Key Highlights of Interim Budget 2019-20

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By Accommodation Times Bureau

The key highlights of the Interim Budget 2019-20 presented by the Union Minister for Finance, Corporate Affairs, Railways & Coal, Piyush Goyal in Parliament today are as follows:

New Announcements
1. Farmers
• 12 crore small and marginal farmers to be provided with assured yearly income of Rs 6000 per annum under PM-KISAN
. Outlay of Rs 75,000 crore for FY 2019-20 with additional Rs 20,000 crore in RE 2018-19
• 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 reschedulement of loan

2. Labour
• Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers
. Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month

3. Health
• 22nd AIIMS to be setup in Haryana

• Rs 60, 000 crore allocation for MGNREGA in BE 2019-20

5. 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
• Housing and real estate sector to get boost-
o TDS threshold for deduction of tax on rent to be increased from Rs 1,80,000 to Rs 2,40,000
o Benefit of rollover of capital gains increased from investment in one residential house to two residential houses for capital gains up to Rs. 2 crore.
o Tax benefits for affordable housing extended till 31st March, 2020 under Section 80-IBA of Income Tax Act
o Tax exemption period on notional rent, on unsold inventories, extended from one year to two years

6. 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 BE
• 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 BE 2019-20
• National Education Mission allocation increased by about 20% to Rs 38,572 crore in BE 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 –
o Allocation for SCs increased by 35.6% – from Rs 56,619 crore in BE 2018-19 to Rs 76,801 crore in BE for 2019-20
o Allocation for the STs increased by 28% – from 39,135 crore in BE 2018-19 to Rs 50,086 crore in 2019-20 BE
• Government confident of achieving the disinvestment target of 80,000 crore
• Focus now on debt consolidation along with fiscal deficit consolidation programme

7. Poor and Backward Classes
• “First right on the resources of country is that of the poor”: FM
• 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

8. North East
• Allocation to be increased by 21% to Rs. 58,166 crore in 2019-20 BE over 2018-19 BE
• Arunachal Pradesh came on the air map recently
• Meghalaya, Tripura and Mizoram came on India’s rail map for the first time
• Container cargo movement through improved navigation capacity of the Brahmaputra

9. 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

10. Defence
• Defence budget to cross Rs 3,00,000 crore for the first time ever

11. Railways
• Capital support of Rs 64,587 crore proposed in 2019-20 (BE) from the budget
Overall capital expenditure programme to be of Rs 1,58,658 crore to 96.2% in 2018-19 (RE) and
• Operating Ratio expected to improve from 98.4% in 2017-18 to 95% in 2019- 20 (BE)

12. Entertainment Industry
• Indian filmmakers to get access to Single window clearance as well for ease of shooting films
• Regulatory provisions to rely more on self-declaration
• To introduce anti-camcording provisions in the Cinematograph Act to control piracy

13. 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

14. Digital Villages
• The Government to make 1 lakh villages into Digital Villages over next five years

15. Other Announcement(s)
• New National Artificial Intelligence portal to support National Program on Artificial Intelligence
Achievements during 2014-19

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