The Union Budget 2019-2020 was presented by the the Finance Minister Smt. Nirmala Sitharaman on 5th July 2019. There were huge expectations from the budget as this government returned back to power with a larger mandate. And there was a slight slump in the growth in the last quarter with Agrarian crisis and unemployment at its peak. This is understandable that this is due to the change of an Era from Traditional to more Technological. And the finance minister tabled the budget on loksabha. Here we are going to give the highlights of this budget 2019-20.
Finance Minister Nirmala Sitharaman
There were many interesting things happened during the budget from achievements during 2014-2019 to the 10 point agenda for upcoming years. The notable one was the during the mid of budget which was prepared by a finance minister with the assistance from Chief Economic Advisor Krishnamurthy Subramanian and RBI Chief Shakthikantha Das, where all three hails from Tamilnadu when the finance minister Nirmala Sitharaman quoted a line from Sangam era Tamil literature 'Purananooru' in Tamil her mother tongue before announcing the Direct Tax changes.
( Nirmala Sitharaman quotes lines in Tamil)
The Highlights of the Union Budget:
1) Pradhan Mantri Gramin Digital Saksharta Abhiyan (Digital India):
Over two crore rural Indians made digitally literate. Internet connectivity in local bodies in every Panchayat under Bharat-Net to bridge rural-urban divide. Universal Obligation Fund under a PPP arrangement to be utilized for speeding up Bharat-Net. And about 105 cr people are now using internet. Wi-Fi are connected at about 900 railway stations by May 2019 in an target of about 8500 railway stations.
2) Human Resources Development:
New National Education Policy to be brought which proposes major changes in both school and higher education, better governance systems, greater focus on research and innovation. National Research Foundation (NRF) proposed o To fund, coordinate and promote research in the country. To assimilate independent research grants given by various Ministries. To strengthen overall research eco-system in the country. This would be adequately supplemented with additional funds. Rs. 400 crore provided for “World Class Institutions”, for FY 2019-20, more than three times the revised estimates for the previous year. "Study in India" proposed to bring foreign students to study in Indian higher educational institutions. Regulatory systems of higher education to be reformed comprehensively to promote greater autonomy, to focus on better academic outcomes. Draft legislation to set up Higher Education Commission of India (HECI), to be presented.
3) Power and Gas:
The electricity will be reached to all households by 2022. Power at affordable rates to states ensured under "One Nation, One Grid". Package of power sector tariff and structural reforms to be announced soon. Blueprints to be made available for gas grids, water grids, i-ways, and regional airports. Ujjwala Yojana and Saubhagya Yojana have transformed the lives of every rural family, dramatically improving ease of their living. Electricity and clean cooking facility to all willing rural families by 2022.
4) Swachh Bharat Abhiyan:
9.6 crore toilets constructed since Oct 2, 2014 under Swachh Bharat. More than 5.6 lakh villages have become Open Defecation Free (ODF). Swachh Bharat Mission to be expanded to undertake sustainable solid waste management in every village.
5) MSME and Small Traders
Under the Pradhan Mantri Karam Yogi Maandhan Scheme, Pensions benefits for about 3 crore retail traders & small shopkeepers with annual turnover less than Rs. 1.5 crore.
Enrollment to be kept simple, requiring only Aadhaar, bank account and a self declaration. Rs. 350 crore allocated for FY 2019-20 for 2% interest subvention (on fresh or incremental loans) to all GST-registered MSMEs, under the Interest Subvention Scheme for MSMEs.
6) Pradhan Mantri Awas Yojana Urban (Housing for All):
Over 81 lakh houses with an investment of about Rs. 4.83 lakh crore sanctioned of which construction started in about 47 lakh houses. Over 26 lakh houses completed of which nearly 24 lakh houses delivered to the beneficiaries. Over 13 lakh houses so far constructed using new technologies.
7) Infrastructure and Connectivity:
Pradhan Mantri Gram Sadak Yojana, Industrial Corridors, Dedicated Freight Corridors. Bhartamala and Sagarmala projects, Jal Marg Vikas and UDAN Schemes are to be fast tracked at a higher pace. The government is set to allocate about 100 lakh crore for the Infrastructure apart from Railways.
Target of connecting the eligible and feasible habitations advanced from 2022 to 2019 with 97% of such habitations already being provided with all weather connectivity. 30,000 kilometers of PMGSY roads have been built using Green Technology, Waste Plastic and Cold Mix Technology, thereby reducing carbon footprint. 1,25,000 kilometers of road length to be upgraded over the next five years under PMGSY III with an estimated cost of Rs. 80,250 crore. And the Railways needs 50 lakh crore of investment during the 2018-2030 period. 657 kms of Metro Rail network has become operational across the country and announced that government will expand metro for another 300 kms.
