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{{Short description|Annual budget presented by finance minister of india}}
{{Use Indian English|date = January 2020}}
{{Use dmy dates|date=September 2020}}
{{Infobox government budget
|title = [[Union Budget of India]]
|presented = 1 Feb 2020
|parliament = [[17th Lok Sabha|17th]] ([[Lok Sabha]])
|debt =
|deficit = 9.5%
|surplus =
|debt_payment =
|tax_cut = Numerous
|spending =
|Total_Expenditures = {{INRConvert|35.09|t}} {{Increase}}(28.4%)
|Total_Revenue = {{INRConvert|30.83|t}} {{decrease}}(8.5%)
|chancellor =
|treasurer =
|total revenue =
|minister = [[Nirmala Sitharaman]]
|passed = 23 March 2020
|submitted_to = [[Parliament of India]]
|year = 2020
|url = {{URL|https://www.indiabudget.gov.in/}}
|party = [[Bharatiya Janata Party]]
|date_submitted = 1 February 2020
|submitter = [[Nirmala Sitharaman]]<br />([[Finance Minister of India|Minister of Finance]])
|caption = [[Emblem of India]]
|imagesize = 100px
|image = Emblem_of_India.svg
|next_year = 2021
|next_budget = 2021 Union budget of India
|previous_year = 2019
|previous_budget = 2019 Union budget of India
|country = India
|gdp =
|bill = [https://www.indiabudget.gov.in/doc/AFS/allafs.pdf Annual Financial Statement of the Central Government for the year 2020{{ndash}}21]<br />[https://www.indiabudget.gov.in/doc/Finance_Bill.pdf The Finance Bill, 2020]
}}

The '''2020 Union Budget of India''' ([[ISO 15919|ISO]]: {{transl|hi|ISO|2020 kē liē Bhārat kā Kēndrīya Bajaṭ}}) was presented by the Finance Minister, [[Nirmala Sitharaman]] on 1 February 2020, as her second budget. This is the second budget of [[Narendra Modi]]-led [[National Democratic Alliance (India)|NDA government]]'s second term.<ref name=":0">{{Cite news|url=https://economictimes.indiatimes.com/news/economy/policy/what-fm-nirmala-sitharaman-could-do-in-budget-2020-to-boost-demand-and-revive-economy/articleshow/73207373.cms|title=What FM Nirmala Sitharaman could do in Budget 2020 to boost demand and revive economy|last1=Sharma|first1=Shantanu Nandan|date=2020-01-13|work=The Economic Times|access-date=2020-01-13|last2=Layak|first2=Suman}}</ref><ref>{{Cite web|url=https://www.ndtv.com/business/budget-2020-for-common-man-key-income-tax-changes-announced-in-union-budgets-between-2014-and-2019-2162835|title=Budget for the Common Man: Key Income Tax Changes Announced in Past Budgets|last=Singh|first=Sandeep|date=12 January 2020|website=NDTV|access-date=2020-01-13}}</ref> The [[Economic survey of India 2020|Economic Survey for 2019{{ndash}}2020]] was released on 31 January 2020, a day before the budget.<ref>{{Cite web|url=https://www.indiatoday.in/india/story/economic-survey-2020-to-be-presented-in-both-houses-today-as-budget-session-begins-1641816-2020-01-31|title=Economic Survey 2020 to be presented in both Houses today as Budget session begins|date=31 January 2020|website=India Today|language=en|access-date=2020-01-31}}</ref> Before the budget speech the report of the [[Fifteenth Finance Commission|15th Finance Commission]] was tabled by the Finance Minister.

