Budget 2020: PM Modi said India is going to become a "big part of the global value chain".
Prime Minister Narendra Modi today hailed the Union budget which comes amid a major slowdown in economy, saying it will "increase income and investment, demand and consumption, energise the financial system and credit flow". The budget has further strengthened the government's commitment of minimum government, maximum governance, the Prime Minister said, adding that it has also eased the taxation process.
Besides putting more money into the hands of the salaried class through optional tax cuts, the budget, PM Modi said, opened up options for employment generation.
"Smart cities, data centre parks, biotechnology - we have taken several policy initiatives," the Prime Minister said, adding that India is going to become a "big part of the global value chain".
Referring to the mega action plan for farmers, the Prime Minister said the budget will help double their income.
The government has set aside Rs 2.83 lakh crore for the rural sector, which also include a special train and flight service. The "Kisan rail" will provide refrigerated coaches that would help them transfer products to faraway markets quickly, cheaply and efficiently. The Krishi Udaan - a tie-up with the Civil Aviation Ministry, would help them transport grains and produce by air on national and international routes.
The budget comes amid a downward spiral of the GDP over the last five quarters. It slowed to 4.5 per cent in the July-September quarter - the weakest pace since 2013. This is the biggest slowdown since the 2008-09 global financial crisis.
The Finance Minister has said the fiscal deficit is estimated at 3.8 per cent (revised estimate for 2019-20) of the gross domestic product in the current financial year, and the government aims to lower it to 3.5 per cent in the financial year ending March 2021.
The fiscal plan, she said, is based on three main themes: an "aspirational India, economic development for all and a caring society".