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In 2018, the Union Ministry for Electronics and Information Technology released the ‘Digital North East Vision 2022’ aimed at maximum use of digital technology to transform lives of people. Digital North East is envisioned as an integral part of Digital India programme.
The Vision Document aims to provide a roadmap for translating the vision of Digital North East 2022 into firm action plan for each of the North East State. Objective of the initiative is “Maximum utilisation of digital technologies to transform lives of people of the north east region”.
Main Objectives of Digital North East 2022 are
To provide high speed broadband connectivity and mobile connectivity in all the uncovered villages in the northeastern region.
To create a Cloud- hub at Guwahati with Disaster Recovery Center for the NER.
To expand Common Service Centers to all Gram Panchayats in North East States.
To provide better access to quality health, educational and agricultural services using Digital Technology.
To promote local tourism, art and culture, handicraft, handloom.
To establish Start-ups and innovation Hub for North East.
To provide safe and secure cyberspace for digital north east by setting up specialized cyber security labs and by providing skill development through special trainings and IEC.
Eight thrust areas have been identified, these are
Digital Infrastructure
Digital services
Promotion of Electronics Manufacturing
Digital empowerment
Promotion of IT and ITes including BPOs at small cities of North East.
Digital Payments
Innovation & Startups
Cyber security.
Through these, it aims to empower the people of the North Eastern region. It has developed state-wise roadmaps for implementing digital initiatives in North East States. Union government will invest nearly Rs. 10,000 crore in the NE region over next 4 years to implement more than 400 projects. It will help in leveraging power of Information Technology to leapfrog the overall development of North East region and realize its full potential.
The implementation will require symbiotic and collaborative efforts between the Central Ministries and Departments concerned and the Governments of the North East States. The majority of the projects will be implemented by the Department of Telecom.
As part of the initiative, Union IT minister also inaugurated the first electronics manufacturing cluster in the North-Eastern region in Guwahati.
North Eastern Regional Agricultural Marketing Corporation (NERAMAC)
The NERAMAC Limited was incorporated in the year 1982 as a marketing organization in the field of Agri-Horti sector of the North-eastern region, under the administrative control of the Ministry of Development of North Eastern Region (DoNER). Its registered office is located at Guwahati.
It is a Government of India Enterprise operating under the administrative control of the Ministry of Development of North Eastern Region (DoNER). NERAMAC is a pioneer marketing organization in the field of Agri-Horti sector of the North-eastern region, involved in supporting farmers right from the fields and upto the markets to the end consumers through registered FPO/FPCs.
It was set up to support farmers/producers of North East getting remunerative prices for their produce and thereby bridge the gap between the farmers and the market and also to enhance the agricultural, procurement, processing and marketing infrastructure of the Northeastern Region of India.
NERAMAC is continuously making all efforts for the development of the farmers of the region and double their income by the end of 2022.
The Union Minister for Development of North Eastern Region (DoNER) laid the foundation stone of NERAMAC marketing complex in Guwahati, Assam. The marketing complex will be a destination to showcase the products of the North-Eastern region.
Role of North Eastern Regional Agricultural Marketing Corporation ( NERAMAC)
The main role of NERAMAC is to purchase the marketable surplus of fruits and vegetables from the growers of the North East, to make necessary arrangement for its processing and marketing and to support farmers and producers through input supplies for better productivity under the aegis of Central Sector Schemes.
It associated with the Ministry of Food Processing Industries (MoFPI) for development of food processing in the NE region apart from involving itself in Central Sector schemes like Mission for Integrated Development of Horticulture (MIDH).
It has also taken up assignment to co-ordinate and assist in attracting investment, create awareness on food processing and to assist MoFPI in administering the National Mission on Food Processing in the North East.
NERAMAC has sponsored a Techno-Economic Feasibility Study to look at the feasibility for setting up collection and procurement Centres of agro-horticulture commodities viz. Pineapple, Orange, Ginger, Apple, Kiwi and Passion fruit in nine places viz. Diphu, Haflong, Krishnai (Assam), Bomdila, Roing (Arunachal Pradesh), Churachandpur (Manipur), Vairangte (Bhaga) in Mizoram, Nongpo and Phulbari (Meghalaya).
Karbi Anglong Autonomous Council (KAAC) Budget 2020-21
The Chief Executive Member (CEM) of Karbi Anglong Autonomous Council (KAAC) Tuliram Ronghang presented Rs 38.97 crore deficit budget for the year 2020-21 for the council.
An estimated expenditure is proposed at Rs. 225 crore (including HUDCO share of Rs. 40 crore) for the fiscal to carry out developmental activities, against the total estimated receipt of Rs. 146 crore (excluding HUDCO share of Rs.40 crore arpox.) leading to a deficit of Rs. 39 crore for the financial year 2020-21.
The KAAC revenue is derived from own sources as well as from State government and Government of India in the form of Grant-in-Aid and administrative charges.
The Council’s main sources of revenue are derived mostly from forest products, entry tax, professional tax, trade callings, land revenue, share of motor vehicle tax, sale proceeds from weekly markets, ghats, fisheries and cattle pounds. Also other sources of revenue are sale of district council receipt, court fee stamps and royalty from mines and minerals etc.
In order to increase the revenue kitty, the CEM also proposed new fee hike on trading license, transfer of land and other trades.
The KAAC is likely to receive an amount of Rs 50 crore of administrative charges and share of motor vehicle tax from the state government. Similarly, the KAAC would receive excise and export revenues from 2021
The MAC development fund has been increased to Rs 30 lakh from Rs 15 lakh. The state government has assured that the excise and export revenues will be handed over to the KAAC fully and the amount may touch Rs 100 crore from April next year.
