Gist of Union Budget 2019-20: Download High Quality Study Material

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Gist of Union Budget 2019-20

 Presented by Nirmala Sitharaman (Minister of Finance) on July 5, 2019
 2014-19  Indian Economy reached US$ 2.7 trillion
 Next Target: US$ 5 trillion in the next few years
 Current year : Indian Economy will grow to become a 3 trillion dollar
 Indian Economy  It is now the 6th largest in the world
 In terms of Purchasing Power Parity  3rd largest economy, next to China and the
USA
Back to Basics: PMGSY
 Pradhan Mantri Gram Sadak Yojana

 Launched by Atal Bihari Vajpayee Government in December 2000 as a massive
programme to provide all weather rural road connectivity to every rural habitation
with a minimum population of 500 in the plains and 250-plus in hill states, tribal
districts and desert areas
 The target of PMGSY-III could be to construct/upgrade 125000 kms of roads to

benefit about 40000 habitations
 Estimated cost of Rs 80,250 cr  Central Share -Rs. 53,800 cr + State Share- Rs
26,450 cr
 Funds would be shared in the ratio of 60:40 between the Centre and State for all
States except for 8 North Eastern and 3 Himalayan States (Jammu & Kashmir,
Himachal Pradesh & Uttarakhand) for which it is 90:10
 Project period: 2019-20 to 2024-25
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 5,99,090 Km road length has been constructed under the scheme since inception till
April, 2019
Road Connectivity Project for Left Wing Extremism Area (RCPLWEA)
 Govt launched Road Connectivity Project for Left Wing Extremism affected Areas in
the year 2016
 It is a separate vertical under PMGSY to provide all-weather road connectivity with
necessary culverts and cross-drainage structures in 44 districts (35 are worst LWE
affected districts and 09 are adjoining districts), which are critical from security and
communication point of view.
 Under the Scheme, 5,066 Km road length has been sanctioned.
Back to Basics - Industrial Corridors:
1) Delhi Mumbai Industrial Corridor (DMIC)  Uttar Pradesh, Haryana, Rajasthan,

Madhya Pradesh, Gujarat and Maharashtra
2) Chennai Bengaluru Industrial Corridor (CBIC)  Tamil Nadu, Andhra Pradesh and
Karnataka
3) Bengaluru Mumbai Economic Corridor (BMEC)  Maharashtra and Karnataka
4) Amritsar Kolkata Industrial Corridor (AKIC)  Punjab, Haryana, Uttarakhand, Uttar
Pradesh, Bihar, Jharkhand and West Bengal
5) East Coast Economic Corridor (ECEC)  West Bengal, Odisha, Andhra Pradesh and
Tamil Nadu
Back to Basics - Industrial Corridors in Andhra Pradesh:
 Govt is undertaking development of Chennai Bengaluru Industrial Corridor (CBIC)

and East Coast Economic Corridor (ECEC) with Vizag-Chennai Industrial Corridor
(VCIC) as Phase-1 which also cover Andhra Pradesh.
 As part of CBIC, Krishnapatnam node has been identified for development in Andhra
Pradesh.
 The Shareholder’s Agreement (SHA) and State Support Agreement (SSA) have been
executed and a Joint Venture Company by the name “NICDIT Krishnapatnam
Industrial City Development Limited” has been incorporated.
 For VCIC, Asian Development Bank (ADB) has prepared the Concept Development
Plan (CDP) of the project and four nodes i.e. (i) Visakhapatnam (ii) Machilipatnam (iii)
Donakonda and (iv) Chittoor have been identified for development. Out of the four
identified nodes, two nodes i.e., Visakhapatnam and Chittoor have been prioritized.
 Rs.850.00 crore has been allocated in interim budget for the Financial Year 2019-20
to National Industrial Corridor Development and Implementation Trust (NICDIT) for
development of all industrial corridor projects across the country.
 An amount of Rs.2.5 crore was allocated and released by Government of India
through NICDIT towards initial equity contribution in the project Special Purpose
Vehicle (SPV) for Krishnapatnam node in CBIC during Financial Year 2018-19
Back to Basics - Dedicated Freight Corridors:
 Dedicated Freight Corridor Corporation of India Limited or DFCCIL is a business

establishment operated by the Railways Ministry of the Govt of India
 Incorporated under the Companies Act, 1956 on 30th October 2006
 Headquarters  New Delhi
 DFCCIL has been assigned the status of ‘special purpose vehicle’
 DFCs are railway routes that are exclusively meant for the transport of freight or
cargo
Back to Basics - Bharatmala Pariyojana:
 Second largest highways construction project in the country since NHDP

