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Union Budget 2023-24 – Highlights & Important points for APSC Exam

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Highlights of Union Budget 2023-24 – Analysis & Important points for APSC Exam

On February 1, 2023, Union Finance Minister Nirmala Sitharaman presented the Union Budget 2023 in the last full-fledged Budget before the general elections next year. She said that the Indian economy is on the right path and heading towards a bright future. In a big boost for taxpayers and economy, Union Finance Minister announced major changes in tax slabs under the new tax regime and big hike in allocation for railways and capital expenditure.

Download Union Budget 2023-24 Highlights PDF

Highlights & Important Point of Union Budget 2023-24

 

 Indian Economy Snapshot
  • Per capita income has more than doubled to ₹1.97 lakh in around nine years.
  • Indian economy has increased in size from being 10th to 5th largest in the world in the past nine years.
  • EPFO membership has more than doubled to 27 crore.
  • 7,400 crore digital payments of ₹126 lakh crore has taken place through UPI in 2022.
  • 7 crore household toilets constructed under Swachh Bharat Mission.
  • 6 crore LPG connections provided under Ujjwala.
  • 220 crore covid vaccination of 102 crore persons.
  • 8 crore PM Jan Dhan bank accounts.
  • Insurance cover for 44.6 crore persons under PM Suraksha Bima and PM Jeevan Jyoti Yojana.
  • Cash transfer of ₹2.2 lakh crore to over 11.4 crore farmers under PM Kisan Samman Nidhi.

Revised Estimates 2022-23
  • The total receipts other than borrowings is Rs 24.3 lakh crore, of which the net tax receipts are Rs 20.9 lakh crore.
  • The total expenditure is Rs 41.9 lakh crore, of which the capital expenditure is about Rs 7.3 lakh crore.
  • The fiscal deficit is 6.4 per cent of GDP, adhering to the Budget Estimate.

 

Budget Estimates 2023-24
  • The total receipts other than borrowings is estimated at Rs 27.2 lakh crore and the total expenditure is estimated at Rs 45 lakh crore.
  • The net tax receipts are estimated at Rs 23.3 lakh crore.
  • The fiscal deficit is estimated to be 5.9 per cent of GDP.
  • To finance the fiscal deficit in 2023-24, the net market borrowings from dated securities are estimated at Rs 11.8 lakh crore.
  • The gross market borrowings are estimated at Rs 15.4 lakh crore.

 

Union Budget 2023-24: Provisions & Fund Allocation for Assam and North East India

 

 Important Schemes
  • Seven priorities of the budget ‘Saptarishi’ are inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector.
  • Atmanirbhar Clean Plant Program with an outlay of ₹2200 crore to be launched to boost availability of disease-free, quality planting material for high value horticultural crops.
  • 157 new nursing colleges to be established in co-location with the existing 157 medical colleges established since 2014.
  • Centre to recruit 38,800 teachers and support staff for the 740 Eklavya Model Residential Schools, serving 3.5 lakh tribal students over the next three years.
  • Outlay for PM Awas Yojana is being enhanced by 66% to over Rs. 79,000 crore.
  • Capital outlay of Rs. 2.40 lakh crore has been provided for the Railways, which is the highest ever outlay and about nine times the outlay made in 2013-14.
  • Urban Infrastructure Development Fund (UIDF) will be established through use of priority Sector Lending shortfall, which will be managed by the national Housing Bank, and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities.
  • Entity DigiLocker to be setup for use by MSMEs, large business and charitable trusts to store and share documents online securely.
  • 100 labs to be setup for 5G services based application development to realize a new range of opportunities, business models, and employment potential.
Download Union Budget 2023-24 Highlights PDF
 Agriculture Sector
  • 500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme to be established for promoting circular economy at total investment of Rs 10,000 crore. 5 per cent compressed biogas mandate to be introduced for all organizations marketing natural and bio gas.
  • Centre to facilitate one crore farmers to adopt natural farming over the next three years. For this, 10,000 Bio-Input Resource Centres to be set-up, creating a national-level distributed micro-fertilizer and pesticide manufacturing network.
  • Agriculture Accelerator Fund to be set-up to encourage agri-startups by young entrepreneurs in rural areas.
  • To make India a global hub for ‘Shree Anna’, the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence for sharing best practices, research and technologies at the international level.
  • ₹20 lakh crore agricultural credit targeted at animal husbandry, dairy and fisheries.
  • A new sub-scheme of PM Matsya Sampada Yojana with targeted investment of ₹6,000 crore to be launched to further enable activities of fishermen, fish vendors, and micro & small         enterprises, improve value chain efficiencies, and expand the market.
  • Digital public infrastructure for agriculture to be built as an open source, open standard and interoperable public good to enable inclusive farmer centric solutions and support for growth of agri-tech industry and start-ups.
  • Computerisation of 63,000 Primary Agricultural Credit Societies (PACS) with an investment of ₹2,516 crore initiated.
  • Massive decentralised storage capacity to be set up to help farmers store their produce and realize remunerative prices through sale at appropriate times.
  • “PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth” (PM-PRANAM) to be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers.
  • ‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’, MISHTI, to be taken up for mangrove plantation along the coastline and on salt pan lands, through convergence between MGNREGS, CAMPA Fund and other sources.