Main features of the Karbi Anglong Autonomous Council (KAAC) Budget 2020-21
An amount of Rs. 180.00 lakhs has been proposed for pension of living ex-Member of Autonomous Council (MAC) of Karbi Anglong Autonomous Council. Revenue receipt for 2020-2021 expected to get by Rs.1740.00 lakhs from Forest products. Under Major Works budget provision been made available of Rs.700 lakhs and constituency development fund for Rs.780 lakhs. MACs will be granted INR 30 lakh each for constituency development purposes.
Rs. 7 crore for major works, Rs 7.80 crore for constituency development;
Rs. 70 lakh to education department for scholarship and stipends for technical students (including IAS coaching);
Rs. 10 lakh for Centre for Studies in Karbi Language and Culture;
Rs. 50 lakh for Karbi Youth Festival;
Rs. 20 lakh for Karbi Lammet Amei;
Rs. 10 lakh for scholarship and stipends;
Rs. 10 lakh for purchase of vehicle for Karbi traditional king;
Rs. 3 lakh for TA & other allowances for Karbi traditional king and other customary heads;
Rs. 2 crore to urban development department for municipal and town committees;
Rs. 40 lakh for purchase of machinery and equipment; Under loans and advances,
Rs. 50 crore for construction of multi level parking at Diphu and multi storied commercial complex and KAAC Guest House at Diphu;
Assam Finance Minister Himanta Biswa Sarma presented the state budget for the financial year 2020-21 on 6th March, 2020 at the state Legislative Assam assembly. The budget aims to reduce regional imbalance among the various regions of the state and thus, it has proposed various programs and provisions for all the areas of the state. In this article we detailed about the Assam Budget 2020-21 provisions related to BaraK Valley region of Assam, which comprises of Cachar, Karimganj and Hailakandi Districts.
Assam Budget 2020-21 : Provisions for Barak Valley (Cachar, Karimganj and Hailakandi Districts)
MAJOR ANNOUNCEMENTS
The Government of Assam has initiated the “Establishment of Mini Secretariat at Barak Valley, Silchar, Assam”.
A budget of Rs. 10 Crore earmarked to engage quality private health institutions in Barak Valley having the specialty branches like Cardiology, Neorology etc, under Public Private Partnership mode, to cater the medical necessities of these patients. This is done considering the medical needs of the patients from the three districts of Barak Valley, viz Cachar, Karimganj and Hailakandi, as Barak Valley has limited number of specialist facilities and insufficient beds in the Government institutions, including Silchar Medical College.
Govt announced the “Asom Darshan” scheme in Budget 2019-20 – a comprehensive scheme to develop tourist spots and religious places of all faiths of our sacred land of Assam, glorified by Kamrup- Kamakhya, Brahmaputra and Majuli and holy places like Bhubon Teertho in Barak Valley. Govt launch this auspicious scheme on 24th February 2020 in the presence of 915 spiritual heads of various institutions from across the State – from Majuli to Madhupur, Dhubri to Sadiya, Kamrup to Cachar & Karimganj and Dima Hasao to Bodo Territorial Region. As announced in Budget 2019-20, govt will continue to provide an additional Rs.2 Lakh Annuity grant to each of the Devalayas in Financial Year 2020-21 as well.
Within the Financial Year 2020-21, seven new Government Colleges, Borkhola in Cachar, Deaithor in Karbi Anglong, Kakopathar in Tinsukia, Katlicherra in Hailakandi, Lahorighat in Morigaon, Samaguri in Nagaon and Majer Alga in South Salmara, will be made functional as necessary posts for running these colleges have already been created.
Government is going to start five new polytechnics in the State at Morigaon, Udalguri, Tinsukia, Hailakandiand Chirang during the financial year 2020-21.
Govt is putting effort to select a suitable site for Karimganj Medical College.
Acting on this vision, the Department will organize ‘Border Festivals’ at Guwahati, Tezpur, Jorhat, Hailakandi and Dhubri during Financial Year 2020-21.
Public Health Engineering Department is implementing the World Bank Funded Neer Nirmal Pariyojana, as part of this scheme water supply is being provided in a total of 63 Gram Panchayats covering 1.16 lakh households in the Districts of Kamrup (M), Jorhat and Hailakandi.
A one-time benefit extended to the students whose parents are employed with the Hindustan Paper Corporation (Nagaon & Cachar), and we will be releasing another tranche to about 3000 students within March 2020.
Assam Govt is going to bring in a legislation to make the teaching of Assamese as a compulsory subject in all English and other medium schools up to Class X. Education Department will bring the necessary bill during the current budget session to this effect. However, the proposed law will not apply for Barak Valley, Bodo inhabited areas and two hill districts administered by the sixth scheduled councils. Bring a law so that studying Assamese/ any regional languages in school a mandatory condition for securing a government job.
1. Increasing stake of Assam Government in Numaligarh Refinery Ltd
Numaligarh Refinery Ltd (NRL) is one of the most important Public Sector Undertakings (PSU) in the country today. Currently, Assam Government holds 12.35% shares.
Government of Assam to acquire an additional shareholding in NRL to take its total stake to 26%.
NRL Plan to expand to 9 Million Metric Tonne Per Annum (MMTPA) from the present 3 MMTPA capacity. Rs 1,500 crore has been earmarked for the same.
2. Anna Yojana
Free rice for 57 lakh beneficiaries under National Food Security Act which will cost the state Rs 472 crore.
3. Jyotisman Asom
Free electricity to all households whose monthly electricity consumption is up to 30 units.
Currently, 14 Lakh families consume electricity up to 30 units monthly and this initiative will immediately benefit families belonging to the bottom of the pyramid including tea garden workers, families living below poverty line and our SC-ST population.
Government will provide Rs. 300 Crore to APDCL for providing tariff relief to the general public. Besides, the State Government is also continuing the existing subsidy to around 38 Lakh Domestic-A consumers at prevailing rate of Rs. 1.01 per unit for 120 units per month.