The central ideas of the Budget are "Aspirational India, Economic development, A Caring Society".<ref name=":2">{{Cite web|url=https://www.livemint.com/budget/news/union-budget-2020-highlights-latest-nirmala-sitharaman-budget-speech-11580532443776.html|title=Budget 2020 highlight: ₹99,300 crore for education sector, new income tax slab|last=Ray|first=Anulekha|date=2020-02-01|website=Livemint|language=en|access-date=2020-02-01}}</ref> These three broad themes are connected by governance that is corruption free and a financial sector that is clean and sound.<ref name=":12">{{Cite web|url=https://pib.gov.in/newsite/PrintRelease.aspx?relid=197837|title=Summary of Union Budget 2020-21|last=Ministry of Finance|date=1 February 2020|website=Press Information Bureau, Government of India|access-date=2020-02-06}}</ref>

Notably, [[Nirmala Sitharaman]] read out a [[Kashmir]]i poem{{Efn|By the Kashmiri poet [[Dinanath Nadim|Dina Nath Kaul]] "Nadim".|name=poem|group=}} during the budget speech in the Parliament, a [[Tamil language|Tamil]] couplet written by [[Thiruvalluvar]] and a verse from the Sanskrit work ''[[Raghuvaṃśa|Raghuvamsam]]'' as well as a French phrase.<ref name=":4" /><ref>{{Cite news|url=https://www.thehindu.com/business/budget/budget-2020-when-thiruvalluvar-met-modi/article30711305.ece|title=Budget 2020 {{!}} When Thiruvalluvar met Modi|last=Desk|first=The Hindu Net|date=2020-02-01|work=The Hindu|access-date=2020-02-01|language=en-IN|issn=0971-751X}}</ref><ref>{{Cite web|url=https://qz.com/india/1795277/whos-kashmiri-dina-nath-kaul-nadim-cited-by-nirmala-sitharaman/|title=Who is the Kashmiri poet Nirmala Sitharaman quoted in her loooooooong budget speech?|last=Kapur|first=Manavi|website=Quartz India|language=en|access-date=2020-02-03|ref=poem}}</ref> Some of the aims announced were "improving digital governance, physical quality of life, disaster resilience and social security reach".<ref name=":12" />

At 2 hours and 41 minutes, the budget speech was the longest ever delivered by a [[Finance Minister of India]].<ref>{{Cite web|url=https://www.ndtv.com/india-news/nirmala-sitharaman-cuts-short-budget-speech-in-parliament-after-speaking-for-over-2-5-hours-2173143|title=Unwell, Nirmala Sitharaman Cuts Short Longest-Ever Budget Speech|last=Prabhu|first=Sunil|date=1 February 2020|editor-last=Ghosh|editor-first=Deepshikha|website=NDTV|access-date=2020-02-03}}</ref> [[Nirmala Sitharaman]] is also only the second woman to present the budget for a second time after [[Indira Gandhi]].

== History ==
The Union Budget is the annual financial report of India; an estimate of income and expenditure of the government on a periodical basis. As per Article 112 of the [[Constitution of India|Indian Constitution]], it is a compulsory task of the government.<ref name=":1">{{Cite news|url=https://www.business-standard.com/budget|title=Budget 2020|work=Business Standard India|access-date=2020-01-13|url-status=live|archive-url=https://web.archive.org/web/20200113120322/https://www.business-standard.com/budget|archive-date=13 January 2020}}</ref> The first budget of India was presented on 18 February 1860 by Scotsman James Wilson.<ref>{{Cite web|url=https://www.businesstoday.in/union-budget-2020/news/budget-2020-james-wilson-the-man-who-brought-budget-income-tax-to-india/story/395075.html|title=Budget 2020: James Wilson, the man who brought budget, income tax to India|website=www.businesstoday.in|language=en|access-date=2020-02-03}}</ref> The first Union Budget of Independent India was presented by [[R. K. Shanmukham Chetty|RK Shanmukham Chetty]] on 26 November 1947.<ref>{{Cite web|url=https://www.telegraphindia.com/india/the-first-union-budget-of-india-in-november-1947-tried-to-deal-with-aftermaths-of-the-partition/cid/1741154|title=First Union Budget, November 1947: The crying concern was to dress wounds of uprooted humanity|website=www.telegraphindia.com|language=en|access-date=2020-02-03}}</ref>

