02/02/2019
Highlights of the Interim Budget for 2019-20 (Apr-Mar), presented
by Finance Minister Piyush Goyal in Parliament today:
FY20 ESTIMATES
* Will spend 190 bln rupees FY20 on rural road plan
* 600 bln rupees being allocated for MNREGA FY20
* Will provide more if needed for MNREGA in FY20
* Defence outlay at 3 trln rupees in FY20
* Allocated 645.8 bln rupees for railways FY20
* FY20 northeast infra allocation at 581.7 bln rupees
* Railway operating ratio seen 96.2% in FY19, 95% in FY20
FY19 REVISED
* FY19 fiscal deficit seen at 3.4% of GDP
* Allocated 200 bln rupees for farm income scheme in FY19
FISC HEALTH
* Restored fiscal balance
* India has been in best phase of macroeconomy in last 5 yrs
* Contained fisc deficit despite raising states' tax share
* India attracted $239 bln as FDI in 5 years
* Most FDI came through automatic route
* Current account deficit seen at 2.5% of GDP
* Will provide additional funds for Defence, if needed
* Disbursed over 350 bln rupees for one-rank-one-pension plan
GROWTH, INFLATION
* Average growth in 5 yrs highest since econ reforms began
* 2008-2014 saw expansive credit growth
* Reforms have set stage for decades of high growth
* Inflation is unfair tax on poor, middle class
* Have broken the back of back-breaking inflation
* Contained double digit inflation
FINANCIAL SECTOR, MARKETS
* RBI's AQR revealed hidden NPAs in 2015
* Had guts to tell RBI to do asset quality review of banks
* Have run a corruption-free govt
* Ushered in new era of transparency
* Banks' merger being done to improve access to capital
* Spent 2.6 trln rupees so far on bank recapitalisation
* Bank mergers done to get economies of scale
* Expect other banks to soon exit prompt corrective action
* IBC a resolution friendly mechanism retaining assets' value
* On IBC: Even big businessmen now worry about loan repayment
* 3 trln rupees already recovered by banks
* IBC has institutionalised recovery of NPAs
* Govt stopped culture of phone banking
* Measures undertaken to ensure clean banking
* 175-bln-rupee orders placed on govt e-marketplace
* Govt e-marketplace being extended to all PSUs
INFRASTRUCTURE, INDUSTRY
* 7.23 trln rupees MUDRA loans given so far
* India 2nd largest hub for start-ups now
* To create 100,000 digital villages in 5 years
* Mobile data consumption increased 5 times in last 5 years
* Need to improve hydropower capacity to cut oil, gas import
* Solar power generation capacity raised 10 times
* To start container cargo movement in northeast
* All unmanned level crossings on broad gauge eliminated
* 27 km of highways being built each day
* India fastest highways developer in the world
* Gone beyond incremental growth in infra
FARM SECTOR
* Seek a new India where farmers' income would have doubled
* Income support scheme to be given in 3 equal instalments
* Income support for farmers holding less than 2 ha land
* Kisaan scheme to transfer 6,000 rupees/yr to small farmers
* To create PM Kissan Fund for small, medium farmers
* Fall in commodity, farm pdt prices have reduced farm income
* There is a need for structured income support for farmers
* Agriculture continues to be main driver of rural economy
* Increased allocation for Gokul scheme to 7.5 bln rupees
* 1st instalment of 2,000 rupees to be given to farmers soon
* Income support scheme to cost 750 bln rupees per year
* Farm income scheme to be effective from Dec 1, 2018
* 120 mln small farmers to benefit from income support scheme
* Farm income scheme to be fully funded by central govt
* Interest subvention for farmers hit by natural disasters
* To set up Rashtriya Kamdhenu Aayog
* To start drive to bring all farmers under Kisan credit plan
* 2% interest subvention for animal husbandry, fisheries
SOCIAL SECTOR, EDUCATION
* Ayushman Bharat to provide facilities to 500 mln people
* Massive scale-up in healthcare in last 5 years
* Construction of rural roads tripled under PM road plan
* Swachh Bharat world's largest behavioural change movement
* Conducted transparent auction of natural resources
* To set up 22nd AIIMS in Haryana
* Households saved 30 bln rupees from Ayushman Bharat
* 1.7 trln rupees spent for food at affordable rates for poor
* 5-bln-rupee allocation for new "mega" pension plan
* Half of GDP is from 420 mln workers in informal sector
* EPFO data shows formalisation of econ, job creation
* Jobs are created when there is high growth
* Aim 80 mln LPG connections under Ujjwala plan by next yr
* To allot more funds for new "mega" pension plan, if needed
* To give 3,000 rupees/month under new PM pension plan
* New pension plan for workers earning below 15,000 rupees/month
MISCELLANEOUS
* India is solidly back on track
* Have reversed policy paralysis engulfing the nation
* Goyal wishes speedy recovery to Jaitley
* People of India gave strong mandate to our govt
* India 6th largest economy in the world
* India fastest growing major economy in the world today
* India recognised as a bright spot in last five years
* India marching towards growth, prosperity
* Have run a corruption-free govt
* Ushered in new era of transparency
FM Goyal announces full tax rebate for income up to Rs 5 lakh
Cheer for middle income tax payers. FM Goyal announces tax rebate and increase in standard deduction.
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No tax on notional rent on second self-occupied house and no tds on house rent up to Rs 2.4 lakh
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FM raises standard deduction raised from Rs 40,000 to Rs 50,000.
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Tax on SB Interest exemption raised from 10,000 to 40,000
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So those with income up to Rs 5 lakh and another Rs 1.5 lakh in investments totalling Rs 6.5 lakh will have to pay no tax. Will benefit nearly Rs 3 crore middle class income earners
