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Budget 2019 20: Key highlights of FM Piyush Goyal's announcements

Budget 2019-20: Key highlights of FM Piyush Goyal's announcements

Budget 2019-20: Key highlights of FM Piyush Goyal's announcements
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By CNBC-TV18 Feb 4, 2019 7:37:21 AM IST (Updated)

Here's a list of the key announcements made in the Election Budget.

Interim Finance Minister Piyush Goyal on Friday made key announcements on the economy, income tax, farmer relief packages, among others, while presenting the last Budget of the Modi government ahead of the Lok Sabha elections.

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Here's a list of the key announcements made in the Election Budget:
    • In a major relief to the salaried class, Goyal announced full tax rebate for income up to Rs 5 lakk. This translates to a benefit of Rs 18,500 crore to more than 3 crore taxpayers.
    • The tax deduction at source (TDS) limit, the government said, will be hiked from Rs 10,000 crore to Rs 40,000 crore on post-office savings.
    • Standard deduction has been raised to Rs 50,000 from Rs 40,000. The government also increased the gratuity limit from Rs 10 lakh to Rs 30 lakh. Any person who completes 5 years in an organization is eligible for gratuity. The government has extended the income tax relief on notional rent from unsold houses to two years. The tax on notional rent on unsold inventory will be levied after two years.
    • There will be no tax deduction at source for a house rent of up to Rs 2.4 lakh per year.
    • The government announced a capital gains exemption under Section 54 54 has been increased to Rs 2 crore and will be available on two house properties.
    • The government said there will be no reduction on notional rent on the second self-occupied house.
    • The government approved the PM Kisan Samman Nidhi scheme. Under the scheme, the government assured an income to be transferred through a direct benefit transfer in three equal installments for farmers owning two hectares of land totaling Rs 6,000 in a year. The package was approved at Rs 75,000 crore. This income support will be “retrospective”. Farmers will get this income support from December 2018. So for FY19, the government will shell out Rs 20,000 crore as “income support” to farmers.  The government announced a three percent interest subvention to farmers struck by natural disasters on timely repayment and a two percent upfront interest subvention to the farmers affected by the disasters.
    • Goyal, in his speech, said that all scrutiny for tax will be done via an anonymous digital interface. In two years, there will be no human interference in tax verification and scrutiny.  He said that all tax returns will be processed in 24 hours. He added that the number of tax filers increased from 3.79 crore in FY14 to 6.85 crore this year.
    •  Goyal, in his speech, said the revised fiscal deficit target for 2018-19 is at 3.4 percent from the earlier 3.3 percent. The current account deficit, he said, will be contained at 2.5 percent.
    • The expenditure target for FY20 is at Rs 27.84 lakh crore while the capital expenditure target is at Rs 3.36 lakh crore.
    • The FY19 dividend from RBI, PSU Banks is Rs 74,100 crore. The FY20 target for the same has been pegged at Rs 82,900 crore.
    • The FY20 revenue deficit target has been pegged at 2.2 percent of the GDP.
    • The FY20 gilt repayment is pegged at Rs 2.36 lakh crore.
    • The FY20 net market borrowing has been pegged at Rs 4.73 lakh crore. while the gross market borrowing for the financial year has been pegged at Rs 7.1 lakh crore.
    • The FY20 dividend from PSU units has been pegged at Rs 53,160 crore.
    • The government said it is confident to reach the divestment target of Rs 80,000 crore. The target for FY20 has been pegged at Rs 90,000 crore
    • Goyal said the Group of Ministers is examining whether there can be a reduction of burden for homebuyers can be done via GST rates.
    • The government announced an allocation of Rs 500 crore for a mega pension scheme, Shram Yojana, for the unorganised sector. For those who have reached the retirement age, 60, will get a monthly pension of Rs 3,000.
    • Goyal said the government spent Rs 2.6 lakh crore in the recapitalisation of the public sector banks and recovered Rs 3 lakh crore so far,  through the Insolvency and Bankruptcy Code procedures. He reiterated that Bank of India, Bank of Maharashtra and the Oriental Bank of Commerce are out of the PCA framework. He expects other banks to soon exit the PCA framework.
    • He said India has achieved 98 percent rural sanitation coverage. And on realty, he said RERA and Benami Properties Act helped bring transparency in the sector.
    • The government said they spent Rs 1.17 lakh crore in farm procurement in 2019 so far.
    • A NITI Aayog committee will be set up for denotified nomadic and semi-nomadic communities.
    • An amount of Rs 19,000 crore has been allocated for Pradhan Mantri Gram Sadak Yojana and Rs 60,000 crore for MGNREGA this year.
    • The Modi government promised electricity for all households by March 2019.
    • The government announced eight crore free LPG connections under 'Ujjwala' Yojana scheme.
    • Goyal said the government has seen a massive scale-up in the healthcare sector in the last five years and 10 lakh people have been enrolled in Ayushman Bharat so far.
    • The government said they will set up Rashtriya Kamdhenu Aayog, for the welfare of cows.
    • The government pegged the Defence Budget for FY20 at Rs 3 lakh crore. Goyal said that the government will provide additional funds for Defence, if needed.
    • The government announced a two percent interest subvention for micro, medium and small enterprises (MSME) loans with a ticket size of one crore.
    • The government allocated Rs 64,587 crore for the Railways sector in FY20. The operating ratio for railways is seen to be 96.2 percent in FY19.
    • The government has given single-window clearances for Indian filmmakers.
    • The cost of data and voice calls in India is possible to be the lowest in the world, Goyal said. He said the government will set up one lakh digital villages in the next five years.
    • The electric vehicles are a key part of the BJP government's vision for 2030, Goyal said.
    • The government allocated an increase of 21 percent government expenditure in the Northeastern states.
    • The government said nine priority areas will be identified for AI hubs across India. Interim FM Piyush Goyal said in order to take AI and technologies to the people, a national programme on AI has been envisaged.
    • Sagarmala Project, a strategic and customer-oriented initiative to modernize India's Ports, will be scaled up.
    • Rs 38,572 crore has been allocated for the National Education Mission.
    • Rs 76,800 crore has been allocated for the Welfare of SC/ST.
    • Goyal said 15.56 lakh loans worth Rs 7.23 lakh crore have been sanctioned under Mudra scheme. 
    • (Note: subvention means a grant of money, especially from a government.)
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