== Background ==
The Union budget in 2020 was presented in a backdrop of a slowing down of the Indian economy with estimated GDP growth for 2019{{ndash}}20 being at an 11-year low of 5%.<ref name=":0" /> Factors such as the [[Infrastructure Leasing & Financial Services|IL&FS]] ([[Shadow banking system|shadow banker]], [[Non-bank financial institution|NBFC]]) crisis contributed to the slowdown;<ref>{{Cite news|url=https://www.business-standard.com/about/what-is-il-fs-crisis|title=What is IL&FS crisis?|work=Business Standard India|access-date=2020-01-18}}</ref> as well as international financial markets issues such as the [[China–United States trade war]].<ref>{{Citation|title=Why is India's growth slowing? {{!}} CNBC Explains|url=https://www.youtube.com/watch?v=tboPF8w-554|language=en|access-date=2020-01-18}}</ref> In January 2020 [[Western Asset Management Company]] has reduced its [[government bond]] holdings following the atmosphere in the country due to the [[Citizenship (Amendment) Act, 2019]] and the situation in [[Kashmir conflict|Kashmir]] which are affecting the economic spirit.<ref name=":3">{{Cite news|url=https://economictimes.indiatimes.com/markets/stocks/news/a-453-billion-bond-manager-is-shifting-bets-from-india-to-china/articleshow/73268603.cms|title=This $453 billion fund manager cuts India bet on CAA and Kashmir|date=2020-01-15|work=The Economic Times|access-date=2020-01-16|others=Bloomberg Livemint}}</ref> Investments in India will be shifted to other countries such as China and Malaysia.<ref name=":3" />

According to the ''[[The Economic Times|Economic Times]]'', the [[BSE SENSEX|BSE Sensex]] and [[NIFTY 50|Nifty]] have given positive returns only thrice in the last decade during the pre-Budget week, while offering positive returns five times in the post-budget week. In 2016, the [[Stock market|markets]] gained 7.2% in the post-Budget week.<ref>{{Cite news|url=https://economictimes.indiatimes.com/markets/stocks/news/going-by-history-buying-stocks-in-current-dip-may-prove-rewarding-post-budget-2020/articleshow/73687614.cms?from=mdr|title=Going by history, buying stocks in current dip may prove rewarding post Budget 2020|last=Mudgill|first=Amit|date=2020-01-28|work=The Economic Times|access-date=2020-01-31}}</ref>

[[Rakesh Jhunjhunwala]] said that he "is not looking forward to any big-bang announcement in the forthcoming Union Budget, but expects the government to do some actual work".<ref>{{Cite news|url=https://economictimes.indiatimes.com/markets/stocks/news/rakesh-jhunjhunwalas-budget-wish-list-views-on-tatas-bubble-asset-sectors-to-bets/articleshow/73222400.cms|title=Jhunjhunwala's Budget wish-list, views on Tatas, bubble asset & sectors to bets|date=2020-01-13|work=The Economic Times|access-date=2020-01-13}}</ref> In January 2020 Nobel Laureates [[Abhijit Banerjee]] and [[Esther Duflo]] said: "The critical problem in the Indian economy is demand."<ref name="laureate">{{Cite web|url=https://indianexpress.com/article/india/express-adda-nobel-laureate-abhijit-banerjee-esther-duflo-6205313/|title=Close to tipping point of major recession, says Nobel Laureate Abhijit Banerjee|date=2020-01-08|website=The Indian Express|language=en-US|access-date=2020-01-13}}</ref> [[Abhijit Banerjee]] said "we should forget about Budget deficits and meeting targets. We should even forget about inflation targeting. Let the economy rip a bit."<ref name="laureate" />

The [[Prime Minister of India]] invited people to share their ideas and suggestions related to the Union Budget on [[MyGov.in]].<ref>{{Cite web|url=https://www.newslaundry.com/|title=Dear prime minister, here's my suggestion for Budget 2020: Scrap the citizenship law|last=S|first=Meghnad|date=10 January 2020|website=Newslaundry|access-date=2020-01-13}}</ref>

