BUDGET SUMMARY WITH MAJOR
HIGHLIGHTS OF THE INTERIM BUDGET 2019-20
Major Highlighted Points:
1. Interim Budget 2019-20 Presented In Parliament Today Has A
Major Scheme For Farmers And Provides For Income Tax Sops.
2. This Interim Budget Is To Be Viewed As A Medium For A
Progressive Path For The Country, The Finance Minister Says.
3. Shri Piyush Goyal Says Government Has Brought Down Average
Inflation To 4.6%, Lower Than The Inflation During The Tenure Of Any Other
Previous Government.
Overview & Schemes:
Interim Budget 2019-20 was presented in Parliament today by the
Union Minister for Finance, Corporate Affairs, Railways & Coal, Shri Piyush
Goyal. Besides having a major Scheme for the farmers, it provides tax sops and
sets the Developmental Agenda for the years to come.
A New Deal for 12 Crore Small and Marginal farmers with direct
income support, a path breaking Pension initiative for 10 Crore unorganized
sector workers, exempting income up to Rs 5 lakhs from Income Tax, reforms in
stamp duty, highest ever budgetary allocation of Rs 3 lakh crore for Defence,
record allocation of funds at Rs 58,166 crore for North Eastern Areas, a new
AIIMS for Haryana, single window clearance for Indian film makers at par with
foreigners and higher budgetary allocations for Education, Health,
Infrastructure and for the welfare of weaker sections including Scheduled
Castes and Scheduled Tribes, a Separate Department of Fisheries for welfare of
1.5 crore fisherman are some of the major highlights of the Interim Budget
2019-20.
Major Schemes
New Scheme- namely “Pradhan
Mantri KIsan SAmman Nidhi (PM-KISAN)” to extend direct
income support at the rate of Rs. 6,000 per year to farmer families,
having cultivable land upto 2 hectares is announced.
Launch of a historic
programme PM-KISAN with an outlay of Rs.75,000 crore for the FY 2019-20
and Rs.20,000 crore in the Revised Estimates of FY 2018-19”.
Under this Government of India funded Scheme, Rs.2,000 each will
be transferred to the bank accounts of around 12 crore Small and Marginal
farmer families, in three equal installments. This programme would be made
effective from 1st December 2018 and the first installment for the period
upto31st March 2019 would be paid during this year itself.
To provide sustained and focused attention towards development
of Fisheries, the Government has decided to create a separate Department of Fisheries.
Government wants to promote further growth over 7% to promote livelihood
of about 1.45 crore people dependent on the sector.
The Finance Minister announced 2% interest subvention to the
farmers pursuing the activities of animal husbandry and fisheries, who avail
loan through Kisan Credit Card. Further, in case of timely repayment of loan,
they will also get an additional 3% interest subvention.
Allocation of Rs.750 crore for Rashtriya Gokul Mission has been
announced for the current year itself. Setting up of "Rashtriya Kamdhenu
Aayog" to upscale sustainable genetic upgradation of cow resources and to
enhance production and productivity of cows has also been announced. The Aayog
will also look after effective implementation of laws and welfare schemes for
cow.
To provide pensionary
benefits to at least 10 crore labourers and workers in the unorganised sector a
new Scheme called 'Pradhan
Mantri Shram-Yogi Maandhan' is announced. The Finance
Minister said thatwithin next five years it would be one of the largest pension
schemes of the world. A sum of Rs.500 crore has been allocated for the Scheme.
Additional funds will be provided as needed, Shri Goyal added. The scheme will
also be implemented from the current year.
Growth and FDI
The Finance Minister Shri Piyush Goyal stated that a stage for
high growth in decades to come, has now been set, after a wave of next
generation path breaking structural reforms over the last five years, including
introduction of Goods and Services Tax (GST) and other taxation reforms.
The country witnessed its best phase of macro-economic stability
during the last five years. “We are the fastest growing major economy in the
world with an annual average GDP growth during last five years higher than the
growth achieved by any Government since economic reforms began in 1991. From
being the 11th largest economy in the world in 2013-14, we are today the 6th largest
in the world”, the Finance Minister asserted in his Opening Remarks of
his Budget speech.
