Union Budget 2020-21 -- Forecasts: Fiscal Deficit in the Budget to be presented on 1st February 2020 is likely to be 3.34% depending upon the growth targets fixed by the Finance Minister said Dr. Yamini Agarwal, Professor of Finance and Dean (Research), Indian Institute of Finance. All eyes are on Union Finance Minister Nirmala Sitharaman who will present the Union Budget amid an economic turmoil in the country.
While making a presentation on “My Budget” for the program – Mera Budget on Rajya Sabha TV, Dr. Agarwal said, the major issues in the present budget are to balance between consumption and investment, Sustainable growth and fiscal consolidation.
Govt may end up spending ₹28,88,000 cr in Budget 2020, says IIF Prof. Yamini Agarwal
According to her, as per her detailed calculations made, GDP is expected to be 235 lakh crores for the year 2020-2021. The total receipts are expected to be Rs. 42,92,000 crores of which revenue receipts would be around Rs. 22,87,000 crores. In the budget, the government may end up spending Rs. 28,88,000 crores resulting into revenue deficit of Rs. 5,67,000 crores which is 2.41%. Effective revenue deficit as per her calculations is expected to be 1.5%. Fiscal deficit according to her is expected to be Rs. 7,84,800 crores which is 3.34%. However, she feels in case of GDP growing at a slower rate the fiscal deficit maybe 3.54%
According to her, special attention is likely to be given to agriculture, infrastructure, education, health, rural development and MSMEs. There may be a possibility on rationalisation of indirect taxes to promote “Make in India” and relief on personal taxation by raising the minimum exemption limit by Rs. 1 Lakh or 1.5 Lacs.
The government has to target a higher growth rate so as to make India a $ 5 trillion dollars economy in the next 4 years.
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