The Union Budget for 2020-21's total expenditure has been pegged at Rs 30.42 lakh crore, keeping in mind the government's commitment towards various schemes and the need for improvement in the quality of life.
Accordingly, receipts for the year beginning on April 1 are estimated at Rs 22.46 lakh crore. Significant tax reforms for boosting investments have been undertaken recently. However, the expected tax buoyancy expected to take time.
A good part of the borrowings for 2020-21 will go towards the capital expenditure of the government that has been scaled up by more than 21 per cent.
Finance Minister Nirmala Sitharaman said that the measures will spur growth impulses in the economy. Government has estimated nominal growth of GDP for year 2020-21, on the basis of trends available, at 10%
Meanwhile, the revised estimates of expenditure for the current financial year 2019-20 are at a level of Rs 26.99 lakh crore and the receipts are estimated at Rs 19.32 lakh crore.