Shri Goyal said that due to such a stable and predictable
regulatory regime, growing economy and strong fundamentals, India could attract
massive amount of as much as $239 billion of Foreign Direct Investment (FDI)
during the last 5 years, when most of the FDI was allowed to come in through
the automatic route.
The
key highlights of the Interim Budget 2019-20 presented by the Union Minister
for Finance, Corporate Affairs, Railways & Coal, Shri Piyush Goyal in
Parliament today are as follows:
New Announcements
·
Farmers
1. 12 crore small and marginal
farmers to be provided with assured yearly income of Rs. 6000 per annum under
PM-KISAN
2. Outlay of Rs. 75,000 crore for FY 2019-20 with additional Rs.
20,000 crore in RE 2018-19
3. Outlay for Rashtriya Gokul
mission increased to Rs 750 crore
4. Rashtriya Kamdhenu
Ayog to be setup for sustainable genetic up-gradation of the Cow
resources
5. New separate Department of
Fisheries for welfare of 1.5 crore fishermen
6. 2% interest subvention to
Farmers for Animal husbandry and Fisheries activities; additional 3% in case of
timely repayment.
7. Interest subvention of 2%
during disaster will now be provided for the entire period of reschedulement of
loan
·
Labour
1. Pradhan Mantri Shram Yogi
Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector
workers
2. Rs 3000 per month after 60
years of age with an affordable contribution of only Rs 100/55 per month
·
Health
1. 22nd AIIMS to be setup in Haryana
·
MGNREGA
1. Rs. 60, 000 crore allocation for MGNREGA in BE 2019-20
·
Direct Tax proposals
1. Income upto Rs. 5 lakh
exempted from Income Tax
2. More than Rs. 23,000 crore
tax relief to 3 crore middle class taxpayers
3. Standard Deduction to be
raised to Rs. 50,000 from Rs. 40,000
4. TDS threshold to be raised
from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits
5. Existing rates of income
tax to continue
6. Tax exempted on notional
rent on a second self-occupied house
7. Housing and real estate
sector to get boost-
- TDS threshold for deduction
of tax on rent to be increased from Rs. 1,80,000 to Rs. 2,40,000
- Benefit of rollover of
capital gains increased from investment in one residential house to two
residential houses for capital gains up to Rs. 2 crore.
- Tax benefits for affordable
housing extended till 31st March, 2020 under Section 80-IBA of Income Tax Act
- Tax exemption period on
notional rent, on unsold inventories, extended from one year to two years
·
Fiscal Programme
1. Fiscal deficit
pegged at 3.4% of GDP for 2019-20
- Target of 3% of fiscal deficit
to be achieved by 2020-21.
2. Fiscal deficit brought down
to 3.4% in 2018-19 RE from almost 6% seven years ago
3. Total expenditure increased
by over 13% to Rs.27,84,200 crore in 2019-20 BE
4. Capital Expenditure for
2019-20 BE estimated at Rs. 3,36,292 crore
5. Centrally Sponsored Schemes
(CSS) allocation increased to Rs. 3,27,679 crore in BE 2019-20
6. National Education Mission
allocation increased by about 20% to Rs. 38,572 crore in BE 2019-20
7. Allocation for Integrated
Child Development Scheme (ICDS) increased by over 18% to Rs. 27,584 crore in BE
2019-20
8. Substantial increase in
allocation for the Scheduled Castes and Scheduled Tribes -
- Allocation for SCs
increased by 35.6% - from Rs. 56,619 crore in BE 2018-19 to Rs. 76,801 crore in
BE for 2019-20
- Allocation for the STs
increased by 28% - from 39,135 crore in BE 2018-19 to Rs. 50,086 crore in
2019-20 BE
9. Government confident of
achieving the disinvestment target of 80,000 crore
10. Focus now on debt
consolidation along with fiscal deficit consolidation programme
·
Poor and Backward
Classes
1. “First right on
the resources of country is that of the poor”: FM
2. 25% additional
seats in educational institutions to meet the 10% reservation for the poor
3. Targeted
expenditure to bridge urban-rural divide & to improve quality of life in
villages
4. All willing
households to be provided electricity connections by March 2019
·
North East
1. Allocation to be
increased by 21% to Rs. 58,166 crore in 2019-20 BE over 2018-19 BE
2. Arunachal
Pradesh came on the air map recently
3. Meghalaya,
Tripura and Mizoram came on India’s rail map for the first time
4. Container cargo
movement through improved navigation capacity of the Brahmaputra
·
Vulnerable sections
1.
