Won’t Repeat Mistakes of Previous Regime & Splurge: FM Sitharaman

On the new I-T regime, she pointed out that people who want to avail of exemptions can continue with old tax rates.

Finance Minister Nirmala Sitharaman during the FICCI National Executive Committee meeting in Delhi on 3 February.

(Photo: PTI/Arun Sharma)

Two days after unveiling the Union Budget in the Parliament, Finance Minister Nirmala Sitharaman, on Monday, 3 February, said the BJP-led government "shall not repeat mistakes of the previous regime, of the splurging that happened."

"The money being spent now is for asset creation; such assets that can give greater connectivity to places from where produces reach markets," she said, speaking at the National Executive Committee meet of the Federation of Indian Chambers of Commerce and Industry (FICCI) in Delhi.

On disinvestment, Sitharaman said that the proceeds from high disinvestment targets will help in economic activity, with the money received to be spent on infrastructure activities.

“We are putting money where assets have to be created. We have given the roadmap. The Budget is not sector-specific. An attempt is to take a prudent route to achieve the target set.”

Finance Minister Nirmala Sitharaman, as quoted by ANI

On the new income tax regime, the finance minister pointed out that individual taxpayers who want to avail of exemptions can continue with the old tax rates.

But this cannot stop the government from taking reformist measures of having minimum and no exemptions with lower rates, she added.

Budget 2020 has proposed a new income tax regime with lower tax slabs. However, the new regime, which is an optional one, will come at the cost of a majority of exemptions that taxpayers can now avail of.

‘Sensex Happy, But Not Exuberant Today’

On being asked why Sensex was not 'happy' on the Budget day, she reportedly said:

“But I see them being happy today. Monday is the true working mood, and today’s mood is that they are happy. Aren’t they? Not exuberant but happy somewhat.”

Nirmala Sitharaman, as quoted by ANI

Sensex had plummeted by as much as 987 points to end at 39,735 on Saturday, the day when the Budget was presented. Meanwhile, Nifty had fallen over 300 points.

(With inputs from ANI and BloombergQuint.)