Creation of entrepreneurial support groups of youth on the lines of NRLM SHGs.
The scheme will cover 2,00,000 youth of the state and provide them with seed capital at the rate of 50,000 per member for initiating entrepreneurial activities.
5. Chah Bagicha Dhan Puraskar Mela
7,21,485 Tea Garden workers from 752 gardens received a benefit of Rs. 5000 each during Financial Year 2018-19. To receive another Rs. 3000 each in FY 20-21.
This will drive financial inclusion of Tea Garden workers and inculcate banking habits.
6. Welfare Schemes for the Tea Tribes and Adivasi
Wage compensation for pregnant women
Wage compensation expanded from existing 6 months to 9 months.
Compensation increased to Rs. 18,000 to be paid in 6 installments.
These scheme will support pre-natal and post-natal health checkups and provide nutritional security.
Educational Benefits
10,000 as a onetime support to the Tea Tribes and Adivasi students who pass HSLC and HSC exams in 2020-21.
Students will continue to receive same benefit if they are still pursuing their academic course.
102 new high schools to ensure continuous education to children in tea gardens.
Other Schemes
34,000 youths to get Rs. 25,000 each for starting entrepreneurial activities.
Smartphones for approx. 4000 Tea Garden Sardars.
Government to facilitate gratuity payment of approx. Rs. 50,000 to Tea Workers.
300 km of roads in 300 tea garden divisions to be constructed.
Renovation of 100 football grounds in tea garden areas.
Establishment of District & Block Programme Management Units for effective implementation of schemes.
Assam Finance Minister Himanta Biswa Sarma presented the state budget for the financial year 2020-21 on 6th March, 2020 at the state Legislative Assam assembly. The Finance Minister informed that despite sluggish growth across the globe and slowdown of the Indian Economy, the state of Assam achieved an impressive average annual growth rate in respect to GSDP at current prices during the period 2016-17 to 2019-20 (BE) at 12.38%. Even at constant prices, Assam has grown much faster than the national average which is a notable achievement.
Open up bank branches and ATMs in the unbanked areas.
An amount of Rs. 50 Crore is earmarked for Gap funding for banks to set up necessary infrastructure in the budget for the year 2020-21
Resolution of issues plaguing the Micro-Finance Institutions
Government proposes to frame detailed guidelines for the operations of the MFIs in the state, to safeguard the interest of people.
Government propose to constitute a Microenterpreneurs Support Fund with a corpus of Rs. 500 Crores.
Education
Educational Institutions Initiatives
Start five polytechnics at Morigaon, Udalguri, Tinsukia, Hailakandi and Chirang
Seven new Government Colleges, Borkhola in Cachar, Deaithor in Karbi Anglong, Kakopathar in Tinsukia, Katlicherra in Hailakandi, Lahorighat in Morigaon, Samaguri in Nagaon and Majer Alga in South Salmara.
New University Sati Sadhoni Rayjik Vishwavidyalaya in Golaghat District.
Two new Medical Colleges in Sonari and Biswanath Chariali
One new Ayurvedic College at Dudhnoi, Goalpara
One new Law College will be established in Kaliabor
To institute a Bani Kanta Kakoti Chair at Guwahati University.
Grants of Rs. 10 crore as corpus to Mahapurush Srimanta Shankardeva Viswabidyalaya.
Infrastructure
Chuburi Poka Rasta Asoni
Provide Rs. 20 Lakhs per Kilometer gap funding to P&RD department for construction of all-weather sustainable roads in hamlets.
Government propose to provide Rs. 20 lakhs per kilometre, as gap funding in Budget 2020-21
Construct 200 Km of roads on a pilot basis
40 Crore earmarked for year 2020-21.
City Infrastructure Development Fund
Schemes under CIDF to be continued.
Overall Commitment of Rs.2300 Crore for 18 Cities across the State.
Necessary Fund Provision for carrying out required activity
Uttoron
300 Crores earmarked for execution of Signature Projects of Infrastructure development.
Assam Adarsha Gram Yojan
Create ‘villages of excellence’ in each of the assembly constituencies.
Entry point activities to kickstart in right earnest
Announcement regarding making annual patta land transferable
Initiated steps to bring legal changes to make annual patta land transferable.
Indigenous Muslim Development Corporation
Create a Development Corporation for Indigenous Muslims of Assam.
Socio-economic census of these communities on a war footing.
Health & Welfare
PPP Partnership for Healthcare in Silchar
Engage quality private health institutions in Barak Valley with specialty branches like Cardiology, Neorology etc, under Public Private Partnership mode, to cater to the medical necessities of patients belonging to Cachar, Karimganj and Hailakandi districts.
An amount of Rs. 10 Crore is earmarked in the budget for the year 2020-21.
Partnerships with reputed private hospitals to provide NICU and PICU services
Empanel all Private Health Institutions who have the necessary quality standards for Paediatric and Newborn Intensive Care Unit setup,
To provide quality care to infants and Newborns of BPL as well as low income APL families.
Private partner to be reimbursed for expenditure made.
Sanitary Napkin Scheme
Free sanitary napkins to girls in Classes 6 to 12 in government and government-aided schools.
An amount of Rs. 25 crores is earmarked for this initiative.
Fighting Drug Menace
Establish of five de-addiction centres through partnerships with reputed NGOs.
Government to launch awareness drives in schools, colleges, Youth Clubs and amongst street children
Shram-Gaurav Asoni
Improve the health and quality of life of the construction workers with the following salient features:
IT enabled registration of workers and mass registration drives.
Waiver of registration fees for workers.
Insurance cover under Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana.
Provide Rs. 3000 to each registered worker (<40 years) and Rs. 5000 to those who are above 40 years on DBT mode for annual medical check-up.
Provide one time grants of Rs. 5000 per registered workers on DBT mode for purchasing tools.
