UTBT 31st Session

UTBT 31st Session

Topic: – The 2020 Union Budget

Date: – 10th February, 2020 (Monday)

Time: – 4:30 P.M.

Venue: – Under the Banyan Tree

With India’s slowing economy hanging by a thread, all eyes were fixed on 1st Feb, 2020. It was imperative for the budget to ease the economy’s woes and the expectations were high. While a lot of changes were observed, all in all the budget observed mixed reviews. While some appreciated the initiatives taken by the government, others argued this budget wouldn’t wake them up in the morning.

Given the state of economy in India and worldwide, and the period of uncertainty looming around globally, it is necessary for us to comprehend and discuss the major provisions of this budget and to what extent would it help the Indian economy capitalize on its potential.

Through the discussion, we aim to cover the following aspects: –

  • The changes in the taxation system- There was a rather dramatic change in the direct tax system with the introduction of optional slabs, each with its own set of terms and conditions. The question is whether this would simplify or complicate the system for the common man? And would he/she actually benefit from this? Another major change was the abolition of Dividend Distribution Tax (DDT); to what extent would it benefit the cash-deprived corporate sector? Moreover, there were also changes proposed in indirect taxation. We briefly aim to cover its implications as well.
  • Sectoral Allocation of Funds- As with each and every budget there are winners and losers, which varies from ministry to ministry every year. The question here is whether the allocation of resources across different sectors were optimal, or would a different pattern have been more suitable given the state of our economy?
  • Schemes and Initiatives– 103 lakh crore for the infrastructure pipeline. 3000 crores for SkillIndia initiative, linking 1 lakh gram panchayats through the BharatNet programme, are some of the many schemes proposed by the Honorable Finance Minister. What impact in the short-to medium term as well as the long term would these initiatives have for the economy. Given the rising fiscal deficit did the government make the right move by announcing big ticket spending, or on the contrary, should the government have proposed greater fund allocation for such initiatives?
  • The Overall Impact– To conclude, considering all these factors, what do you think of the budget? How would it affect the financial markets, India and abroad? What about the overall health of the financial sector? Or the MSMEs? Is the budget pro or anti middle class? Would the budget bring India back to its surging growth trajectory or would it be just another nail in the coffin?

REFERENCES

●       https://www.indiabudget.gov.in/ (Union Budget and Economic Survey)

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