A new committee under NITI Ayog to identify all the remaining
De-notified nomadic and semi-Nomadic tribes.
2.
New Welfare development Board under Ministry of social justice
and empowerment for development and welfare of De-notified nomadic and semi
nomadic tribes
·
Defence
-
Defence budget to cross Rs 3,00,000 crore for the first time
ever
·
Railways
1.
Capital support of Rs.64,587 crore proposed in 2019-20 (BE) from
the budget
2.
Overall capital expenditure programme to be of Rs. 1,58,658
crore
3.
Operating Ratio expected to improve from 98.4% in 2017-18:
i.
to 96.2% in 2018-19 (RE) and
ii.
to 95% in 2019- 20 (BE)
·
Entertainment
Industry
1. Indian
filmmakers to get access to Single window clearance as well for ease of
shooting films
2. Regulatory
provisions to rely more on self-declaration
3. To introduce
anti-camcording provisions in the Cinematograph Act to control piracy
·
MSME and Traders
1.
2% interest subvention on an incremental loan of Rs 1
crore for GST registered SMEs
2.
Atleast 3% of the 25% sourcing for the Government undertakings
will be from women owned SMEs
3.
Renewed Focus on Internal trade ; DIPP renamed to Department for
Promotion of Industries and Internal trade
·
Digital Villages
-
The Government to make 1 lakh villages into Digital Villages
over next five years
·
Other Announcement(s)
-
New National Artificial Intelligence portal to support National
Program on Artificial Intelligence
·
State of the Economy
1.
India universally recognized as a bright spot of the global
economy during last five years
2.
“Country witnessed its best phase of macro-economic stability
during 2014-19”, says FM
3.
India is now the 6th largest economy in the
world from being the 11thlargest in 2013-14
4.
Annual average GDP growth during 2014-19 higher than any
government since 1991
5.
Government has broken inflation’s back from backbreaking
inflation during 2009-14: FM
6.
Average inflation down to 4.6%, lower than during any other
Government
7.
Inflation in December 2018 down to 2.19% only
8.
Fiscal deficit down to 3.4% in 2018-19 RE from the high of
almost 6% seven years ago
9.
CAD likely to be only 2.5% of GDP this year against a high of
5.6% six years ago
10. India attracted massive
amount of FDI, worth $239 billion, during the last 5 years
11. “India is
solidly back on track and marching towards growth and prosperity”, says FM
12. India becomes
the fastest growing major economy in the world
13. Double-digit
inflation contained and fiscal balance restored
14. Liberalization
of FDI policy, allowing most FDI to come through the automatic route
·
Farmers
1.
Assured MSP of minimum 50% to all 22 crops
2.
Interest subvention doubled in last 5 years
3.
Soil Health card, Neem coated Urea game changer in farm sector
·
Labor
1.
Employment opportunities expanded ; EPFO membership increased by
2 crore
2.
Minimum income for every category of workers increased by 42% in
last 5 years
·
Poor and Backward Classes
a.
10% reservation for the poor in educational institutions
and government jobs
b.
Free electricity connection to every household under Saubhagya
Yojana
c.
World’s largest healthcare programme, Ayushman Bharat, for
nearly 50 crore people
d.
Aspirational Districts Programme for development in 115 most
backward districts
e.
Rs. 1,70,000 crore spent during 2018-19 for cheaper food grains
to poor and middle class
f.
143 crore LED bulbs provided in mission mode with the
cooperation of private sector
g.
Poor & middle class are saving Rs. 50, 000 crore p.a. in
electricity bills due to LED bulbs
h.
10 lakh patients benefited from free treatment under Ayushman
Bharat
i.
Jan Aushadhi Kendras providing medicines at affordable prices to
poor and middle class
j.
14 out of 21 AIIIMS operating presently have been announced
since 2014
k.
Government tripled rural roads’ construction under the PMGSY
l.
15.80 lakh habitations out of 17.84 lakh connected with pucca
roads
m.
Rs. 19,000 crore for PMGSY in BE 2019-20 against Rs. 15,500
crore in RE 2018-19
n.
