Economy

Interim Budget 2019-20

GP News
01 February 2019 - 05:00 PM
Economy
Interim Finance Minister presented budget today. Below is the key highlights

Economy   ·         
FY20 fiscal deficit target set at 3.4 percent
·         
Expenditure target for FY20 set at Rs 27.84 lakh crore
·         
Capital expenditure for FY20 set at Rs 3.36 lakh crore
FY19 fiscal deficit pegged at 3.4 percent of GDP; current account deficit at 2.5 percent of GDP

Tax changes ·         
No income tax for income up to Rs 6.5 lakh (Rs 5 lakh + Rs 1.5 lakh under 80C of the Income Tax Act)
·         
Full tax rebate for income up to Rs 5 lakh per annum
·         
No tax on notional rent on second self-occupied house
·           
Capital Gains exemption under Section 54 to be available on two house properties
·         
Tax benefit of Rs 18,500 crore given to three crore middle-class tax payers
·         
Standard deduction raised to Rs 50,000 from Rs 40,000
·         
 TDS limit hiked from Rs 10,000 to Rs 40,000 on post-office savings– Group of Ministers looking at ways to ease GST burden on homebuyers
 

Farmers

Mahatma Gandhi National Rural Employment Guarantee program’s allocation increased by Rs 5,000 crore to Rs 60,000 crore for FY20
 Farmers struck by natural calamities will now receive 2-5 percent interest subvention under insurance scheme  Farmers with less than two hectares to be offered Rs 6,000 per year as direct transfer under PM Kisaan Samman Nidhi. The benefit will be transferred directly into the bank account of beneficiary farmers in three instalments of Rs 2,000 each. Around 12 crore farmers to benefit from the scheme. This scheme will cost the government around Rs 75,000 crore  Two percent interest subsidy to be given to farmers involved in animal husbandry activities via kisaan credit card scheme. An additional three percent subsidy will be paid on timely payment of loans  Government announces setting up of Rashtriya Kamdhenu Aayog to enhance productivity of cows

Rural infrastructure
Pradhan Mantri Gram Sadak Yojana allocation set at Rs 19,000 crore, the same as FY19


Workers
Monthly pension of Rs 3,000 for workers in the unorganised sector to be paid out after retirement. Pension scheme to benefit 10 crore workers in the unorganised sector. Those who join at 18 years of age will have to contribute a mere Rs 55 per month. The government will contribute equal matching share in the pension account. This scheme will cost the government Rs 500 crore
 Employees’ State Insurance eligibility cover limit has been raised to Rs 21,000 per month from Rs 15,000 per month  Gratuity limit increased from Rs 10 lakh to Rs 30 lakh Workers who suffer grievous injuries will now receive Rs 6 lakh from Rs 2.5 lakh through Employee Provident Fund Organisation (EPFO)

Education
 Rs 38,572 crore allocated for the National Education Mission


Filmmakers Single window clearance for film-makers. Anti-camcording provision to be introduced to Cinematography Act to combat film privacy

Railways
 Railway capital expenditure raised to Rs 64,586 crore in FY20 from Rs 53,060 crore in FY19


Defence  
Defence budget for FY20 raised to Rs 3 lakh crore  

Medical
 Another All India Institutes of Medical Sciences to be set up in Haryana


Society
 Rs 76,800 crore allocated for welfare of Scheduled Castes (SCs) and Scheduled Tribes (STs)
Centre to implement special strategy for uplift of nomadic tribes