Union Budget 2019-20 Important Highlights with PDF

Union Budget 2019-20 Important Highlights with PDF

The present finance minister Nirmala Sitharaman presented the Union Budget for 2019-20 on July 05, 2019. This was the first budget by the National Democratic Alliance’s (NDA) government after coming to power for the second time in 2019.

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Some Important Data Highlights (2019-20):

  • Total Receipts and Total Expenditure= Rs 27,86,349 Crore
  • Fiscal Deficit is pegged at 3.3% of the GDP

Vision of the Decade – 10 point vision

The Finance Minister has laid a 10 point- Vision for the decade to help Indian Economy grow by leaps and bounds. These are:

1
Jan Bhagidari
Building Team India with Jan Bhagidari: Minimum Government Maximum Governance.
2
Pollution Free India
Achieving green Mother Earth and Blue Skies through a pollution-free India.
3
Digital India
Making Digital India reach every sector of the economy.
4
Space Programmes
Launching Gaganyan, Chandrayan, other Space and Satellite programmes.
5
Infrastructure
Building physical and social infrastructure.
6
Water
Water, water management, clean rivers.
7
Blue Economy
Blue Economy.
8
Self Sufficiency in Food
Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables.
9
Healthy Society
Achieving a healthy society via Ayushman Bharat, well-nourished women & children, safety of citizens.
10
Make in India
Emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices under Make in India.

Towards a 5 Trillion Dollar Economy

  • Indian Economy to become $3 trillion economy in 2019-20.
  • In terms of Purchasing Power Parity India is ranked at 3rd after China and the USA resp.
  • Make India a USD 5-trillion economy by 2024-25.

Now from here onwards, we have presented the budget in three parts. Part 1 mentions the various schemes that were talked about in the Budget Scheme,  Part 2 contains the various data/facts mentioned in the Budget Speech and Part 3 presents the various proposals mentioned in the budget

Part 1: Schemes mentioned in the Budget Speech

  1. Pradhan Mantri Matsya Sampada Yojana (PMMSY)- This is a new Scheme
  • The scheme will be administered by Ministry of Fisheries, Animal Husbandry and Dairying
  • Aim: to promote processing in fishery sector.
  • Outlay: Rs 3,737 crore
  1. Phase-II of FAME Scheme (For electric vehicle) – old scheme

The Phase II of FAME Scheme (Faster Adoption and Manufacture of Electric Vehicles) has commenced from April 01, 2019 with an outlay of Rs 10,000 Crore for 3 years. The scheme aims to encourage faster adoption of Electric Vehicles.

  1. Phase 2 of Bharatmala Project (For Highay Projects)

After completion of phase 1 of Bharatmala, in the second phase, the States will be helped to develop state road networks.

  1. Pradhan Mantri Karam Yogi Maandhan Scheme (PM-SYM) – Pension Scheme
  • The Pension Scheme has now been extended to traders and small shopkeepers with annual turnover less than Rs 1.5 Crore.
  • Benefit: This pension yojana shall provide the beneficiary an assured monthly pension of Rs 3,000 from the age of 60 years.
  1. Pradhan Mantri Awas Yojana- Gramin (PMAY-G) – To achieve Housing for all by 2022.
  • A total of 1.54 crore rural homes have been completed in the last five years.
  • In the second phase of PMAY-G, during 2019-20 to 2021-22, 1.95 crore houses are proposed to be provided to the eligible beneficiaries.
  • Average number of days for completion of houses has reduced from 314 days in 2015-16 to 114 days in 2017-18.
  1. Pradhan Mantri Gram Sadak Yojana (PMGSY)- old scheme
  • 30,000 kms of PMGSY roads have been built using Green Technology, Waste Plastic and Cold Mix Technology.
  • For this PMGSY-III is envisaged to upgrade 1,25,000kms of road length over the next five years, with an estimated cost of 80,250 crore.
  1. Scheme of Fund for Upgradation and Regeneration of Traditional Industries (SFURTI) – old scheme
  • Aim: to set up more Common Facility Centres for generating sustained employment opportunities
  • SFURTI envisions 100 new clusters in 2019-20
  1. Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship’ (ASPIRE)- old scheme
  • Aim: to Promote Rural Entrepreneurship
  • The Scheme contemplates to set up 80 Livelihood Business Incubators (LBIs) and 20 Technology Business Incubators (TBIs) in 2019-20.
  1. Swachh Bharat Abhiyan
  • 6 crore toilets have been constructed since Oct 2, 2014. More than 5.6 lakh villages have become Open Defecation Free (ODF).
  • Now it is proposed to expand the Swachh Bharat Mission to undertake sustainable solid waste management in every village.
  1. Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDSA)- Old Scheme
  • Aim: For digital literacy
  • Over two crore rural Indians have so far been made digitally literate.
  • Bharat-Net is targeting internet connectivity in local bodies in every Panchayat in the country by March 2020.
  1. Pradhan Mantri Awas Yojana- Urban (PMAY-U)
  • 81 lakh houses have been sanctioned (with an investment of about 4.83 lakh crores).
  • of which construction has started in about 47 lakh houses.
  • Over 26 lakh houses have been completed of which nearly 24 lakh houses have been delivered to the beneficiaries.
  • Over 13 lakh houses have so far been constructed using these new technologies.

