Interim Budget 2019: Piyush Goyal was presented on 1st Feb 2019
Interim Budget 2019: It was presented in Parliament today by the Union Minister for Finance, Corporate Affairs, Railways & Coal, Shri Piyush Goyal. Besides having a major Scheme for the farmers, it provides tax sops and sets the Developmental Agenda for the years to come.
A New Deal for 12 Crore Small and Marginal farmers with direct income support, a path-breaking Pension initiative for 10 Crore unorganized sector workers, exempting income up to Rs 5 lakhs from Income Tax, reforms in stamp duty, highest ever budgetary allocation of Rs 3 lakh crore for Defence, record allocation of funds at Rs 58,166 crore for North Eastern Areas, a new AIIMS for Haryana,
single window clearance for Indian filmmakers at par with foreigners and higher budgetary allocations for Education, Health, Infrastructure and for the welfare of weaker sections including Scheduled Castes and Scheduled Tribes, a Separate Department of Fisheries for the welfare of 1.5 crore fisherman are some of the major highlights of the Interim Budget 2019-20
Miscellaneous Important Key Points of Interim Budget 2019:
Finance Minister Piyush Goyal presented the Interim Budget of the Modi government on Friday, 01-02-2019. By creating history, the government has increased the income tax exemption limit to 5 lakh rupees. 6000 rupees will transfer to the Indian farmers’ account.
Important key points are:
- Growth in the last 5 years has been higher than that by any other govt. Spent Rs 2.6 lakh crore in the recap of PSU Banks.
- Domestic air traffic doubled in the last 5 years
- Over 90 percent of the country covered under sanitation coverage.
- In the past, false promises were made but we have taken targeted expenditure on all dimensions
- Ayushman Bharat, the world’s largest healthcare programme, was launched to provide medical care to almost 50 crore people, resulting in Rs 3,000 crore savings by poor families
- Lower costs of Stents & Knee Implants have benefitted people. The government has announced 14 new AIIMS since 2014
- Loans worth Rs 7.23 lakh crore have been given under Mudra Yojana
- Monthly mobile data consumption has increased 50x in the last 5 years; the cost of data & voice calls in India is possibly the lowest in the world.
- Allocation for the northeastern region has been proposed to be increased to Rs 58,166 crore
For Indian Farmers
- Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN): It is 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.
- Rs 6,000 per year assured income support for small and marginal farmers
- Farmers having up to 2 hectares of lands will get Rs 6,000 per year in three equal installments. The scheme will be effective from December 1, 2018.
- Interest subvention for farm loan takers: Farmers affected by natural calamities to get 2% interest subvention and additional 3% interest subvention upon timely repayment 2% interest subvention to farmers who pursue animal husbandry, fisheries jobs through Kisaan credit cards
- Kamdhenu scheme for animal husbandry
- For FY19, the government has revised the fiscal deficit target to 3.4 percent in FY 19. Fiscal deficit for 2019/20 estimated at 3.4 percent of GDP.
- Government’s stated commitment earlier was to bring down the fiscal deficit to 3.1 percent of GDP by the end of March 2020, and to 3 percent by March 2021
- ➢ Current account deficit at 2.5% of the GDP.
Income Tax reliefs:
- No tax for those whose taxable income is less than Rs 5 lakh
- Standard deduction increased to Rs 50,000 from Rs 40,000 for salaried class
- Direct tax collection at 12 lakh Cr INR in FY19 from 6.30 INR Lakh Cr in 2014.
Tax exemptions on investments:
- Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in provident funds and prescribed equities.
- TDS threshold for home rent increased from Rs 1.8 lakh to 2.4 lakh
- Interest income up to Rs 40,000 in post offices and banks made tax free
- Capital gains tax exemptions under Section 54 to be available up to Rs 2 crore. Capital gains exemption to be available on 2 house properties
- Income tax relief on notional rent from unsold houses extended to 2 years from 1 year.
- Govt increases defense budget to over Rs 3 lakh crore. Govt will provide additional funds for Defence if needed.
- Disbursed 35,000 crore rupees under OROP scheme in the last few years.
- Rs 64,587 crore allocated to Railways for FY20.
- Railway’s operating ratio seen 96.2% in FY19 Vs 95% FY20.
- Railway capex for FY20 set at rea cord Rs 1.6 lakh crore.
- National Education Mission allocation increased by about 20% to Rs. 38,572 crore in BE 2019-20
- 25% additional seats in educational institutions to meet the 10% reservation for the poor
- 10% reservation for the poor in educational institutions and government jobs
- EWS Reservation To ensure 10% reservation in educational institutions and Government jobs for economically weaker sections, the Government will provide for 25% extra seats i.e. around 2 lacs, while maintaining the existing reservation for SC/ST/Other Backward Classes.
- Rs 3,000 per year pension for unorganized sector workers
- New Pradhan Mantri Shram Yogi Mandhan Yojana for unorganized sector workers with income up to Rs 15,000 per month. Beneficiaries will get Rs 3,000 per month pension with a contribution of Rs 100 per month after retirement. Govt allocates Rs 500 crore for the Pradhan Mantri Shram Yogi Mandhan scheme.
- Gratuity limit increased for workers to Rs 30 lakh.
Nine priority sectors for government
- To build a Digital India that reaches every citizen
- Clean and Green India;
- Expanding rural industrialization using modern industrial technologies;
- Clean Rivers – with safe drinking water to all Indians;
- Oceans and coastlines;
- India becoming launchpad of the world;
- Self-sufficiency in food and improving agricultural productivity with an emphasis on organic food;
- Healthy India;
- Minimum Government maximum governance, with proactive, responsible and friendly bureaucracy