The Features OF Budget 2019-20

With a considerable slowing in GDP growth during the second half of 2018-19, the Union budget of India 2020 tried to strike an ideal balance between budgetary responsibility and economic development. The budget of India 2020 intends to mobilise additional resources from non-tax revenue and lack of investment. At the same time, direct taxes are projected to remain robust, as in 2018-19, considering the expenditure goals of improving infrastructure and social and supporting capital investments in the economy. The sharing of information about excess budgetary resources increased fiscal openness tremendously. GST revenues will need to be lively to reduce the deficit while satisfying growth-related expenditure goals.

The Features of Budget 2019-20

Listed below are the essential features of the budget 2019-20

• The minimal limit for taxpayers has been set at Rs5 lakhs. Because of increased income levels, people in the Rs 2-5 crore and Rs 5 crore-and-above categories will experience a 3 % and 7% hike in effective tax rates
• The PAN and Aadhaar numbers would be convertible. Soon, you’ll be able to file your IT returns using your Aadhaar number
• The GST rate for electric vehicles is suggested to be reduced to 5%. Interest on loans made to acquire electric vehicles is eligible for a 1.5 lakh additional income tax deduction
• To purchase affordable housing, additional deductions of Rs 1.5 lakh on loans taken out till March 31, 2020, give buyers a total benefit of Rs7 lakhs
• TDS of 2% on withdrawing cash from bank accounts greater than one crore in a year to discourage corporate cash transactions is an important feature of budget 2019-20
• With an emphasis on attracting international students, a new national educational strategy aims to convert Indian education into one of the greatest in the world
• Focus on zero-budget agriculture and autonomous gardening that requires little outside help is an important feature of the budget 2019-20
• Except for those who refuse to connect, every rural home will have power and clean cooking facilities by 2022, the 75th year of independence

The Vision to Become a $5 Trillion Economy Driven by Profit

India is the world’s sixth-biggest economy and is one of the world’s fastest developing economies. So, over the medium run, growth figures for India are promising and hopeful. The economic fundamentals point to India’s ability to grow to a $ 5 trillion GDP by 2025. The existing financial structure and growth dynamics allow us to set a goal of $1 trillion in agricultural and related industries, $1 trillion in industry, and $3 trillion in communications.

The government is working on many growth-oriented projects in several industries. In agriculture, the government wants to shift the focus of policy away from output and toward revenue. The focus on earnings opens up a larger window of opportunity for the sector’s growth. The planned Industrial Policy 2018 lays a broad, sector-neutral agenda for future businesses to build an internationally competitive, sustainable, and equitable Indian industry.

The Champions Service sector project is also underway to help certain service industries expand faster. The Working Group took note of these actions and encouraged renewed efforts to attain the five-trillion-dollar economic goal, and this will make successful our vision to become $5. Trillion economy driven.

What Effect Does the Budget Have on the Public and Their Finances?

• Motor Items, Camcorder

Basic import taxes on car components, fibre optics, digital cameras, cashews, some synthetic fibres, and vinyl tile have been raised, according to Nirmala Sitharaman.

• Gold

The Union Budget 2019 included measures to increase customs charges on gold and rare metals to generate revenues. With the current news, gold, as well as other metals prices, will increase. The immigration charge on gold imports has risen from 10% to 12.5 %, making gold even more expensive.

• Fuel

The government has increased the special extra excise tax and road cess on gasoline and fuel by one rupee per litre. According to Nirmala Sitharaman, lower crude oil prices allowed her to reassess the sector’s taxation. Nitin Gadkari, a union minister, supported the fuel price rise, claiming that it would free up more funding for infrastructure projects.

• Women Only

On Friday, Nirmala Sitharaman revealed in her budget address that under the ‘Mudra Yojana,’ every certified woman self-help group member with a Jan Dhan account will get an overdraft capacity of Rs 5,000. ‘Nari tu Narayani,’ she remarked, is the government’s motivation for encouraging women. 

Conclusion

In the budget of India 2020, Sitharaman also officially announced the expansion of India’s infrastructure network. She proposed that a plan be made public to construct gas networks, water networks, and major airports. The government has decided to increase the PM Rural Sadak Yojana funding, and one lakh kilometres of roadways would be upgraded, according to Sitharaman. The government will have to pay Rs 80,250 crore for this. She didn’t say from where the funds would come. According to the finance minister, sanitation work will henceforth be done by robots to “preserve the dignity of manual scavengers.”