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Sunday, April 21, 2019
ਤਾਜ਼ੀਆਂ ਖ਼ਬਰਾਂ

Highlights of Interim Budget 2019-20

Delhi, Feb. 1 (Punjab Post Bureau) – The key highlights of the Interim Budget 2019-20 presented by the Union PUNJ0102201901Minister 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

  • 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-
  • 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 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 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 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

  • 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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