Welcome Pro News Zone’s reader, though it has been a long time for announcement of the intrim budget 2019-2020. Since General Assembly Elecltion are to be done this year. So it’s restricted budget which will allocate funds of projects which are of importance and would not hamper working of Government Till new government is formed.
Budget UNVEILS VISION 2030 (10 DIMENSIONS)
Presenting the Interim Budget, Finance Minister has laid out the government’s vision for India in 2030, highlighting “10 most important dimensions.
10 Most important dimensions of the Vision 2030
- To build physical as well as social infrastructure and to provide ease of living.
- To create a Digital India, digitize government processes with leaders from youth.
- Making India pollution-free by leading transport revolution with Electric Vehicles and focus on Renewables.
- Expanding rural industrialization using modern digital technologies to generate massive employment.
- Clean up rivers, provide safe drinking water to all Indians and ensure efficient use of water through micro-irrigation.
- Scale up Sagarmala, develop other inland waterways faster, harness India’s long coastline and oceans to power India’s development and growth.
- Aim at our space programme – Gaganyaan, India becoming the launchpad of satellites for the world and placing an Indian astronaut into space by 2022.
- Making India self-sufficient in food, exporting to the world to meet global food needs and producing food in the most organic way.
- A healthy India via Ayushman Bharat with women having equal rights, ensuring their safety and promoting their empowerment.
- Transforming India into a ‘Minimum Government, Maximum Governance’ nation with pro-active and responsible bureaucracy.
Key message in the Interim Budget 2019-20
Moving towards realizing a ‘New India’ by 2022 –
o Clean and healthy India with universal access to toilets, water and electricity to all
o An India where Farmers’ income would have doubled
o Ample opportunities to youth and women to fulfil their dreams
o 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
Important Government Schemes 2019-2020 Intrim Budget
- Potential to enhance the productivity of the indigenous breeds of India through professional farm management and superior nutrition is immense. For this it is essential to promote conservation and development of indigenous breeds.
- The “RashtriyaGokul Mission” aims to conserve and develop indigenous breeds in a focused and scientifc manner
- To undertake breed improvement program for indigenous cattle breeds so as to improve genetic makeup and increase the stock
- To enhance milk production and productivity of indigenous bovines
- To upgrade nondescript cattle using elite indigenous breeds like Gir, Sahiwal, Rathi, Tharparkar, Red Sindhi
- To distribute disease free high genetic merit bulls of indigenous breeds for natural service Components
- Establishment of village level Integrated Indigenous Cattle CentresvizGokul Gram
- Strengthening of bull mother farms to conserve high genetic merit Indigenous Breeds
- Establishment of Field Performance Recording (FPR) in the breeding tract.
- Assistance to Institutions/lnstitutes which are repositories of best germplasm.
- Implementation of Pedigree Selection Programme for the Indigenous Breeds with large population
- Establishing GopalanSangh- Breeder’s Societies
- Distribution of disease free high genetic merit bulls for natural service.
- Incentive to farmers maintaining elite animals of indigenous breeds
- Award to Farmers (GopalRatna) and Breeders” Societies (Kamadhenu)
- Organization of Milk Yield Competitions for indigenous breeds
- Organization of Training Programme for technical and non technical
Pradhan Mantri Kisan SammanNidhi
To provide an assured income support to the small and marginal farmers, the Government is launching the Pradhan MantriKisanSammanNidhi (PM-KISAN).
Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs. 6,000 per year.
This income support will be transferred directly into the bank accounts of benefciary farmers, in three equal installments of Rs. 2,000 each.
This programme will be funded by Government of India. Around 12 crore small and marginal farmer families are expected to beneft from this.
The programme would be made effective from 1st December 2018 and the frst installment for the period upto 31st March 2019 would be paid during this year itself.
It will entail an annual expenditure of Rs.75, 000 crore.
It would not only provide assured supplemental income to the most vulnerable farmer families, but would also meet their emergent needs especially before the harvest season. It would pave the way for the farmers to earn and live a respectable living.
