Budget-2019: 10-point-vision for the decade to make India a $5 trillion economy

Finance Minister presented budget with 10-point-vision for the decade to make India a $5 trillion economy by the year 2025. These ten points included people’s participation,pollution free country, making country digital, spearheading in space matters, better infrastructure, water management, food security, health of citizens and development at smallest level.

Pension Benefits to 3 crore small businessmen with annual turnover less than 1.5 core and 2 percent interest subsidy for loans have been announced and Rs. 350 crore have been allocated for this purpose.

Pradhan Mantri Gram Sadak Yojana, Industrial and dedicated freight Corridors, Bharatmala and Sagarmala projects, Jalmarg Vikas Project including navigation in Ganga river and UDAN schemes have received a major boost in this budget. During the period of 12 twelve years from 2018 to 2030, 50 lakh crore will be invested from time to time. Public and private partnership(PPP) has been proposed in creating railway infrastructure. For adoption and  manufacturing of electric and hybrid vehicles, Rs. 10000 crore outlay has been allocated for three years under phase-II. For power, gas and water, grids will be put in place to ensure their availability. Rental housing and model tenancy laws will be updated.

Credit Guarantee Enhancement Corporation has been set up in 2019-20 so that funds are available for infrastructure sector. Social Stock Exchange will be set up for listing of social and voluntary enterprises and raising funds for them. KYC norms will be eased for for foreign portfolio investors.

• Foreign Direct Investment  upto 100 percent is allowed in insurance intermediaries. FDI limits in sectors like media, aviation  will also be increased.
• With help of National Infrastructure Investment Fund the foreign investment will be encouraged at Global Investors Meet in India in pension, sovereign and insurance fields.
• Foreign portfolio investments has been allowed to invest in debt securities of Infrastructure and Real estate Investment Trusts and will be merged with NRI Portfolio route.

The commercial arm in form of New Space India Limited(a public sector enterprise) has been established to commercialise the products of ISRO.

• There has not been any change in income tax applicability except for the companies having annual turnover less than 400 crores as their tax rate has been reduced to 25 percent and for the individuals having income more than Rs. 2 crore surcharge has increased. Now onwards, Aadhaar or pan will be sufficient to file Income Tax Return.
• Deduction for house loan interest has been increased from 2 lakh to 3.5 lakh for the loans below Rs. 45 lakh borrowed upto 31st March, 2020. This will give benefit of Rs. 7 lakh over span of 15 years.
• For electric vehicles purchase,  deduction of 1.5 lakh interest will be allowed. and customs duty will also be exempted.
• Start-ups will be given relaxation in capital gain exemptions.
• The TDS of 2% will be deducted for cash withdrawal exceeding Rs. 1 crore in a year from a bank account.

Basic customs duty on auto parts, marble slabs, optical fibre cable, CCTV camera, PVC, tiles, cashew kernels, etc has been increased to support Make in India movement and certain electronic items manufactured in India will be exempted from customs duty. Customs duty has been reduced on inputs for artificial kidney and disposable sterilised dialyser and fuels for nuclear power plants, etc.  and on fixed assets required for manufacturing certain electronic goods.Defence equipment manufactured abroad are exempt from customs duty.

Rural India

• Electricity and cooking gas facilities will be provided to all by the year 2022. Under Prime Minister Awas Yojana in three years period to 2022, 1.95 crore houses with toilet, electricity and gas facilities will be provided to the beneficiaries.
• A concrete framework for fisheries management has been developed under Pradhan Mantri Matsya Sampada Yojana to correct gaps in every aspect of it.
• Under Pradhan Mantri Gram Sadak Yojana the road with length of 1,25,000 kilometers will be built with an estimated cost of Rs. 80250 crore over next five years.
• To provide employment to rural India, common facility centres will be set up to develop traditional industries clusterwise. Such 100 clusters will be developed and 50000 artisans will be joined. 75000 entrepreneurs will also be trained in these agro industries. 80 livelihood business incubators and 20 technology business incubators will be set up by 2020 to fund the needs of the entrepreneurs.
• New Jal Shakti Mantralaya has been given charge of managing water resources across country to ensure supply of water in every household.
• Swachh Bharat Abhiyan will be extended to carry out solid waste management in every village over the five years.
• Universal Obligation Fund with Public and Private partnership will be used to cover panchayats  and local bodies across India under Bharat Net for digitisation under Digital Saksharta Abhiyan.

Urban India

• There has been proposal to enlarge metro rail connectivity by public and private partnerships, completing the work-in-process and supporting commercial hub around transit points. The investment in suburban railways through SPV has also been suggested.
• Pension of Rs. 3000 will be given to workers registered under PM Shram Yogi Mandhaan Scheme after age of 60.

Youth

For young generation of India, National Research Foundation has suggested to integrate various research grants by different ministries and develop a research ecosystem.  New Education Policy will focus on research and innovation. The funds of Rs. 400 crore for this current financial year has been provided for world class institutions.

Khelo India Scheme will provide financial support to promising sports-persons. The youth will be trained in AI,IoT, Robotics, language, 3D printing, Big data and virtual reality to prepare them globally required high skilled jobs. Labour laws will be simplified into four codes. Under Stand Up India Scheme, banks will provide financial aid to demand based business.

Women Welfare

Women Self Help Group  Program is proposed to cover all districts across India.She will be given overdraft facility of Rs. 5000 for her Jan Dhan Bank account. She will be eligible for the loan of Rs. 100000 under MUDRA.