Question: Consider the following statements regarding Budget-2019:
1) For 2019-20 budget size is 27.84 lakh crore
2) PM-KISAN Yojana is a direct income support scheme targeted at small and marginal farmers
3) Fiscal deficit has achieved the FRBM target of 3.2 percent this year
4) Government has proposed to establish a new department for fisheries
Of the above correct statements are:
(a) 1, 2 and 3 only
(b) 2, 3 and 4 only
(c) 1, 2 and 4 only
(d) All of the above
- With an aim to realize a ‘New India’ by 2022, Interim budget 2019-20 was presented by the Union Minister for Finance, Corporate Affairs, Railways & Coal Piyush Goyal on February 1st, 2019.
- For 2019-20 the budget size is 2784200 crore Rs which is 13.3 percent greater than the 2018-19 budget of 2457235 crore Rs (Revised Estimates).
- As of now, India became 6th largest economy of the world from 11th largest economy in the world in 2013-14.
- The fiscal deficit has been reported to 3.4%(634398 crore Rs) in 2018-19 (Revised Estimates) from the high of almost 6% seven years ago.For year 2019-20 it is estimated to be 3.4 percent(703999 crore Rs).
- Target of 3 per cent to be achieved by 2020-21.
- Fiscal deficit is the difference between the Revenue Receipts plus Non-debt Capital receipts (NCDR) and the total expenditure. Fiscal Deficit is reflective of the total borrowing requirements of government.
- Revenue Deficit has been reported to 2.2 per cent of GDP in 2018-19(Revised Estimates) and is estimated to be same for 2019-20. Revenue Deficit refers to the excess of revenue expenditure over revenue receipts.
- Effective Revenue Deficit is estimated to be 1.3 per cent of GDP(2, 69, 474 crore Rs) in 2019-20.However,it was 1.1 percent in the Revised Estimates of 2018-19. Effective Revenue Deficit is the difference between revenue deficit and grants for creation of capital assets.
- Primary Deficit is estimated to be 0.2 per cent of GDP(38,938 crore Rs)in 2019-20 and was same for 2018-19(Revised Estimates). Primary Deficit is measured as fiscal deficit less interest payments.
- Current Account Deficit, against a high of 5.6 per cent six years ago, is likely to be only 2.5 per cent of GDP this year.
- “Pradhan Mantri- KIsan SAmman Nidhi (PM-KISAN) “to extend direct income support at the rate of Rs. 6,000 per year to farmer families, having cultivable land upto 2 hectares; with a total outlay of Rs. 75,000 crore for financial year 2019-20 and Rs. 20,000 crore in the revised estimates of financial year 2018-19.
- It will benefit approximately 12 crore Small & Marginal farmer families. Farmers will get first installment (1st out of 3) of Rs. 2,000 at the end of March, 2019 as the scheme is implemented retrospectively form December, 1st 2018.
- To provide sustained and focused attention towards development of fisheries, the government has decided to create a separate Department Of Fisheries. In the future this will ensure growth over 7% to promote livelihood of about 1.45 crore people dependent on the sector.
- To provide pensionary benefits to at least 10 crore labourers and workers in the un-oragnised sector a new scheme called ‘Pradhan Mantri Shram- Yogi Maandhan’ is announced. A sum of Rs.500 crore has been allocated for the Scheme.
- Rs. 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month.
- Allocation increased to Rs. 750 crore for Rashtriya Gokul Mission has been announced for the current year itself. Setting up of “Rashtriya Kamdhenu Aayog” to upscale sustainable genetic upgradation of cow resources and to enhance production and productivity of cows has also been announced.
- The Aayog will also look after effective implementation of laws and welfare schemes for cow.
- Jan Dhan-Aadhaar-Mobile (JAM) and Direct Benefit Transfer:In the last five years, nearly 34 crore Jan Dhan bank accounts opened with Aadhaar now near universally implemented so that that the poor and middle class receive the benefits of Government schemes directly in their bank accounts by eliminating middlemen.
