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Highlight of Interim Budget 2019-20

New Announcements

 Farmers
  • 12 crore small and marginal farmers to be provided with assured yearly income of Rs. 6000 per year under PM-KISAN.
  • Outlay for Rashtriya Gokul mission increased to Rs 750 crore.
  • Rashtriya Kamdhenu Ayog to be setup for sustainable genetic up-gradation of the Cow resources.
  • New separate Department of Fisheries for welfare of 1.5 crore fishermen.
  • 2% interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3% in case of timely repayment.
  • Interest subvention of 2% during disaster will now be provided for the entire period of re-schedulement of loan.
 Labour
  • Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers.
 Health
  • 22nd AIIMS to be setup in Haryana.
 MGNREGA
  • Rs. 60, 000 crore allocation for MGNREGA in 2019-20.
 Direct Tax proposals
  • Income upto Rs. 5 lakh exempted from Income Tax.
  • More than Rs. 23,000 crore tax relief to 3 crore middle class taxpayers.
  • Standard Deduction to be raised to Rs. 50,000 from Rs. 40,000.
  • TDS threshold to be raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits.
  • Existing rates of income tax to continue.
  • Tax exempted on notional rent on a second self-occupied house.
 Fiscal Programme
  • Fiscal deficit pegged at 3.4% of GDP for 2019-20.
  • Target of 3% of fiscal deficit to be achieved by 2020-21.
  • Fiscal deficit brought down to 3.4% in 2018-19 RE from almost 6% seven years ago.
  • Total expenditure increased by over 13% to Rs.27,84,200 crore in 2019-20.
  • Capital Expenditure for 2019-20 BE estimated at Rs. 3,36,292 crore.
  • Centrally Sponsored Schemes (CSS) allocation increased to Rs. 3,27,679 crore in 2019-20.
  • National Education Mission allocation increased by about 20% to Rs. 38,572 crore in 2019-20.
  • Allocation for Integrated Child Development Scheme (ICDS) increased by over 18% to Rs. 27,584 crore in BE 2019-20.
  • Substantial increase in allocation for the Scheduled Castes and Scheduled Tribes: Allocation for SCs increased by 35.6% – from Rs. 56,619 crore in BE 2018-19 to Rs. 76,801 crore in for 2019-20 and allocation for the STs increased by 28% – from 39,135 crore in BE 2018-19 to Rs. 50,086 crore in 2019-20.
  • Government confident of achieving the disinvestment target of 80,000 crore.
  • Focus now on debt consolidation along with fiscal deficit consolidation programme.
 Poor and Backward Classes
  • 25% additional seats in educational institutions to meet the 10% reservation for the poor.
  • Targeted expenditure to bridge urban-rural divide & to improve quality of life in villages.
  • All willing households to be provided electricity connections by March 2019.
 North East
  • Allocation to be increased by 21% to Rs. 58,166 crore in 2019-20 over 2018-19.
  • Arunachal Pradesh came on the air map recently.
  • Meghalaya, Tripura and Mizoram came on India’s rail map for the first time.
  • ontainer cargo movement through improved navigation capacity of the Brahmaputra.
 Vulnerable sections
  • A new committee under NITI Ayog to identify all the remaining De-notified nomadic and semi-Nomadic tribes.
  • New Welfare development Board under Ministry of social justice and empowerment for development and welfare of De-notified nomadic and semi nomadic tribes.
 Defence
  • Defence budget to cross Rs 3,00,000 crore for the first time ever.
 MSME and Traders
  • 2% interest subvention on an incremental loan of Rs 1 crore for GST registered SMEs.
  • Atleast 3% of the 25% sourcing for the Government undertakings will be from women owned SMEs.
  • Renewed Focus on Internal trade ; DIPP renamed to Department for Promotion of Industries and Internal trade.
 Digital Villages
  • The Government to make 1 lakh villages into Digital Villages over next five years.
 Other Announcement(s)
  • New National Artificial Intelligence portal to support National Program on Artificial Intelligence.
Read Important Terms Related to Budget and Economic Survey

Achievements during 2014-19

 State of the Economy

  • India is now the 6th largest economy in the world from being the 11th largest in 2013-14.
  • Annual average GDP growth during 2014-19 higher than any government since 1991.
  • Average inflation down to 4.6%, lower than during any other Government.
  • Fiscal deficit down to 3.4% in 2018-19 RE from the high of almost 6% seven years ago.
  • CAD likely to be only 2.5% of GDP this year against a high of 5.6% six years ago.
  • India attracted massive amount of FDI, worth $239 billion, during the last 5 years.
  • India becomes the fastest growing major economy in the world.
  • Double-digit inflation contained and fiscal balance restored.
  • Liberalization of FDI policy, allowing most FDI to come through the automatic route.

 Farmers

  • Assured MSP of minimum 50% to all 22 crops.
  • Interest subvention doubled in last 5 years.
  • Soil Health card, Neem coated Urea game changer in farm sector.

 Labor

  • Minimum income for every category of workers increased by 42% in last 5 years.