== Significant announcements ==
Education sector allocation is {{INRConvert|993|b|lk=r|year=2020}}.<ref name=":2" /> Power and renewable energy sectors have been allocated {{INRConvert|220|b|year=2020}}. {{INRConvert|1387|b|year=2020}} allocated for the welfare and upliftment of [[Scheduled Castes and Scheduled Tribes|Scheduled Tribes and Scheduled castes]] and [[other Backward Class]]es.<ref name=":2" /> The allocation to the agriculture sector was {{INRConvert|2830|b|year=2020}}<ref>{{cite web |title=Union Budget 2020: What Did Small Businesses Get? |date=4 February 2020 |url=https://vyaparapp.in/blog/union-budget-2020-what-did-small-businesses-get/ |access-date=4 February 2020}}</ref><ref>{{cite news |last1=Sally |first1=Madhvi |title=Budget 2020: FM Sitharaman announces 16-point action plan for agriculture |newspaper=The Economic Times |url=https://economictimes.indiatimes.com/news/economy/agriculture/budget-2020-fm-sitharaman-announces-16-point-action-plan-for-agriculture/articleshow/73831918.cms |publisher=IndiaTimes.com |access-date=1 February 2020}}</ref> while rural development was allocated {{INRConvert|1230|b|year=2020}}.<ref>{{Cite web|url=https://www.livemint.com/budget/news/union-budget-2020-highlights-latest-nirmala-sitharaman-budget-speech-11580532443776.html|title=Budget 2020 highlights: New income tax slabs, record allocation for transport|last=Livemint|date=2020-02-01|website=Livemint|language=en|access-date=2020-02-03}}</ref> Apart from this a 16-point agenda was listed by the Finance Minister for the agriculture sector as well as a "Blue Economy" initiative.<ref>{{Cite web|url=https://www.pwc.in/budget/union-budget-2020.html|title=Union Budget 2020|last=PricewaterhouseCoopers|website=PwC|language=en-in|access-date=2020-02-03}}</ref> Defence pensions have been allocated {{INRConvert|130|b|year=2020}} while development of the [[Jammu and Kashmir (union territory)|Union Territory of Jammu and Kashmir]] has been allocated {{INRConvert|307.57|b|year=2020}} and the [[Union territory of Ladakh|Union Territory of Ladakh]] {{INRConvert|59.58|b|year=2020}}.<ref name=":7">{{Cite web|url=https://timesofindia.indiatimes.com/business/india-business/union-budget-2020-winners-and-losers/articleshow/73838680.cms|title=Union Budget 2020: Winners and losers - Times of India|last=Bloomberg|date=1 February 2020|website=The Times of India|language=en|access-date=2020-02-01}}</ref>

The healthcare budget has been increased by 10% to {{INRConvert|690|b|year=2020}}.<ref>{{Cite news|url=https://www.business-standard.com/budget/article/budget-2020-healthcare-sector-allocation-rises-to-rs-69-000-crore-120020100643_1.html|title=Budget 2020: Healthcare sector allocation rises to Rs 69,000 crore|last=Das|first=Sohini|date=2020-02-01|work=Business Standard India|access-date=2020-02-03}}</ref><ref>{{Cite web|url=https://inc42.com/buzz/union-budget-2020-healthcare-budget-up-10-cess-on-medical-equipment|title=Union Budget 2020: Healthcare Budget Up 10%, Cess On Medical Equipment|date=2020-02-01|website=Inc42 Media|language=en-US|access-date=2020-02-03}}</ref> Funding for a campaign to eliminate tuberculosis by 2025 called ''TB Harega, Desh Jeetega'' was announced in the budget speech.<ref name=":2" /> [[Mission Indradhanush]]'s scope has been expanded as well as the scope of the [[Pradhan Mantri Bhartiya Jan Aushadhi Yojana Kendra|Jan Aushadhi Yojana Kendra]] scheme.<ref>{{Cite web|url=https://www.pwc.in/budget/union-budget-2020.html|title=Union Budget 2020|last=PricewaterhouseCoopers|website=PwC|language=en-in|access-date=2020-02-03}}</ref> Welfare of senior citizens and the disabled has been allocated {{INRConvert|95|b|year=2020}}.<ref name=":2" /><ref name=":7" />

