Things to Know About the Union Budget of India for 2020-2021

Things to Know About the Union Budget of India for 2020-2021

With just a few days to go for the Union Budget, the nation will be expecting a lot from the finance minister Nirmala Sitharaman. On the brink of economic slowdown, the issues such as GDP, liquidity crunch, rising inflation and low tax revenue must be addressed in a meaningful manner.

What is an Union Budget?

The Union Budget is defined as an annual financial statement of estimated revenue and expenditures of the Government of India. The Union Budget will be proposing and enhancing the expenditure outlay of the various welfare schemes run by the government of India such as the Rural Employment Guarantee Scheme. According to Article 112 of the Indian Constitution, the government must present budget, as it is a compulsory task. The first budget was presented by R K Shanmukham Chetty on 18th February 1960.

When is the Union Budget 2020?

The Union Budget will be presented on February 1, 2020and the Economic Survey will be out one day before i.e. January 31. This is the first time the Budget will be presented on a Saturday, after 2015-16. The idea to start the Budget early in February was to finish the process by March 31, hence the proposed expenditure exercise for 12 months could begin on April 1. Even though stock markets will be closed on Saturdays and Sundays, trading would be conducted during normal hours from 9 am to 3.30 pm.

Who will present the Union Budget 2020?

It will be Finance Minister, Nirmala Sitharaman who will be presenting this year’s Union Budget and it will be the second budget of Narendra Modi led NDA government’s second term. The budget will be presented in Lok Sabha after President’s recommendation.

Expectations from the Union Budget 2020

On the backdrop of a slowing down of the Indian economy with estimated GDP growth for 2019-20 is at an 11-year of five per cent, the Union Budget 2020 will be presented considering the factors such as the IL&FS crisis, international financial markets issues such as the China-US trade war. The economy is also affected by the situation in Kashmir, and the reduction from Western Asset Management Company from government bonds due to the Citizenship (Amendment) Act, 2019.