Mega Awareness Drive against Social Evils
Assam Science Technology and Environment Council (ASTEC) to launch a mega awareness drive against all social evils in line with progressive, scientific thinking
An amount of Rs. 10 crores is earmarked for this novel initiative.
The Union Budget of India for 2020–2021 was presented by the Finance Minister, Nirmala Sitharaman on 1 February 2020, in a backdrop of a slowing down of the Indian economy with estimated GDP growth for 2019-20 being at an 11-year low of 5%. She becomes the second women to present budget for the second time after Indira Gandhi. The central ideas of the Budget are – “Aspirational India, Economic development, A Caring Society.”
Provisions for Assam and NE in Union Budget 2020-21
The budgetary allocation for the Ministry of Development of North Eastern Region (DoNER) saw a hike of over 14 per cent from Rs 2,670 crore last year to Rs 3,049 crore in 2020-21.
The budget for the North Eastern Council (NEC) has been doubled from Rs 700 crore to Rs 1,474 crore in the last five years.
The budget has accorded the highest priority to the overall development of the Northeastern region keeping in tune with the vision and declaration of Prime Minister Narendra Modi since he came to power in 2014.
In case of the Ministry of DoNER, the budgetary allocation for 2020-21 is Rs 3,049 crore as against Rs 2,670 crore in the Revised Estimate (RE) 2019-20. Of the total Rs 3,049 crore, the provision for development of infrastructure is around Rs 2,900 crore compared to Advance Estimate (AE) 2014-15 of Rs 1,719 crore.
The budget allocation of the Ministry of DoNER in 2020-21 is higher by 77.26 per cent, he said.
In case of schemes being implemented by the North Eastern Council (NEC), the current year’s budgetary allocation is Rs 1,474 crore, an increase of 19.23 per cent over RE 2019-20 allocation of Rs 1,237 crore.
The government is ensuring smooth access to financial assistance from multilateral and bilateral funding agencies to help introduce innovative and global best practices. The Central government has effectively used an online portal to reduce gestation period. This has improved the flow of funds to the Northeast region.
The inland waterways received a boost in the last five years. The Jal Vikas Marg on National Waterway-1 will be completed. Further, the 890-km Dhubri-Sadiya waterway will be completed by 2022.
Plans are afoot to energise eco-heritage sites. Government proposes to establish an Indian Institute of Heritage and Conservation under the Ministry of Culture; it shall have the status of a deemed university to start with.
Archaeological sites would be developed as iconic sites with on-site museums at Sivasagar (Assam), along with .– Rakhigarhi (Haryana), Hastinapur (Uttar Pradesh), Dholavira (Gujarat) and Adichanallur (Tamil Nadu)
Union government increases allocation for eight states of Northeast India to Rs 50,169.39 crore in the union budget 2019-20 from Rs 39,201 crore of 2018-19.
Rs 4105 Crore is allocated to Oil India Limited for exploration and production, Rs 755 Crore is allocated for MSME sector.
The budget allocation for the Northeast under the North East Road Sector Development Scheme has been increased from Rs 391 crore during 2018-19 to Rs 666 crore for 2019-20.
Budget allocation of Rs. 3000 crore for the Ministry of Development of Northeastern Region (DoNER) is a gesture that the central government is extending its continued support to ensure development and thrust to the Northeast.
The increase of fund for the North East Special Infrastructure Development Scheme (NESIDS) from Rs 140 crore during 2018-19 to Rs 695 crore for 2019-20 will enable different states in the Northeast to further initiate large infrastructure activities.
Positive for North East companies as all private entity in North East will be within 25% tax rates, as corporate tax is reduced to 25% for companies with turnover upto 400 crores.
Increase in allocation for refund of central and integrated GST to North Eastern Region (NER) the Himalayan states will ensure timely refund of GST under industrial policy.”
The Union Budget of India for 2020–2021 was presented by the Finance Minister, Nirmala Sitharaman on 1 February 2020, in a backdrop of a slowing down of the Indian economy with estimated GDP growth for 2019-20 being at an 11-year low of 5%. This is the second budget of Narendra Modi led NDA government’s second term. The Economic Survey for 2019-2020 is released on 31 January 2020, a day before the budget. Before the budget speech the report of the 15th Finance Commission was tabled by the Finance Minister. The central ideas of the Budget are – “Aspirational India, Economic development, A Caring Society.”
Nirmala Sitharaman read out a Kashmiri poem during the budget speech in the Parliament as well as a Tamil couplet written by Thiruvalluvar. Nirmala Sitharaman delivered the longest budget speech ever by Finance Minister. She becomes the second women to present budget for the second time after Indira Gandhi.
The Union Budget is the annual financial report of India; an estimate of income and expenditure of the government on a periodical basis. As per Article 112 of the Indian Constitution, it is a compulsory task of the government. India’s first Budget was presented on 18 February 1860. R K Shanmukham Chetty, the first finance minister of independent India presented the Union Budget on 26 November 1947.
A simplified and new Income Tax Regime has been proposed as an option to the old regime.
Income between Rs 5 lakh to Rs 7.5 lakh: Reduced to 10% from the current 20%
Between Rs 7.5 lakh to Rs 10 lakh: Reduced to 15% from the current 20%
Between Rs 10 lakh to Rs 12.5 lakh: Reduced to 20% from the current 30%
Between Rs 12.5 lakh to Rs 15 lakh: Reduced to 25% from the current 30%
Above ₹15 lakh: Continue at 30%, but without exemptions
However, those who wish to continue to pay old rates may do so.
~ Business Sector ~
Concessional corporate tax rate of 15 per cent to new domestic companies in manufacturing and power sector.
Corporate tax for existing companies slashed to 22 per cent.
Govt proposes 100 per cent tax concession to sovereign wealth funds on investment in infra projects.
Concessional tax rate of 15 per cent extended to power generation companies.
