Union Budget 2020: Expectations & Reactions

The Union Budget 2020 was one of the most anticipated one in the recent history. From tweaks in long-term capital gains to GST rate-cuts in daily used items, this budget has a multitude of aspects associated with it. Today, we are sharing our experts’ view on the budget expectations and their reactions to the Union Budget 2020. Everything is compiled for your convenience.

The consolidated post: Budget 2020


The union budget 2020 needs to urgently address the economic slowdown issue, boost consumption and increase GDP. One would also expect increase in 80C deduction limit to increase investments and leave more disposable income in the hands of individuals – Kasturi Ghatak

Expectations from the Union Budget 2020-

Focusing on current slowdown and maintain fiscal discipline

1. Fiscal reform measures to stimulate consumption and growth

2. Relief in the form of change in tax slabs, raising standard deduction limit to boost demand and household savings (giving more money in the hands of the taxpayers)

3. Government funding through issuance of sovereign bonds in the international markets

4. Measures to boost rural demand

5. Banking sector reforms by addressing NPA issues and NBFC crisis to ease credit flow to boost demand. – Antara Mukherjee

The union budget 2020 needs to urgently address the economic slowdown issue, boost consumption and increase GDP.  – Kasturi Ghatak

This Union Budget slingshot will whizz, whir and bring down income inequality, stimulate spending and boost cross country and industrial activities – Nidhi Sinha

A Saturday that shall mark the onset of India’s rise to dominance in the global capital markets over the next decade. Sensex to mount 47K by Mar 21. #Budget20 – An Intueri consultant

Increase in public spending, cheaper credit availability, revive rural consumption, increase healthcare spending to prepare for global health emergencies #budget2020 – Akhil Ashok

Expectations from the budget to include GST rate cuts on items of daily use and important sectors such as the automotive sector – Aranya Kalia

Ambarish Dasgupta’s Budget expectations: My expectation is more from Budget speech than the budget per se.

Those are:

a. Come out of denial mode on the situation of the economy and transparently explain to common Citizens like us if anything has really gone wrong in economy in the eyes of the government and if they admit so then explain  what are those factors that caused the slump and where did our policies, measures go wrong or fell short. Why has this stagflation come in, why has growth slowed, why has unemployment increased , why has consumption and private expenditure decreased, why has private investment slumped – what are the answers to those immense number of why going across the minds of all people. Let there be a very transparent, open explanation of the macro situation as of now as against our expectations which were there while Last budget happened and the identification of the causes which might have caused the variation of actual from estimates.

b. What should follow then is the outlining of policy changes, reforms, measures that Government should take to address those causes which stymied the growth in 19-20. What would prevent recurrence of that in 20-21 – even if we don’t expect a turnaround  in short term we need to know what alternate steps are being taken to arrest that rather  than wishing the malaise away and thinking market will automatically correct the financial parameters and nothing needs to be done. Please note this budget has a different significance as many of the parameters have gone back to the numbers which we had 30 years back , and therefore against such backdrop an usual budget speech proclaiming future investment numbers as we usually hear in all Budgets will possibly not be a very welcome one.

c. Then one can move into the usual bunch of financial stimulus packages for sectors and schemes that Government usually does in every budget but without addressing the points above if they again move into the usual budget speech, I think trust of people on Budget process and speech which is certainly declining and looked at with some cynicism, can’t be restored.

d. Lastly I will have an interest in what Govt does in a completely apolitical way for the States which have different ruling parties than in centre. Number of such states have increased since last budget and therefore this point comes up – to have an egalitarian growth all around the country, they will certainly have to focus on each and every state and create packages suited to their strengths and weaknesses ,  needed for a sustainable  growth in those states and therefore in India. Will be interested to hear that and in particular for my own state Bengal.


The jury is still out on whether #Budget2020 will spur investment and consumption, too early to tell in my opinion.

Direct tax announcements were directed at making investments domestic/foreign easier in Indian companies and the lives of investors/entrepreneurs much easier –

for example, the abolishment of Dividend distribution tax, 100% tax concession for sovereign funds to invest in Infrastructure, tax holiday for startups have been extended, etc.

Sadly the healthcare sector did not see any game-changing announcement which was expected in light of a global health emergency that emerged from right next door- Akhil Ashok

Gutful transition to wisdom of ancient Indian philosophies in Union Budget, kudos! Analytics, quantum computing, IoT, 3D printing and AI got rightly highlighted, however tangible plans and policies to harness these emerging technologies for the economic rejig was expected- Nidhi Sinha