Budget 2019: Piyush Goyal gives the middle class a new high

Representative image

Photo: Kamal Narang   -  BusinessLine

Proposals include full rebate for income up to Rs 5 lakh, hike in standard deduction to Rs 50,000 from Rs 40,000

_____________________________________________________________

Direct tax proposals at a glance

Income up to Rs 5 lakh - No tax

Over Rs 5 lakh- up to Rs 6.5 lakh - No tax if investments made.

Standard deduction raised to Rs 50,000 from Rs 40,000 now.

TDS threshold on interest from bank deposits, postal savings raised to Rs 40,000 from Rs 10,000.

TDS threshold on rental income raised to Rs 2.4 lakh from Rs 1.8 lakh.

Capital gains from residential property sale will be eligible for exemption under Section 54 for 2 properties bought.

No income-tax on notional rent on second self-occupied home

_____________________________________________________________________

Other big proposals

Income support scheme for farmers - Rs 6,000/year direct transfer cash to small farmers

Mega pension scheme for the unorganised sector - for assured monthly pension of Rs 3,000

Hike in Defence budget to over Rs 3 lakh crore

___________________________________________________________________

 

Analysis: Quick-fix budget pleases market

 

12.45 pm

Concluding remarks

“This is not an interim Budget,” but a vehicle for the nation’s development. Development became a Jan Andolan (people's movement) under the present Government.

Finance Minister winds up quoting Marathi poet. Moves to introduce Finance Bill 2019. Parliament adjourned tilll February 4, 2019.

12.40 pm

Markets surge

Sensex zooms 420 points on sops to tax payers.

Market Live!: Sensex zooms 420 pts on sops to tax payers; Tax exempt up to Rs 5 lakh income

Nifty rallies 1 per cent

Read More  

12.30 pm

Income tax

People with income more than Rs 5 lakh and up to Rs 6.5 lakh will also not have to pay any tax if investments made.

 

Standard deduction raised to Rs.50,000 from Rs.40,000 now.

Proposing to exempt levy of IT on notional rent on second occupied houses for middle-class families who stay at two places on account of their jobs.

TDS threshold on bank deposits raised from Rs 10,000 to Rs 40,000. TDS threshold on rental income raised from Rs 1.8 lakh to Rs 2.4 lakh.

Benefit of rollover of capital tax gains to be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to Rs 2 crore. This can be exercised once in a lifetime.

When an individual sells a residential property he will be now eligible for exemption under Section 54 for 2 properties bought. Benefits under Sec 80(i)BA being extended for one more year, for all housing projects approved till end of 2019-2020.

12.29 pm

Tax proposals

Thanks all taxpayers for their contribution to nation building. After Tax reforms in 4.5 years, both tax collections and base have seen significant increase. It is just and equitable that some benefits from tax reforms should also be passed on to middle-class tax payers.

Tax reforms: Small tax payers pensioners and senior citizens need certainty.

Existing rates to continue for FY19-20.

12.24 pm

FY20 Fiscal deficit target at 3.4 per cent. Total expenditure increased by 13.3% in fy20, fiscal deficit at 3.4% in FY20. Capital expenditure - 3,36,292 lakh crore,

Given the needs to provide income support to farmers, Rs 20,000 cr in the revised estimate this yr, Rs 75,000 cr next year, fiscal deficit is slightly higher.

Confident of crossing the disinvestment target of Rs.80,000 cr this year.

56,619 crore made in BE 2018-19 for welfare of SCs and STs, increased to 62,474 crore in RE 2018-19 has been further increased to 76,800 crore in BE 2019-20.

 

12.14 pm

Vision statement

FM underlines 10 most important dimensions that will guide the Government in Vision 2030. Laughter by opposition MPs in Parliament as Piyush Goyal unveils vision for next 10 years.

Till 2030 build social and physical infrastructure, and provide ease of living, next gen infra for roads, railways, sea-ports, inland waterways / every family will have a roof on it's head and live in healthy, clean, wholesome environment.

India will lead the world in the transport revolution through electric vehicles and energy storage devices.

Ten point vision

1. To build next-gen infrastructure - physical as well as social - for a 10 trillion dollar economy and to provide Ease of living.

2. To build a Digital India that reaches every citizen, our youth will lead us in this, by creating innumerable startups and jobs.

3. Clean and Green India - an India that drives electric vehicles, with renewables becoming major source of energy, bringing down import dependence and increasing energy security for our people.

4. Expanding rural industrialization using modern industrial technologies, based on Make in India approach, using grassroot MSMEs and startups across the country.