Tax concession for sovereign wealth fund of foreign governments and other foreign investments.
Tax benefits to Start-ups by way of deduction of 100 per cent of their profits are enhanced by increasing turnover limit and period of eligibility period of eligibility.
Concessional tax rate for cooperatives proposed.
Turnover threshold for audit of MSMEs increased.
Extension of time limits pertaining to the tax benefits for affordable housing.
Issuance of Unique Registration Number to all charity institutions for easy tax compliance.
Health cess to be imposed on imports of medical equipment.
Dividend Distribution Tax removed and classical system of dividend taxation adopted
Simplified GST return shall be implemented from 1st April 2020. Refund process to be fully automated.
National Textile Mission to be launched with a proposed Rs 1,480 crore allocation. National Technical Textiles Mission for a period of 4 years
Allocation of Rs 27,300 crore for development of industry and commerce.
Foreign direct investment (FDI) into the country has increased to $284 billion during 2014-19 from $190 billion in previous five years.
Scheme to encourage manufacturing of mobile phones, electronic equipment and semiconductor packaging
NIRVIK Scheme for higher export credit disbursement launched
Setting up of an Investment Clearance Cell to provide end to end facilitation
Extension of invoice financing to MSMEs through TReDs
A scheme to provide subordinated debt for entrepreneurs of MSMEs
Scheme anchored by EXIM Bank and SIDBI to handhold MSMEs in exports markets
~ Health Sector ~
Rs 69,000 crores allocated for the healthcare sector.
More than 20,000 empanelled hospitals under PM Jan Arogya Yojana.
FIT India movement launched to fight NCDs
Expansion of Jan Aushadhi Kendra Scheme to all districts by 2024
Chennai-Bengaluru expressway will also be started.
Delhi-Mumbai expressway to be completed by 2023.
100 more airports to be developed by 2025
Transport infrastructure: Rs 1.7 lakh crore
National Infrastructure Pipeline: Rs 22,000 crore
National Logistics Policy to be launched soon National Logistics Policy to be launched soon
Accelerated development of Highways
Railways will set up Kisan Rail through PPP model so that perishable goods can be transported quickly.
150 trains will run under the public private partnership (PPP) mode, also four stations will be redeveloped with the help of the private sector.
More Tejas type trains for tourist destinations
Coporatizing at least one major port
An International Bullion Exchange to be set up at GIFT City.
Power sector: Efforts to replace conventional energy meters by prepaid smart meters.
Gas Grid: Expand National Gas Grid to 27,000 km
~ Education & Training ~
Rs 99,300 crore allocated for education in FY21.
Govt will start Ind-Sat Exam to promote under Study in India programme and a degree-level online education programme for the deprived.
A total of Rs 3,000 crore will be given for skill development.
About 150 higher educational institutions will start apprenticeship embedded courses.
Internship opportunities to fresh engineers by urban local bodies.
Special bridge courses to improve skill sets of those seeking employment abroad.
Degree level online education programmes for students of deprived sections of the society.
~ Social Welfare Sector ~
Allocation for Swachh Bharat Mission for 2020-21 stands at Rs 12,300 crore.
In further push to PM Modi’s ‘Nal se jaal’ scheme, govt proposes Rs 3.6 lakh crore towards piped water supply to households.
Rs 35,600 crore allocated for nutritional related programme in FY21.
Rs 85,000 crore has been budgeted for the welfare of Scheduled Castes and other backward classes.
Rs 53,700 crore for Scheduled Tribes
Allocation for senior citizens and ‘Divyang’ enhanced to Rs 9500 crore.
Rs 4,400 crore to tackle Delhi’s air pollution problem.
Extends additional Rs 1.5 lakh tax benefit on interest paid on affordable housing loans to March 2021.
Tax holiday to affordable housing developers.
~ Women and Child Development ~
A task force to be appointed to recommend regarding lowering MMR and improving nutrition levels
Rs 28,600 crore will be allocated in FY21 for women-linked programmes.
~ Banking and Financial Sector ~
DICGC has been permitted to increase Deposit Insurance Coverage for a depositor from Rs 1 lakh to Rs 5 lakh per depositor.
Amendments in Banking regulation Act to strengthen Cooperative Banks.
Proposal to sell balance holding of the government of India IDBI Bank to private investors.
Recovery eligibility limit for NBFCs reduced to asset size of 100 crore or loan size of 50 lakh.
Separation of NPS Trust for government employees from PFRDAI
Specified categories of government securities would be opened for non-resident investors
FPI Limit for corporate bonds to be increased to 15 per cent.
New debt ETF proposed mainly for government securities
~ Technology Sector ~
550 WiFi facilities have been commissioned at railway stations.1 lakh gram panchayats to get optical fibre link
An allocation of Rs 6,000 crore will be provided for BharatNet scheme. Rs 20,000 crore for renewable energy sector in a bid to tackle pollution and climate change.
A new scheme of smart meters will be launched.
An allocation of Rs 8,000 crore will be made for National Mission on Quantum Computing and Technology.
Knowledge Translation Clusters for emerging technology sectors
Scaling up of Technology Clusters harbouring test beds and small scale manufacturing facilities.
~ Disinvestment ~
Govt proposed an ambitious disinvestment target of PSU stake sales to the tune of Rs 2.1 lakh crore in the next financial year 2020-21.
Government to sell part holding in LIC.
Govt to also sell stake in IDBI Bank to private investors.
~ Agriculture & Allied Sectors ~
Budget allocation of Rs 2.83 lakh crore for agriculture and allied activities.
Doubling farmers incomes by 2020.
Krishi Udaan under Ministry of Civil Avaition on international and national routes to benefit farmers. Krishi Udaan scheme to transport agri products to national as well international destinations to be launched.
Self Help Groups will be allowed to set up village agri storage facilities.
