News:In Budget 2020-21,Government of India has presented the Macro-economic Framework Statement(MFS) 2020-21.
Key Highlights of the statement:
- The Macroeconomic Framework Statement(MFS) 2020-21 describes the return path of fiscal consolidation without compromising the needs of investment out of public funds.
- Fiscal Deficit:The government’s fiscal deficit for 2019-20 will be 3.8% of the gross domestic product(GDP) compared to 3.3% projected last year.For the financial year 2020-21,the fiscal deficit target has been set at 3.5%.
- Disinvestment target:The government has pegged disinvestment target for 2020-21 at Rs 1.20 lakh crore nearly double of Rs 65,000 crore it expects to raise in the current financial year.
- Capital Expenditure:The Finance Minister has proposed a 21% increase in capital expenditure for the FY 2020-21.
- India is now the fifth-largest economy in the world
- FDI:India’s Foreign Direct Investment(FDI) elevated to US$ 284 billion during 2014-19 from US$ 190 billion during 2009-14.
- National Infrastructure Pipeline(NIP):To improve the physical quality of life,the Government has announced the NIP of projects worth Rs. 102 lakh crores which would commence in phases from 2020-21 to 2024-25.
- Debt:Centre’s debt as a percentage of GDP has come down to 48.7% as of May, 2019.
- Poverty:271 million people raised out of poverty between 2006 and 2016.
- Taxpayers:6 million new taxpayers have been added in the last four years due to the GST.