Union budugt highlight
- 1. Union Budget 2019 Dr. Sanjay Kumar Garg
- 2. • Definition of 'Union Budget' According to Article 112 of the Indian Constitution, the Union Budget of a year, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for that particular year.
- 3. Vision for the next Decade: A. Foundation for India’s growth and development laid in the past 5 years; B. Poised to become a Five Trillion Dollar Economy in the next five years; C. Aspire to become a Ten Trillion Dollar Economy in the next 8 years thereafter.
- 4. Major Announcements In the Budget
- 5. Taxes changes 1. Income upto Rs. 5 lakh exempted from Income Tax. 2. More than Rs. 23,000 crore tax relief to 3 crore middle class taxpayers. 3. Standard Deduction to be raised to Rs. 50,000 from Rs. 40,000. 4. TDS threshold to be raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits. 5. TDS threshold for deduction of tax on rent is proposed to be increased from Rs. 1,80,000 to Rs.2,40,000 for providing relief to small taxpayers. 6. Existing rates of income tax to continue. 7. Capital gains tax exemptions under Section 54 to be available up to Rs 2 crore . Tax exempted on notional rent on a second self- occupied house. 8. Housing and real estate sector to get boost.
- 6. Fiscal Programme: A. Fiscal deficit pegged at 3.4% of GDP for 2019-20; B. Target of 3% of fiscal deficit to be achieved by 2020-21; C. Fiscal deficit brought down to 3.4% in 2018-19 RE from almost 6% seven years ago; D. Total expenditure increased by over 13% to Rs.27,84,200 crore in 2019-20 BE; E. Capital Expenditure for 2019-20 BE estimated at Rs. 3,36,292 crore; F. Centrally Sponsored Schemes (CSS) allocation increased to Rs. 3,27,679 crore in BE 2019-20; G. National Education Mission allocation increased by about 20% to Rs. 38,572 crore in BE 2019-20.
- 7. For Farmers: 1. 12 crore small and marginal farmers to be provided with assured yearly income of Rs. 6000 per annum under PM-KISAN; 2. Outlay for Rashtriya Gokul mission increased to Rs 750 crore; 3. Rashtriya Kamdhenu Ayog to be setup for sustainable genetic up- gradation of the Cow resources; 4. New separate Department of Fisheries for welfare of 1.5 crore fishermen; 5. 2% interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3% in case of timely repayment; 6. Interest subvention of 2% during disaster will now be provided for the entire period of reschedulement of loan.
- 8. For Farmers 7. Rashtriya Kamdhenu Ayog to be setup for sustainable genetic up-gradation of the Cow resources; 8. New separate Department of Fisheries for welfare of 1.5 crore fishermen; 9. 2% interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3% in case of timely repayment; 10. Interest subvention of 2% during disaster will now be provided for the entire period of reschedulement of loan.
- 9. FISHERMEN • Separate Department of Fisheries to be created for welfare of 1.5 crore fisherman, 2 % interest subvention for those in fisheries. • To provide Rs. 750 crore in FY19 to support animal husbandry and fishing. • 3% extra interest subvention if all the installments paid on time. • The committee would implement policies and schemes for welfare of cows. • It aims to enhance the production and productivity cows.
- 10. WORKERS • Monthly pension of Rs 3,000 for workers in the unorganized sector to be paid out after retirement. • Pension scheme to benefit 10 crore workers in the unorganized sector. • Those who join at 18 years of age will have to contribute a mere Rs 55 per month. The government will contribute equal matching share in the pension account. This scheme will cost the government Rs 500 crore.
- 11. WORKERS • Employees' State Insurance eligibility cover limit has been raised to Rs 21,000 per month from Rs 15,000 per month. • Gratuity limit increased from Rs 10 lakh to Rs 30 lakh. • Workers who suffer grievous injuries will now receive Rs 6 lakh from Rs 2.5 lakh through Employee Provident Fund Organization (EPFO).
- 12. RURAL INFRASTRUCTURE • Pradhan Mantra Gram Sadak Yojana allocation set at Rs. 19,000 crore, the same as FY19. • Rs. 60,000 crore allocation for MGNAREGA in 2019-20
- 13. EDUCATION A.National Education Mission allocation increased by about 20% to Rs. 38,572 crore in BE 2019-20. B.25% additional seats in educational institutions to meet the 10% reservation for the poor. C.10% reservation for the poor in educational institutions and government jobs. D.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.
- 14. Industry • Government e-Marketplace (GeM) platform now being extended to all CPSEs. • Scheme for loans of upto INR 10 million in 59 minutes launched for MSMEs • GST-registered SME units to get 2% interest rebate on incremental loan of INR 10 million • SMEs sourcing by Government enterprises increased to 25%; at least 3% from women owned SMEs • National Programme on 'Artificial Intelligence' to be launched; National Centre of AI to be established along with a national AI portal.
- 15. Health Sector • India launched the world's largest healthcare programme, Ayushman Bharat –Pradhan Mantri Jan Arogya Yojana to provide medical treatment for 50 crore people. • As many as 10 lakh people have been benefitted so far under the scheme. • Many poor people are able to get affordable medicines through the Jan Aushadhi Kendra. • There are 21 All India Institute of Medical Sciences (AIIMS) functioning currently in India. Of these 21, 14 AIIMS were set up under the present government. • The 22nd AIIMS will come up in Haryana.
- 16. Railways A. Capital support of Rs.64,587 crore proposed in 2019- 20 (BE) from the budget; B. Overall capital expenditure programme to be of Rs. 1,58,658 crore; C. 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)
- 17. Defence • Defence budget for FY20 raised to Rs 3 lakh crore.
- 18. Society • Rs. 76,800 crore allocated for welfare of Scheduled Castes (SCs) and Scheduled Tribes (STs). • Centre to implement special strategy for uplift of nomadic tribes.
- 19. Entertainment Industry: A. Indian filmmakers to get access to Single window clearance as well for ease of shooting films; B. To introduce anti-camcording provisions in the Cinematograph Act to control piracy.
- 20. MSME and Traders: A. 2% interest subvention on an incremental loan of Rs 1 crore for GST registered SMEs; B. Atleast 3% of the 25% sourcing for the Government undertakings will be from women owned SMEs; C. Renewed Focus on Internal trade ; DIPP renamed to Department for Promotion of Industries and Internal trade.
- 21. Some Other Points • Disinvestment target of Rs. 80000 crore in 2018-19 likely to be met, target for fy20 set at Rs. 90,000 crore • Allocation for integrated child development scheme increased by over 18% to 27,584 core. • New portal to support national programme on artificial intelligence.
- 22. Some Other Points • 1 lakh villages to be transferred into digital ones in 5 years. • Allocation for north east increased by 21 % to 58166 crore in fy20. • 25 % additional seats in educational institutions to meet the 10 % reservation for the poor.
- 23. 10 DIMENSIONS OF VISION 2030 • Physical & social infrastructure • Clean Rivers & Irrigation • Digital India • Electric Vehicles & Energy Storage • Rural Industrialization • Inland Waterway Development
- 24. 10 DIMENSIONS OF VISION 2030 • Satellites & Space Exploration • Farm Productivity • Health assurance & infrastructure • Minimum Government & Maximum Governance
- 25. Revised Estimates FY 18-19 Budget Estimates FY 19-20 3.4% Fiscal deficit 3.4% 2.2% Revenue deficit 2.2% 22.5 INR TRILLION Gross tax revenue 25.5 INR TRILLION
- 26. THANKS