Part 2: Facts and Figures

Railway

Railway Infrastructure would need an investment of 50 lakh crores between 2018-2030

Power Sector

One Nation, One Grid- Similar to the governments successful model of power connectivity i.e  One Nation, One Grid, the government will now prepare a blueprint for developing gas grids, water grids, i-ways, and regional airports.

MSME

Under the Interest Subvention Scheme for MSMEs, Rs. 350 crore has been allocated for FY 2019-20 for 2% interest subvention for all GST registered MSMEs.

Agriculture

Zero Budget Farming has been proposed by the Finance Minister to double the income of farmers by 2022. It means natural farming.

Investment and Banking

  • India’s first indigenously developed payment ecosystem for transport, based on National Common Mobility Card (NCMC) standards, launched in March 2019.
  • India requires investments averaging Rs 20 lakh crores every year (USD 300 billion a year) for infrastructure financing.
  • A Credit Guarantee Enhancement Corporation will be set up in the current fiscal year as part of the measures to deepen the bond market.
  • FDI inflow in India in 2018-19 was at US$ 64.375 billion at a growth of 6% over previous year.
  • for every verified women SHG member having a Jan Dhan Bank Account, an overdraft of 5,000 shall be allowed. One woman in every SHG will also be made eligible for a loan up to 1 lakh under the MUDRA Scheme.
  • Government has smoothly carried out consolidation, reducing the number of Public Sector Banks by eight.
  • six Public Sector Banks have been enabled to come out of Prompt Corrective Action framework.
  • Public Sector Banks are now proposed to be further provided Rs 70,000 crore capital to boost credit for a strong impetus to the economy.
  • For purchase of high-rated pooled assets of financially sound NBFCs, amounting to a total of Rupees one lakh crore during the current financial year, Government will provide one time six months’ partial credit guarantee to Public Sector Banks for first loss of up to 10%.
  • steps will be taken to separate the NPS Trust from PFRDA with appropriate organizational structure.
  • To facilitate on-shoring of international insurance transactions and to enable opening of branches by foreign reinsurers in the International Financial Services Centre, it is proposed to reduce Net Owned Fund requirement from 5,000 crore to 1,000 crore.
  • Government is setting an enhanced target of 1,05,000 crore of disinvestment receipts (for Strategic disinvestment of select CPSEs) for the financial year 2019-20.

Infrastructure

  • Har Ghar Jal (piped water supply) to all rural households by 2024 under the Jal Jeevan Mission.
  • An amount of Rs 400 crore has been provided under the head, “World Class Institutions”, for FY 2019-20 for improving the standards of Indian Institutes on global level. It is proposed to start a programme, ‘Study in India’, that will focus on bringing foreign students to study in our higher educational institutions.
  • The Government is developing 17 iconic Tourism Sites into world class tourist destinations and to serve as a model for other tourism sites.
  • invest Rs 100 lakh crore in infrastructure over the next five years
  • National Highway Programme to be restructured to ensure a National Highway Grid, using a financeable model.
  • Rashtriya Swachchta Kendra to be inaugurated at Gandhi Darshan on October 2, 2019.

Miscellaneous

  • Stand-Up India Scheme would be continued for the entire period coinciding with the 15th Finance Commission period of 2020-25.
  • Approximately 35 crore LED bulbs have been distributed under UJALA Yojana leading to cost saving of 18,341 crores annually.

Tax and Tax Slab

The Income Tax Slab is unchanged.