 Almost 50,000 km highway roads were targeted across the country
 Phase-I was approved at an estimated outlay of Rs. 5,35,000 Cr
 24,800 kms length of National Highways have been considered in Phase-I
 No road project in the States of Andhra Pradesh and Telangana has been envisaged
under Border and International Connectivity roads component of this programme
 Total 17 nos. of road projects having an aggregate length of about 701.4 km have
been approved under Bharatmala Pariyojana Phase-I till March, 2019 in the States
of Andhra Pradesh and Telangana
Back to Basics: Sagarmala
 Nodal Ministry  Ministry of Shipping

 Enhance the performance of the country's logistics sector
 More than 610 projects (Cost: Rs. 7.78 Lacs Cr.) have been identified for
implementation, during 2015-2035
 As of 31-July-2019, a total of 542 projects (costing around Rs. 4.75 Lac Crore) were
under various stages of implementation, development and completion
 The concept of Sagarmala was approved by the Union Cabinet on 25th March 2015
 The objective of this initiative is to promote “Port-led development” along India’s
coastline
 Sagarmala could boost India’s merchandise exports to $110 billion by 2025 and
create an estimated 10 million new jobs (four million in direct employment)
Back to Basics - Regional Connectivity Scheme – ‘Ude Desh ka Aam Naagrik’ (RCS-UDAN):
 This is a first of-its-kind scheme globally to stimulate regional connectivity through

a market based mechanism.
 It also aims to make flying accessible and affordable for the masses in the
regionally important cities.
 Civil Aviation Ministry launched the UDAN (Ude Desh ka Aam Nagrik) scheme on
October 21, 2016
 Total Operational UDAN Routes  194
 A total of 705 routes have been awarded under the UDAN scheme up till now by
the Ministry of Civil Aviation
Back to Basics - Jal Marg Vikas Project:
 National Waterways development project

 Ministry of Shipping
 It is a non- water consumptive transport project formulated with the aim of reducing
rail & road congestion, reducing the carbon footprint and minimal resource
depletion
 Project Implementing Agency : Inland Waterways Authority of India (IWAI)
 Jal Marg Vikas Project (JMVP) for capacity augmentation of navigation on National
Waterway-1 (NW-1) is being implemented at a cost of Rs 5369.18 crore with the
technical assistance and investment support of the World Bank
 The Project is expected to be completed by March 2023
CONNECTIVITY – The Livelihood of Indian Economy
Bharatmala:
 The ambitious programme of Bharatmala would help develop national road

corridors and highways
Sagarmala:
 Sagarmala would enhance port connectivity, modernization and port-linked

industrialization.
Jal Marg Vikas Project:
 Waterways are proven as a cheap mode of transport. The Jal Marg Vikas project for
capacity augmentation of navigation on National Waterways is aimed at
smoothening internal trade carried through inland water transport
 As part of the Jal Marg Vikas Project for enhancing the navigational capacity of
Ganga, a multi modal terminal at Varanasi has become functional in November
2018 and two more such terminals at Sahibganj and Haldia and a navigational lock
at Farakka would be completed in 2019-20.
 The movement of cargo volume on Ganga is estimated to increase by nearly four
times in the next four years. This will make movement of freight, passenger cheaper
and reduce our import bill
UDAN:
 UDAN Scheme is providing air connectivity to smaller cities and enabling the
common citizens of our country to avail air travel
 India  3rd largest domestic aviation market
Metro Rail:
 New Metro Rail Projects for a total route length of 300 kilometers have been
approved during 2018-19.
 During 2019, about 210 kms metro lines have been operationalized.
 With this, 657 kms of Metro Rail network has become operational across the
country
FAME scheme:
 Phase-II of FAME Scheme, following approval of the Cabinet with an outlay of 10,000
crore for a period of 3 years, has commenced from 1st April, 2019.
 The main objective of the Scheme is to encourage faster adoption of Electric
vehicles by way of offering upfront incentive on purchase of Electric vehicles and
also by establishing the necessary charging infrastructure for electric vehicles.
 Only advanced battery and registered e-vehicles will be incentivized under the
Scheme
Railway Infrastructure:
 Estimated investment of 50 lakh crores between 2018-2030

