Union Budget 2019-20: Key Updates
Finance Minister Nirmala Sitharaman reached the Lok Sabha to present Union Budget 2019-20. Here are the key updates.
It took over 55 years to Indian economy to reach $1 trillion but likely to become $3 trillion economy by FY20
The finance minister express her confidence that project like Bharatmala will enhance road connectivity and Sagarmala will help port and waterways connectivity.
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Sitharaman said “it is estimated that railway infra will need investment of INR 50 lakh crore between 2018 and 2030” and necessary to privatise.
Pension benefits under new scheme called Pradhan Mantri Man dhan Scheme will be offered to 3 crore shop owners with annual turnover of less than Rs 1.5 crore
Sitharaman express her confidence that will work to make a platform for listing social enterprises and voluntary organisations to raise capital as (1) equity, (2) debt or (3) units like mutual fund
India’s FDI inflows in FY 2018-19 remained strong compared to global at $ 54.2 billion, 6% higher as compared to last year.
The finance minister assure the nation that all will have electricity connection by 2022 “except those unwilling to take the connection”
Sitharaman said nearly 1.95 crore houses are proposed to be provided to eligible beneficiaries under the Pradhan Mantri Awas Yojana,
Approximately 1,25,000 km of roads will be upgraded under “Pradhan Mantri Gram Sadak Yojana” at estimated cost of nearly INR 80,200 Cr
9.6 crore toilets have been constructed and more than 5.6 lakh villages have become open-defecation free, and approximately 95% of all cities have declared themselves open-defecation free.
For the youth of India, the government proposes a National Education Policy (NEP) to transform and take India’s higher education system to global standards,
From no single Indian institute in top 200 universities ranking until 5 years ago, Sitharaman said, India now have 3 institutions in the top 200 global institutions bracket.
A new channel is proposed to be started under Doordarshan bouquet to provide a platform for startups to disseminate information in the industry.
Finance Minister said, under the Pradhan Mantri Shram Yogi Maan Dhan Yojana of providing INR 3,000 – nearly 30 lakh workers have joined the scheme,
Nearly 35 crore LED bulbs have been distributed leading to cost saving of INR 18,341 Cr annually,
Training of 10 million individuals in industry relevant skills like AI, Big Data, and IoT will help address the severe skill shortage technology and IT companies are facing right now.
The government is developing 17 iconic tourism sites as world-class tourist centres to improve the flow of foreign and domestic tourists to these destinations.
The government has proposed to allocate INR 70,000 Cr for PSU Bank recapitalisation.
The Government of India proposes INR 100 lakh crore investment for infrastructure over the next 5 years,
The government is setting an enhanced target of INR 1.05 Cr for disinvestment during FY20 and will continue with disinvestment of PSUs in the non-financial space
Direct tax revenue has grown 78% from 2014 to 2019
Additional income tax deduction of INR 1.5 lakh on interest paid on loans taken to buy electric vehicles. This leads to a benefit of INR 2.5 lakh Cr over the tax period of the loan for the loan payer.
An additional deduction of INR 1,50,000 on interest on loans borrowed under affordable housing until 2020.
The Securities Transaction Tax (STT) is proposed to be restricted to the difference between settlement and strike price of options,
2 percent tax levied on cash withdrawal over INR 1 Cr per year
In view of rising income levels, a surcharge will be levied on individuals with taxable income of INR 2 to 5 Cr, and Rs 5 crore and above.
Interest deduction up to INR 3.5 lakh for affordable housing as against INR 2 lakh earlier now to be available until March 31, 2020.
The government proposes an increase in customs duty on gold and other precious metals to 12.5% and a special additional excise duty of Re 1/Litre on petrol and diesel. A 5% customs duty on imported books and increase on auto parts, synthetic rubber, PVC, vinyl flooring and tiles.
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