask for such a Budget and you did not deserve such a Budget for voting the BJP to power. But you have to live with it until the government is forced to revisit it as it did in 2019.

The main issue facing is unemployment. I didn't see any strategic idea that would help our youth get jobs. I saw tactical stuff but no central idea. It describes govt well, lot of repetition,rambling-it is the mindset of govt, all talk, but nothing happening. Maybe this was the longest Budget speech in history but it had nothing, it was hollow , says Rahul Gandhi on Budget

Fall in core sector growth serious; Budget fails to layout roadmap on how to address it. Budget is insipid, lacks stimulus for growth; no clear roadmap for job creation. Longest Budget speech and most lacklustre; after Acche Din, New India, it appears govt also abandoned USD 5 trillion economy target, says Congress

Just platitudes, slogans; nothing substantial to alleviate people's misery, growing unemployment, prices: CPI(M)'s Sitaram Yechury on Budget

Under Vivad Se Vishwas Scheme, taxpayer to pay only amount of disputed tax, will get complete waiver on interest and penalty, if scheme is availed by March 31, 2020

Govt to further ease process of allotment of PAN. Govt to launch system for instant allotment of PAN on basis of Aadhaar, says Sitharaman

Finance Minister Nirmala Sitharaman on Saturday said nominal GDP growth for 2020-21 is estimated at 10 per cent.

Presenting the Budget for 2020-21, Sitharaman said receipts for 2020-21 are pegged at Rs 22.46 lakh crore while expenditure at Rs 30.42 lakh crore.

The revised estimated expenditure for FY20 has been pegged at Rs 26.99 lakh crore and receipts at Rs 19.32 lakh crore, she said.

The net market borrowings would be at Rs 4.99 lakh crore in FY 2019-20 and are estimated at Rs 5.36 lakh crore in the next fiscal.

The government plans to increase investment limit of foreign portfolio investors (FPI) in corporate bonds from 9 per cent to 15 per cent, Finance Minister Nirmala Sitharaman said on Saturday.

In her second Budget presentation, the finance minister said certain government securities will be open for foreign investors.

She also proposed debt-exchange traded funds comprising mainly government securities, while stating that Rs 22,000 crore has already provided as support to infrastructure project pipeline.

To address liquidity constraints of NBFCs and housing finance corporations, partial credit guarantee scheme will be launched by the government, she added.

Sitharaman said a scheme will be introduced to provide subordinate debt for entrepreneurs of MSMEs.

The government has asked the RBI to extend debt restructuring window for MSME by a year to March 31, 2021.

Moreover, a National Recruitment Agency will be set up for conducting common online eligibility tests for recruitment to non-gazetted posts, the finance minister said.

Start-ups are engine of growth. Propose to increase turnover limit for startups from Rs 25 crores to 100 crores.

• 15% tax for income between 7.5 lakh to 10 lakh
• 20% tax for income between 10 lakh to 12.5 lakh
• 25% tax for income between 12.5 lakh to 15 lakh
• 30% tax for income above 15 lakh
• No tax for income below  Rs 5 lakh

Govt has slashed income tax rates to 10% for those earning between ₹5-₹7.5L; 15% for those earning between 7.5-10L. For income between 10-12.5L, tax rates have been slashed to 20% "New Income Tax regime is optional. All exemptions will be taken away if opted for, says Sitharaman

Finance Minister Nirmala Sitharaman on Saturday said insurance behemoth LIC will be listed as part of the government disinvestment initiative.

She further said that the listing brings in more financial discipline among the entities.

The government proposes to sell a part of its holding in LIC through initial public offer, she said while unveiling Budget 2020-21.

Currently, the government owns the entire 100 per cent stake in Life Insurance Corporation of India (LIC).

We propose to bring a personal income tax regime, where income tax rates will be reduced, so now, person earning between Rs 5-7.5 lakhs will be required to pay tax at 10% against current 20%, says Sitharaman

Foreign Portfolio Investment (FPI) limits in corporate bonds being raised from 9 per cent to 15 per cent is a major move. That, along with fiscal deficit not being allowed to spiral much, should help prevent domestic interest rates from going up.

Modi Govt proposes to sell part of its stake in LIC, says Finance Minister Nirmala Sitharaman

The government has proposed to set up a National Police University and a National Forensic Science University, Finance Minister Nirmala Sitharaman said on Saturday.

Presenting the Budget for 2020-21, Sitharaman said Rs 99,300 crore has been allocated for the education sector and Rs 3,000 crore for skill development.

