What’s there in Union Budget 2019- 2020?
Author: Ms. Vaishali Malhotra, Kurukshetra University.
After the victory in elections and the popular budget in February, the Modi government recently on July 5, 2019, presented a Union Budget aimed for enhancement of investment in every possible sector. Respected Smt. Nirmala Sitharaman the Union Minister for Finance and Corporate Affairs recently presented Union Budget 2019-20 before the Parliament. The 2019 – 20 budget is to be interim budget as well as the last budget to be presented this year before the general election. In this interim budget, many significant schemes were announced. So let’s find out what there in Union Budget 2019 – 2020.
Key Highlights of Union Budget 2019-2020
- SOCIAL SECTOR
Respected Smt. Nirmala Sitharaman presented the Union budget 2019 and 2020 which provided significant schemes two social sectors such as Under Mudra scheme, the loan will be provided SHG women members amounting Rs 1 lakh. Every verified member of SHG having a Jan Dhan account is eligible for getting the overdraft facility amounting Rs 5000. Along with this, the‘Stand Up India’ Scheme will continue until 2025. For the retail traders with an annual turnover of less than Rs.1.5 crore, pension schemes will be more beneficial. Program named ‘Study in India’ will be launched to excite foreign students for higher education. To popularize sports at all levels national Sports Education Board for the development of sportspersons will be established under ” Khelo India”.Aadhaar card will be provided to each and every NRIs on coming India.
Social security schemes for the unorganised sector
A new social security pension scheme for workers in the unorganized sector was announced which is named as Pradhan Mantri Shram Yogi Mandhan” Under this scheme workman working in the unorganized sector will receive an insured monthly pension amounting Rs 3,000 per month after 60 years of age. For availing this, employees will have to pay Rs 100 months to get the benefit from the scheme.
As there is a serious problem of unemployment in our country, there is an urgent need for improvement opportunities to be brought up to tackle the unemployment crisis. But the budget disappointed in creating employment opportunities as there is no certain provision for the enhancement of employment opportunities.
Increases in the price of fuel
As per my view, increase in the prices of fuel will ultimately affect the middlemen as in the budget there is a proposal to increase Special Additional Excise duty along with Road Infrastructure Cess each by one rupee a liter on petrol and diesel which will be overburdening for middle-class families.
Ø AGRICULTURAL SECTOR AND RURAL SECTOR
For the agriculture sector Respected Smt. Nirmala Sitharaman has provided many interesting schemes such as the scheme named “Har Ghar Jal” in which by 2024 all rural houses will be provided with an adequate water facility. Along with this, there will be the establishment of 10000 new Farmer Producer organizations. For sustainable solid waste management in every village, there will be an enhancement of Swachh Bharat Mission
Financial Support to farmers
In the Union Budget for 2019 – 20, a scheme named “Pradhan Mantri – Kisan Samman Nidhi ” was introduced in which marginal farmers were supported by income support. Moreover, farmers who hold up to 2 hectares of agricultural land will get Rs 6,000 every year as guaranteed income support.
Ø FINANCIAL SECTOR
In Union Budget 2019 and 2020, there are many exciting announcements by the Modi government that is there will be 3% of surcharge applicable on the income of Rs. 2 crore & 7% on an income of Rs. 5 crores & above. Afterward, the NRI portfolio route & FPI route will be merged. To promote digitization existing KYC norms for FPIs will be minimized and simplified to make it more investor-friendly.FDI will be available in many sectors like in aviation, insurance, animation AVGC, and media, etc.
But on the other hand tax rates on personal income remained unchanged:
- NIL tax on income up to Rs 2.5 lacs
- 5% tax on income above Rs 2.5 lacs up to Rs 5 lacs
- 20% tax on income above Rs 5 lacs up to Rs 10 lacs
- 30% tax on income above Rs 10 lacs
But under the purview of Section 87A of Income Tax Act, 1961 the full tax rebate provided for individuals earning income up to Rs 5 lakes. Along with this, the tax discount limit has been raised from Rs 2,500 to Rs 12,500. This simply meant that people earning income up to Rs 5 lakhs not required to pay any tax. This step will benefit more than 3 crore middle-class taxpayers which are according to me will be a relief to the middle-class families.
According to my view reduction plan for Corporate taxes is part one as the budget proposed to bring under 25% tax with annual turnover is applicable to some specific companies. This plan should be applicable to all companies as per my view.
Non-fulfillment of the promise
As Piyush Goyal promised to hike the limits of standard deduction and TDS this February interim budget, but it was not mentioned in interim budget which is a bad sign of carelessness in making statements.
For the improvement of infrastructure of our country, the Union Budget 2019-2020 have many significant changes to be brought up like for faster development and the delivery of passenger freight services Public-Private Partnership will be used. Restructuring of the National Highways Programme will take place. Bharat Mata, Sagarmala and UDAN Schemes are announced to improve transportation and infrastructure. Rivers will be used for cargo transport to decongest roads and railways. Special programs for the modernization of railway stations will be introduced. To promote digitalization a new payment platform is being introduced for MSMEs.For startups,E-verification mechanism will be implemented for special identification of trader.
As we know everything has positive effects as well as negative effects. Just like in our new budget there are positive points along with some negative points as well. In some aspects, Sitharaman had nailed up but in other aspects she failed to excite different areas of subjects and fields by her new interim budget. Overall, I have a mixed opinion for the interim budget as it has positive effects along with the negative effects just like a two-face of a coin