Current Affairs Assam – February 1 - 7, 2019
( Covers all important Assam Current Affairs & GK topics for the week of February 1 – 7, 2019 )
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February 01, 2019
Highlights of Union Budget 2019 – 20 – Analysis & Important points
Download Union Budget 2019-20 Highlights PDF
Finance Minister Piyush Goyal on 1st February, 2019, presented the interim Union Budget in Lok Sabha. The Budget is notable for its roadmap for 2030 focusing on 10 dimensions which are key growth drivers of the Indian economy.
Highlights and important points of the Interim Budget 2019
- Income Tax & other Personal Taxes -
- Individual taxpayers with annual income up to Rs. 5 lakh rupees to get full tax rebate. For others, the tax rate remains unchanged.
- Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments of Rs.1.5 Lakh in instruments prescribed eligible for tax savings under Section 80C.
- Standard tax deduction for salaried persons raised from Rs. 40,000 rupees to 50,000.
- TDS threshold on rental income raised from Rs. 1.8 lakh to Rs. 2.4 lakh. Around 3 crore middle-class taxpayers will get tax exemption due to this measure.
- 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 2 crore rupees; can be exercised once in a lifetime.
- Benefits under Sec 80(i) BA being extended for one more year, for all housing projects approved till end of 2019-2020.
- Group of Ministers examining how prospective house buyers can benefit under GST.
- Within almost two years, almost all assessment and verification of IT returns will be done electronically by an anonymized tax system without any intervention by tax officials.
- Business Taxes -
- Businesses with less than Rs. 5 crore annual turnover, comprising over 90% of GST payers, will be allowed to return quarterly returns.
- 2 % interest subvention on loan of 1 crore for GST registered MSME units.
- GST Implications -
- In January 2019, GST collections have crossed Rs. 1 lakh crore.
- GST has been continuously reduced, resulting in relief of Rs. 80,000 crore to consumers; most items of daily use for poor and middle class are now in the 0%-5% tax bracket.
- GST is 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.
- Tax Collection -
- Direct tax collections from 6.38 lakh crore rupees in 2013-14 to almost 12 lakh crore rupees; tax base up from Rs 3.79 crore to Rs 6.85 crore.
- 54% returns have been accepted without any scrutiny.
- Business Scenario -
- Cost of data and voice calls in India is now possibly the lowest in the world.
- Mobile and mobile part manufacturing companies have increased from 2 to 268.
- Single window clearance for filmmaking to be made available to Indian filmmakers.
- Anti-camcording provision to be introduced to Cinematography Act to combat film privacy.
- Digitization of Export and Import transaction.
- India is the second largest start up hub of the world.
- North East India -
- Allocation for North Eastern region proposed to be increased to Rs 58,166 crore in this year a rise of over 21% from the previous year.
- Government will introduce container cargo movement to the Northeast by improving the navigation capacity of the Brahmaputra River.
- The budget allocation of Rs. 580 crore for various schemes of the North Eastern Council
- 931 crore under Central Pool of Resources for Northeast and Sikkim
- 674 crore under other subsidy payable including for North Eastern Region
- 1,700 crore for refund of Central and Integrated GST to Industrial Units in Northeastern region and Himalayan states.
- Arunachal Pradesh has come on the air map recently and Meghalaya, Tripura and Mizoram have come on India’s rail map for the first time.
- Many Projects stuck for decades like the Bogibeel rail-cum-road bridge have been completed.
- Agriculture & Allied sector -
- Increased allocation for Rashtriya Gokul Mission to Rs. 750 crore in current year.
- Two per cent interest subvention to farmers pursuing animal husbandry and fisheries.
- Under Pradhan Mantri Kisan Samman Nidhi, 6000 per year for each farmer, in three installments, to be transferred directly to farmers’ bank accounts, for farmers with less than 2 hectares land holding. This initiative is likely to benefit 12 crore small and marginal farmers, at an estimated cost of Rs 75,000 crore.
- Government announced setting up of Rashtriya Kamdhenu Aayog to enhance productivity of cows.
- Mining and Core Industry sector -
- Urgent action needed to increase hydrocarbon production to decrease imports; change in bidding procedure and exploration procedure being implemented.
- Banking and Financial Sector -
- The 4R approach has been implemented to ensure clean banking –
- Recognition
- Resolution
- Recapitalisation
- Reform
- The government spent Rs 2.6 lakh crore in the recapitalisation of the public sector banks and recovered Rs 3 lakh crore so far, through the Insolvency and Bankruptcy Code procedures. The Bank of India, Bank of Maharashtra and the Oriental Bank of Commerce are out of the PCA framework.
