Interim Union Budget 2019-20: Highlight With Details

Interim Union Budget 2019-20: Highlight With Details 

Interim Union Budget 2019-20: Highlight With Details 

Interim Union Budget 2019-20 was presented in Parliament today by the Union Minister for Finance, Corporate Affairs, Railways & Coal, Shri Piyush Goyal.

New Announcements

Farmers

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 up-to 2 hectares is announced.

Government is launching 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 upto 31st March 2019 would be paid during this year itself.

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.

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

14 of the 21 AIIMS operating or being established in the country presently have been announced since 2014. Government also announced setting up of a new - the 22nd AIIMS 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

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
2. Target of 3% of fiscal deficit to be achieved by 2020-21.
3. Fiscal deficit brought down to 3.4% in 2018-19 RE from almost 6% seven years ago
4. Total expenditure increased by over 13% to Rs.27,84,200 crore in 2019-20 BE
5. Capital Expenditure for 2019-20 BE estimated at Rs. 3,36,292 crore
6. Centrally Sponsored Schemes (CSS) allocation increased to Rs. 3,27,679 crore in BE 2019-20
7. National Education Mission allocation increased by about 20% to Rs. 38,572 crore in BE 2019-20
8. 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 -

• 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
• 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

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

Defence Budget 2019-20

A total outlay of Rs. 27,84,200 crore. Out of this Rs. 3,18,931.22 crore has been earmarked for Defence (excluding Defence Pension). For Defence Pension, an amount of Rs. 1,12,079.57 crore has been provided in BE 2019-20. Total Defence Allocation, including Defence Pension, accounts for 15.48% of the total Central Government expenditure for the year 2019-20. 

The allocation of Rs. 3,18,931.22 crore represents a growth of 7.93% over Budget Estimates (2,95,511.41 crore) and 6.87% over Revised Estimates (Rs. 2,98,418.72 crore), respectively for the financial year 2018-19. 

Out of Rs. 3,18,931.22 crore allocated for the financial year 2019-20, Rs. 2,10,682.42 crore for Revenue (Net) expenditure and Rs. 1,08,248.80 crore for Capital expenditure for the Defence Services and the Organisations/Departments under the Ministry of Defence. The amount of Rs. 1,08,248.80 crore allocated for Capital expenditure, includes modernisation related expenditure. The Capital Allocation of the Ministry of Defence under BE 2019-20 is 32.19% of the total Central Government Capital Expenditure, which is Rs. 3,36,293.00 crore.

Railways Budget 2019-20

1. Government allocates Rs.64,587 Crore for Railways in 2019-20 
2. Infra allocation for north eastern areas increased by 21% to Rs. 58,166 Crore in 2019-20
3. In the Interim Budget 2019-20, the Railways has been allocated Rs.64,587 crore. The Railways’ overall capital expenditure programme is of Rs.1,58,658 crore.

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

1. The Government to make 1 lakh villages into Digital Villages over next five years

Achievements during 2014-19

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 6 largest economy in the world from being the 11 largest 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

1. 10% reservation for the poor in educational institutions and government jobs
2. Free electricity connection to every household under Saubhagya Yojana
3. World’s largest healthcare programme, Ayushman Bharat, for nearly 50 crore people
4. Aspirational Districts Programme for development in 115 most backward districts
5. Rs. 1,70,000 crore spent during 2018-19 for cheaper food grains to poor and middle class
6. 143 crore LED bulbs provided in mission mode with the cooperation of private sector
7. Poor & middle class are saving Rs. 50, 000 crore p.a. in electricity bills due to LED bulbs
8. 10 lakh patients benefited from free treatment under Ayushman Bharat
9. Jan Aushadhi Kendras providing medicines at affordable prices to poor and middle class
10. 14 out of 21 AIIIMS operating presently have been announced since 2014
11. Government tripled rural roads’ construction under the PMGSY
12. 15.80 lakh habitations out of 17.84 lakh connected with pucca roads
13. Rs. 19,000 crore for PMGSY in BE 2019-20 against Rs. 15,500 crore in RE 2018-19
14. 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
3. Up-to Rs 1 crore loans can be availed in less than an hour
4. 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

· 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 2 lakh 

Special benefits and incentives already given to small businesses and startups-

1. Threshold for presumptive taxation of business raised from Rs. 1 crore to Rs. 2 crore
2. Benefit of presumptive taxation extended for the first time to small professionals fixing threshold limit at Rs. 50 lakh
3. Presumptive profit rate reduced from 8% to 6% to promote a less cash economy
4. Tax rate for about 99% companies reduced to 25%

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