NABARD will map and geo-tab 162 mn tonne capacity agri warehouses across country. FCI and Warehousing Corporation of India to build warehousing facility on their land. Government to incentivise farmers to go solar.
Over 6 crore farmers under Pradhan Mantri Fasal Bima Yojna have been insured.
Pradhan Mantri Kisan Urja Suraksha and Utthan Mahabhiyan (PM KUSUM) to be expanded, providing 20 lakh farmers in setting up standalone solar pumps.
Railways will set up Kisan Rail through PPP model so that perishable goods can be transported quickly.
Agri-credit target for the year 2020-21 has been set at Rs 15 lakh crore.
One horticulture crop in one district on cluster basis will be promoted. Viability gap funding for creation of efficient warehouses on PPP mode.
SHGs run Village storage scheme to be launched.
Integartion of e-NWR with e-NAM.
Elimination of FMD and brucellosis in cattle and PPR in sheep and goat by 2025.
Increasing coverage of artificial insemination to 70 per cent.
Doubling of milk processing capacity by 2025.
Fishery extention through 3477 Sagar Mitras and 500 fish FPOs.
Raise fishery exports to `1 lakh crore by 2024-25
Fish Production target of 200 lakh tonnes by 2022-23.
~ Culture & Tourism ~
Five archaeological sites would be developed as iconic sites with on-site museumswould be developed at Rakhigarhi in Haryana, Hastinapur in Uttar Pradesh, Sivasagar in Assam, Dholavira in Gujarat and Adichanallur in Tamil Nadu.
Indian Institute of Heritage and Conservation
Museum of Numismatics and trade
Tribal museum in Ranchi
Maritime Museum in Lothal
Tourism promotion gets Rs 2500 crore.
Ministry of Culture to get Rs 3,150 crore.
~ Fiscal Scenario ~
Fiscal deficit target pegged at 3.8% of GDP for FY 2019-20. FY21 fiscal deficit target pegged at 3.5% of GDP.
~ Miscellaneous ~
G20 Presidency in 2022 – Allocation of Rs 100 crore
Allocation of Rs 30,757 crore for Union Territory of Jammu & Kashmir
Allocation of Rs 5,958 crore for Union Territory of Ladakh
§ State of Indian Economy §
Between 2006-2016, 271 million are out of poverty and we should be proud of it.
Total of 60 lakh new taxpayers and 105 crore e-way bills generated under GST
Central government debt reduced to 48.7 per cent of GDP in 2019 from 52.2 per cent.
India is now 5th largest economy in world.
Gross enrollment of girls is 94.32 per cent in elementary levels, 81.32 per cent in secondary level and 59.7 per cent in higher secondary level.
Foreign direct investment (FDI) into the country has increased to $284 billion during 2014-19 from $190 billion in previous five years.
Nominal growth of GDP for 2020-21 has been estimated at 10 per cent
Receipts for 2020-21 estimated at 22.46 lakh crore rupees, and expenditure at 30.42 lakh crore rupees
‘Vivad se Vishwas’ scheme for direct tax payers whose appeals are pending at various forum. 4.83 lakh direct cases pending in various appellate forums. Under the scheme, taxpayer to pay only amount of disputed tax. They will get complete waiver on interest and penalty if scheme is availed by March 31, 2020.
15th Finance Commission has cut state share of central taxes by one percentage point to 41 per cent.
Rs 12.7 lakh crore to be transferred to states and union territories in 2020-21.
Government has insured 6.11 crore farmers under Pradhan Mantri Fasal Bima Yojna.
- Provisions related to Assam & North East India -
Union government increases allocation for eight states of Northeast India to Rs 50,169.39 crore in the union budget 2019-20 from Rs 39,201 crore of 2018-19.
Rs 4105 Crore is allocated to Oil India Limited for exploration and production, Rs 755 Crore is allocated for MSME sector.
The budget allocation for the Northeast under the North East Road Sector Development Scheme has been increased from Rs 391 crore during 2018-19 to Rs 666 crore for 2019-20.
Budget allocation of Rs. 3000 crore for the Ministry of Development of Northeastern Region (DoNER) is a gesture that the central government is extending its continued support to ensure development and thrust to the Northeast.
The increase of fund for the North East Special Infrastructure Development Scheme (NESIDS) from Rs 140 crore during 2018-19 to Rs 695 crore for 2019-20 will enable different states in the Northeast to further initiate large infrastructure activities.
Positive for North East companies as all private entity in North East will be within 25% tax rates, as corporate tax is reduced to 25% for companies with turnover upto 400 crores.
Increase in allocation for refund of central and integrated GST to North Eastern Region (NER) the Himalayan states will ensure timely refund of GST under industrial policy.”
Finance Minister Nirmala Sitharaman on 5th July, 2019 presented the Union Budget to boost infrastructure and foreign investment at a time when the economy is showing signs of slowdown. Taking a pragmatic approach, Finance Minister announced no changes in personal income tax rates but levied additional surcharge on the super-rich. She also sought to spur growth with reduction in corporate tax and sops to housing sector, startups and electric vehicles. She also said that digital payments will get cheaper and govt will launch an ATM-like One Nation One Card for pan-India travel.
Highlights & important points of the Union Budget 2019-20
- Income Tax & other Personal Taxes -
Interest deduction on housing loan under Section 80EE increased by 1.5 lakhs for home loans taken on self-occupied house property by 31/3/2020, houses with the cost of Rs 45 lacs will be eligible for this.
Interchangeability of PAN and Aadhar for ease and convenience of taxpayers. Income Tax return can be filed using Aadhar Number.
To discourage cash payments TDS@2% on withdrawals exceeding 1Cr per annum from a bank account
Surcharge for individuals having taxable income from Rs 2 crores to Rs 5 crores increased to 18% from 15%. Surcharge for individuals having taxable income from Rs 5 crores to Rs 10 crores increased to 22% from 15%.
