Interim Budget 2019-20 Complete Update with PDF

Interim Budget 2019-20 Complete Update with PDF

The present finance minister Piyush Goyal presented the Interim Budget for 2019-20 on February 01, 2019. This was the 6th budget by the National Democratic Alliance’s (NDA) government.

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Some Important Data Highlights- Budget 2019-20:

  • Total Expenditure: Rs 27,84,200 Crore
  • Total Capital Expenditure: Rs 3,36,292 Crore
  • Total Receipts: Rs 27,32,903 Crore
  • Fiscal Deficit for the year 2019-20: 3.4% (slightly higher than the targeted 3.3 per cent)

Scheme’s announced in the Interim Budget 2019-20:

  1. Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN)

  • Beneficiary: Farmers with land with area upto 2 hectares.
  • Under this scheme farmer having cultivable land upto 2 hectare will get direct income support of Rs 6000 per year. This amount will be paid in three equal installments of Rs 2000. (at each 4 months)
  • Date of effectiveness: The scheme would be made effective from December 01, 2018. The first installment from Dec 01, 2018 to March 31, 2019 would be paid in this year itself.
  • Outlay: Each year government will incur an expenditure of Rs 75,000 crore on this scheme. Apart from this for 2018-19, a revised estimate of Rs 20,000 crore has been provided for this scheme (as it is effective from Dec 2018 itself).
  1. Pradhan Mantri Shram-Yogi Maandhan

  • Purpose: Pension Scheme for unorganized sector workers.
  • Beneficiary: Workers of unorganized sector with monthly income of upto Rs 15,000.
  • Benefit: This pension yojana shall provide the beneficiary an assured monthly pension of Rs 3,000 from the age of 60 years.
  • Monthly premium: The monthly premium will vary as per the age of beneficiary depending on the age when he joins the scheme. However the government will pay an equal monthly premium in the pension account every month.
  • Outlay: Rs 500 Crore

Sector wise Budget Highlights

For Taxpayers / Tax reforms

  • No Income Tax for individuals with taxable income upto Rs 5 lakh. i.e Income upto Rs 5 lakh is not tax free. This will give a tax benefit of Rs 6.5 lakh when proper investment is done.
  • For salaried persons, Standard Deduction is being raised from the current Rs 40,000 to Rs 50,000. i.e they can now claim additional tax benefit
  • Interest earned from Bank/Post office deposit account will be now tax free upto Rs 40,000. Earlier the limit was Rs 10,000
  • No tax on notional rent on second house 
  • TDS threshold for deduction of tax on rent will be increased from Rs 1,80,000 to Rs 2,40,000 for providing relief to small taxpayers.
  • The benefit of rollover of capital gains under section 54 of the Income Tax Act will be increased from investment in one residential house to two residential houses  for a tax payer having  capital gains  up to ` 2 crore. This benefit can be availed once in a life time.
  • Period of exemption from levy of tax on notional rent in real estate has been extended from 1 year to 2 year.

For Farmers

  • “Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN) scheme launched” – already discussed
  • Allocation to Rashtriya Gokul Mission increase to Rs 750 crorein the current year.
  • “Rashtriya Kamdhenu Aayog”will be setup for cows.
    Aim: To upscale sustainable genetic up-gradation of cow resources and to enhance production and productivity of cows. The Aayog will also look after effective implementation of laws and welfare schemes for cows.
  • A separate Department of Fisheries will be created
Interest Subventions for Farmers
Interest Subvention to Animal Husbandry Farmers– 2% interest subvention to farmers involved in activities of animal husbandry and fisheries. Addition 3% interest subvention to them in case of timely repayment of loan.
Interest Subvention to Farmers in natural calamities– Farmers affected by severe natural calamities, where assistance is provided from National Disaster Relief Fund (NDRF),  will be provided the benefit of interest subvention of 2%. Also addition 3% Interest subvention for the entire period of reschedulement of their loans for timely repayment of loan.

For Labour and Workers Dignity

  • A pension scheme ‘Pradhan Mantri Shram-Yogi Maandhan’ introduced- Already discussed
Some other points that you must remember from exam point of view
  • Contribution of government in NPS increased from 10% to 14%
  • Maximum ceiling of the bonus given to the labourers has been increased from Rs 3,500 pm to Rs 7,000 pm
  • Maximum ceiling of the pay has been increased from Rs 10,000 pm to Rs 21,000 pm.
  • The ceiling of payment of gratuity has been enhanced from Rs 10 lakhs to Rs 20 lakhs.
  • The ceiling of ESI’s eligibility cover has been increased from Rs 15,000 pm to Rs 21,000 pm. 

* Employees’ State Insurance (ESI) Scheme of India is a multi-dimensional Social Security Scheme to provide protection against the events of sickness, maternity, disablement and death due to employment injury and to provide medical care to the insured employees and their families.

  • Minimum pension for every labourer has been fixed at Rs 1,000 per month.
  • In the event of death of a labourer during service, the amount to be paid by EPFO has been increased from Rs 2.5 lakh to Rs 6 lakh.
  • Under Anganwadi and Asha Yojana honorarium has been enhanced by about 50% for all categories of workers.

For MSMEs and Traders

  • Government had launched a scheme of loan of upto Rs 1 crore for MSME under 59 minutes. For this scheme GST-registered SME units will get 2% interest rebate on incremental loan of Rs 1 Crore.
  • Requirement for Government enterprises of sourcing from SMEs has been increased to 25%. Of this, the material to the extent of at least 3% will be sourced from women owned SMEs.

For Defence and National Security

  • For the first time the defence budget will cross Rs 3,00,000 crore. It will be more than Rs 3 lakh Crore for 2019-20.
  • Rs 35,000 crore disbursed under the One Rank One Pension (OROP) Scheme

Railway Budget

  • Railway Budget for 2019-20: Rs 64,587 crore
  • Railways’ overall capital expenditure programme is of ` 1,58,658 crore for 2019-20 (With Operating Ratio at 95%)
  • The Operating Ratio is expected to improve from 98.4% in 2017-18 to 96.2% in 2018-19

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Other Important Facts mentioned in the Interim Budget 2019-20 – Read Our PDF

 

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Also Read: How is Interim Budget Different from Full Budget?