Highlights of Interim Budget 2019-20

0

Highlights of Interim Budget 2019-20

NEW DELHI: The key highlights of the Interim Budget 2019-20 presented by the Union Minister for Finance, Corporate Affairs, Railways & Coal, Piyush Goyal in Parliament today are as follows:nnNew AnnouncementsnnFarmersnn· 12 crore small and marginal farmers to be provided with assured yearly income of Rs. 6000 per annum under PM-KISANnno Outlay of Rs. 75,000 crore for FY 2019-20 with additional Rs. 20,000 crore in RE 2018-19nn· Outlay for Rashtriya Gokul mission increased to Rs 750 crorenn· Rashtriya Kamdhenu Ayog to be setup for sustainable genetic up-gradation of the Cow resourcesnn· New separate Department of Fisheries for welfare of 1.5 crore fishermennn· 2% interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3% in case of timely repayment.nn· Interest subvention of 2% during disaster will now be provided for the entire period of reschedulement of loannnLabournn· Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workersnno Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per monthnnHealthnn· 22nd AIIMS to be setup in HaryanannMGNREGAnn· Rs. 60, 000 crore allocation for MGNREGA in BE 2019-20nnDirect Tax proposalsnn· Income upto Rs. 5 lakh exempted from Income Taxnn· More than Rs. 23,000 crore tax relief to 3 crore middle class taxpayersnn· Standard Deduction to be raised to Rs. 50,000 from Rs. 40,000nn· TDS threshold to be raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office depositsnn· Existing rates of income tax to continuenn· Tax exempted on notional rent on a second self-occupied housenn· Housing and real estate sector to get boost-nno TDS threshold for deduction of tax on rent to be increased from Rs. 1,80,000 to Rs. 2,40,000nno 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.nno Tax benefits for affordable housing extended till 31st March, 2020 under Section 80-IBA of Income Tax Actnno Tax exemption period on notional rent, on unsold inventories, extended from one year to two yearsnnFiscal Programmenn· Fiscal deficit pegged at 3.4% of GDP for 2019-20nn· Target of 3% of fiscal deficit to be achieved by 2020-21.nn· Fiscal deficit brought down to 3.4% in 2018-19 RE from almost 6% seven years agonn· Total expenditure increased by over 13% to Rs.27,84,200 crore in 2019-20 BEnn· Capital Expenditure for 2019-20 BE estimated at Rs. 3,36,292 crorenn· Centrally Sponsored Schemes (CSS) allocation increased to Rs. 3,27,679 crore in BE 2019-20nn· National Education Mission allocation increased by about 20% to Rs. 38,572 crore in BE 2019-20nn· Allocation for Integrated Child Development Scheme (ICDS) increased by over 18% to Rs. 27,584 crore in BE 2019-20nn· Substantial increase in allocation for the Scheduled Castes and Scheduled Tribes -nno Allocation for SCs increased by 35.6% – from Rs. 56,619 crore in BE 2018-19 to Rs. 76,801 crore in BE for 2019-20nno Allocation for the STs increased by 28% – from 39,135 crore in BE 2018-19 to Rs. 50,086 crore in 2019-20 BEnn· Government confident of achieving the disinvestment target of 80,000 crorenn· Focus now on debt consolidation along with fiscal deficit consolidation programmennPoor and Backward Classesnn· ?First right on the resources of country is that of the poor?: FMnn· 25% additional seats in educational institutions to meet the 10% reservation for the poornn· Targeted expenditure to bridge urban-rural divide & to improve quality of life in villagesnn· All willing households to be provided electricity connections by March 2019nnNorth Eastnn· Allocation to be increased by 21% to Rs. 58,166 crore in 2019-20 BE over 2018-19 BEnn· Arunachal Pradesh came on the air map recentlynn· Meghalaya, Tripura and Mizoram came on India?s rail map for the first timenn· Container cargo movement through improved navigation capacity of the BrahmaputrannVulnerable sectionsnn· A new committee under NITI Ayog to identify all the remaining De-notified nomadic and semi-Nomadic tribes.nn· New Welfare development Board under Ministry of social justice and empowerment for development and welfare of De-notified