Union Budget 2019-20 LIVE: FM Goyal says no tax on income up to Rs 5 lakh; no notional rent on 2nd home
Union Budget 2019-20 LIVE: FM Goyal says no tax on income up to Rs 5 lakh; no notional rent on 2nd home
Shubhada Rao, Chief Economist, YES Bank: The FY20 Interim Budget has addressed concerns of farmers and the salaried class by providing relief to small and marginal farmers upto Rs 75,000 crore and interest subvention upto 5% in the event of natural calamity and; secondly exempting income tax for income upto Rs 5 lakh. Both are significantly consumption positive and augur well for overall tax collections in FY20. While there is a marginal slippage in fiscal deficit target for FY19, the approach towards consolidation has been diluted for FY20 on account of farmer relief. The net borrowing programme doesn't appear alarmingly high. Overall, a good budget that delivered on expectations in an election year.
Shubhada Rao, Chief Economist, YES Bank: The FY20 Interim Budget has addressed concerns of farmers and the salaried class by providing relief to small and marginal farmers upto Rs 75,000 crore and interest subvention upto 5% in the event of natural calamity and; secondly exempting income tax for income upto Rs 5 lakh. Both are significantly consumption positive and augur well for overall tax collections in FY20. While there is a marginal slippage in fiscal deficit target for FY19, the approach towards consolidation has been diluted for FY20 on account of farmer relief. The net borrowing programme doesn't appear alarmingly high. Overall, a good budget that delivered on expectations in an election year.
The financing of pegged budget deficit appears to be through larger than expected market borrowing ( net) for both FY19 and FY20. The bond markets have reacted to this news adversely. The bond yields have moved up by 11 bps from today's lows.
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