Interim Budget 2019-20: explained

Union Finance Minister Shri Piyush Goyal recently the Interim Budget 2019-20, introducing a number of reforms.┬áHere’s a detailed analysis of the Interm Budget 2019-20 :

If you want to see the original Interim Budget 2019-20

Major Schemes and Reforms:

Tax reforms

  • Individuals having taxable annual income up to Rs 5.00 lakhs will not be required to pay income tax;
  • Deductions under Interest on home loan, Section 80(c), Section 80(d) etc have been retained;
  • Salaried Persons: standard deductions raised from Rs 40000 to Rs 50000;
  • Exemption on levy of income tax on notional rent on a second self-occupied house is proposed;
  • TDS on interest earned on Bank or Post Office deposits proposed to be raised from Rs 10000 to Rs 40000;
  • TDS limit for deduction of tax on rent is proposed to be increased from Rs 180000 to Rs 240000;
  • Hints towards changes in GST filing were also made but without any concrete proposals;

Tax reforms

Agriculture and Allied Activities

  • A new Department of Fisheries is decided to be made;
  • Government set a target of over 7% growth to be generated through the department;
  • 2% Interest subvention to farmers availing Kisan Credit Card (KCC) pursuing the activities of animal husbandry and fisheries; an additional interest subvention of 3% for timely repayment of loan;

New scheme: Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN)

  • Direct income support at Rs 6000 per year for farmer families having cultivable land upto 2 hectares;
  • Under the programme, Rs 2000 will be transferred to the designated farmer families three times in a year;
  • Programme made effective from 01.12.2018, with first installment to be paid before 31.03.2019
  • The programme was launched with an outlay of Rs 75000 crores for 2019-20 and Rs 20000 for 2018-19 [RE];

PMKISAN.jpg

Rashtriya Kamdhenu Aayog

  • For genetic upgradation of cow resources and to better the production and productivity of cows;
  • The Aayog will take care of law and welfare schemes for cows;
  • Government proposed to allocate an amount of Rs 750 crores for the Aayog.

Kamdhenu Aayog

Economic Reforms:

Macro-Economic Indicators

  • Defense Budget allocation of Rs 3.00 lakhs crores;
  • Capital support for Railways proposed at Rs 64587 crore in 2019-20 [BE]
  • Union Finance Minister informed that the fiscal deficit has been brought down from 6% to 3.4% in 2018-19 [RE];
  • Government proposed to bring down the Current Account Deficit (CAD) from 5.6% to 2.5%;
  • Department of Industrial Policy and Promotion to be renamed as Department for Promotion of Industries and Internal Trade;

Railway budget

Other Initiatives

  • The Budget proposed reforms in the Entertainment Industry in the form of more transparent reforms; Single Window Clearance for shooting films;
  • 2% interest subvention on an incremental loan of Rs 1 crore for GST registered SMEs;

bUDGET 2019-20

Social Welfare:

Pradhan Mantri Shram-Yogi Maandhan

  • To provide pension to at least 10 crore labourers and workers under unorganized sector;
  • An amount of Rs 500 crores allocated under the schemes.

Welfare of SC/ST Communities

  • Allocation of Rs 76801 crores for the welfare of Scheduled Castes (SCs);
  • Allocation of Rs 50086 crores for the welfare of Scheduled Tribes (STs);
  • Proposal to set up a Welfare Development Board for the benefit of the hard-to-reach De-notified, Nomadic and Semi-nomadic communities;

Welfare board

woman development

 

Other Government Schemes

  • MGNREGA: allocation of Rs 60000 crores for 2019-20;
  • Pradhan Mantri Gram Sadak Yojana (PMGSY): allocation of Rs 19000 crores for 2019-20;
  • Integrated Child Development Scheme (ICDS): allocation of Rs 27584 crore for 2019-20;
  • Pradhan Mantri Matru Vandana Yojana: for pregnant women financial emplowerment by increased participation in work; Government also proposed 26 weeks of maternity leave;
  • National Artifical Intelligence Portal: to be developed as part of National Programme on ‘Artificial Intelligence’
  • Ujjwala Yojana: 8 crore free LPG connections to be given;
  • Electrification of all households;
  • Ayushman Bharat: to provide medical treatment to 50 crore people;
  • 22nd AIIMS to be set up in Haryana;

Ayushman bharat

Data Source: Pib

Let’s wait and see what government actually does now.

Happy reading

Team Banker forum

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