Additional Rs 1.5 lakh tax relief on home loan for purchase of a house up to Rs 45 lakh.
To make electric vehicles affordable, additional IT deduction on 1.5 lakh on interest paid on loan taken to purchase electric vehicles
- Business Taxes -
Corporate tax worth 25% that is applicable to companies with an annual turnover Rs 250 crore will be applicable to the ones with an annual turnover of Rs 400 crore.
Custom duty hike on fuel by 1 rupee, gold and precious items; Petrol & diesel to get costlier.
Duty has been raised on: tiles, cashew kernels, vinyl flooring, auto parts, some synthetic rubber, digital and video recorder and CCTV camera.
Businesses with less than Rs. 5 crore annual turnovers, 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.
350 crore rupees allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans
Advises GST Council to Lower GST Rate from 12% to 5% on Electric vehicle and Additional Income Tax Deduction of 2.5 Lakh on Interest paid on loan taken to purchase an electric vehicle.
Propose easing angel tax for startups.
To resolve the angel tax issue, startups will not be subject to any scrutiny in respect to valuation. Funds raised by startups will not require any scrutiny by the I-T department.
FAME II scheme aims to encourage faster adoption of electric vehicles through the right incentives and charging infrastructure.
- Business Sector -
MSME: Large-scale extensive reforms planned, government to create a platform for MSME payments
MSME to get loans up to 1 crore within 59 minutes. Loans worth Rs. 350 crore already disburse
Government to introduce a host of exclusive programs for startups on DD News
Govt plans to create MRO (Manufacturing, Repair and Operate) industry.
2% interest subvention for GST-registered MSME on fresh or incremental loans.
‘Stand Up India’ Scheme to continue till 2025.
Pension benefit extended to retail traders with annual turnover less than Rs 1.5 crore.
Local sourcing norms will be relaxed for the single-brand retail sector.
Govt to open FDI in aviation, insurance, animation AVGC and media.
- Infrastructure Sector -
Focus on investment in infrastructure, national highways and aviation sectors
The second phase of Bharat Mala to develop state highways
A comprehensive restructuring of national highways will be taken up
Inter-operable One Nation One transport card: ATM-like Transport card for universal travel on various modes of transport (metro, road, railways etc).
PPP to be used to unleash faster development and the delivery of passenger freight services.
Comprehensive restructuring of National Highways Programme for creation of National Highways Grid.
Government envisions using rivers for cargo transport to decongest roads and railways.
- Education Sector -
National education policy to propose major changes in both secondary and higher education
Swayam Initiative – Digital education to be promoted
Greater focus on research and development – National Research Foundation to fund and promote research – pooling of research grants from various ministries and disbursing them, preventing duplication of research projects
For the Youth – New national educational policy to transform the Indian education system
Govt to launch ‘Study in India’ programme to attract foreign students in higher education.
Allocate Rs 400 crore for world-class higher education institutions in FY 20.
New Higher Education Commission with focus on higher autonomy.
- Social Welfare -
Gaon, Garib and Kisan are the focus of our government.
Provision of housing, electricity, clean cooking facility, safe and adequate drinking water to all in rural India
Rental laws to be reformed. Modern tenancy laws will be shared with states to promote house renting.
Encouragement of rainwater harvesting, groundwater recharge, and management of household wastewater for reuse in agriculture
Har Ghar Jal – to all rural household by 2024
7 crore LPG connections delivered to rural households
Proposed pension benefit to 3 crore retail traders and shopkeepers whose annual turnover is up to Rs 1.5 crore
Rs 3,000 pension per month for workers from the informal sector.
New Jal Shakti ministry will work with states to ensure Har Ghar Jal for all rural houses by 2024.
Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road length over the next 5 years.
Govt will set up 100 new clusters for 50,000 artisans in FY 20.
To invest Rs 80,250 cr for upgradation of roads under PM Gram Sadak Yojana.
Every single rural family, except those unwilling, to have electricity by 2022.
- Women and Child Development -
Committee to be formed with Public and Private stakeholders for gender equality
Every SHG Women having Jan Dhan Account – Rs. 5,000/- overdraft allowed
Loan up to 1 lakh to be provided for SHG women members, under Mudra Scheme for Women entrepreneurs
Nari tu Narayani: Women SHG Interest Subvention Programme to be expanded to all districts in India.
Every verified woman SHG member having a Jan Dhan account can avail Rs 5,000 rupees overdraft facility.
- Banking and Financial Sector -
Reforms will be taken to strengthen governance in Public Sector banks
Record Recovery of over 4lac crore with IBS
NPAs of commercial banks reduced by over 1 lakh crore over last year
After Consolidation of Public Sector Banks, now 70,000 Crore of Capital boost for credit improvement
Government has smoothly carried out consolidation, reducing the number of PSBs by 8
NBFCs – that are fundamentally sound, will get fundings from govt to a total of 1lakh crore during the current financial year
RBI has limited regulatory Authorities, Now the Regulatory Authorities of RBI over NBFC will be placed
Proposals for strengthening the regulatory authority of RBI over NBFCs – Debenture Redemption Reserve to be maintained
2% TDS on withdrawals of Rs 1 crore in a year from your bank account for business payments.
No charge on digital payments: MDR charges waived on cashless payment.
On purchase of high-rate pooled assets of NBFC amounting of Rs 1 lakh core in this FY, govt will provide one-time 6 month credit guarantee.
Propose to provide Rs 70,000 crore capital for PSU Banks.
Regulation of HFCs (Housing Finance Cos) to move to RBI from National Housing Bank.
- Technology Sector -
Solar storage batteries and chargers included in 35AD deduction
Program of mass scaling of LED Bulbs – Approx. 35 Crores of LED bulbs distribute
Machines and robots to be deployed for scavenging
Focus on VR, AI, Robotics training to youth to align India with the World
- Investment -
Existing KYC norms for FPIs to be rationalized and simplified to make it more investor-friendly.