Pradhan Mantri Shram-Yogi Maandhan Yojana
announced in the Budget 2019 has proposed to launch the scheme for the unorganised sector workers with monthly income uptoRs 15,000.
The Government will deposit equal matching share in the pension account of the worker every month.
It is expected that at least 10 crorelabourers and workers in the unorganised sector will avail the beneft of the scheme within next fve years making it one of the largest pension schemes of the world.
A sum of Rs 500 crore has been allocated for the Scheme The scheme will also be implemented from the current year.
This pension yojana shall provide an assured monthly pension of Rs 3,000 from the age of 60 years on a monthly contribution of a small affordable amount during their working age.
An unorganised sector worker joining pension yojana at the age of 29 years will have to contribute only Rs 100 per month till the age of 60 years.
A worker joining the pension yojana at 18 years, will have to contribute as little as Rs 55 per month only.
To provide sustained and focused attention towards development of Fisheries, the Government has decided to create a separate Department of Fisheries.
Finance Minister said that through the measure, the 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 fsheries, who avail loan through Kisan Credit Card. Further, in case of timely repayment of loan, they will also get an additional 3% interest subvention
Fiscal Indicators-Rolling Targets as a Percentage of GDP
|Gross Tax Revenue
|Central Government debt
Highlights Of Interim Budget 2019-20
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:
· 12 crore small and marginal farmers to be provided with assured yearly income of Rs. 6000 per annum under PM-KISAN
o Outlay of Rs. 75,000 crore for FY 2019-20 with additional Rs. 20,000 crore in RE 2018-19
· Outlay for Rashtriya Gokul mission increased to Rs 750 crore
· Rashtriya Kamdhenu Ayog to be setup for sustainable genetic up-gradation of the Cow resources
· New separate Department of Fisheries for welfare of 1.5 crore fishermen
· 2% interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3% in case of timely repayment.
· Interest subvention of 2% during disaster will now be provided for the entire period of reschedulement of loan
· Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers
o Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month
· 22nd AIIMS to be setup in Haryana
· Rs. 60, 000 crore allocation for MGNREGA in BE 2019-20
Direct Tax proposals
· Income upto Rs. 5 lakh exempted from Income Tax
· More than Rs. 23,000 crore tax relief to 3 crore middle class taxpayers
· Standard Deduction to be raised to Rs. 50,000 from Rs. 40,000
· TDS threshold to be raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits
· Existing rates of income tax to continue
· Tax exempted on notional rent on a second self-occupied house
· Housing and real estate sector to get boost-
o TDS threshold for deduction of tax on rent to be increased from Rs. 1,80,000 to Rs. 2,40,000
o 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.
o Tax benefits for affordable housing extended till 31st March, 2020 under Section 80-IBA of Income Tax Act
o Tax exemption period on notional rent, on unsold inventories, extended from one year to two years
· Fiscal deficit pegged at 3.4% of GDP for 2019-20
· Target of 3% of fiscal deficit to be achieved by 2020-21.
· Fiscal deficit brought down to 3.4% in 2018-19 RE from almost 6% seven years ago
· Total expenditure increased by over 13% to Rs.27,84,200 crore in 2019-20 BE
· Capital Expenditure for 2019-20 BE estimated at Rs. 3,36,292 crore
· Centrally Sponsored Schemes (CSS) allocation increased to Rs. 3,27,679 crore in BE 2019-20
· National Education Mission allocation increased by about 20% to Rs. 38,572 crore in BE 2019-20
· Allocation for Integrated Child Development Scheme (ICDS) increased by over 18% to Rs. 27,584 crore in BE 2019-20
· Substantial increase in allocation for the Scheduled Castes and Scheduled Tribes –
o 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
o Allocation for the STs increased by 28% – from 39,135 crore in BE 2018-19 to Rs. 50,086 crore in 2019-20 BE
· Government confident of achieving the disinvestment target of 80,000 crore
· Focus now on debt consolidation along with fiscal deficit consolidation programme
Poor and Backward Classes
· “First right on the resources of country is that of the poor”: FM
· 25% additional seats in educational institutions to meet the 10% reservation for the poor
· Targeted expenditure to bridge urban-rural divide & to improve quality of life in villages
· All willing households to be provided electricity connections by March 2019
· Allocation to be increased by 21% to Rs. 58,166 crore in 2019-20 BE over 2018-19 BE
· Arunachal Pradesh came on the air map recently
· Meghalaya, Tripura and Mizoram came on India’s rail map for the first time
· Container cargo movement through improved navigation capacity of the Brahmaputra
· A new committee under NITI Ayog to identify all the remaining De-notified nomadic and semi-Nomadic tribes.