 

 Education & Skill Development
  • Pradhan Mantri Kaushal Vikas Yojana 4.0, to be launched to skill lakhs of youth within the next three years covering new age courses for Industry 4.0 like coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and soft skills.
  • 30 Skill India International Centres to be set up across different States to skill youth for international opportunities.
  • 10 lakh crore capital investment, a steep increase of 33% for third year in a row, to enhance growth potential and job creation, crowd-in private investments, and provide a cushion against global headwinds.
  • District Institutes of Education and Training to be developed as vibrant institutes of excellence for Teachers’ Training.
  • A National Digital Library for Children and Adolescents to be set-up for facilitating availability of quality books across geographies, languages, genres and levels, and device agnostic accessibility.
  • iGOT Karmayogi, an integrated online training platform, launched to provide continuous learning opportunities for lakhs of government employees to upgrade their skills and facilitate people-centric approach.
  • A unified Skill India Digital platform to be launched for enabling demand-based formal skilling, linking with employers including MSMEs, and facilitating access to entrepreneurship schemes.
  • Direct Benefit Transfer under a pan-India National Apprenticeship Promotion Scheme to be rolled out to provide stipend support to 47 lakh youth in three years.

 

 Industries
  • Revamped credit guarantee scheme for MSMEs to take effect from 1st April 2023 through infusion of Rs 9,000 crore in the corpus. This scheme would enable additional collateral-free guaranteed credit of Rs 2 lakh crore and also reduce the cost of the credit by about 1 percent.
  • Central Processing Centre to be setup for faster response to companies through centralized handling of various forms filed with field offices under the Companies Act.

 

 Financial Sector
  • The maximum deposit limit for Senior Citizen Savings Scheme to be enhanced from Rs 15 lakh to Rs 30 lakh.
  • National Financial Information Registry to be set up to serve as the central repository of financial and ancillary information for facilitating efficient flow of credit, promoting financial inclusion, and fostering financial stability. A new legislative framework to be designed in consultation with RBI to govern this credit public infrastructure.
  • Financial sector regulators to carry out a comprehensive review of existing regulations in consultation with public and regulated entities. Time limits to decide the applications under various regulations would also be laid down.
  • To enhance business activities in GIFT IFSC, the following measures to be taken. 
  • Delegating powers under the SEZ Act to IFSCA to avoid dual regulation.
  • Setting up a single window IT system for registration and approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI.
  • Permitting acquisition financing by IFSC Banking Units of foreign bank.
  • Establishing a subsidiary of EXIM Bank for trade re-financing.
  • Amending IFSCA Act for statutory provisions for arbitration, ancillary services, and avoiding dual regulation under SEZ Act
  • Recognizing offshore derivative instruments as valid contracts.
  • Amendments proposed to the Banking Regulation Act, the Banking Companies Act and the Reserve of India Act to improve bank governance and enhance investors’ protection.
  • Countries looking for digital continuity solutions would be facilitated for setting up of their Data Embassies in GIFT IFSC.
  • SEBI to be empowered to develop, regulate, maintain and enforce norms and standards for education in the National Institute of Securities Markets and to recognize award of degrees, diplomas and certificates.
  • Integrated IT portal to be established to enable investors to easily reclaim the unclaimed shares and unpaid dividends from the Investor Education and Protection Fund Authority.
  • To commemorate Azadi Ka Amrit Mahotsav, a one-time new small savings scheme, Mahila Samman Savings Certificate to be launched. It will offer deposit facility upto Rs 2 lakh in the name of women or girls for tenure of 2 years (up to March 2025) at fixed interest rate of 7.5 per cent with partial withdrawal option.
  • The maximum deposit limit for Monthly Income Account Scheme to be enhanced from Rs 4.5 lakh to Rs 9 lakh for single account and from Rs 9 lakh to Rs 15 lakh for joint account.
  • The entire fifty-year interest free loan to states to be spent on capital expenditure within 2023-24. Part of the loan is conditional on States increasing actual Capital expenditure and parts of outlay will be linked to States undertaking specific loans.
  • Targeted Fiscal Deficit to be below 4.5% by 2025-26.
  • Fiscal Deficit of 3.5% of GSDP allowed for States of which 0.5% is tied to Power sector reforms.

