The Interim Finance Minister, Shri Piyush Goyal presented the much awaited Union Budget on 1st February 2019. The focus of the budget has been three-folds and primarily reflects the interests of ‘Kisan’, ‘Mazdoor’ and ‘Ghar’. First is boosting the income of small and marginal farmers by providing them income support of Rs. 6,000 per annum and the scheme will be named Pradhan Mantri Kisan Samman Nidhi. Second is in support of the middle-class taxpayers – taxable income up to Rs. 5 Lakh per annum will be exempted from tax. And the third one is in favour of the unorganised sector employees in which they will get a pension of Rs. 3,000 per month.
Now that we’ve discussed the key focus areas of the budget, let’s also take a quick look at the other highlights mentioned by the FM Goyal during his budget speech.
The fiscal deficit has been brought down to 3.4%; CAD is expected to be 2.5% of GDP this year.
- The double-digit inflation at 10.1% during 2009 – 2014 has been brought to 2.1% in December.
- To ensure clean banking the 4R approach has been implemented: Recognition, Resolution, Recapitalisation, and Reforms.
- Standard tax deduction for salaried people has been raised to Rs. 50,000 from Rs. 40,000.
- After the major move by the government, approximately, 3 crore middle-class taxpayers earning up to Rs. 5 lakh will get tax exemption.
- The TDS threshold on rental income has been raised to Rs. 2.4 lakh from Rs. 1.8 lakh.
- The TDS on interest income from deposit in banks and post-offices has been increased to Rs. 40,000 from Rs. 10,000.
- The gratuity limit has been increased to Rs. 30 lakh from Rs. 10 lakh.
- Income tax return processes will be done in 24 hours.
- Within 2 years, all verification of tax returns to be done electronically without any taxpayer interface.
- Rs.60,000 crore will be allocated for MGNREGA.
- Farmers pursuing animal husbandry will receive an interest subvention of 2%.
- Farmers affected by severe natural calamities will receive an interest subvention of 2% and an additional interest subvention of 3% upon timely repayment.
- An indigenously developed semi high-speed train, Vande Bharat Express, to be launched soon.
- In the next five years, one lakh digital villages will be planned.
- MSMEs will get 25% of sourcing for government projects, of which 3% will be from women entrepreneurs.
- ESI cover limit has been increased to Rs. 21,000.
- Minimum pension has been increased to Rs. 1,000.
- Fund allocation for the Northeast region has been increased to Rs. 58,166 crore.
- A portal of National Artificial Intelligence will be developed soon.
- Haryana will soon have the 22nd AIIMS.
- The government has decided to increase minimum support price by 1.5 times of the production cost for all 22 crops.
- To prevent piracy and contact theft of Bollywood films, anti-cam cord regulations will be introduced in the Indian Cinematograph Act.
- The Indian filmmakers will soon get a single window clearance.
- Government aims to provide urban facilities in villages while keeping the soul of the rural life intact.
- Rs. 19,000 crore has been allocated for Pradhan Mantri Gram Sadak Yojana (PMGSY).
Though the government has stated its clear agenda through Union Budget 2019-20, what do you think about the budget and government’s agenda? Share your opinion in the comment section below or email us to email@example.com
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