Full Budget 2019-20 By Ankit Aggarwal – Free PDF Download

WHY 2 UNION BUDGET IN 2019?

• The budget presented on 1 st Feb. 2019 was an Interim Budget or Vote On Account.
• The government of the day presents an interim budget if it does not have the time to present a full Budget or because national elections may be near.
• Propriety demands that the task of framing the full Budget be left to the new government.
• In an election situation, the vote-on-account is usually for a four-month period.

CONSTITUTIONAL PROVISIONS RELATED TO BUDGET

• The term ‘Budget’ is not mentioned in the constitution.
• The constitution refer it as‘Annual Financial Statement’.
• Article 112 – 117 in the constitution deals with the financial matters.
• E.g. Article 112- Annual financial statement, Article 116-Vote on account. ‘Mazboot desh ke liye mazboot nagrik’ – last mile delivery Urdu couplte – “yakin ho to koi rasta nikalta hai, hawa ki bhi or leke chiraga jalta hai”

QUOTES

• ‘Mazboot desh ke liye mazboot nagrik’ – last mile delivery
• Urdu couplte – “yakin ho to koi rasta nikalta hai, hawa ki bhi or leke chiraga jalta hai”

OVERVIEW

• Economy was $1.85 in 2014 and it reached $2.7 trillion in 2019.
• We need to invest heavily in infra and for job creation in MSMEs.
• Indian companies respect Swadeshi, respect Make in India.
• Massive push for physical connectivity.
• India to enter into aircraft financing and leasing activities.

INFRASTRUCTURE

• Schemes such as ‘Bharatmala’, ‘Sagarmala’ and UDAN are bridging the rural and urban divide.
• 657 km of metro rail network has become operational in the country.
• 125,000 km of road to be upgraded over next 5 years at a cost of 802.5 billion rupee.

INFRASTRUCTURE

• FM bats for one nation one grid. This will offer better power distribution across the country.
• More utilization of rivers for cargo transportation. This will also decongest roads and railways.
• Blueprint for national gas grid, water grid will be unveiled.

HOUSING

• Focus on Rental Housing policy and model tenancy law. This will help in Housing for All by 2022.
• Har ghar jal by 2022. Sustainable water management across the country.
• Under PMAY Garmin, in the 2nd phase 1.95 crore houses are proposed to be provide to eligible beneficiary with facilities like toilet and LPG connection.

HOUSING FOREIGN, NRI

• To merge NRI portfolio route with FPI route to increase more NRI portfolio flows into India.
• NRIs with Indian passports will get Aadhaar cards after arrival without mandatory wait of 180 days.
• Opening of 18 new embassies in Africa.

FDI

• Govt. will examine steps to hike FDI cap in aviation, media, insurance.
• 100% FDI will be permitted for insurance intermediaries.
• Local sourcing norms (currently 30%) will be eased in case of single-brand retail.

DIGITAL

• Over 2 crore Indian made digitally literate under PMGDISHA.
• To discourage cash payments, a TDS of 2% on cash withdrawals exceeding ₹1 crore in a year from a bank account.
• Banks, RBI to absorb charges on digital transaction.

AGRICULTURE

• Need to replicate the innovative model of zero Budget farming.
• Support to pvt. entrepreneurship in driving value addition to farmers produce- “Ann daata ko kyun oorja daata bana nahi sakte?”
• Govt proposes Pradhan Mantri Matsya Sampada Yojana to address critical infrastructure gap in fisheries sector.

EDUCATION

• FM Proposes ‘Study in India’ that will focus to bring foreign students to study in India.
• ₹400 crore has been provided for world class institutions.
• National Sports Education Board for development of sportspersons to be set up under Khelo India.

SOCIAL

• Nari Tu Narayani scheme for improving the condition of women in the country.
• 5.6 lakh villages have become open defecation free- Govt. to expand the Swachh Bharat mission to undertake sustainable sold waste management in every village.
• 35 crore LED bulbs distributed under UJALA schemes have saved Rs 18,341 annually.

CORPORATE

• A TV programme exclusively for Start ups, matchmaking with venture capitalists, tax planning etc.
• To revise labour codes to minimise disputes. (economic survey)
• Social stock exchanges to be set up to list social enterprises to raise funds on electronic platforms.
• 80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE (2015) to provide skilled entrepreneurs in agro-rural industries.
• A payment platform for the MSMEs will be set up to bring MSMEs under the formal economy.

BANKING

• Recovery of Rs 4 trillion loan under IBC in 4 years.
• Bank NPAs have reduced by ₹1 lakh crore. PSU banks to be provided ₹70,000 crore to boost capital.
• RBI and not NHB to regulate housing finance companies.
• Trading in corporate bonds would be made user-friendly.

TOURISM & CULTURE

• Government to develop 17 iconic tourism sites. To preserve rich tribal heritage, a digital repository will be created. (Adopt a heritage scheme, 2017)
• ‘Gandhipedia‘ is being developed to sensitize the youth about positive Gandhian values.
• New Rs 1, 5, 10 & 20 coins to be available for public use soon

DIS-INVESTMENT

• Govt sets ₹1.05 lakh crore divestment target for FY20.
• Strategic dis-investment of Air India, other PSUs this FY.

PENSION

• Pension benefits to be extended to around 3 crore retail traders and shopkeepers with an annual turnover less than 1.5 crores under Pradhan Mantri Karam Yogi Man Dhan Scheme. (March 2019, Rs. 3000/month)

SPACE

• To harness India’s space ability commercially, a public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap the benefits of ISRO.

TAXATION

• Direct tax revenue increased 78%. It is now growing at double digit rate every year. (6.38l cr. in 2013-14 to 11.37l cr in 2019)
• Corporate tax on companies with turnover up to ₹400 crore reduced to 25%.
• Surcharge on taxable income from 2-5 crore, and 5 crore & above will increase by 3% and 5% respectively.
• FY20 Fiscal deficit target 3.3% down from 3.4%
• Additional income tax exemption of ₹1.5 lakh to buyers of electric vehicles.
• GST rate on electric vehicles to be reduced to 5% from 12%.
• An additional tax deduction of 150,000 rupees on interest paid on housing loans for self-occupied house owners. (Before only 2l)
• Start-ups won’t be subject to scrutiny on angel tax.
• Govt proposes Legacy Dispute Resolution Scheme for traders to quickly resolve pre-GST disputes.
• PAN and Aadhaar to become interchangeable. Individual can use one in case of absence of other.
• Taxpayers to get online pre-filled documents.
• To introduce faceless scrutiny of tax assessment.
• Customs duty on gold and precious metals hiked to 12.5% from 10%.
• Additional Excise Duty of Rs 1 per litre on Petrol and Diesel for Infra and Road.

Latest Burning Issues | Free PDF

Sharing is caring!