Budget 2019: Finance Minister Nirmala Sitharaman presented the first Budget of PM Narendra Modi government 2.0, here on Friday in Lok Sabha. Being the first woman to be the full-fledged Finance Minister, Nirmala Sitharaman was heavily praised by PM Narendra Modi. Meanwhile, here are the key announcements made by the Finance Minister Nirmala Sitharamana.
Education budget: New Education policy will focus on research in India. Budget 2019 will look forward to the new National Education policy and provides a vision to set up the Higher Education Commission. For improving higher education in India, the Finance Minister Nirmala Sitharaman has proposed the setup of the National Research Foundation in an order to assimilate the research funds and provide a platform for the youth.
Infrastructural Budget: Nirmala Sitharaman highlighted the commitment to UDAN scheme, water transport, and road transport. She said that the government will ensure that the National highway is developed. The investment of at least Rs 100 lakh crore will be invested in Infrastructure over the next five years.
Railway Budget: Railways is more likely to invest in suburban railways via SPV structure which includes Rapid Regional Transport system, more PPP initiatives to boost the rail sector. Indian railways need an investment of Rs 50 lakh crore in the gap of 2018 and 2030 for modernization. A PPP will fasten the speed of services. Public-Private Partnership will definitely boost up the railways.
Income Tax: The increase of 3% on effective income for those who are earning in between Rs 2-5 crore. Those with the annual turnover of Rs 50 crore needs to file quarterly returns. The increase in the charges for those who are earning Rs 2-5 crore and those who are getting above Rs 5 crore.
Economy Budget: The Finance Minister said that India took almost 50 years to become a USD 1 trillion economy and the Indian economy was at USD 1.85 trillion five years back. Now, we have reached the USD 2,7 trillion economies and would become USD 3 trillion economies in this year only, said Nirmala Sitharaman. Also, she said that India is the sixth largest economy and third as per the methodology of PPP.
Tourism Budget: The Finance Minister announced that the government will be developing 17 tourism sites into world-class destinations. The National Sports Education Board will be established for the development of sportspersons under the Khelo India program.
Housing Budget: The budget proposes to reform rental laws in India. Also, the states will be guided with the modern tenancy law in an order to promote house renting.
MSME Industry Budget: The government has proposed to strengthen up the MSME industry by allocating Rs 350 crore at two percent interest for all GST registered MSMEs for incremental or fresh loans purpose.
Agriculture Budget: Nirmala Sitharaman said the government will work on basic, hence announced zero budget farming through which 10 thousand new farmer producer organizations will be established to reach farmers. The Finance Minister said that they will wisely invest in agricultural infrastructure. Ann Daata ko kyun Urja Daata bana nahi sakte, said Nirmala Sitharaman in the Budget speech.
Banking and Finance Budget: Nirmala Sitharaman said that the Non-Performing Asset (NPA) is down by Rs 1 Lakh crore in the last one year. Finance Minister has proposed to levy TDS of 2% on cash withdrawal on Rs 1 crore per year from the bank account to reduce the business payments in cash.
Tax: Finance Minister Nirmala Sitharaman proposed a corporate tax rate of 25 percent for all the companies up to the turnover of Rs 400. Also, the Budget 2019 proposes to enhance the charges on the high net individuals with an income tax of Rs 2 crore, Rs 5 crore and above. As per the Budget 2019, the charges will be increased by 3 percent and 7 percent.
Woman Empowerment Budget: The Finance Minister quoted, ‘Naari tu Narayaani’. Nirmala Sitharaman said that she believes in the progress of women empowerment with participation from women.
Aadhaar Card: Finance Minister Nirmala Sitharaman said that the Aadhaar Cards will be issued to the NRIs to get Indian Passports after arriving in India. Also, the Budget 2019 proposes to make PAN and Aadhaar card both authenticated for income tax return (ITR) filing.
Electric vehicles: The government has already moved to lower GST rate on electric vehicle from 12 percent to 5 percent. The government will provide additional income tax deduction of Ra 1.5 lakh on interest over the loan taken to buy an electric vehicle.