Sitharaman said the Narendra Modi government will soon announce a new education policy.

According to new proposals announced in the budget, urban local bodies will provide internship to young engineers for a year so that they get an idea about the functioning of the government.

Deposit Insurance and Credit Guarantee Corporation has been permitted to increase deposit insurance coverage to Rs 5 lakh per depositor from Rs 1 lakh. Govt has asked RBI to extend Debt restructuring window for MSME by a year to March 31, 2021: FM , says Sitharaman

Tax payer charter will be part of statute. Tax harassment cannot be tolerated. Govt proposes amendments in Companies Act to decriminalise civil offences, says FM

India's commitment towards tackling climate change made in Paris conference kick starts from January 1, 2021. Clean air is a matter of concern in large cities, propose to encourage states to formulate and implement plans to ensure clean air. Allocation for this purpose is Rs 4,400 crores. Power plants with emissions above prescribed limits will be asked close down, says Sitharaman

Haryana: Rakhigarhi - UP: Hastinapur - Assam: Shivsagar - Gujarat: Dholavira - Tamil Nadu: Adichanallur

5 archaeological sites in Haryana, UP, Assam, Gujarat and Tamil Nadu, to be developed with on-site museums. Govt allocates Rs 3,150 cr for ministry of culture, Rs 2,500 cr for ministry of tourism. Indian Institute of Heritage and Culture to be established under Ministry of Culture., says FM.

Govt proposes Rs 53,700 cr for welfare of schedule tribes and Rs 9,500 cr for senior citizens and divyangs for 2021-22

Fiber to home through BharatNet to link 1 lakh gram panchayats this yr; Rs 6,000 cr provided for BharatNet in FY21, says FM.

All public institutions at gram panchayat levels such as police stations and post offices to be connected digitally, says FM

Govt allocates Rs 28,600 crore for programmes specifically for women. Gross enrolment ratio for girls across all levels of education is higher than boys. Task force to be set up to recommend marriageable age for women, says FM , says FM

State govts need to replace conventional electricity meters with prepaid smart meters in 3 yrs. Natural gas pipeline grid to be expanded to 27,000 km from over 16,000 km now. Further reforms for transparent price discovery for natural gas will be undertaken, says Sitharaman.

More Tejas type trains will connect tourist destinations, says FM. 1,150 trains to be run in PPP mode, also 4 stations to be redeveloped with help of private sector, says FM.

Proposal for setting up large solar power capacity alongside rail track is under consideration, says Sitharaman

100 more airports to be developed by 2025 to support Udaan scheme, says FM

Govt to consider corporatisation of at least one major port and listing it on stock exchanges, says Sitharaman.

High-speed train between Mumbai and Ahmedabad will be actively pursued, says Niramla Sitharaman.

Govt to consider corporatisation of at least one major port and listing it on stock exchanges. Rs 1.7 lakh cr provided for transport infrastructure in 2020-21, says FM

Finance Minister Nirmala Sitharaman on Saturday proposed to set up Kisan Rail in public-private-partnership (PPP) mode for cold supply chain to transport perishable goods.

Presenting her second Union Budget, Sitharaman announced a slew of measures for the benefit of farmers.

"To build a seamless national cold supply chain for perishables, the Indian Railways will set up Kisan Rail through PPP model so that perishable goods can be transported quickly," she said.

She also said refrigerated parcel vans on select mail express and freight trains for carrying perishable cargo was also on the anvil.

Perishable goods like fruits, vegetables, dairy products, fish, meat need to be carried in such temperature controlled vans in order to travel long distances.

Propose to set up Investment Clearance Cell to give investors free investment advisory, land banks and facilitate clearances even at state level: FM

The government will launch a campaign to eliminate tuberculosis (TB) by 2025, Finance Minister Nirmala Sitharaman said on Saturday.

Presenting the Budget for 2020-21, Sitharaman proposed to expand Jan Aushadhi Kendras to all districts of the country to provide medicines at affordable rates.

She further said proceeds from taxes on medical devices would be used to support setting up of hospitals.

The finance minister further said viability gap funding will be provided for setting up hospitals in districts with no empanelled hospitals under Ayushman Bharat and also to set up warehouses for agri products.