nomadic and semi nomadic tribesnnDefencenn· Defence budget to cross Rs 3,00,000 crore for the first time evernnRailwaysnn· Capital support of Rs.64,587 crore proposed in 2019-20 (BE) from the budgetnn· Overall capital expenditure programme to be of Rs. 1,58,658 crorenn· Operating Ratio expected to improve from 98.4% in 2017-18nnto 96.2% in 2018-19 (RE) andnnto 95% in 2019- 20 (BE)nnEntertainment Industrynn· Indian filmmakers to get access to Single window clearance as well for ease of shooting filmsnn· Regulatory provisions to rely more on self-declarationnn· To introduce anti-camcording provisions in the Cinematograph Act to control piracynnMSME and Tradersnn· 2% interest subvention on an incremental loan of Rs 1 crore for GST registered SMEsnn· Atleast 3% of the 25% sourcing for the Government undertakings will be from women owned SMEsnn· Renewed Focus on Internal trade ; DIPP renamed to Department for Promotion of Industries and Internal tradennDigital Villagesnn· The Government to make 1 lakh villages into Digital Villages over next five yearsnnOther Announcement(s)nn· New National Artificial Intelligence portal to support National Program on Artificial IntelligencennAchievements during 2014-19nnState of the Economynn· India universally recognized as a bright spot of the global economy during last five yearsnn· ?Country witnessed its best phase of macro-economic stability during 2014-19?, says FMnn· India is now the 6th largest economy in the world from being the 11thlargest in 2013-14nn· Annual average GDP growth during 2014-19 higher than any government since 1991nn· Government has broken inflation?s back from backbreaking inflation during 2009-14: FMnn· Average inflation down to 4.6%, lower than during any other Governmentnn· Inflation in December 2018 down to 2.19% onlynn· Fiscal deficit down to 3.4% in 2018-19 RE from the high of almost 6% seven years agonn· CAD likely to be only 2.5% of GDP this year against a high of 5.6% six years agonn· India attracted massive amount of FDI, worth $239 billion, during the last 5 yearsnn· ?India is solidly back on track and marching towards growth and prosperity?, says FMnn· India becomes the fastest growing major economy in the worldnn· Double-digit inflation contained and fiscal balance restorednn· Liberalization of FDI policy, allowing most FDI to come through the automatic routennFarmersnn· Assured MSP of minimum 50% to all 22 cropsnn· Interest subvention doubled in last 5 yearsnn· Soil Health card, Neem coated Urea game changer in farm sectornnLabornn· Employment opportunities expanded ; EPFO membership increased by 2 crorenn· Minimum income for every category of workers increased by 42% in last 5 yearsnnPoor and Backward Classesnn· 10% reservation for the poor in educational institutions and government jobsnn· Free electricity connection to every household under Saubhagya Yojanann· World?s largest healthcare programme, Ayushman Bharat, for nearly 50 crore peoplenn· Aspirational Districts Programme for development in 115 most backward districtsnn· Rs. 1,70,000 crore spent during 2018-19 for cheaper food grains to poor and middle classnn· 143 crore LED bulbs provided in mission mode with the cooperation of private sectornn· Poor & middle class are saving Rs. 50, 000 crore p.a. in electricity bills due to LED bulbsnn· 10 lakh patients benefited from free treatment under Ayushman Bharatnn· Jan Aushadhi Kendras providing medicines at affordable prices to poor and middle classnn· 14 out of 21 AIIIMS operating presently have been announced since 2014nn· Government tripled rural roads? construction under the PMGSYnn· 15.80 lakh habitations out of 17.84 lakh connected with pucca roadsnn· Rs. 19,000 crore for PMGSY in BE 2019-20 against Rs. 15,500 crore in RE 2018-19nn· 1.53 crore houses built under PM Awas Yojana during the 2014-18nnWomen development to women led developmentnn· 6 crore free LPG gas connections provided under Ujjwala Yojna ; All 8 crore by next yearnn· 70% of MUDRA Loan availed by Womennn· Maternity leave extended to 26 weeksnn· Financial support for pregnant women