The Budget announced for 2020 offered measures that will boost the declining economy of the country. Finance minister Nirmala Sitaraman announced budget beyond the pre-expectations on the increased capital and spending and reduced tax rates to the common man.

This issue was most talked about before announcement of the budget. Core sectors have multiplier effect on the economy and ways to uplift the core sector is to provide them with more capital expenditure. For the financial year 2021, more than Rs 4 lakh crore entire fiscal has been allotted for the capital expenditure. Capital expenditure will include a good part of the borrowings for the financial year 2020-2021.

Finance minister relieves common tax payer which is going to tackle with consumption slowdown. New tax structure was announced by the Finance Minister with the following changes. 5 lakh to 7.5 lakh income will be paying 10% tax and 7.5 lakh to 10 lakh income tax has been reduced to 15% from 20%.

The fund allocated for transport infrastructure in Union Budget 2020-2021 is around 1.7 lakh crore. 100 new airports will be developed under the UDAN scheme. National Infrastructure Pipeline has been committed to Rs 103 lakh crore. Numerous jobs will be created by the steps to boost National Infrastructure Pipelines and it will also create demand in core sectors of the economy. More Tejas trains will be seen on the tracks.

End-to-End facilitation and support will be provided including pre-investment advisory, information related to land banks and facilitate clearance at Centre and State level by the Investment Clearance Cell. With the abolition of Dividend Distribution Tax at the hands of the companies, extra funds can be used for reinvestment in the economy.

Disinvestment target of Rs 2.11 lakh crore has been proposed for the Financial Year 2021. Selling stake in the Life Insurance has also been proposed.

“The Union Budget 2020, is encouraging, forward looking and would ensure the necessary boost to the Digital India Vision. The Budget duly recognises the transformational impact of emerging technologies such as AI, IOT, Big Data, Cyber Security, ML and Robotics on the economy. The digital growth momentum is steered further and India definitely has a key role to play in the global economy and future of technology and innovation. We believe that India has a unique success story and a step towards being a global technology reader. This budget definitely favours new age digital economy and we look forward to further growth in the sector”, says Priya Mahajan, Head of ASPAC Public Policy & Regulatory Counsel Verizon Enterprise Solutions.