1.53 crore houses built under PM Awas Yojana during the 2014-18
·
Women development to
women led development
1.
6 crore free LPG gas connections provided under Ujjwala Yojna ;
All 8 crore by next year
2.
70% of MUDRA Loan availed by Women
3.
Maternity leave extended to 26 weeks
4.
Financial support for pregnant women under Pradhan Mantri Matru
Vandana
·
Youth
1.
Over one crore youth trained under Pradhan Mantri Kaushal Vikash
Yojana
2.
Self-employment boost through MUDRA, STAND-UP and START-UP India
·
MSME and Traders
1.
Up-to Rs 1 crore loans can be availed in less than an hour
2.
25%-28% is the average savings due to GeM (Government e-Market
place)
·
Income Tax
1.
Tax collections nearly doubled in five years- from Rs. 6.38 Lakh
crore in 2013-14 to almost Rs. 12 lakh crore this year
2.
80% growth in tax base- from 3.79 crore to 6.85 crore in five
years
3.
Tax administration streamlined- Last year, 99.54% of the
income-tax returns accepted as were filed
4.
Technology intensive project approved to improve assessee
friendliness –In two years, returns to be processed in 24 hours and refunds
issued simultaneously
5.
Earlier benefits given to middle class-
§ Basic exemption
limit increased from Rs. 2 lakh to Rs. 2.5 lakh
§ Tax rate reduced
from 10% to 5% for the tax slab of Rs. 2.5 lakh to Rs. 5 lakh
§ Standard
deduction of Rs. 40,000 introduced for the salaried class
§ Deduction of
savings under section 80C increased from Rs. 1 lakh to Rs. 1.5 lakh
§ Deduction of
interest for self-occupied house property raised from Rs. 1.5 lakh to Rs. 2
lakh
6.
Special benefits and incentives already given to small
businesses and startups-
§ Overall compliance
processes simplified.
§ Threshold for
presumptive taxation of business raised from Rs. 1 crore to Rs. 2 crore
§ Benefit of
presumptive taxation extended for the first time to small professionals fixing
threshold limit at Rs. 50 lakh
§ Presumptive profit
rate reduced from 8% to 6% to promote a less cash economy
§ Tax rate for
about 99% companies reduced to 25%
·
GOODS & SERVICE TAX (GST)
1.
GST made India a common market
2.
GST led to increased tax base, higher collections and ease of
trade
3.
Inter-state movements now faster, more efficient, and hassle
free
4.
Responsive and sensitive reduction of tax rates - Most items of
daily use now in the 0% or 5% tax slab
5.
Relieving the businesses and service providers-
§ Exemptions from
GST for small businesses doubled from Rs. 20 lakh to Rs. 40 lakh
§ Small businesses
having turnover up to Rs. 1.5 crore pay only 1% flat rate and file one annual
return only
§ Small service
providers with turnover upto Rs.50 lakhs can opt for composition scheme and pay
GST at 6% instead of 18%
·
Soon, businesses comprising over 90% of GST payers to be allowed
to file quarterly return
6.
Encouraging GST revenue trends - The average monthly tax
collection in the current year is Rs. 97,100 crore per month as compared to Rs.
89,700 crore per month in the first year
·
Infrastructure
Civil Aviation – UDAN Scheme
§ Number of
Operational Airports crossed 100
§ Latest: Pakyong
airport in Sikkim
§ Domestic
Passenger traffic doubled in last 5 years
Roads
§ India is the
fastest highway developer in the world
§ 27 kms of
highways built each day
§ Stuck projects
completed - Eastern Peripheral Highway around Delhi
§ Bogibeel
rail-cum-road bridge in Assam and Arunachal Pradesh
Waterways
§ Flagship
programme of Sagarmala along the coastal areas
§ For first time,
container freight movement started on Kolkata to Varanasi inland waterways
Railways
§ ‘Safest year’
for railways in its history
§ All Unmanned
Level Crossings on broad gauge network eliminated.