under Pradhan Mantri Matru VandanannYouthnn· Over one crore youth trained under Pradhan Mantri Kaushal Vikash Yojanann· Self-employment boost through MUDRA, STAND-UP and START-UP IndiannMSME and Tradersnn· Up-to Rs 1 crore loans can be availed in less than an hournn· 25%-28% is the average savings due to GeM (Government e-Market place)nnIncome Taxnn· Tax collections nearly doubled in five years- from Rs. 6.38 Lakh crore in 2013-14 to almost Rs. 12 lakh crore this yearnn· 80% growth in tax base- from 3.79 crore to 6.85 crore in five yearsnn· Tax administration streamlined- Last year, 99.54% of the income-tax returns accepted as were filednn· Technology intensive project approved to improve assessee friendliness ?In two years, returns to be processed in 24 hours and refunds issued simultaneouslynn· Earlier benefits given to middle class-nno Basic exemption limit increased from Rs. 2 lakh to Rs. 2.5 lakhnno Tax rate reduced from 10% to 5% for the tax slab of Rs. 2.5 lakh to Rs. 5 lakhnno Standard deduction of Rs. 40,000 introduced for the salaried classnno Deduction of savings under section 80C increased from Rs. 1 lakh to Rs. 1.5 lakhnno Deduction of interest for self-occupied house property raised from Rs. 1.5 lakh to Rs. 2 lakhnn· Special benefits and incentives already given to small businesses and startups-nno Overall compliance processes simplified.nno Threshold for presumptive taxation of business raised from Rs. 1 crore to Rs. 2 crorenno Benefit of presumptive taxation extended for the first time to small professionals fixing threshold limit at Rs. 50 lakhnno Presumptive profit rate reduced from 8% to 6% to promote a less cash economynno Tax rate for about 99% companies reduced to 25%nnGSTnn· GST made India a common marketnn· GST led to increased tax base, higher collections and ease of tradenn· Inter-state movements now faster, more efficient, and hassle freenn· Responsive and sensitive reduction of tax rates – Most items of daily use now in the 0% or 5% tax slabnn· Relieving the businesses and service providers-nno Exemptions from GST for small businesses doubled from Rs. 20 lakh to Rs. 40 lakhnno Small businesses having turnover up to Rs. 1.5 crore pay only 1% flat rate and file one annual return onlynno Small service providers with turnover upto Rs.50 lakhs can opt for composition scheme and pay GST at 6% instead of 18%nno Soon, businesses comprising over 90% of GST payers to be allowed to file quarterly returnnn· 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 yearnnInfrastructurenn· Civil Aviation ? UDAN Schemenno Number of Operational Airports crossed 100nno Latest: Pakyong airport in Sikkimnno Domestic Passenger traffic doubled in last 5 yearsnn· Roadsnno India is the fastest highway developer in the worldnno 27 kms of highways built each daynno Stuck projects completed – Eastern Peripheral Highway around Delhinn- Bogibeel rail-cum-road bridge in Assam and Arunachal Pradeshnn· Waterwaysnno Flagship programme of Sagarmala along the coastal areasnno For first time, container freight movement started on Kolkata to Varanasi inland waterwaysnn· Railwaysnno ?Safest year? for railways in its historynno All Unmanned Level Crossings on broad gauge network eliminated.nno Semi high-speed “Vande Bharat Express” introduced – first indigenously developed and manufacturednnClimate Changenn· International Solar Alliancenno To promote renewable energynno First treaty based international inter-governmental organisation headquartered in Indianno Installed solar generation capacity grown over ten times in last five yearsnno Now creating lakhs of new age jobsnnDigital India Revolutionnn· More than 3 lakh Common Service Centres (CSCs) exist to deliver services to the citizensnn· India now leading the world in the consumption of mobile datann· Monthly consumption of mobile data increased by over 50 times in the last five yearsnn· Under Make in India, mobile and parts manufacturing companies increased from 2 to more than 268 providing huge job opportunitiesnnJan Dhan-Aadhaar-Mobile (JAM) and Direct Benefit Transfernn· In the last five