Long-term bonds for market.
To allow FIIs & FPIs investment in debt securities issued by NBFCs.
Credit Guarantee Enhancement Corporation to be set up long-term bonds with specific focus on infra sector
Propose Social Stock Exchange under SEBI for listing social enterprises & voluntary organisations.
To merge NRI portfolio route with FPI route.
To hike statutory limit for foreign investment in some companies.
To set up a credit guarantee enhancement corporation.
Govt will take up measures to make RBI & SEBI depositories inter-operable.
SEBI to mull increasing minimum public shareholding to 35% from 25%.
User friendliness of trading platforms for corporate bonds will be reviewed, including issues arising out of capping of International Securities Identification Number.
To deepen corporate tri-party repo market in corporate debt securities. Plan to enable stock exchanges to allow AA rated bonds as collateral.
Annual Global Investors’ Meet for attracting global players to come and invest in India.
To allow FPIs to subscribe to listed debt papers of REITs.
- Disinvestment -
Govt to modify present policy of retaining 51% stake in PSUs.
Govt to continue with strategic divestment of select CPSEs.
Divestment target of Rs 1.05 lakh crore for FY 20.
- Agriculture & Allied sector -
Govt to promote innovative zero Budget farming.
10,000 new farm produce organisations.
80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries.
- NRI’s -
Proposal for Issuance of Aadhar Card on arrival for NRIs with Indian Passports
Aadhaar card for NRI’s post arrival in India
To increase NRI investment in Indian capital market – NRI portfolio scheme route and FPI route should merge
- Railway Sector -
Railway infrastructure will need an investment of Rs 50 lakh crore between 2018 and 2030.
PPP to be used to unleash faster development and delivery of passenger freight services
Railway Station Modernisation will be launched this year.
Indian Railways to be encouraged to invest more in urban and suburban regions
657KM of Metro Rail operational in the country.
Railways to be encouraged to invest more in suburban rail network via SPVs.
- State of Indian Economy -
It took us over 55 years to reach $1 trillion dollar economy, but we added $1 trillion in just 5 years. We can very well reach $5 trillion in the next few years.
India will become $3 trillion economy this year. We need to continue to take many structural reforms to achieve $5 trillion economic goal.
- Fiscal Scenario -
Fiscal deficit in FY 19 at 3.3% of the GDP.
Govt external debt to GDP is among the lowest in the world.
- Miscellaneous -
17 iconic world-class tourist sites to be developed.
India has emerged as a major space power. It is time to harness our ability commercially.
A public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO.
To popularise sports at all levels, National Sports Education Board for development of sportspersons to be set up under ‘Khelo India.’
Schemes such as BharatMala, Sagarmala and UDAN are bridging rural urban divide and improving our transport infrastructure.
‘Gandhipedia’ is being developed to sensitize the youth about positive Gandhian values.
NPAs recover Rs 4 lakh crore over the last four years, NPAs down by Rs 1 lakh crore in the last one year.
Rashtriya Swachhta Kendra to be inaugurated at Rajghat on October 2.
‘ Yakeen ho to koi raasta niklata hai, hawa ki awt(protection) bhi le kar chiragh jalta hai’
Connectivity is the lifeline of the economy.
Budget: Glossary of Terms
Consolidated Fund
All revenues received by the Government including tax and non-tax revenues, loans raised and repayment of loans given (including the interest thereon) form the Consolidated Fund. All expenditure and disbursements of the Government, including release of loans and repayments of loans taken (and the interest thereon), are met from this fund.
Contingency Fund
A reserve fund set aside for possible unforeseen expenditure and established under Article 267(2) of the Constitution. It is an imprest placed at the disposal of the Governor.
Public Account
All public moneys received, other than those credited to the Consolidated Fund, are accounted for under the Public Account. In respect of such receipts, Government acts as a banker or trustee. The Public Account comprises of repayable like Small Savings and Provident Funds, Reserve Fund, Deposits and Advances, Suspense and Miscellaneous transaction (adjusting entries pending booking to fi nal heads of account), Remittances between accounting entities, and Cash Balance.
Deficit
It is the gap between Revenue and Expenditure. The kind of deficit, how the deficit is financed, and application of funds are important indicators of prudence in Financial Management.
Fiscal Deficit
When the government’s non-borrowed receipts fall short of its entire expenditure, it has to borrow money form the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called the fiscal deficit.
Primary Deficit
The primary deficit is the fiscal deficit minus interest payments. It tells how much of the Government’s borrowings are going towards meeting expenses other than interest payments.
Revenue Deficit/ Surplus
It is the gap between Revenue Receipts and Revenue Expenditure. Revenue Expenditure is required to maintain the existing establishment of Government and ideally, should be fully met from Revenue Receipts.
Direct and Indirect Taxes
Direct taxes are the one that fall directly on individuals and corporations. Eg. Income tax, corporate tax etc. Indirect taxes are imposed on goods and services. They are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.
Fiscal policy
It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented though the budget and is the primary means by which the government can influence the economy.
Capital Budget
The Capital Budget consists of capital receipts and payments. It includes investments in shares, loans and advances granted by the central Government to State Governments, Government companies, corporations and other parties
Revenue Budget
The revenue budget consists of revenue receipts of the Government and it expenditure. Revenue receipts are divided into tax and non-tax revenue.
Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies.
Non-tax revenue sources include interest on loans, dividend on investments.
Budget Estimates Amount of money allocated in the Budget to any ministry or scheme for the coming financial year.
Guillotine
Parliament, unfortunately, has very limited time for scrutinizing the expenditure demands of all the Ministries. So, once the prescribed period for the discussion on Demands for Grants is over, the Speaker of Lok Sabha puts all the outstanding Demands for Grants, Whether discussed or not, to the vote of the House.