 Capital expenditure outlays of Railways are around 1.5 to 1.6 lakh crores per
annum
 Public-Private Partnership to unleash faster development and completion of tracks,
rolling stock manufacturing and delivery of passenger freight services
Power Connectivity:
 One Nation, One Grid – that has ensured power availability to states at affordable
rates
UDAY:
 Ujjwal DISCOM Assurance Yojana (UDAY) in 2015 aimed at financial and operational
turnaround of DISCOMs
MSME Credit:
 Government has introduced providing of loans upto 1 crore for MSMEs within 59
minutes through a dedicated online portal.
 Under the Interest Subvention Scheme for MSMEs, 350 crore has been allocated for
FY 2019-20 for 2% interest subvention for all GST registered MSMEs, on fresh or
incremental loans
Back to Basics: MSME
 Manufacturing Enterprises: The enterprises engaged in the manufacture or

production of goods pertaining to any industry specified in the first schedule to the
industries (Development and regulation) Act, 1951) or employing plant and
machinery in the process of value addition to the final product having a distinct
name or character or use. The Manufacturing Enterprise are defined in terms of
investment in Plant & Machinery
 Service Enterprises: The enterprises engaged in providing or rendering of services
and are defined in terms of investment in equipment
 As MSMEs are generally labour-intensive, they have the capability to create more
jobs to cater to a young demographic country like India.
 They are also important for promotion of industrial development in rural areas, use
of traditional or inherited skill, use of local resources, mobilization of resources and
exportability of products
 Provides maximum opportunities for both self-employment and wage-
employment outside the agricultural sector
Pension:
 Extend the pension benefit to about 3 crore retail traders & small shopkeepers
whose annual turnover is less than 1.5 crore under a new Scheme namely Pradhan
Mantri Karam Yogi Maandhan Scheme
Investment:
 India requires investments averaging 20 lakh crores every year (USD 300 billion a
year)
Capital Market:
 Creating an electronic fund raising platform – a social stock exchange - under the
regulatory ambit of Securities and Exchange Board of India (SEBI)
 For listing social enterprises and voluntary organizations working for the realization
of a social welfare objective so that they can raise capital as equity, debt or as units
like a mutual fund
Foreign Direct Investment:
 Global Foreign Direct Investment (FDI) flows slid by 13% in 2018, to US$ 1.3 trillion
from US$ 1.5 trillion the previous year – the third consecutive annual decline,
according to UNCTAD’s World Investment Report 2019.
 India’s FDI inflows in 2018-19 remained strong at US$ 64.375 billion marking a 6%
growth over the previous year.
 Government will increase the FDI limit to 100 per cent in insurance intermediaries.
Foreign Portfolio Investors (FPIs):
 Increase in the statutory limit for FPI investment in a company from 24% to
sectoral foreign investment limit with option given to the concerned corporates to
limit it to a lower threshold.
 FPIs will be permitted to subscribe to listed debt securities issued by ReITs and InvITs
Remittance:
 India is the world's top remittance recipient
Space:
 A Public Sector Enterprise viz. New Space India Limited (NSIL) has been incorporated
as a new commercial arm of Department of Space to tap the benefits of the
Research & Development carried out by ISRO.
Ujjwala Yojana and Saubhagya Yojana:
 Household access to clean cooking gas has seen an unprecedented expansion,

through provision of more than 7 crore LPG connections.
 All villages, and almost 100% households across the country have been provided
with electricity.
Back to Basics: Pradhan Mantri Ujjwala Yojana
Ministry/Department : Ministry of Petroleum and Natural Gas

Objective: To reduce health hazards of indoor pollution by providing free LPG
connections to Women from BPL Households
Tagline : Swachh Indhan, Behtar Jeevan
Scheme:
o 8 Crore (Earlier target was 5 Crore) LPG (liquefied petroleum gas) connections to
poor households will be provided
o The scheme provides free LPG connection with financial assistance of Rs. 1600/-
per connection to an adult woman member of BPL family identified through Socio-
Economic Caste Census (SECC) data.
o Eligible households will be identified in consultation with state governments and
Union territories.
o The scheme will be implemented by 2020. (Older target was to be achieved by
2019).
o The households will be selected using the socio-economic and caste census data.
Consumers will have the option to purchase gas stove and refills on EMI.
o It seeks to empower women and protect their health by shifting them from
traditional cooking based on unclean cooking fuels or fossil fuels to clean cooking
gas.
Back to Basics: Ujjwala Plus
 ‘Ujjwala Plus’ will allow individuals to donate cooking gas connections to poor
Households
Back to Basics: Saubhaya Scheme
 Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya Scheme)

