On 1st February, Saturday, Finance Minister Nirmala Sitharaman announced the Union Budget 20-21. In a bid to spur economic growth, Sitharaman declared massive funding to the country’s farm and educational sectors.
An easier, optional income tax regime was introduced with slashed rates for individuals earning between Rs 5 lakhs to Rs 15 lakhs. The rates, however, only apply when the taxpayer doesn’t claim any exemption. No tax will apply to individuals with annual income less than 5 lakhs. Dividend tax for organizations was abolished.
Sitharaman discussed new schemes to boost the dwindling manufacturing sector. In the coming year, new reforms will be introduced to augment the manufacture of phones, electronic gadgets, and more.
Center will also introduce a new policy allowing private companies to create Data Center Parks across the nation. This will potentially benefit IT and non-IT firms like TCS, Wipro, Accenture, Infosys, HCL, Mindtree, Hexaware, and Adani Enterprises. An additional Rs 100 lakh crore will be invested in the country’s infrastructure over the subsequent five years.
Rs 1.7 lakh crore to be allocated for improving transport infrastructure in 20-21, and Rs 273 billion is proposed for promoting industry and commerce. Power units operating on old thermal systems will be discontinued upon not meeting emission norms.
By 2024, India will develop 100 new airports, almost 6,000 km of highways will be monetized by 12 lots, and one major port will be privatized.
As per the Economic Survey, India’s economic growth is projected to reach between 6% and 6.5% in the following fiscal year starting April 1, 2020.