The key highlights of the 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:

New Announcements

Farmers

• 12 crore small and marginal farmers to be provided with assured yearly income of Rs. 6000 per annum under PM-KISAN
• - 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

Labour

• Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers
• - Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month

Health

22nd AIIMS to be setup in Haryana

MGNREGA

Rs. 60, 000 crore allocation for MGNREGA in BE 2019-20

Direct Tax proposals

• Rebate on Income upto Rs. 5 lakh
• 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-
• - 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

• 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 -
• - 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

• '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

North East

• 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

Vulnerable sections

• 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

Defence budget to cross Rs 3,00,000 crore for the first time ever

Railways

• 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)

Entertainment Industry

• 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

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
• Achievements during 2014-19

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

Farmers

• 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

Labor

• 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

Youth

• 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)

Income Tax

• 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-
• - 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

• 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%

GST

• 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-
• - 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
• 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 organization 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 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

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

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 fulfill 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

• 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 industrialisation using modern digital technologies to generate massive employment
• Clean Rivers, safe drinking water to all Indians and efficient use of water through micro-irrigation
• Besides scaling up of Sagarmala, Coastline and Ocean waters powering India's development and growth
• 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
• Making India self-sufficient in food, exporting to the world to meet their food needs and producing food in the most organic way
• A healthy India via Ayushman Bharat with women having equal rights and concern for their safety and empowerment
• Transforming India into a Minimum Government Maximum Governance nation with pro-active and responsible bureaucracy

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