Finance Minister Nirmala Sitharaman presented the maiden union budget,2019 of Narendra Modi 2.0 government in the Lok Sabha on Friday. “Gaon, Garib, and Kisan [village, poor, and farmer] are at the center of all policies of this government. The Union Budget 2019 details which are the key highlights are as follows:
BENEFITS OF MIDDLE CLASS IN UNION BUDGET 2019:
- PAN and Aadhaar will become interchangeable. You can use your Aadhaar number to file your I-T Returns soon.
- Additional deduction of 1.5 lakh on loans up to March 31 2020 for buying affordable houses, giving Rs.7 lakh benefit to home buyers.
- Pension benefits will be offered to 3 crore shop owners with an annual turnover of less than Rs1.5 crore under new scheme called Pradhan Mantri Mandhan Scheme.
BENEFITS OF YOUTH IN UNION BUDGET 2019:
- New national educational policy hopes to transform Indian education into one of the best in the world, with focus on bringing in foreign students.
- Proposal to provide Aadhaar cards for NRIs with Indian passports, after their arrival in India, with no waiting period.
- Global Investors meet to happen in India.
SMALL BUSINESSES IN UNION BUDGET 2019:
- The pension benefit will be extended to 3 crore retail traders under PM Karam Yogi Maan Dhan Scheme. It requires only Aadhaar numbers and bank accounts.
- 1 crore worth of loans proposed to MSMEs.
- Investment by FIIs and FDIs in debt securities in infrastructure debt funds to be allowed. Minimum public shareholding in listed companies can be increased from 25% to 35%.
- TDS of 2% on cash withdrawals exceeding 1 crore in a year from bank accounts, to discourage business payments in cash.
FARMER’S BENEFITS IN UNION BUDGET 2019:
- Stress on zero-budget farming, which is a form of gardening as a self-sustainable practice, with minimum external intervention.
- By 2022, the 75th year of Independence, every single rural family, except those who are unwilling to take the connection, will have electricity and clean cooking facility.
START-UPS BENEFITS IN UNION BUDGET 2019:
- To resolve the angel tax issue, start-ups will not be subject to any scrutiny in respect to valuation. Funds raised by start-ups will not require any scrutiny by the I-T department.
- Period of exemption for capital gains arising from sale of house for investment in start-ups to be extended to March 31, 2021.
- TV channel to be launched for promoting start-ups and to help matchmaking for funds.
FINANCE SECTOR BENEFITS IN UNION BUDGET 2019:
- 70, 000 crore in recapitalisation for public sector banks.
- 5 lakh minimum limit announced for taxpayers. In view of rising income levels, those in the Rs.2-5 crore and Rs.5 crore-and-above brackets will see increase in effective tax rate by 3% and 7%, respectively.
- 1.05 lakh crore disinvestment target for the year.
- GST rate on electric vehicles proposed to be lowered to 5%. Additional income tax deduction of 1.5 lakh on interest on loans taken to purchase electric vehicles.
- Excise duty on fuel hiked by 1.
DRINKING WATER AND SANITATION:
- Swachh Bharat has brought enormous environmental and health benefits. 9.6 crore toilets have been constructed and more than 5.6 lakh villages have become open-defecation free, Sitharaman says while proposing to expand and undertake solid waste management in every village. In urban areas, 96 million toilets built since Oct 2, 2016 under Swachh Bharat, says Finance Minister Nirmala Sitharaman.
- Ensuring farmers access to safe and adequate water is another important initiative the government will work toward, she says. Water supply in an integrated and holistic manner will help ensure ‘Har Ghar Jal’ or water to each house.
- The government is developing 17 iconic tourism sites as world-class tourist centres to improve the flow of domestic and foreign tourists to these destinations. Objective of reserving rich tribal heritage a digital repository on the life and culture of the tribe will be stored.
- Nearly 1,25,000 km of roads will be upgraded under Pradhan Mantri Gram Sadak Yojana at estimated cost of nearly Rs 80,200 crore.
- UDAY to be re-examained, new package for power sector tariffs, removal of unnecessary duties on power rates, open access & group captive projects to be initiated.
- The FAME II scheme has taken wings. The main objective of the scheme is to provide necessary charging infra and incentivising easy and affordable mode of transportation for the common man.
- It is estimated that railway infra will need investment of Rs 50 lakh crore between 2018 and 2030. Given expenditure is Rs 1.4-1.6 lakh crore per annum, it could take decades to complete the projects. It is therefore, necessary to privatise.
- The ambitious project of Bharatmala will enhance road connectivity and Sagarmala will help port and waterways connectivity, she says. These along with other such initiatives such as Udaan scheme will improve India’s infrastructure and enable connectivity and bridge the rural and urban divide.