BUDGET, UNION BUDGET 2019-20

Finance Minister Nirmala Sitharaman presented the maiden budget of Narendra Modi 2.0 government in the Lok Sabha on Today (Friday 5th July, 2019). “Gaon, Garib and Kisan [village, poor, and farmer] is at the centre of all policies of this government. Between 2014 and 2019, we provided rejuvenated dynamic Centre-State cooperative federalism, and the GST Council, said Ms. Sitharaman.

Here are the highlights of the Union Budget:


Taxes: 
* No change in personal income tax rates 

* Additional Rs 1.5 lakh tax relief on home loans up to March 31 2020 for buying affordable houses, giving,  7 lakh benefit to home buyers.

*Govt hike custom duty on fuel by 1 rupee, gold and precious items; Petrol & diesel to get costlier 

* Increase in surcharge on super rich: 3% surcharge on Rs 2 crore income; 7% on Rs 5 crore and above 

* Annual turnover limit for 25% Corporate tax raised to Rs 400 crore from Rs 250 crore 

* Taxpayers with annual turnover of less than Rs 5 crore to have to file only quarterly 

* Direct tax revenue has increased by 78% 

* PAN and Aadhaar will become interchangeable. You can use your Aadhaar number to file your I-T Returns soon

Affordable housing:
* Rental laws to be reformed. Modern tenancy law will be shared with states to promote house renting. 

To promote digital payments:
* 2% TDS on withdrawals of Rs 1 crore in a year from bank accounts for business payments 

No change on digital payment: MDR charges waived on cashless payment 

Ease of living:
*Rs 3,000 pension per month for informal sector workers 
* Aadhaar card under 180 days for NRIs on arrival in India 

* Govt to open embassies in countries where India doesn't have a resident diplomatic mission as yet. 

Transportation 
Inter-operable One Nation One transport card: National transport card for universal travel which can used on various modes of transport (road, railways etc). The card can also be used as a ATM card for withdrawing money. 

* Govt plans to create MRO (Manufacturing, Repair and Operate) industry 

* PPP to be used to unleash faster development and the delivery of passenger freight services. 

* Comprehensive restructuring of National Highways Programme for creation of National Highways Grid. 

* Government envisions using rivers for cargo transport,it will also decongest roads and railways. 

* Affordable housing: Govt will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase EVs

Economy:
* Fiscal deficit in FY19 at 3.3% of the GDP 

* Govt will start raising part of borrowing in foreign currency 

* Govt external debt to GDP is among the lowest in the world. 

Women empowerment:
* Nari tu Narayani: Women SHG Interest Subvention Programme to be expanded to all districts in India 

* Rs 1 lakh loan to be provided for SHG women members 

* Every verified woman SHG member having a Jan Dhan account can avail Rs 5,000 rupees overdraft facility 

Banking reform:
* On purchase of high-rate pooled assets of NBFC amounting of Rs 1 lakh core in this FY, govt will provide one-time 6 month credit guarantee 

* Propose to provide Rs 70,000 crore capital for PSU Banks 

* Regulation of HFCs (Housing Finance Cos) to move to RBI from National Housing Bank 

Divestment: 
* Govt to modify present policy of retaining 51% stake in PSUs 

* Govt to continue with strategic divestment  .. 
* Divestment target of Rs 1.05 lakh crore for FY20 

Railways: 
* A new PPP model will usher the new dawn of Indian railway. 

* Railways to be encouraged to invest more in suburban rail network via SPVs 

* Railway infrastructure will need an investment of Rs 50 lakh crore between 2018 and 2030. 

MSME: 
* Propose easing angel tax for startups 

*Angel tax: Won't require scrutiny from Income Tax department for startup 

* 2% interest subvention for GST-registered MSME on fresh or incremental loans. 