8) Sports and Youth affairs:
Khelo India Scheme to be expanded with all necessary financial support. National Sports Education Board for development of sportspersons to be set up under Khelo India, to popularize sports at all levels, to prepare youth for overseas jobs, focus to be increased on globally valued skill-sets including language training, AI, IoT, Big Data, 3D Printing, Virtual Reality and Robotics.
9)Ease of Living :
About 30 lakh workers joined the Pradhan Mantri Shram Yogi Maandhan Scheme that provides Rs. 3,000 per month as pension on attaining the age of 60 to workers in unorganized and informal sectors. Approximately 35 crore LED bulbs distributed under UJALA Yojana leading to cost saving of Rs. 18,341 crore annually. Solar stoves and battery chargers to be promoted using the approach of LED bulbs mission. A massive program of railway station modernization to be launched.
10) Banking and Financial Sector:
NPAs of commercial banks reduced by over Rs. 1 lakh crore over the last year. Record recovery of over Rs. 4 lakh crore effected over the last four years. Rs. 70,000 crore proposed to be provided to PSBs to boost credit. PSBs to leverage technology, offering online personal loans and doorstep banking, and enabling customers of one PSBs to access services across all PSBs. Steps to be initiated to empower accountholders to have control over deposit of cash by others in their accounts. o Reforms to be undertaken to strengthen governance in PSBs.
11) Agriculture and Dairy:
75,000 entrepreneurs to be skilled in agro-rural industry sectors. Private entrepreneurships to be supported in driving value-addition to farmers‟ produce from the field and for those from allied activities. Dairying through cooperatives to be encouraged by creating infrastructure for cattle feed manufacturing, milk procurement, processing & marketing. 10,000 new Farmer Producer Organizations to be formed, to ensure economies of scale for farmers. Government to work with State Governments to allow farmers to benefit from e-NAM. Zero Budget Farming in which few states farmers are already being trained to be replicated in other states.
12) Water Resources:
New Jal Shakti Mantralaya to look at the management of our water resources and water supply in an integrated and holistic manner. Jal Jeevan Mission to achieve Har Ghar Jal (piped water supply) to all rural households by 2024, to focus on integrated demand and supply side management of water at the local level. Convergence with other Central and State Government Schemes to achieve its objectives. 1592 critical and over exploited Blocks spread across 256 District being identified for the Jal Shakti Abhiyan. Compensatory Afforestation Fund Management and Planning Authority (CAMPA) fund can be used for this purpose.
13) Indirect Taxes:
Basic Customs Duty increased on cashew kernels, PVC, tiles, auto parts, marble slabs, optical fibre cable, CCTV camera etc. Exemptions from Custom Duty on certain electronic items now manufactured in India withdrawn. End use based exemptions on palm stearin, fatty oils withdrawn. Exemptions to various kinds of papers withdrawn. 5% Basic Custom Duty imposed on imported books. Customs duty reduced on certain raw materials such as Inputs for artificial kidney and disposable sterilised dialyser and fuels for nuclear power plants etc. Capital goods required for manufacture of specified electronic goods.
14) Direct Tax:
Tax rate reduced to 25% for companies with annual turnover up to Rs. 400 crore. Surcharge increased on individuals having taxable income from Rs. 2 crore to Rs. 5 crore and Rs. 5 crore and above. India's Ease of Doing Business ranking under the category of "paying taxes" jumped from 172 in 2017 to 121 in the 2019. Direct tax revenue increased by over 78% in past 5 years to Rs. 11.37 lakh crore.
15) External Affairs:
Proposal to consider issuing Aadhaar Card for NRIs with Indian Passports on their arrival without waiting for 180 days. Mission to integrate traditional artisans with global markets proposed, with necessary patents and geographical indicators. 18 new Indian diplomatic Missions in Africa approved in March, 2018, out of which 5 already opened. Another 4 new Embassies intended in 2019-20. Revamp of Indian Development Assistance Scheme (IDEAS) proposed. 17 iconic Tourism Sites being developed into model world class tourist destinations. Present digital repository aimed at preserving rich tribal cultural heritage, to be strengthened.
