Highlights of Interim Budget 2019-20

Budget 2019-20

• Union Finance Minister Piyush Goyal presented an Interim Budget for 2019 in Parliament on February 01, 2019.

• A full-fledged Budget will be presented after the House reassembles after the general election.

New Announcements

Farmers

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

• 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 for 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 reschedule of loan.
• Decision taken to increase MSP (minimum support price) by 1.5 times.
• Government e-Marketplace – GeM to be extended to all Central Public Sector Enterprises.

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.
• Monthly Income upto 15000.
• Those who join in 18 years of age has to pay 55 per month till 60.
• Those who join on or after 29 has to pay 100 per month till 60

Health

• 22nd AIIMS to be setup in Haryana.

Rural

• Rs 19,000 crore allocated for construction of rural roads under Gram Sadak yojana.
• 60,000 crore allocation for MGNREGA in 2019-20.

Direct Tax

• Income upto Rs. 5 lakh exempted from Income Tax.
• More than Rs. 23,000 crore tax relief to 3 crore middle class taxpayers.
• TDS threshold to be raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits.

• TDS threshold for deduction of tax on rent to be increased from Rs. 1,80,000 to Rs. 2,40,000.
• Tax benefits for affordable housing extended till 31st March, 2020 under Section 80-IBA of Income Tax Act.
• The budget also increased gratuity limit from Rs 10 lakh to Rs 30 lakh from the next fiscal.

Goods and Services Tax

• GST collections in January 2019 has crossed Rs 1 lakh crore.

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.
• Total expenditure increased by over 13% to Rs.27,84,200 crore in 2019-20.
• Capital Expenditure for 2019-20 estimated at Rs. 3,36,292 crores.
• Centrally Sponsored Schemes (CSS) allocation increased to Rs. 3,27,679 crores in 2019-20.

• National Education Mission allocation increased by about 20% in 2019-20.
• Allocation for Integrated Child Development Scheme (ICDS) increased by over 18% to Rs. 27,584 crore in 2019-20.
• Substantial increase in allocation for the Scheduled Castes and Scheduled Tribes -
• Allocation for SCs increased by 35.6%.
• Allocation for the STs increased by 28%.
• Government confident of achieving the disinvestment target of 80,000 crore.
• Focus now on debt consolidation along with fiscal deficit consolidation programme.
• Over three lakh 38 thousand shell companies deregistered after demonetization.

Poor and Backward Classes

• “First right on the resources of country is that of the poor”.
• 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 crores in 2019-20.
• 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.
• Govt will provide additional funds for Defence, if needed.
• Government disbursed 35,000 crore rupees under OROP (One Rank One Pension) scheme in the last few years.

Railways

• Capital support of Rs.64,587 crore proposed in 2019-20 from the budget.
• Overall capital expenditure programme to be of Rs. 1,58,658 crores.

Entertainment Industry

• Indian filmmakers to get access to Single window clearance as well for ease of shooting films.
• To introduce anti-camcording provisions in the Cinematograph Act to control piracy.

Traders

• 2% interest subvention on loan of Rs 1 crore for registered 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 Announcements

• New National Artificial Intelligence portal to support National Program on Artificial Intelligence.

Priority sectors and 10 dimensions of Vision for India of 2030 

• To build next-generational infrastructure
• 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 emphasis on organic food
• Healthy India
• Minimum Government Maximum Governance, with proactive, responsible and friendly bureaucracy.

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.
• 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.

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