India’s Union Budget 2019 in ‘Bahi-Khata’

Nirmala Sitharaman is the second Woman Finance Minister of India after Indira Gandhi.

Finance minister Nirmala Sitharaman presented the Union Budget 2019 in the Parliament on Friday.

This is the first budget of Modi’s Government in his subsequent term and a maiden one for our Finance Minister.

Nirmala Sitharaman hit it out of the ground by bringing the Budget plans and documents in a four-fold red-cotton cloth called ‘Bahi-Khata’ which was previously brought in leather briefcase as an ‘colonial’ practice.

A breif look into India’s Union Budget 2019;

Employment

  1. For Agro-Rural industries, Incubators of nearly 80 livlelihood Business and 20 technology Business will be established under ASPIRE in accordance to develop 75,000 skilled enterpreneurs.
  2. Skill sets for Young students to get abroad job opportunities like Artificial Intelligence and Language skills.
  3. DD National was asked to start a television programme for startups.

‘Naari tu Narayani’

  1. To encourage women entrepreneurship, Women Self-help Groups(SHGs) Interest Subvention Programme will be extended in all districts in India.
  2. One Woman in every SHG will be eligible for a loan of 1 lakh rupees under MUDRA scheme.

Railways

  1. The Railway infrastructure needs an 50 lakh crore investment in the timeline of 2018 to 2030. Public Private Partner(PPP) shall be used to unviel faster development.
  2. A huge programme for Railway station modernization will be launched in 2019.

Banks

  1. Rs.70,000 crore to boost capital and credits for Public Sector Banks(PSBs).
  2. To enable customer from one particular PSB to access service over other PSBs as well.
  3. For the purchase of high-rated assets of financially sound Non Banking Finance Companies(NBFC) amounting to Rs.1 Lakh crore during 2019-20, one time partial six-month credit shall be given to PSBs.
  4. The Regulation of Authority over housing finance sector to be returned from National Housing Bank to RBI.

Electric Vehciles

  1. Government has already asked GST council to lower the tax rate on Electric Vehicles from 12% to 5%
  2. Government shall provide Rs.1.5 lakh income tax deduced on interest payments on the loan for electric vehicles.

Tax

  1. The Direct Tax collection increased by 78% (ie.,) Tax collection rose from Rs.6.38 lakh crore in 2013-2014 to Rs.11.37 lakh crore in 2018.
  2. Companies having 400 crores turn over, will have 25% Corporate Tax rate. This incorporates 99.3% of the companies.
  3. Nearly 120 Crore of Indian have Aadhar card, and propose tax payers to make PAN card and Aadhar card interchangeable.
  4. Further encouragment for affordable housing, additional deduction of 1.5 lakh rupees on Interest paid on loans borrowed upto 31 March,2020 for purchase of house upto 45 lakhs.
  5. Faceless income tax assessment in electronic mode to be launched this year in a phased manner, to reduce taxpayer harassment.

GST

  1. Rs. 350 crore for provided for 2% interest subvention for all GST-registered MSMEs on new loans.
  2. Completely automated GST Refund module will be implemented, multiple tax ledgers to be replaced by one in a central system.

Connectivity

  1. National Highways Programme to be done, to ensure National Highways grid of good capacity; rivers for cargo transportation.
  2. So far, 657 km of metro rail network is already functioning over the nation.

Custom duty

  1. Basic customs duty for specific items to be increased to promote ‘Make in India’ goal.
  2. Import of defence equipments are exempted from custom duty.
  3. 5% customs duty over imported books to promote domestic publishing and printing industry.

Swachh bharat Mission

  1. Swachh bharat Mission to undertake solid waste management in every village.
  2. On October 2,2019 Rashtriya Swachhata Kendra to be inaugurated at Raj Ghat and from then India will be Open Defecation Free(ODF).

Gandhipedia

Gandhipedia shall be developed like Encyclopedia to help promote Gandhian school of thought.

Education and Research

  1. To establish a National Research Foundation to fund and as well as promote research in the country.
  2. New National Educational Policy to be developed to transform Indian Educational system, major changes in higher and as well as school system is expected.

Digital payments

  1. In order to reduce business payments via cash, Tax deduction at source of 2% to be imposed on cash withdrawal above Rs.1 crore annually from a Bank account.
  2. Business implementations with annual turnover greater than 50 crore rupees may offer low-cost digital payments and also no charges to be imposed on buyers or sellers for these.

Disinvestment

Strategic disinvestment of selected Central Public Sector Enterprises continue to be priority, strategic disinvestment of Air India will re-intiate 1 lakh 5000 Rupees is the target for 2019-20.

Rural

  1. By 2022, every single rural family will have an electricity and a clean cooking facility.
  2. 10,000 new Farmer Producer Organizations to be formed to ensure economies of scale for farmers in the next five years.

Pension

Pension benefits to be extended around 3 crore retail traders with annual turn over less than Rs.1.5 crore under Pradhan Mantri Karam Yogi Man Dhan scheme.

NRIs

  1. Aadhar card for NRIs with Indian Passports without waiting for 180 days.
  2. NRI portfolio investment route would be merged with foreign portfolio investment route.

Space

In order to improve India’s space research ability and to benefit ISRO, a public sector enterprise identified as ‘New Space India Limited(NSIL) shall be intiated.

Social Stock Exchange

Organizations working for social welfare objectives will be supported by an Electronic Fund raising platform that would be set up under certain list of social enterprisers.

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