 Under Saubhagya Yojna 4 crore household are being provided with electricity
connections.
 2018-19 Expenditure (Budget): 16000 cr
 Provide last mile electrical connectivity and ensure electrification of all the willing
rural and urban households
 States and Union Territories to complete all household electrification by 31st of
December 2018.
 Socio Economic Caste Census (SECC) of 2011 will be used as the basis to
determine the beneficiaries for free electricity connections.
 The other un-electrified households are required to bear a charge of Rs. 500 in
order to get an electricity connection, which the electricity distribution
companies of India (DISCOMS) would recover in 10 installments as a part of their
electricity bill.
 The nodal agency for implementation of the scheme across the country would be
– the Rural Electrification Corporation Limited (REC)
 For rural households without electricity in remote and inaccessible areas, solar
power packs of 200Wp-300Wp with battery banks will be provided. The same
would be repaired and maintained for 5 years from the date of installation. It will
consist of a DC power plug, DC fan and five LED lights
Pradhan Mantri Awas Yojana – Gramin (PMAY-G):
 Aims to achieve the objective of “Housing for All” by 2022

 A total of 1.54 crore rural homes have been completed in the last five years.
 In the second phase of PMAY-G, during 2019-20 to 2021-22, 1.95 crore houses are
proposed to be provided to the eligible beneficiaries.
 With the use of technology, the DBT platform and technology inputs, average
number of days for completion of houses has reduced from 314 days in 2015-16 to
114 days in 2017-18
Pradhan Mantri Matsya Sampada Yojana (PMMSY):
 Department of Fisheries will establish a robust fisheries management framework
Pradhan Mantri Gram Sadak Yojana (PMGSY):
 To accelerate the speed of achieving universal connectivity of eligible habitations,

the target of connecting the eligible and feasible habitations was advanced from
2022 to 2019
 All weather connectivity has now been provided to over 97% of such habitations.
This has been possible by maintaining a high pace of road construction of 130 to 135
km per day in the last 1,000 days.
 30,000 kms of PMGSY roads have been built using Green Technology, Waste Plastic
and Cold Mix Technology
 PMGSY-III is envisaged to upgrade 1,25,000 kms of road length over the next five
years, with an estimated cost of 80,250 crore
‘Scheme of Fund for Upgradation and Regeneration of Traditional Industries’ (SFURTI):
 Aims to set up more Common Facility Centres (CFCs) to facilitate cluster based
development to make the traditional industries more productive, profitable and
capable for generating sustained employment opportunities
 The focused sectors are Bamboo, Honey and Khadi clusters
 SFURTI envisions setting up 100 new clusters during 2019-20 which should enable
50,000 artisans to join the economic value chain.
 To improve the technology of such industries, the Scheme for Promotion of
Innovation, Rural Industry and Entrepreneurship’ (ASPIRE) has been consolidated for
setting up of Livelihood Business Incubators (LBIs) and Technology Business
Incubators (TBIs).
 The Scheme contemplates to set up 80 Livelihood Business Incubators (LBIs) and 20
Technology Business Incubators (TBIs) in 2019-20 to develop 75,000 skilled
entrepreneurs in agro-rural industry sectors
Farmer Producer Organizations:
 10,000 new Farmer Producer Organizations, to ensure economies of scale for

farmers over the next five years
Water Security:
 Jal Shakti Mantralaya, integrating the Ministry of Water Resources, River

Development and Ganga Rejuvenation and Ministry of Drinking Water and
Sanitation
 This new Mantralaya will look at the management of our water resources and water
supply in an integrated and holistic manner, and will work with States to ensure Har
Ghar Jal (piped water supply) to all rural households by 2024 under the Jal Jeevan
Mission
 Government has identified 1592 Blocks which are critical and over exploited, spread
across 256 District for the Jal Shakti Abhiyan
Swachh Bharat Abhiyan:
 9.6 crore toilets have been constructed since Oct 2, 2014