5. Clean Rivers - with safe drinking water to all Indians, sustaining and nourishing life, using micro-irrigation techniques; long coastline can be pivotal for the economy, using strength of blue economy and SagarMala

6. Oceans and coastlines is the sixth dimension of our vision for 2030.

7. India becoming launchpad of the world, placing an Indian astronaut in space by 2022

8. Self-sufficiency in food and improving agricultural productivity with emphasis on organic food

9. Healthy India - healthcare infra and wellness system

10. Proactive and responsible bureaucracy.

 

12.11 pm

Anti-blackmoney measures

Our govt is committed to eliminating ills of black money in our country.

Anti-black money measures taken by us during 4.5 years, Black Money Laws and Demonetisation has brought Rs 1,30,000 crore, seizure and attachments Rs 50,000 crore, benami assets - Rs 6400 crore, foriegn assets Rs 16,00 crore, 3.38 lakh shell companies deregistered.

For the first time, over 1 crore have filed I-T returns after Demonetisation

12.06 pm

GST

GST is the undoubtedly the biggest taxation reform implemented since Independence; through tax consolidation, India became one common market; inter-state movements became faster through e-way bills, improving Ease of Doing Business.

GST increased in higher collection (of taxes). Interstate movement of goods has become hassle free, faster. GST has been continuously reduced, resulting in relief of Rs 80,000 crore to consumers.

Items of daily use for poor and middle class are between 0-5 per cent Goods and Services Tax. Burden should be less on home buyers, so recommendations will be acted upon by GST Council.

Businesses with less than Rs. 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns. Govt abolished import duties on 36 capital goods.

12.02 pm

Income tax

Simplification of direct tax system will benefit taxpayers. The direct tax reduced and tax interface made simpler and faceless to make life easier, resulting in increase in tax collections and return filings.

Monthly tax collection had increased to Rs 97,100 crore as opposed to about Rs 87,000 crore last year. 80 per cent growth in the tax base.

99.54% returns have been accepted without any scrutiny. The Income Tax department was made online, all returns will be processed within 24 hours and returns will be provided simultaneously.

In next 2 years, all IT returns taken for scrutiny also will be done from an anonymous computerised system.

Special incentives were given to small businesses. Impactful steps taken in reducing tax, bringing benefits for middle class citizens.

Direct tax collections increased from Rs 6.38 lakh crore in 2013-14 to almost Rs 12 lakh crore; Tax base up from to 6.85 crore.

Tax exemption for those with income of Rs 2.5 lakh and under (it was RS 2 lakh so far). And tax rebates for those in the Rs 3 lakh income bracket.

 

99% corporates come under the Rs 250 crore bucket. Corporate tax reduced from 30 to 25%.

14% growth in state tax collections was guaranteed and underwritten by Government of India.

12.00 pm

Entertainment

Single window clearance for film shootings is being extended to Indian film makers. Earlier, it was available only for foreigners - moved aimed at boosting the entertainment industry. Earlier it was available to foreign film makers only.

 

11.58 pm

Jan dhan, Aadhar have been gamechanger. 34 crore Jan Dhan Yojana accounts opened in last five years.

Aadhaar almost universally implemented; ensuring poor and middle class receive government benefits directly.

11.57 pm

Digital India

Monthly consumption of mobile data rose by 50 times in five years, cost of voice calls lowest in the world.

Announces one lakh digital villages in next five years.

Mobile and part makers increased from 2 to 268 in past five years. Thereby generating more jobs in India.

11.55 am

Energy sector

India's installed solar power generation capacity has grown 10 times in the country.

Rising import of crude oil is a matter of concern. Government has formed a committee to look into measures to lower import bill.

11.50 am

Transport and infrastructure

Infrastructure is the backbone of any country's development. People of North east have seen significant benefits of infra Development. Allocation to be increased for N-E by 21% over last year's allocations.

India's aviation industry sees a high. Domestic Air Traffic doubles in 5 years. Over 100 operational airports in India. Domestic passenger traffic has doubled. Fast development will give rise to employment opportunities in infra and aviation.

India fastest highway developer in world with 27 km of highway built everyday. Construction of rural roads has been tripled; 15.8 lakh out of a total 17.84 lakh habitations have been connected with pucca roads under PMGSY.

Indian Railways have experienced the safest year. All unmanned level crossings eliminated. Capital support for railways proposed at ₹ 64,500 crore. Railways operating ratio pegged at 95% in Budget Estimate 2019-20.

Govt to introduce container cargo movement to North east.

Vande Bharat Express will provide speed, service and safety to citizens and will give a boost to Make in India.

Indian Customs is implementing full digitization of exim transactions and leveraging RFID for logistics.

11.46 am

Defence

We implemented the One Rank One Pension scheme for our soldiers, pending for last 40 years. Under OROP, around Rs 35k crore has been disbursed.

Allocates Rs 3 lakh crore for Defence budget. Additional funds will be provided if needed for border security.

