Page 28 - Plastics News February 2020

FeAtures

The Budget That Seems To Be A ‘Balancing Act’

FM’s budget speech emphasised the continuation of reform and initiatives for systemic improvements- Tax
relief for middle class, LIC IPO, UDAN expansion and more

inance Minister Nirmala Sitharaman announced slew technology for faceless assessment and appeal are all
Fof measures to boost consumption and revive growth, systemic changes that move towards this goal. There is
including change in personal income tax rates, hike in a push to continue the initiatives from the last budget
deposit insurance coverage to Rs 5 lakh per depositor, to strengthen the financial sector,
listing of insurance behemoth LIC. Nirmala Sitharaman In her longest Budget speech, Sitharaman said that
presented the Modi government's second budget in this budget is woven around three prominent themes,
Parliament, which aimed at boosting investment at a namely - aspirational India, caring society and economic
time when the country is staring at an estimated 5 per development.
cent annual rate of expansion, the slowest pace since
2009. Taking a pragmatic approach, Finance Minister The major highlights of Union Budget 2020
Nirmala Sitharaman announced slew of measures to are as follows:
boost consumption and revive growth, including change Tax relief for middle class
in personal income tax rates, hike in deposit insurance
coverage to Rs 5 lakh per depositor, listing of insurance Finance Minister Nirmala Sitharaman announced a change
behemoth LIC. in the income tax slabs. Sitharaman revised income tax
rates for earning up to Rs 15 lakh, while no tax will be
applied on earnings up to Rs 5 lakh. The new slabs have
significantly reduced the taxes for most of the brackets.
Those earning Rs 5-7.5 lakh will now pay just 15 per cent,
while those earning up to Rs 5 lakh in a year will pay no
tax. If you are earning between Rs 10 lakh to Rs 12.5
lakh and between Rs 12.5 lakh and Rs 15 lakh, you will
have to pay lesser tax than before. Govt to sell stake in
Life Insurance Company. In her Budget speech, Nirmala
Sitharaman said that the government proposes to sell a
part of its holding in LIC by initial public offering (IPO).
The minister, however, did not reveal the percentage of
Sitharaman’s budget speech emphasised the continuation holding that it would sell.
of reform and initiatives for systemic improvements.
For example, promoting prepaid smart metering over FY20 fiscal deficit target revised to 3.8% from
the next three years will give consumers the freedom 3.3%
to choose suppliers and help resolve the issue of energy Finance Minister Nirmala Sitharaman revised the country's
distribution company viability. The focus on creating fiscal deficit target to 3.8 per cent for the current fiscal
opportunities for youth will create jobs and raise year, from a previous target of 3.3 per cent. She also
productivity. Major reforms in government recruitment pegged the fiscal deficit target for the year 2020-21 at
will reduce duplication and improve the set of skills 3.5 per cent of the GDP.
available.
Allots Rs 1.7 lakh crore for Infra
The thrust towards corruption-free governance based Finance Minister Nirmala Sitharaman announced Rs
on trust is also commendable. The announced taxpayer 1.7 lakh crore for developing infrastructure to boost
charter, incentives to close tax litigation, removal of transport sector. She also proposed Rs 27,300 crore for
criminal liabilities for business activities and the use of development of industry and commerce. She said that

Plastics News Februar y 2020 28