While the estimated growth has been slashed to 5%, the possibilities of reduction in the policy interest rate are also receding. This may dampen the hopes of increase in investment, housing and consumer demand.
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The Centre had allocated Rs 75,000 crore in the Budget Estimate (BE) for 2019-20 to implement the PM-KISAN scheme, under which Rs 6,000 is being provided to farmers per year in three equal instalments.
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The Narendra Modi government may introduce heavy duty measures for rationalization of key equity taxes, including scrapping capital gains on sale of property and extending the timeline of long term capital gains tax from the current 12 months to 24 months.
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Infusion will not only improve their financial health but facilitate the merger of National Insurance, Oriental Insurance and United India Insurance announced in Budget 2018-19.
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The Union Budget 2020 is classified into Revenue Budget and Capital Budget. While Revenue Budget includes the government’s revenue receipts and expenditure, Capital Budget includes capital receipts and payments of the government.
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Annual economic growth slowed to 4.5 per cent in the July-September quarter, the weakest pace since 2013, owing to weakening demand and private investment.
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