India's national gas grid to be increased by over 10,000 km.<ref name=":4">{{Cite news|url=https://www.thehindu.com/business/budget/2020-union-budget-live-updates/article30709479.ece|title=Budget 2020 live updates {{!}} Simplified tax regime proposed; lower rates for those who forgo exemptions|last=Desk|first=The Hindu Net|date=2020-02-01|work=The Hindu|access-date=2020-02-01|language=en-IN|issn=0971-751X}}</ref> A policy will be formed for [[Data center|data centre]] construction as well as a National Logistics Policy. {{INRConvert|80|b|year=2020}} allocated over five years for the National Mission on Quantum Technology and Applications.<ref name=":4" /> Five new [[Smart city|smart cities]] to be developed. 100 more airports will be developed to support [[UDAN]].<ref name=":4" /> The government plans to raise funds by selling a partial stake in [[Life Insurance Corporation|Life Insurance Corporation (LIC)]] through an [[initial public offering]] (IPO).<ref>{{Cite web|url=https://www.livemint.com/budget/news/budget-2020-govt-plans-to-raise-funds-through-lic-ipo-11580542321801.html|title=Budget 2020: Govt plans to raise funds through LIC IPO|last=Dasgupta|first=Surajit|date=2020-02-01|website=Livemint|language=en|access-date=2020-02-01}}</ref> Stake in [[IDBI Bank]] to also be sold to the private sector.<ref name=":4" /> Indian Institute of Heritage and Conservation to be set up and five sites [[Rakhigarhi]], [[Hastinapur]], [[Sivasagar]], [[Dholavira]] and [[Adichanallur]] to be developed into world class archaeological sites.<ref name=":4" /> An aim of the budget included improving the physical quality of life through a National Infrastructure Pipeline.

A tax-relief was announced including simplified tax processes.<ref>{{Cite web|url=https://timesofindia.indiatimes.com/india/union-budget-2020-live-updates/liveblog/73822834.cms|title=Budget 2020 Live updates: Highlights of Nirmala Sitharaman Budget; Income tax slabs changed for individuals with income 5lac-15lac|website=The Times of India|language=en|access-date=2020-02-01}}</ref> Finance Minister Nirmala Sitharaman slashed the personal income tax rate for individuals for fiscal year 2020–21.<ref>{{Cite web|url=https://www.moneycontrol.com/news/business/economy/budget-2020-fm-tweaks-income-tax-slabs-know-about-new-changes-here-4851061.html|title=Budget 2020: FM announces new income tax slabs and rates, tweaks exemption structure|website=Moneycontrol|access-date=2020-02-01}}</ref> Under the new regime, taxpayers will pay 10%, 15%, 20% and 25% for incomes between ₹500,000{{ndash}}750,000, ₹750,000{{ndash}}1 million, ₹1{{ndash}}1.25 million and ₹1.25{{ndash}}1.5 million, respectively. However, to avail this scheme, which is optional, taxpayers will have to forego exemptions.<ref name=":2" /> A taxpayer charter was proposed as well.<ref>{{Cite web|url=https://www.hindustantimes.com/india-news/finance-minister-nirmala-sitharaman-proposes-taxpayer-charter-in-budget-speech-says-wealth-creators-will-be-respected/story-gImx39jLQ8eGceGZxEF0bK.html|title=Finance Minister Nirmala Sitharaman proposes taxpayer charter in Budget speech, says wealth creators will be respected|date=2020-02-01|website=Hindustan Times|language=en|access-date=2020-02-01}}</ref> An International Bullion Exchange to be set up at the IFSC in [[Gujarat International Finance Tec-City|GIFT]] was also announced.<ref>{{Cite web|url=https://indianexpress.com/article/business/international-bullion-exchange-to-check-business-to-dubai-singapore-officials-6247154/|title=International bullion exchange to check business to Dubai, Singapore: Officials|last=Nair|first=Avinash|date=2020-02-02|website=The Indian Express|language=en-US|access-date=2020-02-02}}</ref> Apart from modifying the definition of an NRI, non-tax paying NRIs would be taxed in India if not paying taxes elsewhere.<ref>{{Cite news|url=https://economictimes.indiatimes.com/news/economy/policy/non-taxpaying-nris-to-be-taxed-in-india-fm/articleshow/73848795.cms|title=Non-taxpaying NRIs to be taxed in India: FM|date=2020-02-01|work=The Economic Times|access-date=2020-02-02}}</ref> The [[dividend distribution tax]] (DDT) has been removed and the "shareholder based taxation system" returns. Some tax exemptions have been introduced for some sovereign funds while a new [[Tax Deducted at Source|tax deducted at source]] for e-commerce operators.<ref name=":9">{{Cite web|url=https://www.pwc.in/budget/union-budget-2020.html|title=Union Budget 2020|last=PricewaterhouseCoopers|website=PwC|language=en-in|access-date=2020-02-03}}</ref><ref name=":10">{{Cite web|url=https://community.nasscom.in/communities/policy-advocacy/nasscoms-analysis-of-the-union-budget-2020-21.html|title=NASSCOM's analysis of the Union Budget 2020-21|date=2020-02-01|website=NASSCOM Community {{!}}The Official Community of Indian IT Industry|language=en-US|access-date=2020-02-03}}</ref> Rules related to charity contributions and auditing of non-corporate businesses will see some new changes, according to [[Mondaq]].<ref name=":11">{{Cite web|url=https://www.mondaq.com/india/Tax/890278/India-Releases-2020-21-Union-Budget--Glimpses-Of-Budget-2020|title=India Releases: 2020-21 Union Budget - Glimpses Of Budget 2020|last1=Khan|first1=Shahid|last2=Bhattacharya|first2=Shampa|date=4 February 2020|website=[[Mondaq]]|others=Kochhar & Co.|access-date=2020-02-06}}</ref> The Finance Bill 2020 included "tax incentives" such as additional exemptions, modification of definitions such as "business trust", widening of the tax base, "revenue mobilisation measures", "penalties for fake invoices", minimizing taxpayer complications etc.<ref>[https://www.indiabudget.gov.in/doc/memo.pdf The Finance Bill 2020] (Provisions related to Direct Tax). Government of India.</ref>