And there are many interesting takeaways from the Union Budget presented by Nirmala Sitharaman. This budget in whole concentrates on all sectors from Agriculture to MSME to Infrastructure. Its sure that this budget was prepared with the aim of 5 Trillion economy by 2024 in mind. The finance minister said the country is currently 6th largest economy on the basis of GDP and 3rd largest economy on the basis of PPP. She made a point that our economy would achieve the 3 Trillion economy mark by this year end. Hope all goes well and our country get prospered.
- Arun Ramesh
There were many interesting things happened during the budget from achievements during 2014-2019 to the 10 point agenda for upcoming years. The notable one was the during the mid of budget which was prepared by a finance minister with the assistance from Chief Economic Advisor Krishnamurthy Subramanian and RBI Chief Shakthikantha Das, where all three hails from Tamilnadu when the finance minister Nirmala Sitharaman quoted a line from Sangam era Tamil literature 'Purananooru' in Tamil her mother tongue before announcing the Direct Tax changes.
The Highlights of the Union Budget:
1) Pradhan Mantri Gramin Digital Saksharta Abhiyan (Digital India):
Over two crore rural Indians made digitally literate. Internet connectivity in local bodies in every Panchayat under Bharat-Net to bridge rural-urban divide. Universal Obligation Fund under a PPP arrangement to be utilized for speeding up Bharat-Net. And about 105 cr people are now using internet. Wi-Fi are connected at about 900 railway stations by May 2019 in an target of about 8500 railway stations.
2) Human Resources Development:
New National Education Policy to be brought which proposes major changes in both school and higher education, better governance systems, greater focus on research and innovation. National Research Foundation (NRF) proposed o To fund, coordinate and promote research in the country. To assimilate independent research grants given by various Ministries. To strengthen overall research eco-system in the country. This would be adequately supplemented with additional funds. Rs. 400 crore provided for “World Class Institutions”, for FY 2019-20, more than three times the revised estimates for the previous year. "Study in India" proposed to bring foreign students to study in Indian higher educational institutions. Regulatory systems of higher education to be reformed comprehensively to promote greater autonomy, to focus on better academic outcomes. Draft legislation to set up Higher Education Commission of India (HECI), to be presented.
3) Power and Gas:
The electricity will be reached to all households by 2022. Power at affordable rates to states ensured under "One Nation, One Grid". Package of power sector tariff and structural reforms to be announced soon. Blueprints to be made available for gas grids, water grids, i-ways, and regional airports. Ujjwala Yojana and Saubhagya Yojana have transformed the lives of every rural family, dramatically improving ease of their living. Electricity and clean cooking facility to all willing rural families by 2022.
4) Swachh Bharat Abhiyan:
9.6 crore toilets constructed since Oct 2, 2014 under Swachh Bharat. More than 5.6 lakh villages have become Open Defecation Free (ODF). Swachh Bharat Mission to be expanded to undertake sustainable solid waste management in every village.
5) MSME and Small Traders
Under the Pradhan Mantri Karam Yogi Maandhan Scheme, Pensions benefits for about 3 crore retail traders & small shopkeepers with annual turnover less than Rs. 1.5 crore.
Enrollment to be kept simple, requiring only Aadhaar, bank account and a self declaration. Rs. 350 crore allocated for FY 2019-20 for 2% interest subvention (on fresh or incremental loans) to all GST-registered MSMEs, under the Interest Subvention Scheme for MSMEs.
6) Pradhan Mantri Awas Yojana Urban (Housing for All):
Over 81 lakh houses with an investment of about Rs. 4.83 lakh crore sanctioned of which construction started in about 47 lakh houses. Over 26 lakh houses completed of which nearly 24 lakh houses delivered to the beneficiaries. Over 13 lakh houses so far constructed using new technologies.
7) Infrastructure and Connectivity:
Pradhan Mantri Gram Sadak Yojana, Industrial Corridors, Dedicated Freight Corridors. Bhartamala and Sagarmala projects, Jal Marg Vikas and UDAN Schemes are to be fast tracked at a higher pace. The government is set to allocate about 100 lakh crore for the Infrastructure apart from Railways.
Target of connecting the eligible and feasible habitations advanced from 2022 to 2019 with 97% of such habitations already being provided with all weather connectivity. 30,000 kilometers of PMGSY roads have been built using Green Technology, Waste Plastic and Cold Mix Technology, thereby reducing carbon footprint. 1,25,000 kilometers of road length to be upgraded over the next five years under PMGSY III with an estimated cost of Rs. 80,250 crore. And the Railways needs 50 lakh crore of investment during the 2018-2030 period. 657 kms of Metro Rail network has become operational across the country and announced that government will expand metro for another 300 kms.
