Indian Budget Highlights 2019-20

The government’s budget was presented by Nirmala Sitharaman in Lok Sabha. The finance minister said that the Gaon, Garib and Kisan are to be given major importance. Gaon means village, Garib means poor and Kisan means farmer. The policies are framed accordingly. Growth and all-inclusive welfare policies that aid in technology-enabled development through a virtuous cycle starting from a private investment will be promoted. The roads will also be upgraded. For instance, 1.25 lakh km of road in the next five years will be upgraded under the Pradhan Mantri Gram Sadak Yojana at an estimated cost of Rs 80,250 crore.

Here are the highlights of the growth and all-inclusive Union Budget:

Growth and All-Inclusive Welfare Policies

• The IT returns can soon be filed not only by using PAN but also by using Aadhaar. They are now interchangeable. 
• Those who are in the block of 2-5 crore along with five crores and above will be taxed high in lieu of rising income. There is said to be an increase of 3% and 7%, respectively, with ₹5 lakh as the minimum limit for taxpayers.

• The GST on electric vehicles is to be lowered. But on the loan interest amount, a 1.5 lakh deduction is available to promote the purchase of electric vehicles. 
• A further deduction of ₹1.5 lakh is available on loans taken up till March 31 2020, targeted at those purchasing affordable houses, bringing a total  ₹ 7 lakh benefit to home buyers. 

Technology-Enabled Development

• The NRIs will be provided with Aadhaar cards and Indian passports with no more waiting period.
• A ₹20 coin will be seen soon, and Excise duty on fuel will be increased by ₹1.
• There will not be any scrutiny concerning startups’ valuation in tax issues. The IT department will also not verify the funds raising conducted by startups.
• To promote payments through banks, a 2% TDS against cash withdrawals should be paid on amounts exceeding ₹ one crore annually from bank accounts. 
• The period is to be extended up to March 31, 2021, for tax exemption on income from capital gains arising from the sale of houses with the intent of investing in startups.
• Under PM Karam Yogi Maan Dhan Scheme, it only requires  Aadhaar numbers and bank accounts to avail of the pension benefit that is to be extended to 3 crore retail traders.

Virtuous Cycle Starting From Private Investment

• To recapitalise public sector banks, ₹70,000 crore is to be allocated.
• A target of ₹1.05 lakh crore is set as a target for disinvestment of the year.
• In order to promote startups, a TV channel is said to be launched that would aid them in acquiring funds.
• An increase of minimum public shareholding up to 25% to 35% is said to be allowed in listed companies’ debt securities in infrastructure debt fund investment by the FIIs and FDIs.
• India is said to host the Global Investors meet to aid in growth and all-inclusive welfare, and technology-enabled development in the nation.

MSMEs and Rural Development

• For MSMEs, ₹ Rupee one crore worth of loans is said to be proposed.
• To undertake soil waste management in all the villages, Swachh Bharat Mission will be used. This is an expansion for growth and an all-inclusive welfare nation.
• The education system in India is to be transformed by the new national education policy with a primary focus on getting international students in.
• Electricity and cooking facilities will be available in every rural family by 2022, which is also the 75th year of Indian Independence. The only ones to whom this won’t be available are those who won’t make a connection.
• For Railway infrastructure, ₹50 lakh crores are said to be allowed.
• With minimal external involvement, a form of gardening is to be introduced, which lays stress on zero-budget farming. This is a self-sustainable practice. 
• At present, domestic borrowings constitute the majority percentage of the government’s borrowings. So, the plan is laid out to invite borrowings in foreign currency. 
• Bharatmala infrastructure project’s phase two to be launched. 

Conclusion

For growth and all-inclusive welfare, a nation’s technology-enabled development has to be introduced. A virtuous cycle starting from private investment will aid in the goal of a 5 Trillion Dollar Economy. The finance minister said that the people of India are full of hope, trust and aspirations for growth and an all-inclusive welfare nation. It is said that the Indian economy will achieve the goal of becoming a 3 trillion dollar economy in 2019. So, the next target for the government was to make India a 5 trillion dollar economy.