Budget 2020: Nominal GDP growth for FY21 estimated at 10 percent

Finance Minister Nirmala Sitharaman on Saturday said nominal GDP growth for 2020-21 was estimated at 10 percent.

Presenting the Budget for 2020-21, Sitharaman said receipts for 2020-21 were pegged at Rs 22.46 lakh crore while expenditure was pegged at Rs 30.42 lakh crore.

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The revised estimated expenditure for FY20 has been pegged at Rs 26.99 lakh crore and receipts at Rs 19.32 lakh crore, she said.

The 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 added that the government expected tax buoyancy to take time. The recent cut in corporate tax would cause loss of substantial revenue in the short run, but the economy would reap huge returns in due course.

Sitharaman said income tax rates would be significantly reduced for those who forego reliefs and exemptions.

A partial credit guarantee scheme will be launched by the government to address liquidity constraints of NBFCs and housing finance corporations, she said. The finance minister added that amendments would be made to enable NBFCs to extend invoice financing to MSMEs.

Sitharaman said the government had accepted recommendations of the interim report of 15th Finance Commission and the final report would be submitted later. All flagship schemes of the government are provided for in the Budget, she said.

Nirmala Sitharaman said insurance behemoth LIC would be listed as part of the government disinvestment initiative.

The government would sell part of its holding in LIC, she said. Currently, the government owns 100 percent stake in LIC.

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