- 56 lakh loans worth Rs 7.23 lakh crore have been sanctioned under Mudra scheme.
- Technology Sector -
- Mobile Date consumption has increased by 50% in the country in the last five years. More than 3 lakh service centres are employing over 12 lakh today under the Digital India push.
- National Program on Artificial Intelligence is up next with centres of excellence to give the push. The aim is to empower the MSME sector.
- Infrastructure Sector -
- Sagarmala Project, a strategic and customer-oriented initiative to modernize India’s Ports, will be scaled up.
- On realty sector, RERA and Benami Properties Act helped bring transparency in the sector.
- Promise of electricity for all households by March 2019.
- Digital villages are the next big scheme with an aim of 1,00,000 lakh such villages in the next five years.
- India has achieved 98 percent rural sanitation coverage.
- Railway Sector -
- Planned expenditure of Rs. 1,58,658 crore.
- The operating ratio, a measure of Indian Railways financial health, improved and further improvement is being eyed. The operating ratio for the current fiscal year has improved to 96.2%.
- Trains sets like Train 18, now Vande Bharat Express, will offer world-class travel experience to passengers in the coming years.
- Vande Bharat Express was pitched as the indigenous technology leap that will ensure speed, service and safety in rail travel.
- An outlay of Rs 64,587 crore for Indian Railways.
- Defense Sector -
- Defense Budget gets mega boost, which is set for Rs. 3 lakh crore.
- Social Welfare -
- Pradhan Mantri Shram Yogi Mandhan, to provide assured monthly pension of 3000 rupees per month, with contribution of 100 rupees per month, for workers in unorganised sector after 60 years of age. This will benefit 10 crore workers in unorganized sector, may become the world’s biggest pension scheme for unorganized sector in five years.
- 500 crore to be set aside for the above scheme, which is to be implemented from this year.
- Massive announcement for work sector wish increase in gratuity limit from Rs 10 lakh to Rs 30 lakh.
- Rs 60,000 crore has also been set aside for
- Rs 19,000 crore has been allocated for Pradhan Mantri Gram Sadak Yojana.
- Allocation for National Education Scheme is 38578 crore.
- 76,800 crore for SC/ST/OBC welfare schemes.
- Committee under NITI Aayog to be set up to identify and denotify nomadic and semi-nomadic communities; Welfare Development Board to be set up under Ministry of Social Justice and Empowerment for welfare of these hard-to-reach communities and for tailored strategic interventions.
- Women and Child Development -
- Rs 29,000 crore has been set aside for the Women and Child Development (WCD) Ministry for the next fiscal, a 20 % increase over the 2018-2019 financial year with the Centre’s programmes of maternity benefit and child protection services.
- The allocation for the Pradhan Mantri Matru Vandana Yojana (PMMVY), a maternity benefit programme, was more than doubled to Rs 2,500 crore from Rs 1,200 crore. The programme provides Rs 6,000 each to pregnant women and lactating mothers.
- The Child Protection Services programme under the Integrated Child Development Services was increased to Rs 1,500 crore from Rs 925 crore.
- The government has already provided 6 crore free LPG connection. Government aims to complete the promise of 8 crore Free LPG connections by next year.
- Growth of Indian Economy -
- India is poised to become a 5 trillion dollar economy in the next five years and will become a 10 trillion dollar economy in the next eight years.
- Inflation is a hidden and unfair tax; from 10.1% during 2009-14, inflation in December 2018 was just 1%.
- Fiscal Scenario -
- Fiscal deficit has been bought down to 3.4%
- CAD (Current Account Deficit) likely to be 5% of GDP this year.
- Total expenditure target for FY20 is at 27,84,200 crore a rise of 13.3%
- Capital expenditure target is at Rs 3.36 lakh crore.
- In 2018-19, dividend from RBI, PSU Banks is Rs 74,100 crore. For the current financial year, target for the same has been pegged at Rs 82,900 crore.
- Revenue Deficit target has been pegged at 2 percent of the GDP.
- Gilt repayment is pegged at Rs 2.36 lakh crore.
- Net market borrowing has been pegged at Rs 4.73 lakh crore, while the gross market borrowing for the financial year has been pegged at Rs 7.1 lakh crore.
- Dividend from PSU units has been pegged at Rs 53,160 crore.
- Divestment target for Financial year 2020 has been pegged at Rs 90,000 crore.