Income tax slabs for resident Individual below 60 years of age

Taxable income slabs
Income tax rates and cess
Up to Rs 2.5 lakh
Nil
Rs 2,50,001 to Rs 5,00,000
5% of (Total income minus Rs 2,50,000) + 4% cess
Rs 5,00,001 to Rs 10,00,000
Rs 12,500 + 20% of (Total income minus Rs 5,00,000) + 4% cess
Rs 10,00,001 and above
Rs 1,12,500 + 30% of (Total income minus Rs 10,00,000) + 4% cess

However a A rebate of Rs 12,500 will be available for taxpayers with taxable income up to Rs 5 lakh.

Surchage

Taxable Income
Surcharge (%)
Income above Rs 50 lakh but below Rs 1 crore
10
Income above Rs 1 crore but below Rs 2 crore
15
Income above Rs 2 crore but below 5 crore
25
Income above Rs 5 crore
37
  • The direct tax revenue has increased by over 78% from 6.38 lakh crore in Financial Year 2013-14 to around 11.37 lakh crore in Financial Year 2018-19.
  • Corporate Tax rate reduced to 25% for companies with annual turnover up to Rs. 400 crore. (Earlier it was 25% for upto Rs 250 crore).
  • In order to boost economic growth and Make in India, the government will launch a scheme to invite global companies through a transparent competitive bidding to set up mega-manufacturing plants in sunrise and advanced technology areas such as Semi-conductor Fabrication (FAB), Solar Photo Voltaic cells, Lithium storage batteries, Solar electric charging infrastructure, Computer Servers, Laptops, etc. and provide them investment linked income tax exemptions under section 35 AD of the Income Tax Act, and other indirect tax benefits.
  • For electric Vehicle: Government will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on loans taken to purchase electric vehicles. Also as Government has already moved GST council to lower the GST rate on electric vehicles from 12% to 5% there would be a benefit of around 2.5 lakh over the loan period to the taxpayers who take loans to purchase electric vehicle.
  • For Housing: interest paid on housing loans is allowed as a deduction to the extent of Rs 2 lakh in respect of self-occupied property. Additional deduction up to Rs. 1.5 lakhs for interest paid on loans borrowed up to 31st March, 2020 for purchase of house valued up to Rs. 45 lakh. Overall benefit of around Rs. 7 lakh over loan period of 15 years.
  • PAN and Aadhaar to be made interchangeable for tax payers.
  • Customs Duty on Gold increased to 12.5% from 10%.
  • Digital Payment: TDS of 2% on cash withdrawal exceeding 1 crore in a year from a bank account.
  • No Merchant Discount Rate shall be imposed on customers as well as merchants.

Indirect Tax and GST

  • 17 taxes and 13 cesses became one tax under GST.
  • 5% Basic Customs Duty imposed on imported books.

Part 3: Proposals

Please note these are only proposed as of now and you can see such changes or results in near future

  • 100% Foreign Direct Investment (FDI) will be permitted for insurance intermediaries.
  • It is proposed to start a programme, ‘Study in India’, that will focus on bringing foreign students to study in our higher educational institutions.
  • increasing the minimum public shareholding in the listed companies from 25% to 35%.
  • to streamline multiple labour laws into a set of four labour codes.
  • Create a an electronic fund raising platform – a social stock exchange – under the regulatory ambit of Securities and Exchange Board of India (SEBI) for listing social enterprises and voluntary organizations working for the realization of a social welfare objective so that they can raise capital as equity, debt or as units like a mutual fund.
  • organizing an annual Global Investors Meet in India, using National Infrastructure Investment Fund (NIIF) as the anchor.
  • increase the statutory limit for FPI investment in a company from 24% to sectoral foreign investment limit
  • to form 10,000 new Farmer Producer Organizations, to ensure economies of scale for farmers over the next five years.
  • to establish a National Research Foundation (NRF) to fund, coordinate and promote research in the country. NRF will assimilate the research grants being given by various Ministries independent of each other.
  • a National Sports Education Board for Development of Sportspersons would be set up under Khelo India Scheme.
  • consider issuing Aadhaar Card for Non-Resident Indians with Indian Passports after their arrival in India without waiting for 180 days.
  • to return the regulatory authority over the housing finance sector from NHB to RBI.

Roadmap for future

  • Simplification of procedures.
  • Incentivizing performance.
  • Red-tape reduction.
  • Making the best use of technology.
  • Accelerating mega programmes and services initiated and delivered so far.

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