· New Welfare development Board under Ministry of social justice and empowerment for development and welfare of De-notified nomadic and semi nomadic tribes
· Defence budget to cross Rs 3,00,000 crore for the first time ever
· Capital support of Rs.64,587 crore proposed in 2019-20 (BE) from the budget
· Overall capital expenditure programme to be of Rs. 1,58,658 crore
· Operating Ratio expected to improve from 98.4% in 2017-18
to 96.2% in 2018-19 (RE) and
to 95% in 2019- 20 (BE)
· Indian filmmakers to get access to Single window clearance as well for ease of shooting films
· Regulatory provisions to rely more on self-declaration
· To introduce anti-camcording provisions in the Cinematograph Act to control piracy
MSME and Traders
· 2% interest subvention on an incremental loan of Rs 1 crore for GST registered SMEs
· Atleast 3% of the 25% sourcing for the Government undertakings will be from women owned SMEs
· Renewed Focus on Internal trade ; DIPP renamed to Department for Promotion of Industries and Internal trade
· The Government to make 1 lakh villages into Digital Villages over next five years
· New National Artificial Intelligence portal to support National Program on Artificial Intelligence
State of the Economy
· India universally recognized as a bright spot of the global economy during last five years
· “Country witnessed its best phase of macro-economic stability during 2014-19”, says FM
· India is now the 6th largest economy in the world from being the 11thlargest in 2013-14
· Annual average GDP growth during 2014-19 higher than any government since 1991
· Government has broken inflation’s back from backbreaking inflation during 2009-14: FM
· Average inflation down to 4.6%, lower than during any other Government
· Inflation in December 2018 down to 2.19% only
· Fiscal deficit down to 3.4% in 2018-19 RE from the high of almost 6% seven years ago
· CAD likely to be only 2.5% of GDP this year against a high of 5.6% six years ago
· India attracted massive amount of FDI, worth $239 billion, during the last 5 years
· “India is solidly back on track and marching towards growth and prosperity”, says FM
· India becomes the fastest growing major economy in the world
· Double-digit inflation contained and fiscal balance restored
· Liberalization of FDI policy, allowing most FDI to come through the automatic route
· Assured MSP of minimum 50% to all 22 crops
· Interest subvention doubled in last 5 years
· Soil Health card, Neem coated Urea game changer in farm sector
· Employment opportunities expanded ; EPFO membership increased by 2 crore
· Minimum income for every category of workers increased by 42% in last 5 years
Poor and Backward Classes
· 10% reservation for the poor in educational institutions and government jobs
· Free electricity connection to every household under Saubhagya Yojana
· World’s largest healthcare programme, Ayushman Bharat, for nearly 50 crore people
· Aspirational Districts Programme for development in 115 most backward districts
· Rs. 1,70,000 crore spent during 2018-19 for cheaper food grains to poor and middle class
· 143 crore LED bulbs provided in mission mode with the cooperation of private sector
· Poor & middle class are saving Rs. 50, 000 crore p.a. in electricity bills due to LED bulbs
· 10 lakh patients benefited from free treatment under Ayushman Bharat
· Jan Aushadhi Kendras providing medicines at affordable prices to poor and middle class
· 14 out of 21 AIIIMS operating presently have been announced since 2014
· Government tripled rural roads’ construction under the PMGSY
· 15.80 lakh habitations out of 17.84 lakh connected with pucca roads
· Rs. 19,000 crore for PMGSY in BE 2019-20 against Rs. 15,500 crore in RE 2018-19
· 1.53 crore houses built under PM Awas Yojana during the 2014-18
Women development to women led development
· 6 crore free LPG gas connections provided under Ujjwala Yojna ; All 8 crore by next year
· 70% of MUDRA Loan availed by Women
