In the Union Budget 2020 presented on February 1, 2020, the Indian government allocated a total of Rs. 30.42 trillion (about $426 billion) towards various sectors. Some of the key allocation highlights include:
Some other allocations from the Union Budget 2020:
The Union Budget 2020 was presented on February 1, 2020, which was before the outbreak of COVID-19 pandemic, so the budget did not factor in the pandemic and its impact on the Indian economy. The pandemic caused a severe economic slowdown in India and many countries, leading to a contraction of GDP in the following quarters.
As per the official data, India's GDP contracted by 7.7% in the first quarter of fiscal year 2020-2021 and by 23.9% in the second quarter of the fiscal year 2020-2021, due to the country wide lockdown imposed to contain the spread of the COVID-19 pandemic. The budget measures aimed at reviving the economy were announced in May 2020 as an economic package to mitigate the impact of the pandemic on the economy.
In conclusion, the Union Budget 2020 had a limited impact on the GDP of India, as the measures taken to contain the pandemic had a much larger impact on the economy.
Information Sourced from India Budget | Ministry of Finance | Government of India 2022-23
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