Budget 2019: Key Takeaways

New Delhi: Finance minister Nirmala Sitharaman presented the Union Budget in Parliament on Friday. She is the first full-time woman finance minister (and the second woman ever) to do so. In 1970-71, then Prime Minister Indira Gandhi had taken charge of the finance portfolio after Morarji Desai’s resignation and presented the Union Budget in Parliament.

Here are the key takeaways from Union Budget 2019.
• Petrol and diesel in the country will be dearer by Rs2 a litre after Finance Minister Nirmala Sitharaman increased the Special Excise duty and Road and Infrastructure cess levied on auto fuels by Rs 1 each.
• Govt to provide tax incentives to high-tech manufacturing plants. The Finance Minister said the scheme will include units in the fields of solar photovoltaic cells, lithium storage batteries, solar electric charging infrastructure, computers servers and laptop.
• Finance Minister Nirmala Sitharaman lowered the fiscal deficit target to 3.3 per cent for the current fiscal from the earlier estimate of 3.4 per cent of the GDP. “The fiscal deficit this year is 3.3 per cent brought down from 3.4 per cent,” she said while presenting Budget for 2019-20.
• According to the government data, with 100 per cent electrification target being achieved, the government’s focus is now to provide consistent electricity at affordable rates.
• A focus on completing rail-based projects – like freight corridors and urban transportation – with more private participation for getting funds to improve the capacity was flagged by Union Finance Minister Nirmala Sitharaman in her first budget speech.
• Finance Minister Nirmala Sitharaman on Friday proposed to raise the annual turnover limit from Rs 250 crore to Rs 400 crore for availing a lower corporate tax rate of 25 per cent.
• Nirmala Sitharaman proposes interchangeability of PAN and Aadhar. Now you can file I-T returns with Aadhar: PAN, Aadhar interchange is to be allowed.Pre-filled tax returns will be available for taxpayers with details of tax deductions, bank deposits, information collected from various sources.
• Additional deduction of Rs 1.5 lakh for interest paid on loans upto March 31, 2019 for purchase of affordable house of Rs 45 lakh or belowUp to Rs 45 lakh, will get enhanced interest deduction up to Rs 3.5 lakh Additional deduction of Rs. 1.50 lakh on interest paid for house purchase from Rs. 2 lakh. Total benefit Rs. 3.5 lakh. FM says net gain would be Rs. 7 lakh.
• Direct tax revenues increased by 78% to 11.37 lakh crore in FY19. It is growing at double digit every year.Only when taxable income exceeds Rs 5lakh will people pay income tax.
• India’s sovereign external debt to GDP is amongst the lowest globally at less than 5 per cent says Nirmala Sitharaman.New series of coins Rs 1, 2, 5, 20 – easily identifiable coins to be made available soon.
• 17 iconic tourism sites 7 are being developed to enhance visitor experience. FM also proposes digital repository of tribal culture.
• The Sensex and Nifty are trading down 0.50 per cent each while the Finance Minister Nirmala Sitharaman is presenting her maiden Budget. At 11.53 am, the Sensex is down 133 points at 39,774.66, while Nifty down 59 points at 11,887.05.
• Issuing adhar cards for NRIs with Indian passport after their arrival in India without waiting for mandatory 180 days.
• Finance Minister says naari tu narayani, speaks on women issues. Govt believes we can make progress with greater women participation. 78 women MPs in the Parliament, Finance Minister notes.Proposes to expand women SHG interest subvention to all villages, OD of Rs 5,000 allowed per woman in SHG, one woman in every SHG eligible for a loan of Rs 1 lakh under MUDRA scheme.
• Government aims to bring greater ease of living in lives of citizens. 35 crore LED bulbs have been distributed under Ujala. FM stresses on the cost saving 18341 crores annually.Rs 18,341 crore annually cost saving with distribution of 35 crore LED bulbs. India is going to be free of incandescent bulbs and will promote use of solar stoves and battery chargers. 30 lakh workers have already joined the PM Maandhan Yojana (pension scheme for informal sector).
• Stand-up India programmed to be extended till 2025.Exclusive television program for start-ups under DD bouquet channels.
• National sports education board to be set up. Government committed to expand Khelo India Scheme.
• National educational policy to focus on higher education planned. Major changes in school and higher education. Plan to establish a National Research Foundation will identify thrust areas of national importance.Finance Minister Launches Study in India programme to bring foreign students to India. Also presses for greater autonomy for institutes. India to become hub for higher education.10 million youth to take up industry-relevant skill training under the Kaushal Vikas Yojana.
• Rashtriya Swachhata Kendra to be inaugurated at RajGhat, on 2nd October, 2019.Gandhipedia is being developed to sensistise youth and society about positive gandhian values.
• 81 lakh houses in urban India have been sanctioned, 24 lakh already delivered. Rapid urbanisation in India an opportunity rather than a challenge.Government to encourage PPP in metro rail projects. In the process of completing dedicated rail freight corridor.
• Swachh Bharat mission -9.6 crore toilets constructed. The Mission to be expanded to sustainable solid waste management in every village.Make India Open Defecation free by October 2, this year. 95% of cities have become open defecation free.
• Access to clean drinking water will be a priority. Ensuring water security and access to safe, adequate drinking water is a priority. Water resource department aims “Har ghar jal” by 2024 under the Jal Jeevan Mission.Nirmala Sitharaman to look at rain water havesting, waste discharge managment.
• 10,000 new farmer producers organisation. India is now self-sufficient in pulses, FM thanks farmers. Centre to invest significantly in agriculture infrastructure.Aim to form 10,000 new Farmer Producers Company (FPOs). Measures to allow farmers to benefit from eNAM. Ease of Doing Business and Ease of Living should also apply to Farmers. Need to focus on zero budget farming.To promote private investment in agri infrastructure, support creation of 10000 new FPCs, work with States to implement eNAM and replicate the model of zero budget farming.
• Annadata to turn into urjadata: Farmers to become power generators through entrepreneurship support from govt: FM
• Rs.80,250 crore to upgrade 1.25 lakh km of rural roads under PMGSY over the next 5 years. 97% habitations now have road connectivity. 30k km PM rural road was built using green technology. Rs 80,000 cr provision for 1.25,000 km new rural roads.
• PM Fishery Scheme for end to end solutions. Fisheries management framework to be set up under Fisheries Department.
• Central focus of all programmes is gaon, garib and kisan. Electricity, LPG provided. By 2022, 75th year Independence Day, Every single family, except the unwilling, will have electricity and clean cooking fuel.By 2022, I would like to assure the nation that every single rural family,except those who are unwilling to take the connection, will have an electricity and clean cooking facility.
• New CPSE –New Space India Ltd to explore commercialisation of space programme. New Space India Limited has been incorporated as the new commercial arm of Dept of Space for research and development carried out by ISRO
• Nirmala Sitharaman proposes Social stock exchange for listing social enterprises. Social Stock Exchange in the making: Time to take capital markets closer to the masses. Propose to create electronic fund raising platform.
• |One Nation One Grid – a blueprint for gas grids, water grids will be unveiled. Package for power sector tariff will soon be announced.