- As per the provisions of Fiscal Responsibility and budget Management Act, 2003, it is mandatory to present following two statements:
i. Macro- Economic Framework Statement
ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Document
Rupee comes from: (2019-20 Budget Estimates) – 2784200 crore
- Corporation tax (21 paise)
- Income tax (17 paise)
- Customs (4 paise)
- Union excise duties (7 paise)
- Goods and Service Tax (21 paise)
- Non-Tax Revenue (8 paise)
- Non-Debt Capital Receipts (3 paise)
- Borrowings & other liabilities (19 paise)
Rupee goes to: (2019-20 Budget Estimates)
- Central Sector scheme (12 paise)
- Interest payments (18 paise)
- Defence (8 paise)
- Subsidies (9 paise)
- Finance Commission & Other Transfers (8 paise)
- State’s share of taxes & Duties (23 paise)
- Pensions (5 paise)
- Centrally sponsored scheme (9 paise)
- Other expenditure (8 paise)
Facts about Interim budget:
- The government of the day presents an interim budget if it does not have the time to present a full budget or because National Elections may be near.
- When the National Elections are near, propriety demands that the task of framing the full budget be left to the incoming government.
- Individual tax payers having taxable annual income up to Rs. 5 lakh will not be required to pay any income tax.
- Persons having income up to Rs. 6.50 lakh are not required to pay any income tax if they make investment in provident fund, specific savings and insurance etc.
- Standard deduction limit has also been raised to Rs. 50,000 from Rs. 40,000 for salaried persons. This will ensure additional tax benefit of ` 4,700 crore to more than 3 crore salary earners and pensioners.
- Thus tax benefit of Rs. 18, 500 crore is proposed to be provided to an estimated 3 crore middle class and small taxpayers comprising self employed, small business, small trades, salary earners, pensioners, and senior citizens.
- To benefit small depositors and nonworking spouses, TDS threshold on interest earned on bank/post office deposits is being raised from Rs 10,000 to Rs 40,000.TDS threshold for deduction of tax on rent is proposed to be increased from 1, 80,000 to 2, 40, 000 for providing relief to small taxpayers.
- Tax collection nearly doubled in five years- form Rs. 6.38 lakh crore in 2013-14 top almost Rs. 12 lakh crore this year.
- 80% growth in tax base- form 3.79 crore to 6.85 crore in five years.
GST (GOODS & SERVICES TAX):
- GST made India a common market.
- GST led to increased tax base, higher collections and ease of trade.
- Inter-state movements now faster, more efficient, and hassle free.
- Responsive and sensitive reduction of tax rates – Most items of daily use now in the 0% or 5% tax slab.
- Relieving the businesses and service providers-
- Exemptions from GST for small businesses doubled from Rs. 20 lakh to Rs. 40 lakh.
- Small businesses having turnover up to Rs. 1.5 crore pay only 1% flat rate and file one annual return only.
- Small service providers with turnover upto Rs.50 lakhs can opt for composition scheme and pay GST at 6% instead of 18%.
- Soon, businesses comprising over 90% of GST payers to be allowed to file quarterly return.
- Encouraging GST revenue trends – The average monthly tax collection in the current year is Rs. 97,100 crore per month as compared to Rs. 89,700 crore per month in the first year.
- Government has been successful in bringing down average inflation to 4.6 per cent over last five years which is lower than the inflation during the tenure of any other government.
- If this rate had not been controlled, our families would have spending around 35-40 per cent more today on basic necessities such as food, travel, consumer durables, housing etc.
- The average rate of inflation during previous years 2009-14 was as high as 10.1 per cent.
- World’s largest healthcare programme Ayushman Bharat launched to benefit nearly 50 crore with more than 10 lakhs patients already received benefits from the Scheme.
- Medicines at affordable prices have been made available through Pradhan Mantri Jan Aushadhi Kendras.
- Prices of essential medicines, cardiac stents and knee implants are reduced in order to benefit poor & middle class of the society.
- 21 AIIMS operating /already established- 14 announced since 2014; 22nd AIIMS to be set up in Haryana.
- Allocation for Integrated Child Development Scheme (ICDS) is being increased to Rs. 27,584 crore in BE 2019-20.
Deprived sections: (SC, ST, NOMADS, WOMAN AND CHILD)
- The allocation amount is proposed to be enhanced to Rs. 76,801 crore has been made for scheduled caste in BE 2019-20.
