Union Budget 2020 will bolster income and investment; bring vitality in financial system: PM Modi

Prime Minister Narendra Modi on Saturday addressed the nation after Finance Minister Nirmala Sitharaman presented the second Union Budget of Modi-2.0 government earlier in the day. 

The prime minister hailed the budget and called it a progressive one. He congratulated FM Sitharaman and her team "for presenting the first Budget of the decade that has vision as well as action".

The prime minister expressed hope that this year's Budget will bolster the income and investment in the country.

Also read: Wanted to increase spending capacity - Nirmala Sitharaman on Budget 2020

"I hope this Budget will boost the demand and consumption in the country and will bring vitality in the financial system," the prime minister added. 

"The budget is focused on the skill development of the youth," PM Modi said. 

"The main areas of employment are agriculture, infrastructure, textiles and technology. In order to increase employment generation, these four have been given a lot of emphasis in this budget," the prime minister said. 

"The goal to develop 100 airports in the country is very important for the tourism sector of the country. In tourism, there is more possibility of employment/income generation with lesser investment," he stated. 

Sitharaman on Saturday presented what is considered to be the most difficult budget in a decade. The FM Presented the budget at a time when the Indian economy was facing multipronged challenges including lack of jobs and slowing consumption. 

Also read: 25% tax for individuals annually earning between Rs 10 lakh and Rs 12.5 lakh - Budget 2020

In a press conference, Sitharaman said that she wanted to place money in the hands of the people, especially the middle class and lower-middle classes in order to increase the spending capacity.

Some of the key highlights of Budget 2020 include new income tax structure for individuals willing to forego certain exemptions and deductions

Under the new structure, income of Rs 5-7.5 lakh to attract 10 per cent tax, Rs 7.5-Rs 10 lakh 15 per cent, Rs 10-12.5 lakh 20 per cent, Rs 12.5-15 lakh 25 per cent, above Rs 15 lakh 30 per cent. Income up to Rs 5 lakh to remain exempt from tax.

Bank deposit insurance coverage increased to Rs 5 lakh from Rs 1 lakh.