 Poor and Backward Classes

  • 10% reservation for the poor in educational institutions and government jobs.
  • Free electricity connection to every household under Saubhagya Yojana.
  • World’s largest healthcare programme, Ayushman Bharat, for nearly 50 crore people.
  • Aspirational Districts Programme for development in 115 most backward districts.
  • Rs. 1,70,000 crore spent during 2018-19 for cheaper food grains to poor and middle class.
  • 143 crore LED bulbs provided in mission mode with the cooperation of private sector.
  • Poor & middle class are saving Rs. 50, 000 crore p.a. in electricity bills due to LED bulbs.
  • 10 lakh patients benefited from free treatment under Ayushman Bharat.
  • Jan Aushadhi Kendras providing medicines at affordable prices to poor and middle class.
  • 14 out of 21 AIIIMS operating presently have been announced since 2014.
  • Government tripled rural roads’ construction under the PMGSY.
  • 5.80 lakh habitations out of 17.84 lakh connected with pucca roads.
  • Rs. 19,000 crore for PMGSY in BE 2019-20 against Rs. 15,500 crore in  2018-19.
  • 1.53 crore houses built under PM Awas Yojana during the 2014-18.

 Women development to women led development

  • 6 crore free LPG gas connections provided under Ujjwala Yojna ; All 8 crore by next year.
  • 70% of MUDRA Loan availed by Women.
  • Maternity leave extended to 26 weeks.
  • Financial support for pregnant women under Pradhan Mantri Matru Vandana.

 Youth

  • Over one crore youth trained under Pradhan Mantri Kaushal Vikash Yojana.
  •  Self-employment boost through MUDRA, STAND-UP and START-UP India.

 MSME and Traders

  • Up-to Rs 1 crore loans can be availed in less than an hour.
  • 25%-28% is the average savings due to GeM (Government e-Market place).

 Income Tax

  • Tax collections nearly doubled in five years- from Rs. 6.38 Lakh crore in 2013-14 to almost Rs. 12 lakh crore this year.
  • 80% growth in tax base- from 3.79 crore to 6.85 crore in five years.
  • Tax administration streamlined- Last year, 99.54% of the income-tax returns accepted as were filed.
  • Special benefits and incentives already given to small businesses and startups.

 GST

  • GST made India a common market.
  • GST led to increased tax base, higher collections and ease of trade.
  • Inter-state movements now faster, more efficient, and hassle free.
  • Responsive and sensitive reduction of tax rates – Most items of daily use now in the 0% or 5% tax slab.
  • Relieving the businesses and service providerso Exemptions from GST for small businesses doubled from Rs. 20 lakh to Rs. 40 lakh.

 Infrastructure

  • Civil Aviation – UDAN Scheme: Number of Operational Airports crossed 100 (Latest: Pakyong airport in Sikkim).
  • Roads : India is the fastest highway developer in the world, 27 kms of highways built each day.
  • Waterways : Flagship programme of Sagarmala along the coastal areas. For first time, container freight movement started on Kolkata to Varanasi inland waterways.
  • Railways : Semi high-speed “Vande Bharat Express” introduced – first indigenously developed and manufactured.

 Climate Change

  • International Solar Alliance: To promote renewable energy. First treaty based international inter-governmental organisation headquartered in India

 Digital India Revolution

  • More than 3 lakh Common Service Centres (CSCs) exist to deliver services to the citizens.
  • India now leading the world in the consumption of mobile data.
  • Monthly consumption of mobile data increased by over 50 times in the last five years.
  • Under Make in India, mobile and parts manufacturing companies increased from 2 to more than 268 providing huge job opportunities.

 Jan Dhan-Aadhaar-Mobile (JAM) and Direct Benefit Transfer

  • In the last five years, nearly 34 crore Jan Dhan bank accounts opened.
  • Aadhaar now near universally implemented.
  • Ensure the poor and middle class receive the benefits of Government schemes directly in their bank accounts by eliminating middlemen.

 Defence

  • OROP under implementation in full spirit with Rs 35,000 crore already disbursed.
  • Military pay service hiked.

 Other achievements

  • Government put a stop to questionable practices of hiding high NPAs.
  • Swachh Bharat Mission as the world’s largest behavioral change movement.
Read Important Terms Related to Budget and Economic Survey

Key message in the Interim Budget 2019-20

 Moving towards realizing a ‘New India’ by 2022 

  • Clean and healthy India with universal access to toilets, water and electricity to all.
  • An India where Farmers’ income would have doubled.
  • Ample opportunities to youth and women to fulfil their dreams.
  • An India free from terrorism, communalism, casteism, corruption and nepotism.

Vision for the next Decade

 Foundation for India’s growth and development laid in the past 5 years.
 Poised to become a Five Trillion Dollar Economy in the next five years.
 Aspire to become a Ten Trillion Dollar Economy in the next 8 years thereafter.

Ten dimensions of Vision for India of 2030

India would be a modern, technology driven, high growth, equitable and transparent society

  1. To build physical as well as social infrastructure and to provide ease of living.
  2. To create a Digital India, digitize government processes with leaders from youth.
  3. Making India pollution free by leading transport revolution with Electric Vehicles and focus on Renewables.
  4. Expanding rural industrialization using modern digital technologies to generate massive employment.
  5. Clean Rivers, safe drinking water to all Indians and efficient use of water through microirrigation.
  6. Besides scaling up of Sagarmala, Coastline and Ocean waters powering India’s development and growth.
  7. Aim at our space programme – Gaganyaan, India becoming the launch-pad of satellites for the World and placing an Indian astronaut into space by 2022.
  8. Making India self-sufficient in food, exporting to the world to meet their food needs and producing food in the most organic way.
  9. A healthy India via Ayushman Bharat with women having equal rights and concern for their safety and empowerment.
  10. Transforming India into a Minimum Government Maximum Governance nation with proactive and responsible bureaucracy

Sources:
Press Information Bureau and Union Budget

Read Important Terms Related to Budget and Economic Survey
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