{{INRConvert|1|b|year=2020}} has been allocated to holding the G-20 summit.<ref name=":7" /> {{INRConvert|6|b|year=2020}} was allocated for the Prime Ministers [[Special Protection Group]] (SPG) cover, up {{INRConvert|600|m|year=2020}} from last year.<ref>{{Cite web|url=https://www.theweek.in/news/india/2020/02/01/union-budget-rs-600-crore-allocated-for-pm-modi-spg-protection.html|title=Union Budget: Rs 600 crore allocated for PM Modi's SPG protection|date=1 February 2020|website=The Week|language=en|access-date=2020-02-02}}</ref> Certain defence imports to be exempt from customs duty.<ref name=":11" />

== Reactions ==
Reaction to the budget was mixed.<ref>{{Cite news|url=https://www.thehindu.com/news/national/union-budget-2020-reactions/article30709905.ece|title=Budget 2020 reactions live: How industries and corporates responded|date=2020-02-01|work=The Hindu|access-date=2020-02-01|language=en-IN|issn=0971-751X}}</ref>

=== Political ===
Prime minister [[Narendra Modi]] made a statement saying that the budget has both "vision and action".<ref name=":8">{{Cite web|url=https://www.firstpost.com/business/budget-2020-live-updates-finance-minister-india-nirmala-sitharaman-speech-announcement-union-budget-2020-21-today-latest-news-new-income-tax-slabs-rates-railways-infrastructure-agriculture-7982501.html|title=Budget 2020 LIVE Updates: Budget has vision and action, says Narendra Modi; govt has given up on reviving economy, claims Chidambaram|website=Firstpost|date=February 2020|access-date=2020-02-01}}</ref>