 

 Healthcare
  • Sickle Cell Anaemia elimination mission to be launched.

 Research & Development
  • Joint public and Private Medical research to be encouraged via select ICMR labs for encouraging collaborative research and innovation.
    New Programme to promote research in Pharmaceuticals to be launched.
  • Aspirational Blocks Programme covering 500 blocks launched for saturation of essential government services across multiple domains such as health, nutrition, education, agriculture, water resources, financial inclusion, skill development, and basic infrastructure.
  • 15,000 crore for implementation of Pradhan Mantri PVTG Development Mission over the next three years under the Development Action Plan for the Scheduled Tribes.
  • Three centres of excellence for Artificial Intelligence to be set-up in top educational institutions to realise the vision of “Make AI in India and Make AI work for India”.
  • National Data Governance Policy to be brought out to unleash innovation and research by start-ups and academia.
  • R & D grant for Lab Grown Diamonds (LGD) sector to encourage indigenous production of LGD seeds and machines and to reduce import dependency.

 

 Infrastructure
  • Investment of Rs. 75,000 crore, including Rs. 15,000 crore from private sources, for one hundred critical transport infrastructure projects, for last and first mile connectivity for ports, coal, steel, fertilizer, and food grains sectors.
  • New Infrastructure Finance Secretariat established to enhance opportunities for private investment in infrastructure.
  • 5,300 crore to be given as central assistance to Upper Bhadra Project to provide sustainable micro irrigation and filling up of surface tanks for drinking water.
  • Annual production of 5 MMT under Green Hydrogen Mission to be targeted by 2030 to facilitate transition of the economy to low carbon intensity and to reduce dependence on fossil fuel imports.            
  • ₹35000 crore outlay for energy security, energy transition and net zero objectives.
    Battery energy storage systems to be promoted to steer the economy on the sustainable development path.           
  • 20,700 crore outlay provided for renewable energy grid integration and evacuation from Ladakh.

 

 Art & Culture
  • ‘Bharat Shared Repository of Inscriptions’ to be set up in a digital epigraphy museum, with digitization of one lakh ancient inscriptions in the first stage.

 

 Capital Expenditure / Investments
  • ‘Effective Capital Expenditure’ of Centre to be Rs. 13.7 lakh crore.
  • Continuation of 50-year interest free loan to state governments for one more year to spur investment in infrastructure and to incentivize them for complementary policy actions.
  • Encouragement to states and cities to undertake urban planning reforms and actions to transform our cities into ‘sustainable cities of tomorrow’.
  • Transition from manhole to machine-hole mode by enabling all cities and towns to undertake 100 percent mechanical desludging of septic tanks and sewers.

 

 Governance
  • More than 39,000 compliances reduced and more than 3,400 legal provisions decriminalized to enhance Ease Of Doing Business.
  • Jan Vishwas Bill to amend 42 Central Acts have been introduced to further trust-based governance.
  • One stop solution for reconciliation and updation of identity and address of individuals to be established using DigiLocker service and Aadhaar as foundational identity.
  • PAN will be used as the common identifier for all digital systems of specified government agencies to bring in Ease of Doing Business.
  • 95 per cent of the forfeited amount relating to bid or performance security, will be returned to MSME’s by government and government undertakings in cases the MSME’s failed to execute contracts during Covid period.
  • Result Based Financing to better allocate scarce resources for competing development needs.
  • Phase-3 of the E-Courts project to be launched with an outlay of Rs. 7,000 crore for efficient administration of justice.

 

 Environment & Sustainability
  • Green Credit Programme to be notified under the Environment (Protection) Act to incentivize and mobilize additional resources for environmentally sustainable and responsive actions.
  • Amrit Dharohar scheme to be implemented over the next three years to encourage optimal use of wetlands, enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities.

 

 Tourism
  • At least 50 tourist destinations to be selected through challenge mode; to be developed as a complete package for domestic and foreign tourists.
  • Sector specific skilling and entrepreneurship development to be dovetailed to achieve the objectives of the ‘Dekho Apna Desh’
  • Tourism infrastructure and amenities to be facilitated in border villages through the Vibrant Villages Programme.
  • States to be encouraged to set up a Unity Mall for promotion and sale of their own and also all others states’ ODOPs (One District, One Product), GI products and handicrafts.

