Congress leader Rahul Gandhi on Saturday described the Union Budget 2020 as a mere “repetition” saying it is “all talk and no action”.
Addressing media persons after Finance Minister Nirmala Sitharaman presented the second budget of the Narendra Modi government, Gandhi said the main issue facing the country today is unemployment but he did not see any concrete idea that would help the youngsters get jobs.
“I saw tactical stuff but no central idea. The budget describes the government quite well… a lot of repetition and rambling… all talk and no action,” he said.
Further, the Congress leader said the youth of the country needs jobs, instead, they got the “longest budget speech in parliamentary history that said absolutely nothing of consequence”.
“PM and FM both looked like they have absolutely no clue what to do next,” he said.
The Congress in a tweet took a dig at the BJP government over its predictions on GDP growth.
In the Union Budget, the Central government has estimated nominal GDP growth at 10 per cent for 2020-21.
The Congress also questioned the trends the Finance Minister had based the prediction on.
Another pressing question that arises is what trends is the FM basing this prediction on?
Gross Value Addition has fallen from 11.1% in FY19 to 7.6% in FY20.
Every economic indicator has fallen & Real GDP is at an 11 year low. #SeedhiBaatBudgetBakwaas
— Congress (@INCIndia) February 1, 2020
The CPI(M) also slammed the Union Budget saying it consisted of just “platitudes” and did not address the problems faced by the people.
Reacting to the Union Budget presented by Finance Minister Nirmala Sitharaman, CPI(M) general secretary Sitaram Yechury said that it did nothing to alleviate “people’s miseries”.
“Just platitudes & slogans. Nothing substantial to alleviate peoples’ misery, the growing unemployment, rural wage crash, farmers’ distress suicides and galloping prices,” he tweeted.
Finance Minister Nirmala Sitharaman presented the Union Budget for 2020-21 in the Parliament on Saturday.
This is the second budget for Sitharaman, who became the second woman finance minister after Indira Gandhi to do so in the history of independent India.
Sitharaman announced cuts in personal income tax, extended tax benefits for affordable housing and gave relief to companies on payment of dividend in the Union Budget for 2020-21 as the government looked to boost consumption to bring the economy out of the worst slowdown in 11 years.
The minister proposed raising customs duty on a variety of products ranging from tableware and kitchenware, electrical appliances to footwear, furniture, stationery and toys to give a level playing field to domestic companies and boost ‘Make in India’.
Offering an optional lower rate of income tax to individuals, Sitharaman in her Budget for 2020-21 proposed new tax slabs of 15 per cent and 25 per cent in addition to the existing 10 per cent, 20 per cent and 30 per cent. The new I-T slabs would be for individuals not availing certain specified deductions or exemptions.
Under the proposed I-T slab, annual income up to Rs 2.5 lakh is exempt from tax. Those individuals earning between Rs 2.5 lakh and Rs 5 lakh will pay 5 per cent tax. Income between Rs 5 and 7.5 lakh will be taxed at 10 per cent, while those between Rs 7.5 and 10 lakh at 15 per cent.
Those earning between Rs 10 and 12.5 lakh will pay tax at the rate of 20 per cent, while those between Rs 12.5 and Rs 15 lakh will pay at the rate of 25 per cent. Income above Rs 15 lakh will be taxed at 30 per cent.
Individuals opting for taxation under new rates will not be entitled to exemption/deductions including under Section 80C and 80D, LTC, housing rent allowance, deduction for entertainment allowance, professional tax, and interest on self-occupied/vacant property.
Currently, annual income up to Rs 2.5 lakh is exempt from I-T. While a 5 per cent tax is charged for income between Rs 2.5 and 5 lakh. 20 per cent for income between Rs 5 lakh and Rs 10 lakh and 30 per cent for those earning above Rs 10 lakh.
“The new tax regime shall be optional for taxpayers,” she said.
“The proposed tax structure will provide significant relief to taxpayers and more so to those in the middle class,” Sitharaman added.
To boost growth, Sitharaman announced higher spendings on infrastructure, rural development and Agri sector.
She said the government is proposing a 16-point action plan to boost agriculture and farmers’
welfare.
Agricultural services need copious investments, she said, adding the government has insured 6.11 crore farmers under the Pradhan Mantri Fasal Bima Yojna.
With her post-2019-20 Budget corporate tax cut drilling a Rs 1.45 lakh crore hole in government revenues, the minister hiked the fiscal deficit target for current fiscal to 3.8 per cent of GDP, from 3.3 per cent.
For 2020-21, she pegged the fiscal deficit at 3.5 per cent.
(With PTI inputs)