Union Budget 2020-21 Highlights


Budget Snapshot

Expenditure: In 2020-21, the government is proposing to invest Rs 30,42,230 crore, which is 12.7 percent higher than the 2019-20 revised estimate.

Receipts: Receipts (other than net borrowings) are expected to rise by 16.3 percent to Rs 22,45,893 crore due to higher estimated disinvestment revenue.

GDP growth: A nominal GDP growth rate of 10 percent (i.e. real growth plus inflation) was assumed by the government in 2020-21. The nominal growth estimate was 12 per cent for 2019-20.

Deficits:  Revenue deficit is projected at 2.7 percent of GDP, higher than 2019-20 updated 2.4 percent estimate. Projected at 3.5 percent of GDP, the fiscal deficit is smaller than the revised projection of 3.8 percent in 2019-20.  The government is estimated to breach its budgeted fiscal deficit target (3.3 percent) in 2019-20 and 3 percent medium-term fiscal target in 2020-21. This will not involve borrowing off-budget (0.9 percent of GDP in 2020-21).

Ministry allocations:  The highest percentage increase is observed in the Ministry of Communications (129%), followed by the Ministry of Agriculture and Farmers’ Welfare (30%) and the Ministry of Home Affairs (20%).

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