Budget 2020, Economic Survey Date: First time ever Union Budget on Saturday? What we know so far
Union Budget 2020-21, Economic Survey: This will be the first time after 2015-16 when the budget will be presented on Saturday.
According to the latest development, Union Budget for 2020-21 may be presented on February 1 and the Economic Survey is likely to be on January 31, a report by news agency IANS said quoting Finance Ministry sources said.
Budget 2020-21: February 1, 2020 (Most likely)
Economic Survey: January 31, 2020 (Most likely)
In the Economic Survey 2019 which was presented on July 4, a day before the General Budget on July 5 after the Modi government started its second innings in the government, the focus was on "What India needs to become a $10 trillion economy by 2030. India needs to spend 7-8% of its GDP on infrastructure annually to becoming a $10 trillion economy by 2030".
This will be the first time after 2015-16 when the budget will be presented on Saturday.
"Tradition will continue," Parliamentary Affairs Minister Prahlad Joshi said earlier on Friday when asked about whether the government would continue with the tradition of presenting the budget on the first day of February or will there be any change as the first day of February 2020 is Saturday, a non-working day, as per IANS.
Modi government, in its first term, decided to advance the date of the budget from last working day to first working day.
Accordingly, the Union Budget for 2017-18 was presented on February 1, and since then, the tradition has continued.
Idea behind starting the Budget early?
The idea behind starting the Budget early in February was to complete the budgetary process by March 31, so that expenditure exercise for 12 months could begin on April 1 itself.
Earlier, Indian industry had renewed its demand for income tax benefits to push up consumption in the upcoming 2020-21 General Budget. The government should consider revising upwards the direct income tax slabs for individuals, FICCI said.
The highest tax rate of 30 per cent should be applicable only for incomes above Rs 20 lakh. At the same time, the investment limits under Sec 80C, Sec 80D and deduction for interest paid on housing loan under Sec 24 be enhanced.
"Overall deduction limit under 80C should be enhanced to Rs 3 lakh and separate exemption limits may be considered for long-term and short-term savings within the section", industry body FICCI said in its pre-Budget memorandum to the government.
Current income tax slabs?
As per the current income tax slabs, taxation of income of resident individuals below 60 years is as follows: income up to Rs 2.5 lakh is exempt from tax, 5 per cent tax on income between Rs 250,001 to Rs 5 lakh; 20 per cent tax on income between Rs 500,001 and Rs 10 lakh; and 30 per cent tax on income above Rs 10 lakh