· Maternity leave extended to 26 weeks
· Financial support for pregnant women under Pradhan Mantri Matru Vandana
· Over one crore youth trained under Pradhan Mantri Kaushal Vikash Yojana
· Self-employment boost through MUDRA, STAND-UP and START-UP India
MSME and Traders
· Up-to Rs 1 crore loans can be availed in less than an hour
· 25%-28% is the average savings due to GeM (Government e-Market place)
· Tax collections nearly doubled in five years- from Rs. 6.38 Lakh crore in 2013-14 to almost Rs. 12 lakh crore this year
· 80% growth in tax base- from 3.79 crore to 6.85 crore in five years
· Tax administration streamlined- Last year, 99.54% of the income-tax returns accepted as were filed
· Technology intensive project approved to improve assessee friendliness –In two years, returns to be processed in 24 hours and refunds issued simultaneously
· Earlier benefits given to middle class-
o Basic exemption limit increased from Rs. 2 lakh to Rs. 2.5 lakh
o Tax rate reduced from 10% to 5% for the tax slab of Rs. 2.5 lakh to Rs. 5 lakh
o Standard deduction of Rs. 40,000 introduced for the salaried class
o Deduction of savings under section 80C increased from Rs. 1 lakh to Rs. 1.5 lakh
o Deduction of interest for self-occupied house property raised from Rs. 1.5 lakh to Rs. 2 lakh
· Special benefits and incentives already given to small businesses and startups-
o Overall compliance processes simplified.
o Threshold for presumptive taxation of business raised from Rs. 1 crore to Rs. 2 crore
o Benefit of presumptive taxation extended for the first time to small professionals fixing threshold limit at Rs. 50 lakh
o Presumptive profit rate reduced from 8% to 6% to promote a less cash economy
o Tax rate for about 99% companies reduced to 25%
· GST made India a common market
· GST led to increased tax base, higher collections and ease of trade
· Inter-state movements now faster, more efficient, and hassle free
· Responsive and sensitive reduction of tax rates – Most items of daily use now in the 0% or 5% tax slab
· Relieving the businesses and service providers-
o Exemptions from GST for small businesses doubled from Rs. 20 lakh to Rs. 40 lakh
o Small businesses having turnover up to Rs. 1.5 crore pay only 1% flat rate and file one annual return only
o Small service providers with turnover upto Rs.50 lakhs can opt for composition scheme and pay GST at 6% instead of 18%
o Soon, businesses comprising over 90% of GST payers to be allowed to file quarterly return
· 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
· Civil Aviation – UDAN Scheme
o Number of Operational Airports crossed 100
o Latest: Pakyong airport in Sikkim
o Domestic Passenger traffic doubled in last 5 years
o India is the fastest highway developer in the world
o 27 kms of highways built each day
o Stuck projects completed – Eastern Peripheral Highway around Delhi
– Bogibeel rail-cum-road bridge in Assam and Arunachal Pradesh
o Flagship programme of Sagarmala along the coastal areas
o For first time, container freight movement started on Kolkata to Varanasi inland waterways
o ‘Safest year’ for railways in its history
o All Unmanned Level Crossings on broad gauge network eliminated.
o Semi high-speed “Vande Bharat Express” introduced – first indigenously developed and manufactured
· International Solar Alliance
o To promote renewable energy
o First treaty based international inter-governmental organisation headquartered in India
o Installed solar generation capacity grown over ten times in last five years
o 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 4Rs 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
· 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”
· OROP under implementation in full spirit with Rs 35,000 crore already disbursed
· Military pay service hiked
· Government put a stop to questionable practices of hiding high NPAs
· Swachh Bharat Mission as the world’s largest behavioral change movement