years, nearly 34 crore Jan Dhan bank accounts openednn· Aadhaar now near universally implementednn· Ensure the poor and middle class receive the benefits of Government schemes directly in their bank accounts by eliminating middlemennnCustoms and trading across bordersnn· Customs duties on 36 capital goods abolishednn· Digitization of import and export transactionsnn· RFID technology to improve logisticsnnSteps against corruptionnn· Government walked the talk on corruption and ushered in a new era of transparency: FMnn· RERA and Benami Transaction (Prohibition) Act have brought transparency in real estatenn· The Fugitive Economic Offenders Act, 2018 to help confiscate economic offendersnn· Government conducted transparent auction of natural resources such as coal & spectrumnnDrive against Black moneynn· Undisclosed income of about Rs 1,30,000 crore brought under tax through initiatives like Black money Law, Fugitive Criminal offenders Act, Demonetisation etc.nn· Benami assets worth Rs 6,900 crore have been attachednn· 18% growth in Direct taxnnBanking Reforms and Insolvency and Bankruptcy Code (IBC)nn· The IBC has institutionalized a resolution-friendly mechanismnn· Government has stopped the culture of ?phone banking?: FMnn· Government adopted 4Rs approach of recognition, resolution, re-capitalization & reformsnn· Government has implemented measures to ensure ?Clean Banking?nn· Government has already recovered Rs. 3 lakh crore in favor of banks and creditorsnn· Government has invested Rs. 2.6 lakh crore for recapitalization of public sector banksnnCleanlinessnn· Government launched Swachh Bharat Mission as a tribute to 150 years of Gandhi Jinn· FM thanks 130 crore Indians for translating Swachh Bharat into a national revolutionnn· India has achieved 98% rural sanitation coveragenn5.45 lakh villages have been declared “Open Defecation Free?nDefencenn· OROP under implementation in full spirit with Rs 35,000 crore already disbursednn· Military pay service hikednnOther achievementsnn· Government put a stop to questionable practices of hiding high NPAsnn· Swachh Bharat Mission as the world?s largest behavioral change movementnnKey message in the Interim Budget 2019-20nn· Moving towards realizing a ?New India? by 2022 -nno Clean and healthy India with universal access to toilets, water and electricity to allnno An India where Farmers? income would have doublednno Ample opportunities to youth and women to fulfil their dreamsnno An India free from terrorism, communalism, casteism, corruption and nepotismnnVision for the next Decadenn· Foundation for India?s growth and development laid in the past 5 yearsnn· Poised to become a Five Trillion Dollar Economy in the next five yearsnn· Aspire to become a Ten Trillion Dollar Economy in the next 8 years thereafternnTen dimensions of Vision for India of 2030nnIndia would be a modern, technology driven, high growth, equitable and transparent societynn1. To build physical as well as social infrastructure and to provide ease of livingnn2. To create a Digital India, digitize government processes with leaders from youthnn3. Making India pollution free by leading transport revolution with Electric Vehicles and focus on Renewablesnn4. Expanding rural industrialisation using modern digital technologies to generate massive employmentnn5. Clean Rivers, safe drinking water to all Indians and efficient use of water through micro-irrigationnn6. Besides scaling up of Sagarmala, Coastline and Ocean waters powering India?s development and growthnn7. Aim at our space programme ? Gaganyaan, India becoming the launch-pad of satellites for the World and placing an Indian astronaut into space by 2022nn8. Making India self-sufficient in food, exporting to the world to meet their food needs and producing food in the most organic waynn9. A healthy India via Ayushman Bharat with women having equal rights and concern for their safety and empowermentnn10. Transforming India into a Minimum Government Maximum Governance nation with pro-active and responsible bureaucracy

Leave a Reply

Your email address will not be published.