 More than 5.6 lakh villages have become Open Defecation Free (ODF)
Pradhan Mantri Gramin Digital Saksharta Abhiyan:
 Over 2 crore rural Indians have so far been made digitally literate
 To bridge rural-urban digital divide, Bharat-Net is targeting internet connectivity in
local bodies in every Panchayat in the country.
 This will be speeded up with assistance from Universal Service Obligation Fund and
under a Public Private Partnership arrangement
Pradhan Mantri Awas Yojana – Urban (PMAY-Urban):
 Over 81 lakh houses with an investment of about 4.83 lakh crores have been
sanctioned of which construction has started in about 47 lakh houses
Rashtriya Swachhta Kendra:
 Will be inaugurated at Gandhi Darshan, Rajghat on 2nd October, 2019
National Research Foundation (NRF):
 To fund, coordinate and promote research in the country

 The funds available with all Ministries will be integrated in NRF
SWAYAM:
 Helped bridge the digital divide for disadvantaged section of the student community
 To up-grade the quality of teaching, the Global Initiative of Academic Networks
(GIAN) programme in higher education was started, aimed at tapping the global
pool of scientists and researchers.
 IMPRINT or IMPacting Research INnovation and Technology scheme began as a
Pan-IIT and IISc joint initiative to develop a roadmap for research to solve major
engineering and technology challenges in selected domains needed by the country
World Class Institutions:
 An amount of 400 crore has been provided under the head, “World Class
Institutions”, for FY 2019-20
Khelo India Scheme:
 Launched in October, 2017

 Created awareness of sports as an integral part of wellness throughout the country
‘Kayakave Kailasa’:
 Government enables about 10 million youth to take up industry-relevant skill

training through the Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Stand-Up India Scheme:
 Considering the beneficial results of the Scheme and strong demand for its
continuance by the SC and ST communities, the Scheme would be continued for the
entire period coinciding with the 15th Finance Commission period of 2020-25
Pradhan Mantri Shram Yogi Maandhan:
 Launched on 5th March, 2019 by Hon’ble PM at Ahmedabad

 Scheme aims at providing 3,000 per month as pension on attaining the age of 60 to
crores of workers in unorganized and informal sectors
 About 30 lakh workers have joined the Scheme
Mass scaling up of LED bulbs:
 Approximately 35 crore LED bulbs have been distributed under UJALA Yojana
leading to cost saving of 18,341 crores annually
Women SHG interest subvention programme:
 Expansion of Women SHG interest subvention programme to all districts

 For every verified women SHG member having a Jan Dhan Bank Account, an
overdraft of 5,000 shall be allowed
 One woman in every SHG will also be made eligible for a loan up to 1 lakh under
the MUDRA Scheme
Indian Development Assistance Scheme (IDEAS):
 Provides concessional financing for projects and contributes to infrastructure

development and capacity building in the recipient developing countries
Iconic Tourism Sites:
 Government is developing 17 iconic Tourism Sites into world class tourist

destinations and to serve as a model for other tourism sites
Banking:
 Reduced by over 1 lakh crore over the last year, record recovery of over 4 lakh crore
due to IBC and other measures
 Provision coverage ratio is now at its highest in seven years, and domestic credit
growth has risen to 13.8%
 6 Public Sector Banks have been enabled to come out of Prompt Corrective Action
framework
 Public Sector Banks are now proposed to be further provided 70,000 crore capital to
boost credit for a strong impetus to the economy.
NBFCs:
 Reserve Bank of India (RBI) is the regulator for NBFCs

 RBI has limited regulatory authority over NBFCs
Back to Basics: NBFC
National Housing Bank:
 National Housing Bank (NHB), besides being the refinancer and lender, is also
regulator of the housing finance sector.
 Proposal to Return the regulation authority over the housing finance sector from
NHB to RBI
Investment in Infrastructure:
 100 lakh crore in infrastructure over the next five years
Pension Fund Regulatory and Development Authority (PFRDA):
 PFRDA implements and regulates the National Pension System (NPS) and Atal
Pension Yojana through various intermediaries including, inter-alia, the NPS Trust
International Financial Services Centre:
 To facilitate on-shoring of international insurance transactions and to enable

