Budget 2019 Highlights: Key Points from the Budget Speech
Well, enough of the guesses! The much-waited Interim Union Budget 2019 which can be considered as a game-changer for the Modi Government is finally out in the news. With the Modi’s boosters one after another throughout the budget speech 2019, it would be actually wrong to call it an interim budget as it was more like a full-fledged budget for 2019-20.
One of the critical points that were seen in the budget announcement 2019 was that the previously launched interim budgets or vote on accounts never had significant income tax rate proposals. No party will dare to oppose the increase in a tax exemption or standard deduction limits. Here are some other key takeaways from the Union Budget Speech 2019 of FM Piyush Goyal.
Agricultural Sector/ Farmers
- Nearly 12 crore small and marginal farmers will be provided with an assured yearly income of Rs 6000 per annum under PM KISAN Scheme.
- An outlay of Rs. 75,000 crore for FY 2019-20 with additional Rs. 20,000 crore in RE 2018-19.
- Interest subvention of two percent during any disaster will be provided for the entire period of reschedulement of the loan.
- New fisheries department for the welfare of 1.5 crore fishermen.
- The outlay for Rashtriya Gokul Mission increased by INR 750 crore. Besides, Rashtriya Kamdhenu Ayog to be set up for sustainable genetic up-gradation of Cow resources.
Direct Tax Proposals
- The biggest relief was for the salaried class where income up to Rs 5 lakhs will be exempted from the income tax. This is approximate Rs 23,000 crore tax relief to three crores, middle-class taxpayers.
- Further, Standard Deduction on Income tax is raised to Rs 50,000 from Rs. 40,000.
- There is no change in the existing rates of income tax; however, Tax will now be exempted on notional rent on a second self-occupied house. Furthermore, the period of tax exemption on notional rent, unsold inventories, is extended from one to two years.
- Housing and real estate segment is expected to get a boost
- An increase from Rs. 1,80,000 to Rs. 2,40,000 is introduced in the TDS threshold for deduction of tax on rent.
- One can now enjoy the benefit of rollover of capital gains from investment in one residential house to two residential houses for gains up to Rs 2 crores.
Fixed monthly pension to Rs 10 crore is announced to unorganized sector workers under Pradhan Mantri Shram Yogi Maandhan scheme. Besides this, Rs 3000/month will be given to people after 60 years of age with an affordable contribution of only Rs 100/55 per month.
22nd AIIMS will be set up in Haryana.
- 3% of the fiscal deficit target is set to be achieved for 2020-21. It pegged at 3.4% of GDP for FY 2019-20 which was brought down from almost 6% seven years ago.
- Thirteen percent increase is introduced in the total expenditure cost to Rs.27,84,200 crore in 2019-20 BE.
- More focus will now be on debt consolidation along with fiscal deficit consolidation programme.
The budget for the defense segment to cross Rs 3 lakh crore for the first time.
The budget introduced capital support of Rs.64,587 crore in 2019-20 (BE). The overall expenditure programme would be of Rs. 1,58,658 crore. Besides, the Operating Ratio is also expected to improve from 98.4% in 2017-18 to 96.2% and 95% in 2018-19 (RE) and 2019- 20 (BE), resp.
- The filmmakers of the country will get access to Single window clearance for ease of shooting films.
- Regulatory provisions will now rely more on self-declaration.
- Anti-camcording provisions are to be introduced under the Cinematograph Act to control the rising cases of piracy.
MSME and Traders
- To promote women empowerment, the Government promised to source at least 3% of the 25% undertakings from the women-owned SMEs.
- There will be around 2% interest subvention on Rs 1 crore incremental loan for all GST registered SMEs.
- More focus will be on the Internal trade, Department for Promotion of Industries and Internal Trade will be the new name for DIPP.
Rural Areas and Villages
The Government announced to change around 1 lakh villages into Digital Villages over the next upcoming five years.
Other Critical Announcement
The New National Artificial Intelligence Portal will now support national Program on Artificial Intelligence.
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These were the major highlights of the Budget 2019; the impact proved to be positive for the market today as tax exemption on salary up to Rs 5 lakh created positive sentiments among the mass. The further implications and analysis will soon be provided from our end. So, stay tuned to get the best of updates.
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