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Decoding the Union Budget 2020

DOWNLOAD PDF The Budget 2020 has addressed the pain points around the rural economy and infrastructure development, which are expected to boost the sentiment of the economy. While 2.83 lakh crore has been earmarked for agriculture, 1.7 lakh crore has been allocated for infrastructure in the budget. On the other hand, the removal of Dividend Distribution Tax (DDT) is itself a significant step, which will increase the flow of money in the hands of investors. It is a big benefit for minority shareholders and individuals falling under the lower tax bracket. Following the structural reforms in the income tax slabs, people will be left with more money. It will ultimately boost consumption, thereby providing a major fillip to economic growth. Another positive part of the Union Budget 2020 is the increase of bank deposit insurance to five lakh per depositor, which will increase the confidence of small-time depositors. Most importantly, this increase in the insurance cost will not leave any significant impact on the BFSI sector.Besides, the extension of the tax holiday, coupled with an additional deduction of 1.5 lakh in the affordable housing segment and the allocation of`69,000 crore for the healthcare sector, especially for the rural economy, are some welcome changes. This issue of Samriddhi provides more insights into the Union Budget 2020.

The Budget 2020 has addressed the pain points around the rural economy and infrastructure development, which are expected to boost the sentiment of the economy. While 2.83 lakh crore has been earmarked for agriculture, 1.7 lakh crore has been allocated for infrastructure in the budget. On the other hand, the removal of Dividend Distribution Tax (DDT) is itself a significant step, which will increase the flow of money in the hands of investors. It is a big benefit for minority shareholders and individuals falling under the lower tax bracket. Following the structural reforms in the income tax slabs, people will be left with more money. It will ultimately boost consumption, thereby providing a major fillip to economic growth. Another positive part of the Union Budget 2020 is the increase of bank deposit insurance to five lakh per depositor, which will increase the confidence of small-time depositors. Most importantly, this increase in the insurance cost will not leave any significant impact on the BFSI sector.Besides, the extension of the tax holiday, coupled with an additional deduction of 1.5 lakh in the affordable housing segment and the allocation of`69,000 crore for the healthcare sector, especially for the rural economy, are some welcome changes. This issue of Samriddhi provides more insights into the Union Budget 2020.