2020 budget by nirmala sitharaman's in feb

DELHI GOVT-: GOVT. HAS CUT IN PERSONAL INCOME TAX. AN AGGRESSIVE PUSH ON INFRASTRUCTURE  SPENDING  ALONG WITH RURAL AND AGRICULTURE SECTORES IS LIKELY TO BE PART OF FINANCE MINISTER NIRMALA SITHARAMAN'S ''FEEL-GOOD'' SECOND BUDGET.GOVT. SOURCES  AND ECONOMISTS SAID THAT FACING THE WORST ECONOMIC DOWNTURN IN MORE THAN A DECADE SITHARAMAN'S HOPES TO PULL ALL STOPS TO CURB CONSUMER DEMAND AND  INVESTMENT.

                

                     In SITHARAMAN'S SECOND BUDGET  TO BE PRESENTED ON FEB 1, IT IS EXPECTED TO ANNOUNCE MEASURE AND RESTORE A CLEAR ROAD MAP TO RESTORE  ECONOMIC GROWTH TO ACHIEVE THE AMBITIOUS TARGET OF $ 5 TRILLION ECONOMY BY 2025. CORPORATE TAX CUTS AND OTHER STIMULUS MEASURES HAVE FAILED TO ATTRACT INVESTMENT DESPITE PLANS TO STRENGTHEN HIGH  FDI INFLOWS STATE-OWNED BANKS AND MONETARY EASING. 

           FOLLOWING THE CORPORATE TAX CUTS IN SEPTEMBER LAST YEAR THERE HAS BEEN SPECULATION ABOUT THE POSSIBLE  REDUCTION IN PERSONAL INCOME TAXES. A COMBINATION OF AN INCREASE  IN THE BASIS EXEMPTION LIMIT AND / OR THE INTRODUCTION   OF A DIFFERENTIATED  TAX RATE STRUCTURE FOR HIGHER INCOME MAY BE ON THE CARD.

                           THESE DIVERSIONS  MAY OCCUR  WITH RATIONALIZATION IN TAX EXEMPTION TO MINIMIZE THE IMPACT  ON COLLECTIONS. A SENIOR GOVT. SAID  ''THE GOVT. ANNOUNCED STIMULUS MEASURES  IN THE LAST FOUR MONTHS BUT CONSUMER CONFIDENCE IS MISSING. MANY PEOPLE ARE NOT KEEN ON TAKING LOANS TO BUY HOMES OR CAR OUT OF FEAR. GOOD FACTOR IN THE ECONOMY MISSING. 

            I THINK THE BUDGET WILL BE A GOOD-SOUNDING BUDGET  THAT WILL TRY TO RESTORE CONFIDENCE IN THE ECONOMY AND SPEND AND INVEST  THE SOURCE SAID. WITH DISBURSEMENT TO FARMERS UNDER THE PM-KISAN SCHEME AT LEAST THAN THE BUDGET AMOUNT, THE BUDGET MAY ALSO SEE MEASURE TO GET STATES ONBOARD MORE QUALIFIED FARMERS UNDER THYE SCHEMES. IN ADDITION, THERE WILL BE ANNOUNCEMENTS FOR SECTOR SUCH AS RENEWABLE ENERGY, E-VEHICLES, ELECTRICITY, AFFORDABLE HOUSING, REAL ESTATE EXPORT.   

                 

                  FINANCIAL MARKETS ARE EXPECTING RELIEF ON THYE REMOVAL OF SECURITIES TRANSACTION TAX, LONG TERM CAPITAL GAINS TAX, AND DIVIDEND TAX. CAPITAL FLOWS AND CAPITAL MEASURES FOR NON-BANKING  FINANCE COMPANIES  IN A PUBLIC SECTOR BANKS MAY ALSO  BE ON THE HORIZON. BOTHE GOVT. SOURCES AND ECONOMISTS FELT THE BUDGET  WOULD FOCUS ON INFRASTRUCTURE  SPENDING FOLLOWING ROLLOUT OF AN AMBITIOUS NATIONAL INFRA PIPELINE IN DECEMBER. SOCIAL SECTOR SCHEMES LIKE RURAL ELECTRIFICATION, MNREGA, HEALTHCARE, EDUCATION, AND  SKILL TRAINING CAN ALSO BE MENTIONED IN THE BUDGET. HOWEVER, ALL SUCH MEASURES WILL COME AT THE EXPENSE OF FISCAL SLIPPAGE.

THE ECONOMIC SURVEY  FOR 2019-20, RELEASED ON FRIDAY, HAS ALREADY SUGGESTED TO THE GOVT. TO FOCUS ON REVIVING GROWTH AND REDUCING FISICAL DISCIPLINE SLIGHTLY. THE RBI DEFENDED THE RISK OF THE RECESSION BACKDROP, WHICH CUT INTEREST RATES BY 110 BASIS POINTS. AS IT PUTS A BREAK OF THE EASY CYCLE, BALLOONING IS IN THE GOVERNMENT'S COURT TO REVIVE GROWTH, DUE TO THE UNPRECEDENTED UPTICK IN FOOD PRICES THAT BOOST UPWARD INFLATION.