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Union Budget 2019

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  • Interim Budget 2019 - Santa comes in Feb?

    Publish Date: February 01, 2019

    The Union Budget 2019 brought in propositions across various sectors throwing light on the major results that have been achieved in the last 5 years

    The interim budget was read today with consequent table claps. Since it is the election year, a full-fledged Union Budget will be declared by the ‘new’ government in July. Termed by many as the “Santa Claus Budget” declared several results and reforms that came to effect in the last 5 years and laid down several expectations for the future.

    Let’s look at the major highlights of the almost 2 hour-long action-packed Interim Budget 2019 speech:

    Financial Development

    The union budget declared that India attracted a total of $239 billion FDI which lays the target for fiscal deficit at 3.4% for the upcoming fiscal year. With a Debt to GDP ratio aimed to be below 40%, the focus is on debt consolidation along with fiscal consolidation. This hopes to bring in a period of aggressive credit growth.

    With RBI beginning to lift restrictions, the interim budget threw light upon the initiative to propagate clean banking across the country. No slack was cut for major defaulters this year and they were all brought to book with appropriate actions.

    A special Mega Pension Yojna hopes to take care of the pension needs of 10 crore workers from the unorganized sectors through this Union Budget with an allowance of Rs. 3000 per month. The defense budget will witness a hike of over Rs. 3 lakh crores which will include pay hike as well.

    Taxes

    The interim budget proposed NIL tax for resident individuals having total income up to Rs. 500,000. Another major step was that the standard deduction limit for salaried individuals was raised to Rs. 50,000 from Rs. 40,000. With increased death benefits and raised share of Govt. in NPS, the interim budget is looking to reduce the tax burden on middle-class taxpayers.

    A major reform in the income tax arena is its digitization which will make the scrutiny of return files anonymous and middlemen-free. The online platform is expected to process IT returns in 24 hours with returns being issued simultaneously.

    Government wants to reduce GST burden on homebuyers. GST council is expected to examine and make recommendations in this regard.

    Read more about the Union Budget 2019 and its implication on taxes

    Rural Development & Healthcare

    The main highlight of the Union Budget 2019 was to bridge the gap between rural and urban India with targeted expenditure to improve the quality of life. With Rs. 60,000 crore and more, if need be, allocated to MNREGA, the hope is to provide new-age facilities by keeping the air of the villages intact. In addition to this, efforts to make all Indian villages digital is also on in full force. This initiative will bring over 1 lakh villages under digital competency in the next 5 years.

    Construction of rural roads was reported to have raised by 3 times and rural housing construction by 5 times. Union Budget 2019 shall implement a targeted development in 115 backward districts is underway by the means of Aspirational District Program.

    One of the most applauded announcements of the Union Budget was to provide income support to the farmers of our country. By extending the PM Kisan Yojna to small and marginal farmers, the Interim Budget stated that the aim is to provide support to vulnerable farmers by debiting Rs. 6000 into their accounts through 3 equal installments in a year. 12 crore farmer families are expected to benefit from this scheme with an allotment of Rs. 75,000 crores.

    India launched the largest healthcare program of the world by the name of Ayushman Bharat. To this mission, a total sum of Rs. 3000 crore has been assigned under which 50 crore people are expected to be treated with an aim to reduce the stress of healthcare and wellness.

    The 10 Dimensional Plan

    Union Budget 2019 is hopeful that India is poised to become a $5 trillion economy in the next 5 years and pace towards a $10 trillion economy by 2030. The acting FM Piyush Goyal also presented a 10 Dimensional Plan for the next 10 years before he concluded the interim budget speech.

    The 10 Dimensions are:

    1.   Building an economy with a strong physical and social infrastructure that extends ease of living

    2.  Digitizing every sector of the Indian economy with massive numbers of startups and jobs in the ecosystem

    3.  Green & pollution-free India by making renewables the major source of energy and reducing dependency on imports

    4.  Rural industrialization, in turn, generating massive numbers of jobs

    5.  Clean rivers and safe drinking water by way of micro-irrigation techniques and better inland waterways

    6.  Better infrastructure for oceans and coastlines, building ports and providing the necessary facilities to keep them up to date

    7.  A strong space program in the name of the Gagan Yojna which hopes to make India the launchpad of satellites for the world. The hope is to place an Indian astronaut in space by 2022

    8.  Implementing modern agricultural practices and become an efficient producer and exporter of organic foods

    9.  Building a distress-free healthcare and wellness system for all through schemes like Ayushman Bharat Yojna. Extending safety and empowerment to women across the country

    10.  Maintaining a responsible bureaucracy through Minimum government and maximum governance.

    Union Budget 2019 stated that this is not just an interim budget but a medium to display the journey of India’s growth.

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    By: Sandhya Kannan, Head – Content


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