Finance Minister of India Nirmala Sitharaman presented Union Budget 2019 Highlights on 5th July 2019 for the financial year 2019 to 2020.
The Union Budget of India is the Annual Financial Statement of the country according to Article 112 of the Constitution of India. It is a statement of the estimated expenditure and receipts of the country for a particular year.
In independent India, the first Union budget was presented by R. K. Shanmukham Chetty on November 26, 1947.
Finance Minister Nirmala Sitharaman of India’s cabinet minister on 5th July 2019 presents her 1st Union budget in Parliament. This is also the first Budget of the Narendra Modi-led NDA government in its 2nd term. This is an overall 89th Budget of India.
she chose to carry the Budget 2019 documents in red cloth with National Emblem embossed on it and folded with four-fold cloth was tied with a yellow-red string in above.
Here are the major Highlights of the Finance Minister’s Budget 2019 of India. These lists are important exam oriented Highlights of Union Budget 2019 which are helpful to Aspirants for all competitive examination.
- All farmers who affected by severe natural disasters to get 2% interest subvention and an additional 3% subvention for the farmer who timely loan repayment.
- Rs 6,000 will be given directly into the bank account to each farmer having up to 2-hectare land per year Under Pradhan Mantri Kisan Samman Nidhi scheme.
- INR 750 crore allocated to set up Rashtriya Kamdhenu Aayog for cow welfare Under the National Gokul mission.
- For animal husbandry2% interest subvention to farmers.
- Create a separate department for fisheries.
- For Public Sector Banks (PSBs) to provide Rs 70,000 crore to boost capital and improve credit.
- Regulation of HFCs (Housing Finance Cos) to move to RBI from National Housing Bank.
- Standard Deduction raised INR 40000 to INR 50000 a year.
- The limit of Gratuity will be increased from Rs.10 lakh to Rs.30 lakh.
- Regulation authority over housing finance sector to be returned from National Housing Bank to RBI.
- To attract foreign students in higher education Govt. launched ‘Study in India’
- For higher education scheme “world-class Institutions” allocate Rs 400 crore.
- NFR (National research foundation) to fund, coordinate and to promote research in the country.
- New Higher Education Commission with a focus on higher autonomy.
- Khelo India Scheme to be explained.
- Focus to be increased on Globally valued skill-set including language training.
- National education policy launch.
Ease of living
- Rs 3,000 pension per month for informal sector workers.
- Aadhaar card under 180 days for NRIs on arrival in India.
- Govt to open embassies in countries where India doesn’t have a resident diplomatic mission as yet.
Good & Service Tax(GST)
- for all GST-registered MSMEs on fresh or incremental loans Rs 350 crore allocated for 2% interest subvention.
- Taxpayers whose annual turnover of fewer than 5 crores need to file only quarterly returns.
- Multiple tax ledgers to be replaced by one.
Rural Area sector
- New 10,000 farmer producer organizations to be formed for the farmer to ensure economies of scale for farmers over the next five years.
- Common Facility Center (CFCs) to be set up to facilitate cluster-based development.
- Housing for all by 2022.
- Every single rural family will have electricity and a clean cooking facility By 2022, except those who are unwilling to take the connection.
- A public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO 5,000 rupees overdraft facility
Union Budget 2019 on Tax
- No change in personal income tax rates
- Within two years the taxation process will be simplified and done electronically.
- Direct tax collection increased by 78%; Tax collection rose from Rs 6.38 lakh crore in 2013-14 to Rs 11.37 lakh crore in 2018.
- The income tax exemption limit increased to INR 5 lakh from the current INR 2.5 lakh. Whose annual income up to INR 5 lakh of Individual taxpayers, to get a full tax rebate.
- Individuals with gross income up to INR 6.5 lakh will not need to pay any income tax if they make investments in provident funds and prescribed equities.
- Either PAN card or Aadhar card accept for return file. Those who don’t have PAN to file returns by simply Aadhar number.
- Additional deduction of 1.5 lakh rupees on interest paid on loans borrowed up to 31 Mar, 2020 for purchase of house up to 45 lakhs.
- Additional Rs 1.5 lakh tax relief on home loans
- The government has increased Capital Expenditure for the Railways to INR 1.59 lakh crore.
- A semi high-speed train,Vande Bharat Express, an indigenously developed to be launched.
- A new PPP(Public Private Partnership) model will develop infrastructure of Indian railway.
- Railways to be encouraged to invest more in suburban rail network via SPVs.
- Rs 50 lakh crore investment for Railway infrastructure between 2018 and 2030.
- E-vehicle to be incentivized under FAME scheme.
- Deduction of Rs.1.5 of lakh Income tax on interest paid on electric vehicle loans.
- GST Reduction from 12% to 5% on electric vehicles.
- Construction of Rural Roads has been tripled. Pradhan Mantri Gram Sadak Yojana INR 19,000 crore in FY 2019-20.
17 iconic world-class tourist sites to be developed.
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- Nari to Narayani Scheme for Women SHG Interest Subvention Program to be expanded to all districts in India.
- for SHG women members Rs 1 lakh loan to be provided.
- Every SHG member having a Jan Dhan account can avail Rs 5,000 rupees overdraft facility.
- Jal Sakti Mantralaya established to look at the management of water resources.
- Jal Jeevan Mission to ensure piped water for all by 2022.
- Focus on rainwater harvesting, groundwater recharge, and management of wastewater.
Allocations for Various Schemes:
- “One Nation one Grid” Scheme To supply power to states at affordable rates.
- Pradhan Mantri Gram Sadak Yojana (PMGSY) is being allocated INR 19,000 crore in 2019-20.
- By March 2019 All households will be provided with electricity connection To provide medical treatment to nearly 50 crore people in the country under Ayushman Bharat healthcare program.
- Jan Dhan Aadhar Mobile scheme announced to make 1 lakh digital villages in 5 years.
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