* ‘Stand Up India' Scheme to continue till 2025 

* Propose to commence television channel for start-ups 

* To extend pension benefit to retail traders with annual turnover less than Rs 1.5 crore 

* New payment platform for MSM to be created

Education:
* Govt to launch 'Study in India' programme to attract foreign students in higher education 

* Allocate Rs 400 crore for world-class higher education institutions in FY20 . 

* To unveil new education policy. 

* National research foundation to fund, coordinate and to promote research in the country. 

* New Higher Education Commison with focus on higher autonomy 

* New national education policy to propose changes in school, higher education 

Tourism:
*17 iconic world-class tourist sites to be developed 

FDI: 

* Local sourcing norms will be relaxed for the Single brand retail sector 

* Govt of open FDI in aviation, insurance, animation AVGC and media 

Investment: 
* Existing KYC norms for FPIs to be rationalized and simplified to make it more investor-friendly 

* Long-term bonds for market 

* To allow FIIs & FPIs investment in debt securities issued by NBFCs 

* Credit Guarantee Enhancement Corporation to be set up long-term bonds with specific focus on infra sector 

* Propose Social Stock Exchange under SEBI for listing social enterprises & voluntary organisations 

To merge NRI portfolio route with FPI route 

*To hike statutory limit for foreign investment in some companies 

* To set up a credit guarantee enhancement corporation 

* Govt will take up measures to make RBI & SEBI depositories inter-operable 

* SEBI to mull increasing minimum public shareholding to 35% from 25% 

* User friendliness of trading platforms for corporate bonds will be reviewed, including issues arising out of capping of International Securities Identification Number 

* To deepen corporate tri-party repo market in corporate debt securities. Plan to enable stock exchanges to allow AA rated bonds as collaterals. 

* Annual Global Investors' Meet for attracting global players to come and invest in India. 

*To allow FPIs to subscribe to listed debt papers of REITs 

Auto sector:
* FAME II scheme aims to encourage faster adoption of electric vehicles by the right incentives and charging infrastructure 

For Rural India:
* Gaon, Garib and Kisan are the focus of our government 

* New Jal Shakti ministry will work with states to ensure Har Ghar Jal for all rural houses by 2024. 

* Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road length over the next 5 years. 

Govt will set up 100 new clusters for 50,000 artisans in FY20 

* To invest Rs 80,250 cr for upgradation of roads under PM Gram Sadak Yojana 

*Every single rural family except those unwilling to have electricity by 2022 

Agri: 
* Govt to promote innovative 0 Budget farming. 

* 10,000 new farmer producer organisations. 

* 80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries 

Space:
*India has emerged as a major space power. It is time to harness our ability commercially. 

* A public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO 

Sports: 
* To popularise sports at all levels, National Sports Education Board for development of sportspersons to be set up under Khelo India. 

State of the economy: 
* Railways will require investment of Rs 50 lakh crore from 2018-30 

* Schemes such as BharatMala, Sagarmala and UDAN are bridging rural urban divide and improving our transport infrastructure. 

* Gandhipedia' is being developed to sensitize the youth about positive Gandhian values 

* The unambiguous mandate by the people in the recent election has set the ball rolling for the New India 

* NPAs recovery of Rs 4 lakh crore over the last four years, NPAs down by Rs 1 lakh crore in the last one year 

* Rashtriya Swachhta Kendra to be inaugurated at raj ghat on Oct 2 
* The people of India have validated their two goals for our country's future: national security and economic growth. 

* ' Yakeen ho to koi raasta niklata hai, hawa ki awt(protection) bhi le kar chiragh jalta hai

* It took us over 55 years to reach $1 trillion dollar economy, but we added $1 trillion in just 5 years 

* We can very well reach $5 trillion in the next few years. 

* Last mile delivery stood out, citizens in every nook and corner of the country felt the difference; our objective was and continues to be Mazbooth Desh Ke Liye Mazbooth Nagarik 

* Government lays out 10-point vision for the New India 

* India will become $3 trillion economy this year. We need to continue to take many structural reforms to achieve $5 trillion economic goal. 
*Connectivity is the lifeline of the economy. 











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