We propose Rs 99300 crores for education sector in 2020-21 and Rs 3000 crores for skill development. Govt proposes to start programme for urban local bodies to provide opportunities for internship to young engineers. Steps to be taken to attract external commercial borrowing, FDI in education sector. We recognize the knowledge skills and capabilities of our youth , says Sitharaman

National Police University and National Forensic University are being proposed, says FM. Degree level full-fledged online education programme by institutions ranked in top 100. Govt proposes to attach medical colleges with district hospitals on PPP model to deal with shortage of doctors, says Sitharaman.

Special bridge courses to be designed for teachers, nurses, para medical staff, caregivers. Rs 99,300 crore allocated for education sector, Rs 3,000 crore for skill development in FY21, says FM

• Encourage states to take up model agricultural laws
• Comprehensive measures for 100 water stressed districts.
• PM Kusum scheme removes dependence on kerosene and encourages use of solar power
• Our govt will encourage balanced use of fertilisers. This is an important step because currently use of chemical  fertilisers is incentivesed.
• NABARD will take up an exercise of mapping and geo tagging agricultural warehouses, cold storage and other inventory storages
• A village storage scheme is proposed to be managed by SHEs. This will help farmers store more and reduce logistics costs. Women in the village will be responsible for managing this seamless storage mechanism.
• Krishi UDAAN scheme will be launched by Aviation Ministry.
• Horticulture sector with its current produce exceeds the production of food grains. We will now take it to, One Product One District.
• Financing of negotiable warehousing receipts will be integrating other e-services.
• Agricultural credit availability for 2021 has been set at 15 lakh crore.
• Our govt aims to eliminate the foot and mouth disease in sheep and goat by 2025
• Doubling of milk production of 53.5 million metric tonne of milk to 103 metric million tonne by 2025.
• Our govt will involve youth in fishery sector. We hope the rural youth will work as Sagar Mitras and also form Fish Farmer Organisation
• Under Antodyaya scheme, SHEs will bw further taken forward and made stronger.
• Rs 2.83 lakh crore to be allocated  for agriculture.
• Rs 1.23 lakh crore to be allocated for rural development and panchayati raj

Viability gap funding for setting up hospitals in those districts with no empanelled hospitals under Ayushman Bharat, says FM. FM proposes to expand Jan Aushadhi Kendras in all districts of country to provide medicines at affordable rates.

There is a shortage of qualified medical doctors both general practitioners and specialists; it is proposed to attach a medical college to a district hospital in PPP mode; details of the scheme to be worked out soon, says Sitharaman.

Foreign direct investment (FDI) into the country has increased to USD 284 billion during 2014-19, Finance Minister Nirmala Sitharaman said on Saturday while presenting the Union Budget for 2020-21.

"India's FDI got elevated to the level of USD 284 billion during 2014-19 from USD 190 billion that came in during the years 2009-14," she said.

The foreign inflows into India grew 15 per cent to USD 26 billion during the first half of the current financial year.

Sectors which attract maximum foreign inflows include services, computer software and hardware, telecommunications, automobile and trading.

Singapore continued to be the largest source of FDI in India during the first half of the financial year with USD 8 billion investments. It was followed by Mauritius, the US, the Netherlands, and Japan.

FDI is important as the country requires major investments to overhaul its infrastructure sector to boost growth.

Agriculture market needs to be liberalised; government proposes to handhold farmers. Agri services need copius investments. Govt proposing comprehensive measures for 100 water stressed districts, says Union Finance Minister Nirmala Sitharaman.

20 lakh farmers to be provided funds for setting up standalone solar pumps. Farmers to be allowed to set up solar units on barren/fallow lands; supply power to grids, says FM.

States asked to adopt 3 central model laws on agri land leasing, marketing and contract farming. Balanced use of fertiliser will bring about change in prevailing regime of providing incentive for use of chemical fertiliser. Govt proposes plans to help farmers use proper manure and little water, encourage balanced use of fertilizers, says Sitharaman.

FCI and Warehousing Corporation of India to build warehousing facility on their land. NABARD will map and geo-tab 162 mn tonne capacity agri warehouses across country, says FM

“Self Help Groups will be allowed to set up village agri storage facilities. Krishi Udaan to be launched by Civil Aviation Ministry to transport agri-products to national as well international destinations.”

Indian Railways to set up Kisan Rail in PPP mode for cold supply chain to transport perishable goods. Horticulture with 311 MT exceeds production of food grains. Agri credit target set up at Rs 15 lakh cr for FY21. NABARD refinance scheme will be expanded, says Sitharaman.

One horticulture crop in one district on cluster basis will be promoted. Govt proposes conservation of marine fishery, says Sitharaman.