opening of branches by foreign reinsurers it is proposed to reduce Net Owned Fund
requirement from 5,000 crore to 1,000 crore
 Direct tax incentives to an IFSC including 100 % profit-linked deduction under
section 80-LA in any ten-year block within a fifteen-year period, exemption from
dividend distribution tax from current and accumulated income to companies and
mutual funds, exemptions on capital gain to Category-III AIF and interest payment on
loan taken from non-residents
Disinvestment in non-financial public sector undertakings:
 Government has also decided to modify present policy of retaining 51% Government
stake to retaining 51% stake inclusive of the stake of Government controlled
institutions
Disinvestment receipts:
 Government is setting an enhanced target of 1,05,000 crore of disinvestment

receipts for the financial year 2019-20
Back to Basics: Disinvestment
 It refers to the use of a concerted economic boycott to pressure a govt, industry, or

company towards a change in policy, or in the case of governments, even regime
change.
 The term was first used in the 1980s, most commonly in the United States, to refer
to the use of a concerted economic boycott designed to pressure the government of
South Africa into abolishing its policy of apartheid.
 Strategic privatization of CPSEs  To avoid more losses (at taxpayer's expense)
incurred by inefficient and loss-making PSUs
India’s sovereign external debt to GDP:
 India’s sovereign external debt to GDP is among the lowest globally at less than 5%
Back to Basics: External Debt
o It refers to money borrowed from a source outside the country.

o External debt has to be paid back in the currency in which it is borrowed
o External debt can be obtained from foreign commercial banks, international financial
institutions like IMF, World Bank, ADB etc and from the government of foreign
nations.
o Government and corporations are eligible to raise loans from abroad. These are in
the form of external commercial borrowings.
o The interest rate on foreign loans is linked to LIBOR (London Interbank Offer rate)
and the actual rate will be LIBOR plus applicable spread, depending upon the credit
rating of the borrower.
Direct tax revenue:
 Direct tax revenue has significantly increased over the past couple of years
 It has increased by over 78% from 6.38 lakh crore in Financial Year 2013-14 to
around 11.37 lakh crore in Financial Year 2018-19
Income Tax:
 If annual taxable income exceeds 5 lakh, you are required to pay any income tax
Corporate Tax:
 Currently, the lower rate of 25 % is only applicable to companies having annual

turnover up to 250 Crore
 Proposed to widen this to include all companies having annual turnover up to 400
crore
 This will cover 99.3% of the companies
Electric Vehicles:
 Government has already moved GST council to lower the GST rate on electric
vehicles from 12% to 5%
 To make electric vehicle affordable to consumers, our government will provide
additional income tax deduction of 1.5 lakh on the interest paid on loans taken to
purchase electric vehicles
 The loan is required to be taken on or before 31st March, 2023
Affordable Housing:
 Interest paid on housing loans is allowed as a deduction to the extent of 2 lakh in

respect of self-occupied property
 Additional deduction of up to 1,50,000/- for interest paid on loans borrowed up to
31st March, 2020 for purchase of an affordable house valued up to 45 lakh
 A person purchasing an affordable house will now get an enhanced interest
deduction up to 3.5 lakh.
 This will translate into a benefit of around 7 lakh to the middle class home-buyers
over their loan period of 15 years
Back to Basics: Affordable Housing Fund
 Govt will raise extra-budgetary resources of Rs. 25000 cr for AHF over the period of
4 yrs till 2022  helps in interest payment of credit-linked subsidy scheme(CLSS)
 Fund will be anchored in National Housing Bank and will be channeled through
housing finance companies
Securities Transaction Tax (STT):
 Relief in levy of Securities Transaction Tax (STT) by restricting it only to the difference
between settlement and strike price in case of exercise of options
Ease of Doing Business:
 India’s Ease of Doing Business ranking under the category of ‘paying taxes’ showed
a significant jump from 172 in 2017 to 121 in the 2019
Back to Basics: Ease of doing business report
 International Finance Corporation (IFC), the World Bank Group’s private sector arm,
first conceptualized the Doing Business report.
 These rankings had a signalling effect for investors and that countries were
beginning to take them seriously.
TDS:
 To discourage the practice of making business payments in cash, TDS of 2% on cash

withdrawal exceeding 1 crore in a year from a bank account
Low cost digital modes of payment:
 Business establishments with annual turnover more than 50 crore shall offer such
low cost digital modes of payment to their customers and no charges or Merchant
Discount Rate shall be imposed on customers as well as merchants.
Surcharge:
 Surcharge on individuals having taxable income from 2 crore to 5 crore and 5 crore
and above so that effective tax rates for these two categories will increase by around
3 % and 7 % respectively
Indirect Taxes:
 17 taxes and 13 cesses became one tax