11.45 am

Employment

Move to change job seeker into job creator. India has become the 2nd largest hub of Start Ups. Employment generation not confined to government.

National programme on artificial intelligence has been envisaged. Nine priority areas have been identified.

DIPP to be renamed to Department for  Promotion of Industries and Internal Trade. Govt projects now have to source 25% of requirements from SMEs

11.40 am

Women development

Women's development through women-led development. Women in rural India by providing cleaner fuel, embarked upon delivering 8 crore free LPG connections, of which 6 crore connections have already been distributed under Ujjwala Yojana. Under Ujjwala scheme, 6 crore free LPG connections have been disbursed. Next year another 2 crore connections will be disbursed.

More than 7,000 beneficiaries of PM Mudra Yojana are women. 15.56 crore loans of ₹7.23 lakh crore disbursed under MUDRA Yojana.

Benefits of maternity leave of 26 week have provided support to women.

 

11.35 am

Social security

EPFO has reported a higher subscription by 2 crore in the last two years. When the economy is doing well, obviously jobs are being created. Gratuity limit has been increased to Rs 20 lakh from Rs 10 lakh.

India witnessed industrial peace in the last 5 years. Bonus given to labourers went up from Rs 3,000 to Rs 7,000. The minimum pay went up to Rs 21,000/ per month.

Proposes to launch Pradhan Mantri Shram Yogi Maan Dhan for the unorganised sector workers those with a monthly income of ₹ 15,000. The scheme will ensure monthly pension of Rs 3000 after retirement.

Under the scheme, the centre assures pension of ₹ 3,000 per month after 60 years of age in lieu of a minimum monthly payment between ₹ 55 to ₹ 100 depending on age of joining the scheme.

11.33 am

Market update

 

11.30 am

Animal husbandry and fisheries sector

Animal and Husbandry Fisheries sector needs support has been increased under Rashtriya Gokul Mission. The Rashtriya Kamdhenu Aayog to upgrade genetic quality of cows, implementation of laws for cows.

Separate department of fisheries to be created.

2 per cent interest subvention for those engaged in animal husbandry and fishing when loans taken through Kisan Credit Card. To be given subvention of 3% on timely repayment of loan.

11.25 am

Agriculture

All 22 crops have been put under Minimum Support Price. Assured income support to small and marginal farmers PM Kisan Samman Nidhi launched. It will benefit 12 crore farmer families.

Those farmers who have up to two hectares of land, direct income support of Rs 6000 every year will be transferred directly in bank accounts of beneficiary farmers in three installments of Rs 2000 each. It will be applicable from December 2018.

PM Kisan Yojana to cost exchequer Rs 75,000 crore per annum. To be borne 100% by Centre.

Farmers affected by natural calamities will be given 3 per cent interest subvention on crop loans.

11.23 am

Healthcare

We launched the world's largest healthcare programme Ayushman Bharat. It was launched to provide medical treatment nearly 50 crore people. Till now 10 lakh sick people have got treatment under this scheme.

 

21 AIIMS operating or being established. 14 of these AIIMS have started after this government. 22nd AIIMS will be in Haryana.

11.20 am

For the poor

Keeping the existing reservation framework intact, the Govt has ensured 10% additional reservation for the poor for the government jobs and education.

From empty promises in the past, targeted expenditure has been undertaken to improve quality of life in villages; we aim to bring development, preserving the soul of villages. We've worked to bridge the urban-rural divide. Efforts taken to bring full representation for economically weak backward classes, by giving them reservation in jobs and education.

During the last 5 years, we've undertaken targeted expenditure to improve living conditions. PM Gram Sadak Yojana construction of rural roads has been tripled.

Rs 60,000 crore has been allocated for MNREGA. PM Gram Sadak Yojana gets Rs.19,000 crore.

15,80,000 out of 17, 84,000 habitations have been given pucca roads and work is going on in other habitations and 1.53 crore houses built under affordable housing scheme.

Under the Saubhagay Yojana, by March 2019 every household will get electricity connection. 143 cr LED bulb distribution led to Rs 50k saving on electricity bill of households.

11.17 am

 

11.15 am

Steps against corruption

We've ushered in a new era of transparency.

The RERA 2016 and Benami Act are helping to bring transparency in the real estate sector.

Transparent auctions and fugitive economic bill, we have walked the talk.

Swachh Bharat mission

We have achieved 98% rural sanitation coverage and over 5,45,000 have been declared Open Defecation Free.

11.10 am

Banking reforms

Loans of PSBs ballooned to Rs 54 lakh crore from Rs 18 lakh crore between 2008 and 2014. Close to 3 lakh crore already recovered in favour of banks and creditors, big defaulters too not spared by our government.

Number of measures implemented to ensure clean banking, a resolution friendly mechanism has been instituted for recovery of non-performing loans.