Fish production to be raised to 200 lakh tonnes by 2022. Govt proposes to expand coverage of artificial insemination to 70 pc from 30 pc to increase livestock productivity, says Sitharaman

Our government t is committed to doubling farmers income by 2022.  We have provided for 11 crore farmers through PM Kisan Beema Yojana.  Provision of annual assistance to the farmer is made sure through PM Kisan yojana. Agricultural markets needs to be opened and liberalised. Fisheries, animal husbandry and dairy needs to be provided for, says Sitharaman.

“Our government shall encourage balanced use of all kinds of fertilisers, including traditional organic variety to discourage use of chemical fertilisers”

The budget 2020-21 will focus on three themes — Aspirational India, Economic Development For All and A Caring Society, Sitharaman said.

India is now 5th largest economy in world.Central Govt debt reduced to 48.7% of GDP from 52.2 per cent in March 2014, says Sitharaman

"Banks saw a thorough cleanup.  Of our structural reforms, GST has been the most historic. From 2014-2019, the Modi govt has focused on fundamental structural reforms and inclusive growth," says Sitharaman

This Budget aims to give more spending power. With renewed vigour, under PM's leadership, we commit ourselves to present the people of India with all humility and dedication. People have reposed faith in our economic policy. Budget is for boosting income, purchasing power of people, says Sitharaman.

Our people should be gainfully employed, our businesses should be healthy; for all minorities, women and people from SCs and STs, this Budget aims to fulfill their aspirations, says Sitharaman.

Fundamentals of economy strong, inflation well contained, banks cleaned up accumulated loans, says Sitharaman.

GST did face challenges. GST Council has been working to resolve those. Average household now saves 4 pc in monthly expense after rollout of GST , says Finance Minister Nirmala Sitharaman

For every member of the scheduled caste and scheduled tribe, for every woman, for every member of the minority community, this budget will be an opportunity, says Sitharaman

Delhi Chief Minister Arvind Kejriwal on Saturday said the Union Budget will show how much the BJP cared about Delhi, saying the city should get more in view of the elections.

The Union Cabinet headed by Prime Minister Narendra Modi on Saturday approved the Budget for the financial year beginning April 1, that may see measures to lift the economy from the worst economic slowdown in 11 years.

Before coming to Parliament for presenting her second budget, Finance Minister Nirmala Sitharaman and her team met President Ram Nath Kovind.

She was accompanied by Minister of State for Finance Anurag Thakur and top officials of her ministry including Finance Secretary Rajiv Kumar.

"Our economic cancer needs immunotherapy not chemotherapy. 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," said Shaw.

Union Ministers Prakash Javadekar and Jitendra Singh arrive at the Parliament, to attend the Cabinet meeting at 10:15 am

Finance Minister Nirmala Sitharaman and MoS Finance Anurag Thakur arrive at the Parliament, to attend Cabinet meeting at 10:15 am

Goods and services tax (GST) collection has crossed the Rs 1 lakh crore-mark for the third month in a row in January on the back of anti-evasion steps taken by tax officers.

This is second time since introduction of GST in July 2017 that the monthly revenues have crossed Rs 1.1 lakh crore.

The GST collection is in line with the target set by Revenue Secretary Ajay Bhushan Pandey after a high-level meeting with senior tax officials earlier this month.

Sensex plunges 279.01 points to 40,444.48 ahead of Union Budget; Nifty drops 81.45 points to 11,880.65

Cabinet meeting to be held at 10:15 am today in the Parliament House, ahead of the presentation of Union Budget 2020-21.

Modi govt believes in 'sabka sath, sabka vikas.' We received suggestions from across the country. The government is making efforts that this budget is good for all, says Anurag Thakur

MoS Finance Anurag Thakur offers prayers at his residence, ahead of the presentation of the Union Budget 2020-21 in the Parliament on Saturday.

Finance Minister Nirmala Sitharaman arrives at Ministry of Finance; She will present her second Budget on Saturday.

Finance Minister Nirmala Sitharaman will announce her second Union Budget on Saturday. The budget comes at a time when the GDP growth rate has been spiralling downwards in the last five quarters. It slowed to 4.5 per cent in the July-September quarter - the weakest pace since 2013.

Consumer inflation has worsened to a more than five-year high thanks to rising prices of vegetables and especially onion, staying above the RBI's goal for the third month in a row.

Consumer confidence is at the lowest level since 2014. It dropped to 89.40 points in the third quarter of 2019 from 97.30 points in second quarter of 2019, according to the RBI.