 Multitude of rates instantly became 4
Electronic invoice system:
 Invoice details will be captured in a central system at the time of issuance

 There will be no need for a separate e-way bill
 Its roll out would begin from January, 2020
Basic customs duty:
 Import of defence equipment that are not being manufactured in India are being
exempted from the basic customs duty
Custom Duty:
 To encourage domestic publishing and printing industry, 5 % custom duty is being

imposed on imported books
Special Additional Excise duty and Road and Infrastructure Cess:
 Increase in Special Additional Excise duty and Road and Infrastructure Cess each by
one rupee a litre on petrol and diesel
 Increase in custom duty on gold and other precious metals from 10% to 12.5%
National Calamity and Contingent duty:
 Tobacco products and crude attract National Calamity and Contingent duty
Back to Basics: Angel Investors
 Business Angel Investors are individuals, often successful business people who are
investing their own personal funds into a potentially rewarding business
opportunity.
Tax at Source:
 New provision making it obligatory for individual or HUF to deduct tax at source at
the rate of 5% . if the annual payment made to a contractor or professional exceeds
Rs. 50 lakh
Interchangeability of PAN and Aadhaar:
 Interchangeability of PAN and Aadhaar to enable a person who does not have PAN
but has Aadhaar to use Aadhaar in place of PAN
Rupee-denominated Bond (RDB):
 Exempted interest income of non-resident from RDB issued by a company or a

business trust, outside India, during the period 17th September, 2018 to 31st March,
2019
 Incorporated this tax incentive in the Income-tax Act
Incentives for real estate:
 Deduction upto Rs. 1,50,000 for interest paid on loan taken for purchase of
residential house having value upto Rs. 45 lakh
 This shall be in addition to the existing interest deduction of Rs. 2 lakh
Incentives to National Pension System (NPS) subscribers:
 Increase in the limit of exemption from current 40% to 60% of payment on final
withdrawal from NPS
 Allow deduction for employer’s contribution upto 14% of salary from current 10%,
in case of Central Government employee
Avoiding Dividend Distribution Tax (DDT):
 Listed companies shall also be liable to pay additional tax at 20% in case of buy
back of share, as is the case currently for unlisted companies
Direct tax collections:
 From Rs. 6.38 lakh crore in FY 2013-14 to around Rs. 11.37 lakh crore in FY 2018-19,
the growth in direct tax collections is more than 78%.
Taxpayers:
 Number of taxpayers has also increased by approximately 48% over the period
2013-14 to 2017-18, from 5.71 crore taxpayers to 8.44 crore taxpayers
Tax Rebate:
 100% tax rebate was provided to individuals having taxable income up to Rs. 5
lakh. Thus, no income-tax is payable by an individual having taxable income up to
Rs. 5 lakh
 Basic exemption limit was increased from Rs. 2 lakh to Rs. 2.5 lakh
 Exemption limit for senior citizens was increased from Rs. 2.5 lakhs to Rs. 3 lakh
 Tax rate for the slab Rs. 2.5 to 5 lakh was reduced from 10% to 5%
 Standard deduction of Rs. 40,000 was introduced for salaried taxpayers and
pensioners and was further increased to Rs. 50,000
 Levy of wealth tax was abolished
Deduction Limit:
 Deduction limit for savings under section 80C was increased from Rs. 1 lakh to Rs.
1.5 lakh
 The deduction limit for medical insurance was increased from Rs. 15,000 to Rs.
25,000. For senior citizens, the deduction limit was increased from Rs. 20,000 to Rs.
50,000
 Deduction limit for individuals with disability was increased by Rs. 25,000
 Deduction of Rs. 50,000 was provided on interest income from deposits for senior
citizens
 Deduction limit for senior citizens for medical expenditure for critical illnesses was
increased from Rs. 60,000 to Rs. 1,00,000
Long term capital gains:
 The base year for computation of long term capital gains was shifted from 1981 to
2001
 Holding period for long-term gain on immovable property was reduced from 36
months to 24 months
 Safe harbour of 5% on stamp duty value was provided for the purpose of
computation of capital gains on immovable property
Govt. Undertakings:
 Investment allowance and higher additional depreciation was provided for

