Union Budget 2019-20
This topic provides information related to the highlights of Union Budget 2019-20.
The Union Budget 2019-20 was presented on July 05, 2019 in the parliament by the Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman. The sector-wise highlights are indicated below.
10-point Vision for the decade
- Building Team India with Jan Bhagidari: Minimum Government Maximum Governance.
- Achieving green Mother Earth and Blue Skies through a pollution-free India.
- Making Digital India reach every sector of the economy.
- Launching Gaganyan, Chandrayan, other Space and Satellite programmes.
- Building physical and social infrastructure.
- Water, water management, clean rivers.
- Blue Economy.
- Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables.
- Achieving a healthy society via Ayushman Bharat, well-nourished women & children, safety of citizens.
- Emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices under Make in India.
- Dairying through cooperatives to be encouraged by creating infrastructure for cattle feed manufacturing, milk procurement, processing & marketing.
- 10,000 new Farmer Producer Organizations to be formed, to ensure economies of scale for farmers.
- Government to work with State Governments to allow farmers to benefit from e-NAM.
- Zero Budget Farming in which few states farmers are already being trained to be replicated in other states.
- Electricity and clean cooking facility to all willing rural families by 2022
- Pradhan Mantri Awas Yojana –Gramin (PMAY-G) aims to achieve "Housing for All" by 2022. Eligible beneficiaries to be provided 1.95 crore houses with amenities like toilets, electricity and LPG connections during its second phase (2019-20 to 2021-22)
- Pradhan Mantri Matsya Sampada Yojana (PMMSY) - A robust fisheries management framework through PMMSY to be established by the Department of Fisheries.
- 1,25,000 kilometers of road length to be upgraded over the next five years under PMGSY III with an estimated cost of Rs. 80,250 crore.
- Scheme of Fund for Upgradation and Regeneration of Traditional Industries (SFURTI) - 100 new clusters to be setup during 2019-20 with special focus on Bamboo, Honey and Khadi, enabling 50,000 artisans to join the economic value chain.
- Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE) consolidated. 80 Livelihood Business Incubators (LBIs) and 20 Technology Business Incubators (TBIs) to be setup in 2019-20. 75,000 entrepreneurs to be skilled in agro-rural industry sectors.
- New National Education Policy to be brought.
- National Research Foundation (NRF) proposed -
- To fund, coordinate and promote research in the country.
- To assimilate independent research grants given by various Ministries.
- To strengthen overall research eco-system in the country
- his would be adequately supplemented with additional funds.
- Massive push given to all forms of physical connectivity through:
- Pradhan Mantri Gram Sadak Yojana.
- Industrial Corridors, Dedicated Freight Corridors.
- Bhartamalaand Sagarmala projects, Jal Marg Vikas and UDAN Schemes.
- State road networks to be developed in second phase of Bharatmala project.
Medium, Small and Micro Enterprises
- Pradhan Mantri Karam Yogi Maandhan Scheme
- Pension benefits to about three crore retail traders & small shopkeepers with annual turnover less than Rs. 1.5 crore.
- Enrolment to be kept simple, requiring only Aadhaar, bank account and a self-declaration.
- Capital gains exemptions from sale of residential house for investment in start-ups extended till FY21.
- "Angel tax" issue resolved-start-ups and investors filing requisite declarations and providing information in their returns not to be subjected to any kind of scrutiny in respect of valuations of share premiums.
- Funds raised by start-ups to not require scrutiny from Income Tax Department
- E-verification mechanism for establishing identity of the investor and source of funds.
- Special administrative arrangements for pending assessments and grievance redressal
- No inquiry in such cases by the Assessing Officer without obtaining approval of the supervisory officer.
- No scrutiny of valuation of shares issued to Category-II Alternative Investment Funds.
- Relaxation of conditions for carry forward and set off of losses.
- Stand-Up India Scheme to be continued for the period of 2020-25. The Banks to provide financial assistance for demand based businesses.
Energy and Environment
- Power at affordable rates to states ensured under "One Nation, One Grid"
- Cross subsidy surcharges, undesirable duties on open access sales or captive generation for industrial and other bulk power consumers to be removed underUjjwal DISCOM Assurance Yojana (UDAY).
- India‟s water security
- New Jal Shakti Mantralaya to look at the management of our water resources and water supply in an integrated and holistic manner
- Jal Jeevan Mission to achieve Har Ghar Jal (piped water supply) to all rural households by 2024
- To focus on integrated demand and supply side management of water at the local level.
- Convergence with other Central and State Government Schemes to achieve its objectives.
- 1592 critical and over exploited Blocks spread across 256 District being identified for the Jal Shakti Abhiyan.
- Swachh Bharat Mission to be expanded to undertake sustainable solid waste management in every village
Science and Technology
- New Space India Limited (NSIL), a PSE, incorporated as a new commercial arm of Department of Space. To tap the benefits of the Research & Development carried out by ISRO like commercialization of products like launch vehicles, transfer to technologies and marketing of space products.
- Proposal to consider issuing Aadhaar Card for NRIs with Indian Passports on their arrival without waiting for 180 days
- TDS of 2% on cash withdrawal exceeding Rs. 1 crore in a year from a bank account
- Business establishments with annual turnover more than Rs. 50 crores hall offer low cost digital modes of payment to their customers and no charges or Merchant Discount Rate shall be imposed on customers as well as merchant
- Scheme to invite global companies to set up mega-manufacturing plants in areas such as Semi-conductor Fabrication (FAB), Solar Photo Voltaic cells, Lithium storage batteries, Computer Servers, Laptops, etc.
- Approach shift fromwomen-centric-policy making to women-led initiatives and movements.
- A Committee proposed with Government and private stakeholders for moving forward on Gender budgeting.
- SHG: Women SHG interest subvention program proposed to be expanded to all districts.
- Overdraft of Rs. 5,000 to be allowed for every verified women SHG member having a Jan Dhan Bank Account.
- One woman per SHG to be eligible for a loan up to Rs. 1 lakh under MUDRA Scheme.
- Tax rate reduced to 25% for companies with annual turnover upto Rs. 400 crore
- Surcharge increased on individuals having taxable income from Rs. 2 crore to Rs. 5 crore and Rs. 5 crore and above.
- Interchangeability of PAN and Aadhaar - Those who don‟t have PAN can file tax returns using Aadhaar. Aadhaar can be used wherever PAN is required.
- Pre-filling of Income-tax Returns for faster, more accurate tax returns.
- Faceless e-assessment with no human interface to be launched
To access the complete Budget Speech, click here.
Source : Ministry of Finance.