Download Union Budget 2019-20 Highlights PDF
GST collection crossed Rs 1 lakh cr in January
- Revenue collection under Goods and Services Tax (GST) for January crossed Rs 1 lakh crore. Total collection for the month of January last year was Rs 89,825 crore.
- There has been a significant improvement over collection of Rs 94,725 crore last month and Rs 89,825 crore during the same month last year.
DAC clears changes in defence procurement procedure
- The Defence Acquisition Council (DAC) chaired by Defence Minister Nirmala Sitharaman approved significant changes in the Defence Procurement Procedure (DPP)-2016 to make it “industry friendly and simpler”.
- The submission of bank guarantees from Indian private sector banks authorised by RBI in addition to all public sector banks has been approved.
- This step would cut overhead costs of seller incurred while obtaining these guarantees from banks and enable faster financial transactions.
- Another significant change is simplification of the best price determination process in which the latest government policies on GST and custom duties have now been taken into account in order to evaluate the lowest bidder.
- The move gives advantage to the Indian vendors as it gives them an advantage in terms of duty as compared to foreign bidders.
- The DAC also approved aligning the date of delivery with the date of advance payment instead of the date of contract.
- These measures are set to provide further impetus to the indigenous defence industry in the country as also encourage foreign industry to manufacture in India.
Defence Acquisition Council (DAC) nods construction of 6 submarines
- The Defence Acquisition Council (DAC) approved indigenous construction of six Project 75(I) submarines for the Indian Navy at a cost of Rs 40,000 crore under the Strategic Partnership (SP) model.
- The construction of six submarines under Project 75(I) will provide a major boost to the existing submarine design and manufacturing eco-system in India through transfer of design and equipment technology as well as necessary skill sets.
- Under the Project 75(I), the Indian Navy intends to acquire six diesel-electric submarines with advanced air-independent propulsion (AIP) systems to enable them to stay under water for longer duration. This capability would significantly increase their operational range.
- This is second project under the SP model that aims at providing a fillip to the government’s “Make in India” programme.
FACTFILE – Defense Acquisition Council (DAC)
- Defense Acquisition Council (DAC) was Set Up in August 29, 2001, to counter corruption and speed up decision-making in military procurements.
Head of the Council: Defence Minister
Other members:
- Deputy Chief of Defence Staff (member secretary)
- The Minister of State of Defence,
- The Defence Secretary,
- The head of the Defence Research and Development Organisation (DRDO),
- The Chief of Defence Staff (when appointed) and
- Chiefs of the Army, the Navy and the Air Force
- The Secretary, Defence Production,
- The Financial Adviser
- The Vice-Chief of Defence Staff (VCDS)
- The Special Secretary (acquisition)
The DAC structure ensures that there are in-built checks and balances in relation to procurements. For instance, the armed forces are well represented, ensuring that the defence bureaucracy does not exercise overwhelming influence on decision- making. The adequate mix of bureaucracy and service officers is also reflected in other bodies involved in acquisition, under the overall supervision of the DAC.
Functions of DAC:
- Will give policy guidelines to acquisitions, based on long-term procurement plans
- Will also clear all acquisitions, including imported equipment and those produced indigenously or under a foreign licence
- To monitor the acquisition process, the DAC will preside over three wings
- Defence Procurement Board which will deal with purchases
- Defence Production Board which will supervise procurement from indigenous sources, such as ordnance factories and equipment manufactured under a foreign licence
- Defence Research and Development Board
February 02, 2019
Cabinet approves interim Budget 2019-20
- The Union cabinet chaired by Prime Minister Narendra Modi approved the interim Budget for 2019-20.
- The interim Budget will be presented by Finance Minister Piyush Goyal in Parliament.
- Goyal called on President Ram Nath Kovind to get his signatures on financial proposals.
Government to launch National Artificial Intelligence Portal
- Finance Minister Piyush Goyal announced that the government will soon launch the National Artificial Intelligence Portal.
- Presenting the Interim Budget 2019-20 in the Lok Sabha, Goyal also said that nine priority areas had been identified for the development of the Artificial Intelligence sector.
2% interest subvention for MSMEs on loan up to Rs 1 crore
- The government announced 2 per cent interest subvention for micro, small and medium enterprises (MSMEs) for loans up to Rs 1 crore.
- All MSME units registered with the Goods and Services Tax (GST) will now have 2 per cent interest subvention for loans up to Rs 1 crore.
- The government had also increased the share of government procurements from MSMEs through Government eMarketplace (GeM) to 25 per cent, including 3 per cent from MSMEs run by women.
- The GeM has registered transactions of more than Rs 17,500 crore which has led to savings of 25-28 per cent.
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