 

 DIRECT TAXES
  • To further improve tax payer services, proposal to roll out a next-generation Common IT Return Form for tax payer convenience, along with plans to strengthen the grievance redressal mechanism.
  • Rebate limit of Personal Income Tax to be increased to Rs. 7 lakh from the current Rs. 5 lakh in the new tax regime. Thus, persons in the new tax regime, with income up to Rs. 7 lakh to not pay any tax.
  • Tax structure in new personal income tax regime, introduced in 2020 with six income slabs, to change by reducing the number of slabs to five and increasing the tax exemption limit to Rs. 3 lakh. Change to provide major relief to all tax payers in the new regime.
  • Proposal to extend the benefit of standard deduction of Rs. 50,000 to salaried individual, and deduction from family pension up to Rs. 15,000, in the new tax regime.
  • Highest surcharge rate to reduce from 37 per cent to 25 per cent in the new tax regime. This to further result in reduction of the maximum personal income tax rate to 39 per cent.
  • The limit for tax exemption on leave encashment on retirement of non-government salaried employees to increase to Rs. 25 lakh.
  • The new income tax regime to be made the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax regime.
  • Enhanced limits for micro enterprises and certain professionals for availing the benefit of presumptive taxation Increased limit to apply only in case the amount or aggregate of the amounts received during the year, in cash, does not exceed five per cent of the total gross receipts/turnover.
  • Deduction for expenditure incurred on payments made to MSMEs to be allowed only when payment is actually made in order to support MSMEs in timely receipt of payments.
  • New co-operatives that commence manufacturing activities till 31.3.2024 to get the benefit of a lower tax rate of 15 percent, as presently available to new manufacturing companies.
  • Opportunity provided to sugar co-operatives to claim payments made to sugarcane farmers for the period prior to assessment year 2016-17 as expenditure. This expected to provide them a relief of almost Rs.10,000 crore.
  • Date of incorporation for income tax benefits to start-ups to be extended from 31.03.23 to 31.3.24.
  • Proposal to provide the benefit of carry forward of losses on change of shareholding of start-ups from seven years of incorporation to ten years.
  • Deduction from capital gains on investment in residential house under sections 54 and 54F to be capped at Rs. 10 crore for better targeting of tax concessions and exemptions.
  • Proposal to limit income tax exemption from proceeds of insurance policies with very high value. Where aggregate of premium for life insurance policies (other than ULIP) issued on or after 1st April, 2023 is above Rs. 5 lakh, income from only those policies with aggregate premium up to Rs. 5 lakh shall be exempt.
  • Income of authorities, boards and commissions set up by statutes of the Union or State for the purpose of housing, development of cities, towns and villages, and regulating, or regulating and developing an activity or matter, proposed to be exempted from income tax.
  • Minimum threshold of Rs. 10,000/- for TDS to be removed and taxability relating to online gaming to be clarified. Proposal to provide for TDS and taxability on net winnings at the time of withdrawal or at the end of the financial year.
  • Conversion of gold into electronic gold receipt and vice versa not to be treated as capital gain.
  • TDS rate to be reduced from 30 per cent to 20 per cent on taxable portion of EPF withdrawal in non-PAN cases.
  • Income from Market Linked Debentures to be taxed.
  • Deployment of about 100 Joint Commissioners for disposal of small appeals in order to reduce the pendency of appeals at Commissioner level.
  • Increased selectivity in taking up appeal cases for scrutiny of returns already received this year.
  • Period of tax benefits to funds relocating to IFSC, GIFT City extended till 31.03.2025.
  • Certain acts of omission of liquidators under section 276A of the Income Tax Act to be decriminalized with effect from 1st April, 2023.
  • Carry forward of losses on strategic disinvestment including that of IDBI Bank to be allowed.
  • Agniveer Fund to be provided EEE status. The payment received from the Agniveer Corpus Fund by the Agniveers enrolled in Agnipath Scheme, 2022 proposed to be exempt from taxes. Deduction in the computation of total income is proposed to be allowed to the Agniveer on the contribution made by him or the Central Government to his Seva Nidhi account.


