Union Budget 2019
In article 112 of Indian constitution budget is stated as ‘annual financial statement’. Each year President of India puts annual financial statement before both the house of the parliament.
This year Finance Minister Nirmala Sitharaman unveiled budget aimed at boosting infrastructure and foreign investment.
➢ Highlights of budget 2019-20 :-
• The budget has been presented with a 10-year vision in mind. The startups are being given a whole set of tax benefits.
• Fully automated GST Refund module shall be implemented; multiple tax ledgers to be replaced by one; invoice details to be captured in a central system
• Basic customs duty on certain items to be increased to promote the cherished goal of Make in India. Import of defense equipment not manufactured in India is being exempted from basic customs duty.
• The government increased customs duty on gold. According to the Budget proposals, import duty to be hiked on gold and precious metals to 12.5%, from current level of 10%.
• It proposes to increase special additional excise duty and road and infrastructure cess each one by 1 rupee a liter on petrol and diesel.
• Income tax slabs unchanged but a slew of new income tax proposals was announced.
• To provide further impetus to affordable housing, additional deduction of 1.5 lakh rupees on interest paid on loans borrowed up to 31 March 2020 for purchase of house up to ₹45 lakh.
• Additional income tax deduction of 1.5 lakh rupees on the interest paid on the loans taken to purchase electric vehicles.
• To discourage the practice of making business payments in cash, the government proposes to levy TDS of 2% on cash withdrawal exceeding ₹1 crore in a year from a bank account.
• PAN and Aadhaar now interchangeable: More than 120 crore Indians now have Aadhar card, therefore for ease of tax payers I propose to make PAN card and Aadhar card interchangeable and allow those who don't have PAN to file returns by simply quoting Aadhar number and use it wherever they require to use PAN.
• Public sector banks to be provided 70,000 crore rupees to boost capital and improve credit.
• India's sovereign external debt to GDP is among the lowest globally at less than 5%. Govt. will start raising a part of its gross borrowing program in external markets in external currencies.
• A new series of coins of Re 1, ₹2, ₹5, ₹10, ₹20 easily identifiable to the visually impaired will be made available for public use shortly.
• Four new embassies to be opened in 2019-20, to improve footprint of India's overseas presence and to provide better public services to local Indian communities.
• Regulation authority over housing finance sector to be returned from National Housing Bank to RBI.
• To further encourage women entrepreneurship, Women Self Help Group (SHG) Interest Subvention Program to be expanded to all districts in India.
• Non-performing asset(NPAs) recovery of ₹4 lakh crore over the last four years, NPAs down by ₹1 lakh crore in the last one year.
• To popularize sports at all levels, National Sports Education Board for development of sportspersons to be set up under Khelo India.
• Exclusive TV programme exclusively for startups to be started, channel will be designed and executed by startups themselves.
• It proposes to consider issuing Aadhaar Card for Non Resident Indians (NRIs) with Indian passports after their arrival in India without waiting for the mandatory 180 days
• New National Educational Policy to be brought in to transform Indian educational system; major changes in higher as well as school system to be brought in.
• India will be made open defecation free on 2 October 2019, as per the dream of Prime Minister Narendra Modi.
• Jal Shakti Ministry will look at the mgmt of our water resources and water supply in an integrated and holistic manner and will work with states to ensure 'Har Ghar Jal', to all rural households by 2024 under 'Jal Jeevan Mission'.
• 9.6 crore toilets have been constructed since 2 October 2014. More than 5.6 lakh villages have become open defecation free. I propose to expand the Swachh Bharat mission to undertake sustainable solid waste management in every village.
• India has emerged as a major space power. To harness India's space ability commercially, a public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap the benefits of ISRO
• Every rural family, except those who are unwilling to take the connection will have electricity and clean cooking gas.
• In the second phase of PMAY, 1.95 crore houses are proposed to the beneficiaries.
• Government will invite suggestions for further opening up of FDI in aviation sector, media, animation AVGC and insurance sectors in consultation with all stakeholders. 100% FDI will be permitted for insurance intermediaries.
• Pension benefit to be extended to around 3 crore retail traders and shopkeepers with an annual turnover less than ₹1.5 crore under Pradhan Mantri Karam Yogi Man Dhan Scheme
• Railway infrastructure would need an investment of 50 lakh crores between 2018 and 2030; PPP to be used to unleash faster development and delivery of passenger freight services.
• Schemes such as 'Bharatmala', 'Sagarmala' and UDAN are bridging the rural and urban divide, improving our transport infrastructure.
• The Indian economy will grow to become a $3 trillion economyin the current year itself. It is now the sixth largest in the world. 5 years ago it was at the 11th position.
• Average amount spent on food security per year approximately doubled during 2014-19 compared to preceding five years.
• Vision for the decade: From 1.85 trillion dollars in 2014, the economy has reached 2.7 trillion US dollars within five years. India is well within capacity to reach $5 trillion economy in next few years.