- A Welfare Development Board to frame special strategies for the benefit of the hard-to reach de-notified, nomadic and semi-nomadic communities will be set up under the Ministry of Social Justice and Empowerment.
- A committee under NITI Aayog will be set up to complete the task of identifying de-notified, nomadic and semi-nomadic communities not yet formally classified.
- The Ujjwala Yojna delivery of 8 crore free LPG connections, more than 6 crore connections have already been given and the remaining will get free gas connections by next year.
- More than 70% of beneficiaries of Pradhan Mantri MUDRA Yojana are women.
- Benefits of maternity leave of 26 weeks and Pradhan Mantri Matru Vandana Yojna for pregnant women, financial empowerment of women by increased participation in work.
- Rs. 60,000 crore has been allocated for MGNREGA in BE 2019-20.
- 25% additional seats in educational institutes to meet the 10% reservation for the poor (apart from SC/ST and OBC).
- Aspirational district programme for development in 115 most backward districts of India.
- Free electricity connection to every household under Saubhagya Yojna.
- Under UDAN Scheme Number of operational airports crossed 100.
- Domestic passenger traffic has doubled during the last five years.
- India has become fastest highway developer in the world – 27 kms built each day.
- Arunachal Pradesh came on the aviation map of India recently.
- Meghalaya, Tripura and Mizoram came on the India’s rail map for the first time.
- Container Cargo Movement is introduced by improving the navigation capacity of the river Brahmaputra.
- Projects stuck for decades have been completed.
- Container freight movement has started on inland waterways from Kolkata to Varanasi.
- National program on ‘Artificial Intelligence’ has been envisaged by the government.
- National Centre on Artificial Intelligence as a hub along with centers of excellence will be established.
- More than 3 lakh Common Services Centres (CSCs) exist employing nearly 12 Lakh people, are digitally delivering numerous services to the citizens.
- 98% rural sanitation has been covered with 5.45 lakh villages have been declared as “open defecation free”.
- India’s installed solar generation capacity has grown over ten times in last five years.
- This sector is now generating lakhs of new age jobs.
- Defence budget to cross Rs. 3, 00,000 crore for the first time in 2019-20.
- More than Rs 35,000 crore have been disbursed for OROP (One Rank One Pension).
- Total capital support from budget proposed at Rs. 64, 587 crore in 2019-2020 (BE).
- Overall capital expenditure programme to be of Rs. 1, 58, 658 crore.
- Operating Ratio is expected to improve from 98.4% in 2017-18 to 96.2% in 2018-19 (RE) and further to 95% in 2019-20 (BE).
- Safest year in history of railways since independence.
- All unmanned level crossings on broad gauge network eliminated.
- First Semi High Speed Vande Bahart Express launched which will provide Indian Passengers a world class experience with speed, service and safety.
- Indian filmmakers to get access to Single Window Clearance for ease of shooting films.
- Regulatory provisions to rely more on self- declaration.
- To introduce anti-camcording provisioning in the Cinematographic Act.
Vision for Next Decade:
- Foundation for India’s growth and development laid in the past 5 years.
- Poised to become a five trillion dollar economy in the next five years.
- Aspire to become a ten trillion dollar economy in the next 8 years thereafter.
Ten dimensions of Vision for India of 2030
- India would be a modern, technology driven, high growth, equitable and transparent society:
- To build physical as well as social infrastructure and to provide ease of living.
- To create a Digital India, digitize government processes with leaders from youth.
- Making India pollution free by leading transport revolution with Electric Vehicles and focus on Renewables.
- Expanding rural industrialisation using modern digital technologies to generate massive employment.
- Clean Rivers, safe drinking water to all Indians and efficient use of water through micro-irrigation.
- Besides scaling up of Sagarmala, Coastline and Ocean waters powering India’s development and growth.
- Aim at our space programme – Gaganyaan, India becoming the launch-pad of satellites for the World and placing an Indian astronaut into space by 2022.
- Making India self-sufficient in food, exporting to the world to meet their food needs and producing food in the most organic way.
- A healthy India via Ayushman Bharat with women having equal rights and concern for their safety and empowerment.
- Transforming India into a Minimum Government Maximum Governance nation with pro-active and responsible bureaucracy.