 INDIRECT TAXES
  • Number of basic customs duty rates on goods, other than textiles and agriculture, reduced to 13 from 21.
  • Minor changes in the basic custom duties, cesses and surcharges on some items including toys, bicycles, automobiles and naphtha.
  • Excise duty exempted on GST-paid compressed bio gas contained in blended compressed natural gas.
  • Customs Duty on specified capital goods/machinery for manufacture of lithium-ion cell for use in battery of electrically operated vehicle (EVs) extended to 31.03.2024
  • Customs duty exempted on vehicles, specified automobile parts/components, sub-systems and tyres when imported by notified testing agencies, for the purpose of testing and/ or certification, subject to conditions.
  • Customs duty on camera lens and its inputs/parts for use in manufacture of camera module of cellular mobile phone reduced to zero and concessional duty on lithium-ion cells for batteries extended for another year.
  • Basic customs duty reduced on parts of open cells of TV panels to 2.5 per cent.
  • Basic customs duty on electric kitchen chimney increased to 15 per cent from 7.5 per cent.
  • Basic customs duty on heat coil for manufacture of electric kitchen chimneys reduced to 15 per cent from 20 per cent.
  • Denatured ethyl alcohol used in chemical industry exempted from basic customs duty.
  • Basiccustoms duty reduced on acid grade fluorspar (containing by weight more than 97 per cent of calcium fluoride) to 2.5 per cent from 5 per cent.
  • Basic customs duty on crude glycerin for use in manufacture of epicholorhydrin reduced to 2.5 per cent from 7.5 per cent.
  • Duty reduced on key inputs for domestic manufacture of shrimp feed.
  • Basic customs duty reduced on seeds used in the manufacture of lab grown diamonds.
  • Duties on articles made from dore and bars of gold and platinum increased.
  • Import duty on silver dore, bars and articles increased.
  • Basic Customs Duty exemption on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode continued.
  • Concessional BCD of 2.5 per cent on copper scrap is continued.
  • Basic customs duty rate on compounded rubber increased to 25 per cent from 10 per cent or 30 per kg whichever is lower.
  • National Calamity Contingent Duty (NCCD) on specified cigarettes revised upwards by about 16 per cent.
Allocation to North Eastern Region
  • Doubled allocation for North East to Rs 5,892 crore for FY 2023-24. 110.43% hike from Rs 2,800 crore is in line with Indian Govt’s mission to develop NE region of India.
  • Allocation toward Prime Minister’s Dev Initiative for North East Region (PM-DevINE) has increased over five fold to Rs 2,200 crore.
  • There is a step-jump in the budget outlay for the MDoNER during the Financial Year 2023-24. The total B.E. 2023-2024 allocation is Rs. 5892.00 crore ; well over twice (~114% higher than) the RE 2022-23 allocation of Rs. 2755.05 crore. 
  • Out of this outlay of Rs 5892.00 crore in BE 2023-24, Rs 4093.25 crore (~70%) is provided for Capital expenditure.
  • In addition, Rs. 1,324.03 crore further from within the amount of Rs. 1,798.75 crore provided for Revenue Expenditure is as grants for creation of capital assets.
  • This is tantamount to provisioning of Rs. 5,417.28 crore (~92%) out of Rs. 5,892.00 crores as B.E. 2023-24 outlay for MDoNER towards expenditure of capital nature.  
  • The total B.E. 2023-2024 allocation for the infrastructure targeted North East Special Infrastructure Development (NESID) Scheme is Rs. 2,491.00 crore ; well over (~67% higher than) the RE 2022-23 allocation of Rs. 1,493.30 crore.
  • The total B.E. 2023-2024 allocation for the infrastructure, social development and livelihoods targeted Prime Ministers Development Initiative for North-East (PMDevINE) Scheme is Rs. 2,200.00 crore ; four and a half times the RE 2022-23 allocation of Rs. 400.00 crore.
  • The total B.E. 2023-2024 allocation for the overall wholistic development, social infrastructure and social development targeted Schemes of North Eastern Council (NEC) is Rs. 800.00 crore ; (~20% higher than) the RE 2022-23 allocation of Rs. 666.87 crore.  
Download Union Budget 2023-24 Highlights PDF

Union Budget 2023-24: Provisions & Fund Allocation for Assam and North East India

Union Budget 2022-23

Union Budget 2021-22

Union Budget 2020-21

Union Budget 2019-20

Union Budget 2018-19

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Highlights of Union Budget 2022-23: Analysis & Important points

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Highlights of Union Budget 2022-23 – Analysis & Important points

 

Union Finance Minister Nirmala Sitharaman presented the Union Budget 2022 on February 1, 2022. The Budget proposals for this financial year rest on health and well-being, infrastructure, inclusive development, energy transition and climate action, financing of investments and ‘Minimum Government, Maximum Governance’. India’s economic growth estimated at 9.2% to be the highest among all large economies. 60 lakh new jobs to be created under the PLI schemes in 14 sectors. Significant announcements regarding digital currency, e-passports and a slew of infrastructure projects were announced.