Among the opposition members, [[P. Chidambaram]], the former [[Minister of Finance (India)|Union Finance Minister of India]], said that the "government has given up on reviving economy".<ref name=":8" /> Also, with reference to the budget allocation for [[Jammu and Kashmir (union territory)|Jammu and Kashmir]] and [[Ladakh]], [[P. Chidambaram|Chidambaram]] also said that money can't replace freedom.<ref>{{Cite web|url=https://www.aninews.in/news/national/general-news/money-no-substitute-for-freedom-chidambaram-on-funds-given-to-j-k-ladakh20200201182053/|title=Money no substitute for freedom: Chidambaram on funds given to J-K, Ladakh|date=1 February 2020|website=ANI|language=en|access-date=2020-02-02}}</ref> [[Rahul Gandhi]] criticized the budget for not providing any real solution to solve the [[Unemployment in India|unemployment]] issue.<ref name=":6">{{Cite news|url=https://timesofindia.indiatimes.com/india/lot-of-repetition-rambling-rahul-gandhi-slams-budget-2020/articleshow/73837515.cms|title=Lot of repetition, rambling: Rahul Gandhi slams Budget 2020|date=1 February 2020|newspaper=The Times of India|language=en|access-date=2020-02-01|agency=Ist}}</ref> [[Sitaram Yechury]] of [[Communist Party of India (Marxist)|CPI(M)]] said that the budget does nothing to rid "people's miseries".<ref name=":6" /> [[Mamata Banerjee]] said that she was "shocked and appalled" with the governments plan related to the heritage of the country.<ref>{{Cite web|url=https://timesofindia.indiatimes.com/india/budget-2020-live-updates-highlights-of-nirmala-sitharaman-budget/liveblog/73822834.cms|title=Budget 2020 Live updates: Highlights of Nirmala Sitharaman Budget; FM cuts short Budget speech after feeling unwell|website=The Times of India|language=en|access-date=2020-02-01}}</ref> [[T. M. Thomas Isaac]], the finance minister of [[Kerala]] said the budget was a "war cry" against the state; this was because the budget for the state had been reduced.<ref>{{Cite news|url=https://timesofindia.indiatimes.com/city/thiruvananthapuram/its-a-war-cry-against-kerala-isaac/articleshow/73854072.cms|title=It's a war cry against Kerala: Isaac|date=2 February 2020|newspaper=The Times of India|language=en|access-date=2020-02-02|agency=Ist}}</ref>

=== Academics ===
According to [[University of Kalyani]] economist Byasdeb Dasgupta, the budget "served the interests of finance at the cost of the [[real economy]] without considering the ongoing stagnation in the real economy, steep rises in the rate of [[unemployment]] and informalization of the economy". He especially opposed the abolition of the [[dividend distribution tax]] and the cuts to [[corporate tax]]es.<ref>{{Cite book|last=Dasgupta|first=Byasdeb|url=https://www.worldcat.org/oclc/1238129770|title=Neoliberalism in the emerging economy of India : the political economy of international trade, investment and finance|publisher=[[Routledge]]|others=|year=2021|isbn=978-1-003-13176-2|location=London|pages=38|chapter=Capital accumulation and finance capital in the age of finance|oclc=1238129770}}</ref>

=== Private sector ===
[[Moody's Investors Service]] has said that the "budget highlights the challenges to fiscal consolidation".<ref name=":2" /> [[PricewaterhouseCoopers|PWCs]] noted that there were "some positives from a tax perspective".<ref name=":9" /> [[NASSCOM]] also reaffirms this and notes that the tax harassment for taxpayers was something the government was committed to remove.<ref name=":10" /> Head of Research at [[Geojit Financial Services]], rated the Budget "below par".<ref name=":5" /> [[Swaminathan Aiyar|Swaminathan Aiyer]] called the budget "reasonable".<ref>{{Cite news|url=https://economictimes.indiatimes.com/markets/expert-view/a-reasonable-budget-but-still-unclear-on-fiscal-deficit-front-swaminathan-aiyar/articleshow/73837853.cms|title=Budget looks reasonable, tries to make life easier for middle class: Swaminathan Aiyar|date=2020-02-01|work=The Economic Times|access-date=2020-02-02}}</ref> [[Kallam Satish Reddy|Satish Reddy]] said that the budget showed the continued focus of the government's in healthcare.<ref>{{Cite web|url=https://www.moneycontrol.com/news/business/economy/budget-2020-live-updates-fm-nirmala-sitharaman-budget-speech-income-tax-slabs-union-budget-2020-highlights-budget-2020-announcements-4887601.html|title=Budget 2020 Highlights: Budget to unlock potential of health, education and infra sectors, says SBI Chairman|date=1 February 2020|website=[[Moneycontrol.com]]|access-date=2020-02-02}}</ref>

