Ahead of Finance Minister Nirmala Sitharaman's third Union Budget - scheduled to be tabled on February 1, 2021 - it is imperative to recall major points from her last financial blueprint. Here's a quick recap of Budget 2020.
Income Tax changes: A new tax regime was announced, proposing 10 percent tax on annual income between Rs 5-7.5 lakh, 20 percent on Rs 7.5-10 lakh, 25 percent on Rs 10-12.5 lakh, and 30 percent on Rs 15 lakh and above. Those switching to the new tax slab were, however, required to forego their tax rebates and exemptions. The option of continuing under the old tax regime was also granted.
GDP estimate: The government had estimated a nominal GDP growth rate of 10 percent (i.e. real growth plus inflation) in 2020-21. In the preceding year (2019-20), the nominal growth estimate was 12 percent.
Fiscal deficit target: The Finance Minister had announced a fiscal deficit target of 3.5 percent of the GDP for the financial year 2020-21. The revenue deficit was targeted as 2.7 percent of the GDP.