Highlights & Important Point of Union Budget 2022-23

 

~ Infrastructure Sector ~
    • PM Gati Shakti National Master Plan at a cost of ₹20,000 crore. PM Gati Shakti initiative was announced last year with the aim of ensuring better coordination in implementation of infrastructure development projects. She said 100 Gati Shakti cargo terminals would be built over the next three years.
    • National Highways network to be expanded by 25,000 kms in 2022-23. A National Master Plan on Expressways will be formulated in 2022-23 to give greater push to roadways development.
    • Parvat Mala project would be launched for construction of 60 km of ropeway, more sustainable for hilly areas compared to traditional roads.
    • 400 new generation Vande Bharat trains to be manufactured in the next 3 years.
    • 100 Gati Shakti cargo terminals in the next 3 years.
    • Four multi-modal national parks contracts will be awarded in FY23.
~ Agriculture Sector ~
  • Procurement of wheat, paddy, kharif and rabi crops, benefiting over 1 crore farmers.
  • NABARD to facilitate funds with blended capital to finance startups for agriculture & rural enterprise.
  • Government to promote funds for blended finance (government share limited to 20%) for sunrise opportunities such as climate action, agri-tech, etc.
  • Ken-Betwa river linking project at a cost of Rs 44,000 crore, to benefit 9.0 lakh hectare of farmer land
  • ₹2.37 lakh crore allocated towards direct payments for purchasing wheat and paddy at minimum support price.
  • Money spent on procurement of rabi wheat and kharif paddy would benefit 1.63 crore farmers.
  • Govt would promote chemical-free, natural farming across the country, special Kisan Drones would be used for crop assessment and spraying of pesticides.
  •  
~ Education Sector & Skill Development ~
  • A Digital University will be established, and it will be based on networked-hub model and ensure quality education in various Indian languages.
  • ‘One class, one TV channel’ program of PM eVIDYA will be expanded from 12 to 200 TV Channels to provide supplementary education in all regional languages, to make up for loss of formal education due to Covid.
  • GIFT-IFSC World-class foreign universities and institutions to be allowed in the GIFT City.
  • Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to empower citizens to skill, reskill or upskill through on-line training.
  • Startups will be promoted to facilitate ‘Drone Shakti’ and for Drone-As-A-Service (DrAAS). 
  • Virtual labs and skilling e-labs to be set up to promote critical thinking skills and simulated learning environment. High-quality e-content will be developed for delivery through Digital Teachers.

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~ Defence Sector ~
  • Union Budget 2022-23 would give a push to self-reliance in defence production as part of Atma Nirbhar Bharat initiative.
  • 68 per cent of the capital procurement budget in the sector was earmarked for domestic procurement.
  • Budget announced opening up defence R&D (research and development) to private industry, startups and academia. 25% of R&D budget to be set aside for this.
  • Private industry will be encouraged to take up design and development of military platforms and equipment.
  • Startups will be promoted to facilitate ‘drone shakti’ to promote drone usage.

~ Financial Sector ~

  • Setting up of 75 digital banking units across 75 districts to push digital payments and fin-tech innovations in the country.
  • Green bonds will be issued for upping green infrastructure.
  • Amendments to the Insolvency and Bankruptcy Code to enhance the resolution process, including for cross-border insolvency; to establish a centre to reduce the process of voluntary winding up of companies to six months.
  • An International Arbitration Centre to be set up for timely settlement of disputes under international jurisprudence.

~ Digital Currency & Blockchain ~

  • RBI to introduce ‘digital rupee’ using blockchain technology in 2022-23. Introduction of Central Bank Digital Currency (CBDC) will give a big boost to digital economy. Digital currency will also lead to a more efficient and cheaper currency management system.

