Highlights of Interim Budget 2019
Finance minister Piyush Goyal will present the Interim Budget for 2019-20 amid heightened expectations that he will announce an income support scheme for distressed farmers who have seen their incomes stagnate because of plunging prices, barely enough to pay for loans and input costs.
The budget, the last before April-May Lok Sabha elections, will be keenly watched for cues about the government’s intent on creating jobs, in the face of the latest set of data showing four-decade high unemployment rates, stirring up the political cauldron.
- Current Fiscal Accounts to be contained to 2.5%.
- Fiscal deficit has been brought down to 3.4% in FY19.
- Rs 60,000 crore allocated for MGNREGA under PM gram sadak yojana for a year.
- Rs 19,000 crore allocated for rural roads under Gram Sadak Yojana.
- PM Kisaan Samman Nidhi announced at Rs 75,000 crore.
- Farmers owing 2 hectares land will get Rs6,000 per year.
- Ayushman Bharat has treated 1 million people so far.
- 22nd AIIMS to come up soon.
- Gokul Scheme allocation increased to Rs 7,500 crore.
- decided to set up ‘Rashtriya Kamdhenu Aayog’ for implementation of policies and schemes for welfare of cows.
- For workers and labourers, a new pension scheme will come up to ensure an increase in centre’s contribution by four percent. The pension has been increased from Rs 3,500 to Rs 7,000. Gratuity payment limit has been increased from 10 lakh to 20 lakh.
- 2%- 5 % Interest subvention of farmers struck by natural calamities.
- For workers who receive grievous injuries, they will now get Rs 6 lakh from Rs 2.5 lakh through EPFO.
- Rashtriya Kamdhenu Aayog to be set up.
- NITI Aayog to set up a committee to identify Nomadic and semi-nomadic communities
- Govt launches mega pension scheme for social security coverage of unorganised labour. Unorganised labour to get Rs3,000 per month after age of 60 under mega pension scheme.
- Pradhan mantri Shramyogi Mandhan yojna to be launched for poor people with 500cr INR.
- Pradhan Mantri Shram Yogi Mandhan launched to provide assured monthly pension of 3000 rupees per month, with contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age.
- Government will set up a national centre for artificial intelligence to look into AI programmes.
- 8 crore free LPG connections under the Ujjwala Yojana has been distributed.
- Loans worth Rs 7.23 lakh cr have been given under Mudra Yojana.
- Govt projects to source 25% material from SMEs, 3% from only women-owned SMEs
- defence budget increases to over Rs 3 lakh crore. Additional funds for defence will be provide if needed
- Rs 64,587 crore allocated to Railways for FY20.
- 1 lakh digital villages to be set up soon
- Railway operating ratio is 96.2 % in FY19 Vs 95% in FY 18
- allocation for north eastern states increases to 21%.
- Direct tax collection at 12 lakh Cr INR in FY19 from 6.30 INR Lakh Cr in 2014.
- Average monthly tax collection in current year under GST is Rs 97,000 crore per month.
- Anti-black money measures have brought undisclosed income of Rs 1.3 lakh crore back in circulation
- Allocation for the northeastern region has been proposed to be increased to Rs 58,166 crore
- Businesses with less than Rs. 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns
All income tax returns will now be processed in 24 hours and refunds issued simultaneously. Within next 2 years, returns chosen for scrutiny will also be done digitally with anonymity.
- FY22 fiscal deficit target 3 %.
- 18% increase in direct tax collections in 2017-18, 1.06 crore people included in the tax base.
- Fiscal deficit pegged at 3.4% of GDP for FY20
- Capital expenditure for FY20 is Rs 3.36 lakh crore
- FY20 total expenditure seen at Rs. 27.84 trillion.
- fiscal deficit target as a proportion of GDP – 3.4% for the coming year
- Rs 56,619 crore made in budget estimate 2018-19 for welfare of SCs and STs, increased to Rs 62,474 crore in revised estimate 2018-19 has been further increased to Rs 76,800 crore in budget estimate 2019-20
- Announced Tax Exemption for Income upto Rs 5 lakh per Year.
- standard deduction limit increased to INR 50, 000 from INR 40,000 earlier
- TDS threshold on rental income raised from Rs 1,80,000 to Rs 2,40,000
- No tax on bank interest upto INR 40,000
- INR 90,000 crore disinvestment target for next FY.
Highlights of Rural Outreach:
- Govt to allocate Rs 75,000 crore per year to support farmers’ incomes
- Impact of Rs 20,000 crore in current fiscal year
- Vulnerable farmers to receive Rs 6,000 per year in three equal instalments
- Government to allocate Rs 60,000 crore for UPA’s flagship MNREGA in 2019/20
- Allocation of Rs 19,000 crore for construction of rural roads in 2019-20.