On 1^st February 2020, Finance Minister Nirmala Sitharaman will present her second Union Budget. This will be the most challenging budget for Modi government due to GDP and job market at its declining trend

Facts

• According to the Constitution of India Article 112, the budget is referred to as “Annual Financial Statement”.
• First Union Budget of Independent India was present by R. K. Shanmukham Shetty on 26 November 1947
• Morarji Desi has presented the highest number of budgets i.e. 10
• Halwa ceremony: This marks the start of printing Budget documents
• North Block becomes isolated and stay is levied are for the officials involved in the Budget preparation from the start till it is presented in the Parliament
• Till 1999, Budget was presented at 5 PM later moved to 11 AM
• Till 2016, Budget was presented on the last working day of February
• After 2016, Budget started to be presented on 1^st day of February

Expectation

This year’s budget is being eagerly awaited by corporate, startup and middle class.

• Income Tax Slab Revision: Revision in the income tax exemption limit which would be a relief for the middle class.
• Long Term Capital Gain (LTCG) and Dividend Distribution Tax (DDT): This will give a push to the stock market
• Petroleum and Natural Gas: Bring petrol and diesel under the GST and exemption limit to be increased to benefit the small businessman.
• NBFC: Permanent refinance window for the sector
• Food & Beverages: Input credit on GST for restaurants, so that they can pass on the benefit
• Textile: Industry expecting export incentive scheme and inverted duty structure in clamming refund in Input Tax Credit (ITC)
• Automobile: Reduction in GST from 28% to 18% and also abolish customs duty on lithium-ion battery.
• Environmental Issues: Subsidiary and incentive plan on environment management and pollution control efforts
• Benefit for the farmers:
  • Removing GST on agri-inputs
  • Incentivising private investments in warehousing

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