~ Taxation provisions ~

  • Taxpayers can file within 2 years an updated return if there is any anomaly in their filing.
  • tax relief to persons with disabilities making parents or guardian eligible for benefits at 60.
  • Tax deduction limit for NPS (National Pension Scheme) account of state government employees was increased from 10 per cent to 14 per cent at par with the central government employees.
  • Cooperative societies pay 18.5% Alternate Minimum Tax (AMT) rate and companies pay 15%. From now cooperative too will have to pay only 15%.
  • Surcharge on cooperative societies earning Rs 1-10 crore a year was also reduced to seven per cent.
  • Virtual digital assets will be brought under tax regime.
  • Long term capital gains surcharge will be capped at 15%.
  • Custom duty on cut and polished diamond reduced to 5%.
  • Custom duty on imitation duty slashed.
  • Duty on Sodium cyanide increased.
  • Duty on umbrellas raised to 20%.
  • Steel scrap duty extended for another year.
  • Anti-dumping on stainless steel is being revoked.
  • Duty reduced on shrimp aquaculture.
  • Slash custom duty on cut and polished diamonds to five per cent.
  • Imported umbrellas became costlier as customs duty on such import was raised to 20 per cent.
  • Concessional customs duty on import of capital goods to be phased out, the initial rate of 7.5% to be imposed.
  • More than 350 exemptions on importing some agri products, chemicals, drugs, etc., will be phased out.
  • Customs duty on imitation jewellery was raised to discourage their imports.
  • Duty on specified leather, packaging boxes reduced to incentivise exports.
  • Customs duty exemption on steel scrap is being extended by a year to help MSMEs.
  • Customs duty on methanol to be reduced.
  • Levying additional excise duty at Rs.2 per litre on unblended fuel to encourage fuel blending.
~ Taxation on Digital Assets ~
  • Virtual digital assets to be taxed at 30%. Any income from transfer of any virtual digital asset shall be taxed at the rate of 30 per cent. No deduction in respect of any expenditure or allowance shall be allowed while computing such income except for the cost of acquisition. Further, loss from transfer of virtual digital asset cannot be set off against any other income.
  • Gift of virtual digital asset is also proposed to be taxed in the hands of the recipient”. Any transaction in virtual digital asset like cryptocurrency, NFTs will attract a TDS (tax deduction at source) at the rate of one per cent.
~ Health & Welfare sector ~
  • An open platform for the National Digital Health Ecosystem will be rolled out. It will consist of digital registries of health providers and facilities, unique health identity and universal access to health facilities.
  • Rs. 60,000 crore allocated to cover 3.8 crore households in 2022-23 under Har Ghar, Nal se Jal.
  • Housing for All Rs. 48,000 crore allocated for completion of 80 lakh houses in 2022-23 under PM Awas Yojana.
  • National Tele Mental Health Programme’ for quality mental health counselling and care services to be launched. A network of 23 tele-mental health centres of excellence will be set up, with NIMHANS being the nodal centre and International Institute of Information Technology-Bangalore (IIITB) providing technology support. 
  • Saksham Anganwadi Integrated benefits to women and children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0. 
  • Two lakh anganwadis to be upgraded to Saksham Anganwadis. 
~ Capital expenditure ~
  • Substantial hike in capital expenditure from Rs 5.54 lakh crore in FY22 to Rs 7.5 lakh crore in FY23. It is an increase of 35.4 per cent and stands at 2.9 per cent of GDP.
  • India will auction spectrum in 2022 to roll out 5G mobile services by private firms.
  • Bharat Net optical fibre project will be expedited to complete in 2025.
~ Startups ~
  • Regulatory framework for venture capital to be reviewed; an expert committee to be set up.
  • Tax holiday extended for start-ups incorporated up to 31 March 2023 and for new manufacturing companies commencing operations by 31 March 2024.
  • Venture Capital and Private Equity invested more than Rs. 5.5 lakh crore last year facilitating one of the largest start-up and growth ecosystem.
~ Corporates ~
    • Infrastructure status accorded to data centres and energy storage systems to facilitate credit availability
    • Additional INR 195 billion to be allocated to PLI for manufacturing solar PV modules
    • The Emergency Credit Line Guarantee Scheme for MSMEs extended up to March 2023 with an additional guarantee cover of INR 500 billion for hospitality and related enterprises
    • Special Economic Zone Act to be replaced with a new legislation to enable the States’ partnership in development of enterprise and service hubs, optimally utilise the available infrastructure, and enhance export competitiveness
    • Concessional customs duty on capital goods and project imports to be gradually phased out to support growth of the domestic capital goods sector
    • Rs 2 lakh Crore additional credit for Micro and Small Enterprises to be facilitated under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). 
    • Raising and Accelerating MSME performance (RAMP) programme with an outlay of Rs 6000 Crore to be rolled out.
    • Accelerated Corporate Exit Centre for Processing Accelerated Corporate Exit (C-PACE) to be established for speedy winding-up of companies. 
    • AVGC Promotion Task Force An animation, visual effects, gaming, and comic (AVGC) promotion task force to be set-up to realize the potential of this sector.
    • Telecom Sector Scheme for design-led manufacturing to be launched to build a strong ecosystem for 5G as part of the Production Linked Incentive Scheme. 
    • Sunrise Opportunities: Government contribution to be provided for R&D in Sunrise Opportunities like Artificial Intelligence, Geospatial Systems and Drones, Semiconductor and its eco-system, Space Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility Systems.
~ e-Vehicles and energy ~
  • Energy efficiency and saving measures will be promoted.
  • A battery-swapping policy to be brought out with interoperability standards to boost the EV ecosystem.
  • Rs 19,500 crore allocation in PLI for solar modules.
~ e-Passport ~
  • Issuance of e-passports with futuristic tech to be introduced in 2022-23.
~ Employment ~
  • Production Linked Incentive (PLI) Scheme for achieving Aatmanirbhar Bharat has received an excellent response, potentially creating 60 lakh new jobs and additional production of 30 lakh crore during the next Keycap digit five years.
  • PLI schemes across 14 sectors have achieved a tremendous response and created 60 lakh job opportunities.
~ Energy Transition and Climate Action ~
  • Additional allocation of Rs. 19,500 crore for Production Linked Incentive for manufacture of high efficiency solar modules to meet the goal of 280 GW of installed solar power by 2030.
  • Set-up of government-backed funds for climate action
~ Vibrant Villages Programme ~
  • Vibrant Villages Programme for development of Border villages with sparse population, limited connectivity and infrastructure on the northern border.
~ Urban Planning ~
  • Modernization of building bye laws, Town Planning Schemes (TPS), and Transit Oriented Development (TOD) will be implemented.
~ Land Records Management ~
  • Unique Land Parcel Identification Number for IT-based management of land records.
~ Export Promotion ~
  • Special Economic Zones Act to be replaced with a new legislation to enable States to become partners in ‘Development of Enterprise and Service Hubs’.

