Finance Minister Piyush Goyal on February 1, 2019, presented the Union Budget 2019 in Lok Sabha. Goyal was elected as the interim Finance Minister on January 23 because Arun Jaitley was undergoing treatment in the USA. Like every year the budget was received with cheers and boos. For the middle class and farmers, the budget has brought a sigh of relief. Here are the highlights:
Budget 2019: Important Points & Highlights
1. India attracted a total of $239 billion FDI, fiscal deficit at 3.4% for the upcoming fiscal year.
2. Rs 6000/year to support farmers income.
3. Ayushman Bharat Yojna to support 50 crore people. Funds allocated – Rs 3000 crore
4. 4,45,000 villages – open defecation free
5. 10% reservation for economically backward classes to generate 2 lakh seats and positions in education and job sphere
6. MNREGA fund allocated Rs.60,000 crore to bridge the gap between rural and urban.
7. Construction of rural roads increased by 3 times and rural housing construction by 5 times (1.53 crore houses built)
8. Healthcare scale up – Ayushman Bharat Yojna. Rs.3000 crore allocated to the scheme expected to treat 50 crore people.
9. Aspirational District Program for targeted development of 115 most backward districts.
10. 22nd AIIMS to be in Haryana.
11. Zero-Income slab doubled–to Rs.500,000; Rs.650,000 with Rs.1,50,000 tax-saving investments.
12. The standard deduction for the salaried raised from Rs.40,000 to Rs.50,000.
13. Gratuity limit increased by from Rs.10L to Rs.30L.
14. Farmers with 2 hectares of land will be transferred a sum of Rs.6000/ annum in 3 equal installments of Rs.2000. Rs.75,000 crore allocated to this scheme.
15. 2% interest relaxation to farmers using the Kisan Credit Card working in animal husbandry and fisheries. The movement to include all farmers under this scheme.
16. Maternity leaves increased to 26 weeks.
17. More than 3 Lakhs crores for defense.
18. One lakh digital villages in next 5 years. Data consumption increased 50 times.
19. Aadhar encompassing the country has eliminated the middleman theft.
20. India is one of the lowest prices wrt voice and data rates.
21. Single window for approval of India filmmakers
22. India the fastest growing economy- 6th largest economy up from 11th largest.
23. 10 crore workers from unorganized sectors will have benefit from the Pension Scheme. Rs.3000/m for workers earning up to Rs.15,000
24. For Direct Tax Payers: Simplification of the tax payment system. Interface with tax department electronic and largely faceless. Scrutiny to be done electronically and anonymously.
25. IT Returns to be processed in 24 hours and returns issued simultaneously.
26. Increase in income tax collection from Rs.6.38lakh crore to ₹12 lakh crore
27. GST burden reduced on the middle class. Daily use items GST to be 0-5%.
28. GST council to review tax burden on homebuyers.
29. TDS threshold increased from Rs.10000 to Rs.40000 (bank and post office deposits)
30. Limit of TDS increased from Rs.180000 to Rs.240000 (house rent income)
31. Capital tax benefit increased from investment in one residential house to two residential houses.
32. India to become a $5 trillion economy in five years and a $10 trillion economy in 10 years.
33. The 10-dimensional vision for the next decade: Build next-gen infrastructure, for all modes of transport, physical and social for a 10 trillion dollar economy. Bring in renewables as the primary source of energy and move forth in the space initiatives.
34. No tax on notional rent for a second self-occupied home
35. The tax cut to give relief of Rs.185 billion to 30 million taxpayers
36. Brought Rs.1.3 trillion undisclosed income under the tax net (black money elimination)
37. 27 KM highway built every day, making India the fastest highway developer
38. 99.54% of returns were accepted as filed without scrutiny.
39. Tax returns up from Rs.3.79 crore to Rs.6.85 crore.
40. Rs.3.36 lakh crore capital expenditure target.
41. 12% GST for cinema-goers.