Salient Features of Union Budget 2020-21

We should be optimistic to move forward in life, however being over-optimistic isn't continuously the correct way, take the recently bequeathed General Budget 2020-21, there's no lack of optimism to suspend the sluggishness of the country's economy, however, it's vital to research as to how logical it is. Within the budget presented on Feb 1, the finance minister Nirmala Sitharaman told the country that the government hopes to earn Rs. 210000 crores from disinvestment within the next 12 months. The same story was narrated last year. During these twelve months, the government wished to earn Rs.105000 crores from the disinvestment however between April and December 2019, the government earned only 18100 crores, thus it'll be honest to mention that watching the disinvestment this point, the disinvestment target for the ensuing year is incredibly optimistic.

Even in last year's budget speech, Sitharaman had aforesaid that the strategic disinvestment of chosen central public sector enterprises can continue but this far nothing like this can be happening. History is witness that the strategic disinvestment in India is going on only a few years past. Sometimes back ONGC bought Hindustan Petroleum and therefore the government thought of it as strategic disinvestment. Real strategic disinvestment happens once a government company is sold to a private sector company. Sitharaman conjointly aforesaid that nothing is going on this so far that the government and therefore the public sector enterprises can do the strategic disinvestment. It absolutely was conjointly aforesaid that the strategic disinvestment method of Air India is started once more, it's started, however seeing the pace that's occurring, it doesn't appear that it'll be completed during this fiscal year. It's important to mention here that the likelihood of selling Air India is more than the last time.

In this year's budget, the government has intended to sell IDBI Bank to non-public retail and institutional investors through the securities market, but, it'll be seen whether the government fulfills this intention or not. Even IDBI is in an exceedingly poor condition, if non-public investors bought the bank, it might be seen as an enormous help to the government. The government has determined to disinvest even a tiny low a part of the Life Insurance Corporation of India. This can be a vital call. This can increase transparency within the operating of the insurance corporation, however, it'll not be straightforward to list the insurance corporation on the securities market, thus it's vital to unremarkably governments sleep off after the budget announcement on disinvestment.

In the last budget, the finance minister had jointly talked regarding building public infrastructure on the land lying close to the general public sector enterprises, however, there's no vital progress on this. During this budget, Sitharaman has talked regarding an investment clearance cell which can conjointly provide data about the land bank. Currently, it remains to be seen to what extent this proposal changes essentially. Within the last year's budget, it's been claimed that public sector bank services are extended to the customers of different public sector banks. But, it seems unreal today.

If we glance at the gross tax revenue, then the same image emerges. Within the budget last year, it absolutely was expected that this year's gross government income can increase by 18 points 3 %. Despite a 3% decline in gross government income between April and December 2019, the govt has expected that next year the gross government income can increase by 12%. The 12% increase isn't unbelievable, however, when watching this year's aggregation, it looks an excessive figure. But governments are optimistic, thus what is going on last year's announcements isn't vital for them, it's a lot of vital that a number of new announcements ought to be forwarded this year.

The wrong implementation of a decently planned policy and the correct implementation of a nasty planned policy offers virtually constant results. Budget 2020-21 has been introduced, people are engaged in fine philosophy to replicate the sentiment that's being felt isn't less, within the eyes of most, it's a visionary budget, it's the blueprint for ensuing decade to strengthen the economy. The economy is taken into account to be the premise for entering the club of $ 500000 trillion by 2024, giving rise to life. It's difficult as a result of it's not been able to create ends meet nonetheless. The government could argue on this failure that it's been only seven months since the last budget was presented, however, the government is trying all means to highlight the budget 2020-21. In such a situation, the investigation of the challenges before the government to implement the proposals of the current budget region-wise is a big issue for all of us today.