8) Sports and Youth affairs:
Khelo India Scheme to be expanded with all necessary financial support. National Sports Education Board for development of sportspersons to be set up under Khelo India, to popularize sports at all levels, to prepare youth for overseas jobs, focus to be increased on globally valued skill-sets including language training, AI, IoT, Big Data, 3D Printing, Virtual Reality and Robotics.
9)Ease of Living :
About 30 lakh workers joined the Pradhan Mantri Shram Yogi Maandhan Scheme that provides Rs. 3,000 per month as pension on attaining the age of 60 to workers in unorganized and informal sectors. Approximately 35 crore LED bulbs distributed under UJALA Yojana leading to cost saving of Rs. 18,341 crore annually. Solar stoves and battery chargers to be promoted using the approach of LED bulbs mission. A massive program of railway station modernization to be launched.
10) Banking and Financial Sector:
NPAs of commercial banks reduced by over Rs. 1 lakh crore over the last year. Record recovery of over Rs. 4 lakh crore effected over the last four years. Rs. 70,000 crore proposed to be provided to PSBs to boost credit. PSBs to leverage technology, offering online personal loans and doorstep banking, and enabling customers of one PSBs to access services across all PSBs. Steps to be initiated to empower accountholders to have control over deposit of cash by others in their accounts. o Reforms to be undertaken to strengthen governance in PSBs.
11) Agriculture and Dairy:
75,000 entrepreneurs to be skilled in agro-rural industry sectors. Private entrepreneurships to be supported in driving value-addition to farmers‟ produce from the field and for those from allied activities. Dairying through cooperatives to be encouraged by creating infrastructure for cattle feed manufacturing, milk procurement, processing & marketing. 10,000 new Farmer Producer Organizations to be formed, to ensure economies of scale for farmers. Government to work with State Governments to allow farmers to benefit from e-NAM. Zero Budget Farming in which few states farmers are already being trained to be replicated in other states.
12) Water Resources:
New Jal Shakti Mantralaya to look at the management of our water resources and water supply in an integrated and holistic manner. Jal Jeevan Mission to achieve Har Ghar Jal (piped water supply) to all rural households by 2024, to focus on integrated demand and supply side management of water at the local level. Convergence with other Central and State Government Schemes to achieve its objectives. 1592 critical and over exploited Blocks spread across 256 District being identified for the Jal Shakti Abhiyan. Compensatory Afforestation Fund Management and Planning Authority (CAMPA) fund can be used for this purpose.
13) Indirect Taxes:
Basic Customs Duty increased on cashew kernels, PVC, tiles, auto parts, marble slabs, optical fibre cable, CCTV camera etc. Exemptions from Custom Duty on certain electronic items now manufactured in India withdrawn. End use based exemptions on palm stearin, fatty oils withdrawn. Exemptions to various kinds of papers withdrawn. 5% Basic Custom Duty imposed on imported books. Customs duty reduced on certain raw materials such as Inputs for artificial kidney and disposable sterilised dialyser and fuels for nuclear power plants etc. Capital goods required for manufacture of specified electronic goods.
14) Direct Tax:
Tax rate reduced to 25% for companies with annual turnover up to Rs. 400 crore. Surcharge increased on individuals having taxable income from Rs. 2 crore to Rs. 5 crore and Rs. 5 crore and above. India's Ease of Doing Business ranking under the category of "paying taxes" jumped from 172 in 2017 to 121 in the 2019. Direct tax revenue increased by over 78% in past 5 years to Rs. 11.37 lakh crore.
15) External Affairs:
Proposal to consider issuing Aadhaar Card for NRIs with Indian Passports on their arrival without waiting for 180 days. Mission to integrate traditional artisans with global markets proposed, with necessary patents and geographical indicators. 18 new Indian diplomatic Missions in Africa approved in March, 2018, out of which 5 already opened. Another 4 new Embassies intended in 2019-20. Revamp of Indian Development Assistance Scheme (IDEAS) proposed. 17 iconic Tourism Sites being developed into model world class tourist destinations. Present digital repository aimed at preserving rich tribal cultural heritage, to be strengthened.
And there are many interesting takeaways from the Union Budget presented by Nirmala Sitharaman. This budget in whole concentrates on all sectors from Agriculture to MSME to Infrastructure. Its sure that this budget was prepared with the aim of 5 Trillion economy by 2024 in mind. The finance minister said the country is currently 6th largest economy on the basis of GDP and 3rd largest economy on the basis of PPP. She made a point that our economy would achieve the 3 Trillion economy mark by this year end. Hope all goes well and our country get prospered.
- Arun Ramesh
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