§ Semi high-speed
"Vande Bharat Express" introduced - first indigenously developed and manufactured
Climate Change
International Solar Alliance
§ To promote
renewable energy
§ First treaty
based international inter-governmental organisation headquartered in India
§ Installed solar
generation capacity grown over ten times in last five years
§ Now creating
lakhs of new age jobs
Digital India Revolution
§ More than 3 lakh
Common Service Centres (CSCs) exist to deliver services to the citizens
§ India now
leading the world in the consumption of mobile data
§ Monthly
consumption of mobile data increased by over 50 times in the last five years
§ Under Make in
India, mobile and parts manufacturing companies increased from 2 to more than
268 providing huge job opportunities
Jan Dhan-Aadhaar-Mobile (JAM) and Direct
Benefit Transfer
§ In the last five
years, nearly 34 crore Jan Dhan bank accounts opened
§ Aadhaar now near
universally implemented
§ Ensure the poor
and middle class receive the benefits of Government schemes directly in their
bank accounts by eliminating middlemen
Customs and trading across borders
§ Customs duties
on 36 capital goods abolished
§ Digitization of
import and export transactions
§ RFID technology
to improve logistics
Steps against corruption
§
Government walked the talk on corruption and ushered in a new
era of transparency: FM
§
RERA and Benami Transaction (Prohibition) Act have brought
transparency in real estate
§
The Fugitive Economic Offenders Act, 2018 to help confiscate
economic offenders
§
Government conducted transparent auction of natural resources
such as coal & spectrum
Drive against Black money
§ Undisclosed
income of about Rs 1,30,000 crore brought under tax through initiatives like
Black money Law, Fugitive Criminal offenders Act, Demonetisation etc.
§ Benami assets
worth Rs 6,900 crore have been attached
§ 18% growth in
Direct tax
Banking Reforms and Insolvency and Bankruptcy
Code (IBC)
§ The IBC has
institutionalized a resolution-friendly mechanism
§ Government has
stopped the culture of “phone banking”: FM
§ Government
adopted 4 Rs. approach of recognition, resolution, re-capitalization &
reforms
§ Government has
implemented measures to ensure ‘Clean Banking’
§ Government has
already recovered Rs. 3 lakh crore in favor of banks and creditors
§ Government has
invested Rs. 2.6 lakh crore for recapitalization of public sector banks
Cleanliness
§ Government
launched Swachh Bharat Mission as a tribute to 150 years of Gandhi Ji
§ FM thanks 130
crore Indians for translating Swachh Bharat into a national revolution
§ India has
achieved 98% rural sanitation coverage
·
5.45 lakh
villages have been declared "Open Defecation Free”
Defence
§
OROP under implementation in full spirit with Rs 35,000 crore
already disbursed
§
Military pay service hiked
Other
achievements
§
Government put a stop to questionable practices of hiding high
NPAs
§
Swachh Bharat Mission as the world’s largest behavioral change
movement
Key message in the Interim Budget 2019-20
1. Moving towards
realizing a ‘New India’ by 2022 -
§ Clean and
healthy India with universal access to toilets, water and electricity to
all
§ An India where
Farmers’ income would have doubled
§ Ample
opportunities to youth and women to fulfil their dreams
§ An India free
from terrorism, communalism, casteism, corruption and nepotism
Vision for the next Decade
§
Foundation for India’s growth and development laid in the past 5
years
§
Poised to become a Five Trillion Dollar Economy in the next five
years
§
Aspire to become a Ten Trillion Dollar Economy in the next 8
years thereafter
Ten dimensions of Vision for India of 2030
India would be a modern, technology driven, high growth,
equitable and transparent society
1.
To build physical as well as social infrastructure and to
provide ease of living
2.
To create a Digital India, digitize government processes with
leaders from youth
3.
Making India pollution free by leading transport revolution with
Electric Vehicles and focus on Renewable
4.
Expanding rural industrialization using modern digital
technologies to generate massive employment
5.
Clean Rivers, safe drinking water to all Indians and efficient
use of water through micro-irrigation
6.
Besides scaling up of Sagarmala, Coastline and Ocean waters
powering India’s development and growth
7.
Aim at our space programme – Gaganyaan, India becoming the
launch-pad of satellites for the World and placing an Indian astronaut into
space by 2022
8.
Making India self-sufficient in food, exporting to the world to
meet their food needs and producing food in the most organic way
9.
A healthy India via Ayushman Bharat with women having equal
rights and concern for their safety and empowerment
10.
Transforming India into a Minimum Government Maximum Governance
nation with pro-active and responsible bureaucracy
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