Budget 2020 Highlights

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On the 1st of February, the honourable finance minister- Smt. Nirmala Sitharaman presented the Union Budget of India for the year2020-2021. This budget was presented right after the Economic Survey of India for the year 2019-2020 was released, i.e. on the 31st of January 2020. Every year during the same time period the Union Budget of India is announced to the general public so that they are aware of how the country is trying to proceed towards the development of the economy and for a better future for the society.
Based on this concept, the general public was also invited to voice their opinions on how the budget should be like and in which sector(s) it should be focused on. According to the opinions generated by the public and the economic survey the new Union Budget was present in India.
Union Budget 2020:
In the year 2019, India witnessed an all-time low GDP growth rate of 5% and could see how the economy of India was slowing down. The budget of 2020-2021 was created to ensure that the economy is able to cover up for the loss this year and will be able to improve the economy. There were multiple factors why the Indian economy went down, the trade war between China and the US played an important role in the Indian market as most of the Indian financial aspects were interlinked with international finance.
Another factor being the Citizenship Amendment Act (CAA) 2019 which caused a huge uproar in the country and companies started reducing the percentile of government bond holdings invested in the country. Article 370 and the current situation of Jammu and Kashmir also led do decrease in the growth of the economy.
With the latest union budget for the financial year 2020-2021, the Indian economy will be able to drive past through the factors which caused immense loss of the country and will be able to invest in the right sectors and countries for future growth. With Union Budget 2020, there will be high percentile of growth in each sector equally and will be able to solve issues like the CAA situation and the situation in Kashmir.
Highlights of Budget 2020:
  • There was a 16 points agenda created for the agricultural sector where ₹138,000 crores were allocated for the sector's growth.
  • To resolve the situation in Jammu and Kashmir, ₹30,757 crores were allocated to develop the Union territory of the state.
  • There was a 10% increase in the allocation of the budget to the healthcare sector where the campaign of eliminating tuberculosis was included; the budget of ₹69,000 crores was allocated to the sector.
  • While focusing more on the senior citizens present in India, ₹9,500 crores were allocated to the sector.
  • The defence pensions for the retired armed forces officers are allocated with ₹13,000 crores.
  • With the decrease in personal income tax, the citizens are now supposed to pay 10% for ₹5-7.5 lakhs income, 15% for ₹7.5-10 lakhs income, 20% for ₹10-12.5 lakhs income and 25% for ₹12.5-15 lakhs income. 
With the proper allocation of budget in all the sectors will help in improving the state of the economy. With the decrease in personal incomes tax and removal of dividend distribution tax, the society will be able to save most of their income and will be able to invest in the right areas. With the introduction of new tax exemptions and deduction policies, companies from different sectors will be able to benefit from it. With the new budget, learning accounting and finance course in Ahmedabad has become important in understanding the budget which in turn will help in utilizing all the information available for the benefit of the society.

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