New Delhi: The normal GDP growth for 2020-21 has been estimated at 10 per cent, said Finance Minister Nirmala Sitharaman on Saturday, while presenting the Union Budget in Parliament. She said that while receipts for 2020-21 were pegged at Rs 22.46 lakh crore, expenditure was estimated at Rs 30.42 lakh crore.
The revised estimated expenditure for FY20 had been pegged at Rs 26.99 lakh crore and the receipts at Rs 19.32 lakh crore, she said. Net market borrowings would be at Rs 4.99 lakh crore in FY 2019-20 and are estimated at Rs 5.36 lakh crore in the next fiscal.
She however, said the government expected tax buoyancy to take time and the recent cut in corporate tax to cause loss of substantial revenue in the short run. However, the economy is expected to reap huge returns in due course, she added.
Sitharaman said that income tax rates will be significantly reduced for those who forego reliefs and exemptions. To address the liquidity constraints of non-bank financial institutions (NBFCs) and housing finance corporations, partial credit guarantee scheme will be launched by the government, she added. Amendments will be made to enable NBFCs to extend invoice-financing to MSMEs.
She said that the government had accepted recommendations of the interim report of 15th Finance Commission, and that the final report would be submitted later. All flagship schemes of the government are provided for in the Budget, the finance minister said. The government will sell part of its holding in LIC, she said, adding that an international bullion exchange would be set up at IFSC GIFT City.