undertakings set up in backward regions of states of Andhra Pradesh, Bihar,
Telangana and West Bengal
Basic Excise Duty:
 “Basic Excise Duty” means the excise duty set forth in the Fourth Schedule to the
Central Excise Act, 1944
NCCD:
 “NCCD” means National Calamity Contingency Duty set forth in seventh schedule to
Finance Act, 2001
Sabka Vishwas Legacy Dispute Resolution Scheme:
 A dispute resolution cum amnesty scheme called “the Sabka Vishwas Legacy Dispute
Resolution Scheme, 2019” is being introduced for resolution and settlement of
legacy cases of Central Excise and Service Tax
Amendments in the Central Goods and Service Tax, 2017:
 Enhanced the threshold exemption limit from Rs. 20 lakhs to an amount exceeding
Rs. 40 lakhs for a supplier of goods
 Empowered the National Anti-profiteering Authority to impose penalty equivalent to
10% of the profiteered amount

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Gist of Union Budget 2019-20

 2014-19  Indian Economy reached US$ 2.7 trillion

 Next Target: US$ 5 trillion in the next few years

 Current year : Indian Economy will grow to become a 3 trillion dollar

 Indian Economy  It is now the 6th largest in the world

Back to Basics: PMGSY

 Pradhan Mantri Gram Sadak Yojana

 The target of PMGSY-III could be to construct/upgrade 125000 kms of roads to

Road Connectivity Project for Left Wing Extremism Area (RCPLWEA)

Back to Basics - Industrial Corridors:

1) Delhi Mumbai Industrial Corridor (DMIC)  Uttar Pradesh, Haryana, Rajasthan,

Back to Basics - Industrial Corridors in Andhra Pradesh:

 Govt is undertaking development of Chennai Bengaluru Industrial Corridor (CBIC)

Back to Basics - Dedicated Freight Corridors:

 Dedicated Freight Corridor Corporation of India Limited or DFCCIL is a business

Back to Basics - Bharatmala Pariyojana:

 Second largest highways construction project in the country since NHDP

Back to Basics: Sagarmala

 Nodal Ministry  Ministry of Shipping

 This is a first of-its-kind scheme globally to stimulate regional connectivity through

Back to Basics - Jal Marg Vikas Project:

 National Waterways development project

CONNECTIVITY – The Livelihood of Indian Economy

 The ambitious programme of Bharatmala would help develop national road

 Sagarmala would enhance port connectivity, modernization and port-linked

Jal Marg Vikas Project:

 Estimated investment of 50 lakh crores between 2018-2030

Back to Basics: MSME

 Manufacturing Enterprises: The enterprises engaged in the manufacture or

Foreign Direct Investment:

Foreign Portfolio Investors (FPIs):

 India is the world's top remittance recipient

Ujjwala Yojana and Saubhagya Yojana:

 Household access to clean cooking gas has seen an unprecedented expansion,

Back to Basics: Pradhan Mantri Ujjwala Yojana

Ministry/Department : Ministry of Petroleum and Natural Gas

Back to Basics: Saubhaya Scheme

 Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya Scheme)

Pradhan Mantri Awas Yojana – Gramin (PMAY-G):

 Aims to achieve the objective of “Housing for All” by 2022

Pradhan Mantri Matsya Sampada Yojana (PMMSY):

 Department of Fisheries will establish a robust fisheries management framework

Pradhan Mantri Gram Sadak Yojana (PMGSY):

 To accelerate the speed of achieving universal connectivity of eligible habitations,

‘Scheme of Fund for Upgradation and Regeneration of Traditional Industries’ (SFURTI):

Farmer Producer Organizations:

 10,000 new Farmer Producer Organizations, to ensure economies of scale for

 Jal Shakti Mantralaya, integrating the Ministry of Water Resources, River

Swachh Bharat Abhiyan:

 9.6 crore toilets have been constructed since Oct 2, 2014

Pradhan Mantri Gramin Digital Saksharta Abhiyan:

Pradhan Mantri Awas Yojana – Urban (PMAY-Urban):

Rashtriya Swachhta Kendra:

 Will be inaugurated at Gandhi Darshan, Rajghat on 2nd October, 2019

National Research Foundation (NRF):

 To fund, coordinate and promote research in the country

World Class Institutions:

Khelo India Scheme:

 Launched in October, 2017

 Government enables about 10 million youth to take up industry-relevant skill

Stand-Up India Scheme: