SANJAY THAPA JEET
Modi 2.0’s second budget pins hopes on recovery in the economy and aims at a higher trajectory of revenue and thus a higher growth — almost doube digit– and a narrower fiscal deficit of 3.5 per cent for 2020-21 and in line with Modi’s dictum of ”less government and more governance”.
In line with Modi’s dictum of ”less government and more governance”, the budget thas also unleashed a ‘faceless’ IT assessment and appeal mechanism. The budget provides for lessening of tax litigation if payment of all pending dues are made by March 31 and with a additional penalty after March till July. CEA KV Subramanian has already pinned the hopes in the Economic Survey on the ”ínvisible hand’ to guide the economy — may be he has acue from the Neo Classical economist and a proponent of free market economy Adam Smith.
In order to reach the target of making India a US $ 5 trillion economy by 2024, Sitaraman has expressed optimism of a recovery in the coming fiscal the budget projects the GDP to grow at 10 per cent for 2020-21 and thus a better collection from the GST , a lower fiscal deficit at 3.5 per cent. The fiscal deficit component will also managed by higher disinvestment target which the budget this time at over Rs 2.01 lakh crore wherein it plans to offload shares of LIC and IDBI.
India Inc seem to be little dismayed at the budget announcements despite the lowering of income slab tax rates and despite the abolition of the DDT. Widely there were expectations of doing away with LTCG, STT and CCT. Defending that her positive budget announcements had not had an encouraging impact on the corporate as indicated by the stock market BSE tanking a 1000 points on the budget day.