=== Stock markets ===
As the Union budget was presented in the parliament, [[NIFTY 50|Nifty]] fell by over 3% (373.95 points) while [[BSE SENSEX|Sensex]] fell by more than 2% (1000 points).<ref>{{cite news |title=Stock market at odds with Union Budget 2020; SENSEX slips over 1,000 pts, NIFTY at 11,643 |url=https://www.dnaindia.com/business/report-stock-market-at-odds-with-union-budget-2020-sensex-slips-over-1000-pts-nifty-at-11643-2811660 |access-date=1 February 2020 |work=[[DNA India]] |date=1 February 2020 |language=en}}</ref><ref name=":5">{{Cite news|url=https://economictimes.indiatimes.com/markets/stocks/news/bloodbath-on-d-st-five-reasons-why-budget-sent-sensex-tumbling-700-pts/articleshow/73838014.cms|title=Bloodbath on D-St: Five reasons why Budget sent Sensex tumbling 1,000 pts|date=2020-02-01|work=The Economic Times|access-date=2020-02-01}}</ref> Economic Times reports some reasons for this including lack of sops for the automobile or real estate, confusion over new income tax slabs, high divestment targets [{{INRConvert|2100|b|year=2020}}] and abolition of [[dividend distribution tax]].<ref name=":5"/>

== Financial Bill 2020 ==
As the house curtailed its sittings in the wake of the [[COVID-19 pandemic]], [[Lok Sabha]] passed the Financial Bill 2020 on 23 March 2020, without any discussion.
Rajya Sabha Chairman M. Venkaiah Naidu and Lok Sabha Speaker Om Birla met political leaders to strike a deal to clear the important bill before Parliament was adjourned.
Minister of State for Parliamentary Affairs Arjun Ram Meghwal said it was an "extraordinary situation" and that a decision to pass the Bill without any discussion was taken at the all-party meeting.

The key changes introduced in the Bill are:

* NRIs – Non-Resident Indians will be taxed on India-controlled income above {{INRConvert|1.5|m}}.
* Equalisation levy of 2% on non-resident e-commerce unless they have a PE in India.
* Exemption in tax to Sovereign Wealth Fund enlarged to Pension Funds for infra investment.
* Tax on cash withdrawal of over {{INRConvert|2|m}} at the rate of 2% if tax return not filed for three years with effect from 1 July 2020.
* TDS rate on payment of dividend to non-resident, foreign company at 20 percent with effect from 1 October 2020.
* DDT exemption will be given to REITs and InvITs if not under the new corporate tax regime.
* No 2 percent tax on withdrawal of over {{INRConvert|10|m}} cash from banks, co-operative banks, PO.
* Tax on cash withdrawal of over {{INRConvert|10|m}} at 5 percent if tax return not filed for three years with effect from 1 July 2020.

== See also ==

* [[Economy of India]]
* [[Economic development in India]]
* [[Economic Advisory Council]]
* [[2018 Union budget of India]]

== Notes ==
{{reflist|group=lower-alpha}}

== References ==
{{reflist}}

==Further reading==
* [https://www.hdfclife.com/insurance-knowledge-centre/tax-saving-insurance/importance-of-union-budget-of-india Union Budget of India: What is it and Why is it So Important?] [[HDFC Life]]
* [https://timesofindia.indiatimes.com/business/india-business/union-budget-2020-full-text-of-nirmala-sitharamans-speech/articleshow/73837902.cms Union Budget 2020: Full text of Nirmala Sitharaman's speech]. The Times of India
* Shahid Khan, Shampa Bhattacharya (4 February 2020). [https://www.mondaq.com/india/Tax/890278/India-Releases-2020-21-Union-Budget--Glimpses-Of-Budget-2020 ''India: India Releases: 2020-21 Union Budget - Glimpses Of Budget 2020''] Kochhar & Co. via Mondaq.com
* Ministry of Finance (1 February 2020). [https://pib.gov.in/newsite/PrintRelease.aspx?relid=197837 ''Summary of Union Budget 2020-21''] Press Information Bureau, Government of India.
* Ministry of Finance (1 February 2020). [https://pib.gov.in/newsite/PrintRelease.aspx?relid=197836 ''The Key Highlights of Union Budget 2020-21''] Press Information Bureau, Government of India.
*[https://classofy.com/union-budget-2020 Union Budget 2020: Full text Speech of Nirmala Sitharaman's]

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{{Economy of India}}

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2020 Union budget of India - Revision history

MetaBOT at 20:21, 8 July 2023