Highlights of budgets – Mrs. Nirmala Sitharaman, the Union Minister for Finance and Corporate Affairs, presented her first Union Budget on July 5th, 2019 in Parliament. The Budget outlined the Government’s mantra as promised: Reform, Perform and Transform by announcing various schemes for the poor section of society by taxing the ultra-rich. The Budget aims to outline the government’s vision for the decade, like Environment, Digital India, India’s reach in space, clean rivers and water management, self-sufficiency, Make in India, better conditions for business, aspiring to become 5 trillion dollar economy, etc.
Here are the union budget 2019 highlights.
- Measures related to MSME:
Highlights of budgets – Simple enrolment requiring Aadhaar, bank account and simple declaration will enable retail traders and small shop keepers with an annual turnover of less than Rs. 1.5 crores to pension benefits.
Rs. 350 crores allotment for FY 2019-20 for an easier loan to GST registered MSME with interest subvention.
- National Common Mobility Card:
India’s first indigenously developed RuPay based payment system for inter-operable transport would allow the users to pay for toll tax, parking charges, bus travel, and retail shopping.
- Physical Connectivity:
Importance has been given to all forms of physical connectivity by roads, not only cities but villages as well. Schemes to achieve this are Pradhan Mantri Gram Sadak Yojana, Bharatmala (for state road network) and Sagarmala projects, Jal Marg Vikas (enhancement of the navigational capacity of river Ganga) and UDAN scheme. Proposed development of industrial corridors, dedicated freight corridors.
- Social Stock Exchange:
Highlights of budgets -In an attempt to empower voluntary work organizations, The Finance Minister proposed Social Stock Exchange where the listing of social enterprise and voluntary organization will give them a platform to raise electronic funds under the regulatory ambit of SEBI. In this exchange, the capital can be raised as equity, debts or like mutual fund units.
- New Space India Limited:
A public sector enterprise incorporated as the new commercial wing of the Department of Space to tap the financial and other benefits of work carried out by ISRO. Work will be done for commercialization of launch vehicles, marketing of space products and transfer of technologies.
- Rural India:
The Budget 2019 announcement has given importance to rural India. Ujjwala and Saubhagya schemes have improved the lives of many women and rural families. The Finance Minister proposed electricity and clean cooking facility to all willing rural families by the year 2022. Pradhan Mantri Awas Yojna (PMAY-G) plans to achieve housing for all by the year 2022 by providing 1.95 crore houses, with amenities like toilet, electricity and LPG connection, to eligible beneficiaries.
Pradhan Mantri Matsya Sampada Yojna (PMMSY):
The Department of Fisheries to establish a fisheries management framework to address post harvest management, productivity, production, modernisation, infrastructure and quality control.
Pradhan Mantri Gram Sadak Yojna (PMGSY):
To reduce carbon footprint, 30,000 kilometres PMGSY roads have been made using green technology, waste plastic and cold mix technology. It is proposed to upgrade 1,25,000 kilometres of roads over the next 5 years under PMGSY with an estimated cost of Rs. 80,250 crores.
To facilitate cluster-based development for making traditional industries more productive, profitable and capable of generating sustained employment opportunities, common facility centres (CFC) to be set up. 100 new clusters to be set up during 2019-20 with a special focus on Bamboo, Honey, and Khadi to enable 50,000 artisans to join the economic value chain.
Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE):
80 livelihood business and 20 technology business incubators are proposed to be set up in 2019-20. It is proposed to help 75,000 entrepreneurs to be skilled in the agro-rural industry. Private entrepreneurship to be supported to increase the value addition of farmers’ produce and related allied activities. Co-operative dairies to be encouraged by creating infrastructure for cattle feed manufacturing, milk procurement, processing, and marketing. Union Government to work with State Governments to enable farmers to get benefits from e-NAM. To ensure economies scale for farmers, 10,000 new Farmer Producer Organisations to be formed.
- India’s Water Security
Highlights of budgets -Water resources and supply will be managed by the new Jal Shakti Ministry in an integrated and holistic manner. Jal Jeevan Mission to achieve pipe water supply (Har Ghar Jal) to all rural households by the year 2024. Central government to work together with State governments to achieve objectives of various schemes in this regard. Under Jal Shakti Abhiyan, 1592 critical and over-exploited blocks spread over 256 districts are being identified.
- Swachh Bharat Abhiyan
Since October 2, 2014, 9.6 crore toilets have been constructed under this mission, and more than 5.6 lakh villages have become Open Defecation Free (ODF). The mission is proposed to be expanded to undertake sustainable solid waste management in every village.
- Taxes, Finance, and Digital Payments
Highlights of budgets -February 2019 interim budget recommendation to be carried on in the Budget of July 2019. Some of Budget 2019 announcement relating to Taxes and finance are,
Although the Income-tax slab rate remains the same as of last year, income up to Rs. 5 lakh per annum will be tax-free.
A new section added to give a further deduction of Rs. 1.5 lakh for interest on housing loan on an additional house purchased.
A new section added to give a deduction of interest up to Rs. 1.5 lakh on loan is taken to purchase an electric vehicle.
Exemption of customs duty on certain parts of electric vehicles.
Export duty rationalisation to be undertaken.
The Customs duty on gold and other precious metals increased.
An additional duty imposed on petrol and diesel increased by Re.1 per liter.
Legacy Dispute Resolution Scheme (LDRS) for quick closure of pending litigation in the pre-GST regime.
Increase in duty on luxury items.
5% Customs duty imposed on imported books.
Inter-changeability of PAN with Aadhaar. People that don’t have PAN can now file income tax return by mentioning Aadhaar number.
Corporate tax rate reduced to 25% from 35% for companies having an annual turnover up to Rs. 400 crores. This is very beneficial as more than 99% companies will fall under the reduced tax rate category.
Surcharge increased on individuals that fall in income slab 2 to 5 crores and above 5 crores.
Direct tax revenue increased by 78% in the past 5 years.
To curb corruption, faceless e-assessment with no human interface to be launched.
2% TDS is proposed on cash withdrawal exceeding Rs. 1 crore in a year from a bank account.
Businesses with annual turnover more than 50 crores shall offer low cost digital modes of payments to their consumers without imposing any charges.
Readers may search the budget 2019 pdf or budget 2019 pdf in hindi to find and read more on the Budget 2019.