The 4R approach and a number of measures have been implemented to ensure clean banking. 1.Recognition 2.Resolution 3.Recapitalization 4.Reforms

11.00 am

Begins Budget speech

Finance Minister Piyush Goyal begins Budget 2019 speech. Acknowledges absence of Arun Jaitley. The people of India gave a strong mandate to the Government, under leadership of Prime Minister Narendra Modi, structural reforms undertaken, reversed policy paralysis and restored the nation's image.

State of Economy

India is solidly back on track. We are moving towards realising new India by 2022 when we celebrate 75 years of Independence.

India recognised as bright spot by global economy. We are the fastest growing major economy in the world today.

Inflation

Inflation is a hidden and unfair tax; from 10.1% during 2009-14, we have broken the back of back-breaking inflation. We were 11th largest in 2013-14 and now we have moved to 6th largest economy. We brought down average inflation to 4.6 per cent. Inflation in December 2018 was just 2.1%

If we had not controlled inflation our families would have spent 30-40% on basic necessities.

Fiscal deficit brought down 3.4% in revised estimate.  $239 billion received as FDI in last five year

10.57 am

Markets rise ahead of the budget

The 30-share benchmark Sensex was trading 149.40 points, or 0.40 per cent, higher at 36,406.12. Similarly, the 50-share NSE Nifty rose 41.20, or 0.38 per cent, to 10,872.15.

Market Live!: Sensex zooms 420 pts on sops to tax payers; Tax exempt up to Rs 5 lakh income

Nifty rallies 1 per cent

Read More  

10.55 am

Budget 2019: What can be expected?

 

10.50 am

Interim Finance Minister Piyush Goyal is all set to present his maiden interim budget. The budget presentation speech is set to begin at 11 am.

 

10.40 am

Opinion | Budgeting for the bottom of the pyramid

At the receiving end: Workers in insecure employment have no power to bargain for better terms   -  REUTERS

 

In an election year, the government will present only an interim Budget to keep it going till after the elections. However, with the elections in mind, the Finance Minister may use the occasion to announce the government’s policies if elected again. Read the opinion by Arun Maira here

10.30 am

Prime Minister Narendra Modi arrives at Parliament ahead of the Budget presentation

According to government sources, the government is set to earmark about Rs 1.3 trillion for the Ministry of Rural Development, up from Rs 1.12 trillion in the current fiscal year, as Prime Minister Narendra Modi tries to woo the farm vote ahead of a general election due by May this year.

Modi plans to raise rural spending by 16%: Sources

Highest allocation likely to be for the flagship rural job guarantee programme

Read More  

10.25 am

Opinion | A non-populist wish-list for the Budget

Here are four Budget ideas that can strike a balance between pleasing the aam aadmi and doing the economy and the fisc some good in the long run.

A non-populist wish-list for the Budget

Here are four ideas which strike a balance between pleasing the aam aadmi and protecting the fisc

Read More  

10.20 am

Markets update

Market Live!: Sensex, Nifty trade higher ahead of Budget

10.15 am

Fitch warning

 

Fitch Ratings warned of a second consecutive year of fiscal slippage in the event of Union Minister Piyush Goyal resorting to populist spending to win over lost vote base. Populist spending, it said, would aggravate fiscal pressures, which are already building due to revenue shortfalls. Read the full report on Fitch warning on the fiscal slippage here

10.05 am

Budget papers arrive at Parliament

Photo: Kamal Narang

9.55 am

Pre-Budget analysis

Here is an overall view on to what happened in Real Estate sector previous year and what could be expected from the upcoming interim budget.

 

9.45 am

CEOs wish-list

 

As the interim Finance Minister Piyush Goyal is all set to present an Interim Budget, India’s corporate chieftains share their views and their expectations from this Budget. Read the wish-lsit of India Inc here

9.35 am

Markets update

 

Ahead of the budget presentation, the Sensex opened marginally higher at 36,332.58. The broader index Nifty too was up by 19.70 points, or 0.18 per cent, to 10,850.65. Get all the live market updates here

9.25 am

Why do we need a budget?

As the Modi government is all set to present its last budget before the 2019 General Elections, Aarati Krishnan explains why do we need a budget?

 

9.15 am

Interim Finance Minister Piyush Goyal arrives at the North Block

Poll bugle Piyush Goyal

Photo credit: Kamal Narang

9.00 am

Convention vs compulsion for Piyush Goyal

 

On Friday, Stand-in Finance Minister Piyush Goyal will present the Interim Budget followed by Vote-on-Account to meet the expenditure for the first four months of the next fiscal. There is a strong possibility that Goyal, in his maiden Budget speech, may announce relief package in the form of income support. Read more on what can be expected in the Interim Budget 2019 here

Published on February 01, 2019