Union Budget 2021-22

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Highlights of Union Budget 2021-22: Analysis & Important points

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Highlights of Union Budget 2021-22 – Analysis & Important points

 

Download Union Budget 2021-22 Highlights PDF

The Union Budget of India for 2021 – 2022 was presented by the Finance Minister, Nirmala Sitharaman on 1 February 2021, in a backdrop of a economic stress due to COVID-19 pandemic. FM Sitharama chose to go completely paperless to present her third budget. The budget did address several key expectations of individuals and corporates. The FM reiterated the government’s vision towards developing an Atma Nirbhar Bharat. The budget has categorically divided Part A of the budget into six primary pillars – health and wellbeing, physical & financial capital, infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D, minimum government and maximum governance. During Budget presentation, the FM briefed the parliament on the financial impact of the AtmaNirbhar Bharat packages and continued to reiterate the need to establish an AtmaNirbhar Bharat – a self-reliant India. Budget 2021 focused on 6 major pillars, with healthcare and infrastructure sectors enjoying the maximum levels of attention.

Due to ongoing period of unprecedented economic stress, the Union Budget for FY22 has been very liberal in terms of the targeted fiscal deficit. The Government has taken liberty to spend enough to bring about economic revival. The focus on healthcare, infrastructure and the financial sector indicates that the government is steadily taking more robust measures to realize their vision of Atmanirbhar India.

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.

 

Highlights & Important Point of Union Budget 2021-22

 

~ Healthcare and Other Allied Services ~

    • The Finance Minister placed huge focus on healthcare and allied services. The total budgetary expenditure towards health and wellbeing for the upcoming financial year 2021-2022 was increased multifold to Rs. 2,23,846 Crores from just Rs. 94,452 Crores, marking a massive increase of over 137%.

    • Rs. 35,000 Crores was earmarked towards COVID-19 vaccinations in 2021-2022.

    • Plan to roll out pneumococcal vaccine throughout the country.

    • PM Atmanirbhar Swasth Bharat Yojana – Around Rs. 64,180 Crores was earmarked to be spent over a period of 6 years towards a new scheme – PM Atmanirbhar Swasth Bharat Yojana, wihich is centered around revamping and developing primary, secondary, and tertiary healthcare systems across India.

    • Three other schemes with regards to Nutrition, Water Supply, and Cleanliness were also announced
      1. Mission Poshan 2.0 for improving nutritional outcomes
      2. Jal Jeevan Mission (Urban) with a total capital outlay of Rs. 2,87,000 Crores over a period of 5 years to ensure universal water supply to over 2.86 crore household tap connections and liquid waste management in 500 AMRUT cities, and
      3. Urban Swachh Bharat Mission 2.0 for promoting better cleanliness, at a total capital outlay of Rs. 1,41,678 Crores over 5 years from 2021-2026.

      Combating Air Pollution

    • To address the problem of rising air pollution, Rs. 2,217 Crores is provisioned for combating the problem in 42 urban centres, which carry a population of more than a million.

      Vehicle Scrapping Policy

    • A new voluntary vehicle scrapping policy was also proposed to phase out polluting and old vehicles. Personal vehicles above 20 years age and commercial vehicles above 15 years age to undergo fitness tests in automated fitness centres.

 

~ Infrastructure Sector ~

  • The Budget introduced several new schemes and measures that would bolster the infrastructure in the country.

  • Roads & highways
    Proposal to provide around Rs. 1,18,101 Crores to the Ministry of Road Transport and Highways

  • An additional 8,500 kilometers of roads and highways will be awarded under the Bharatmala Pariyojana project, and around 11,000 more kilometers of highways would be completed by March, 2022.

  • Plan to develop Economic corridors in the states of Tamil Nadu, Kerala, West Bengal, and Assam are also to undergo construction in the near future. 

    a. 3,500 km of National Highway works in Tamil Nadu at an investment of Rs. 1.03 Lakh Crores
    b. 1,100 km of National Highway works in Kerala at an investment of Rs. 65,000 Crores
    c. 675 km of highway works in West Bengal at a cost of Rs. 25,000 Crores
    d. Works of more than Rs. 34,000 Crores covering more than 1,300 kms of National Highways to be undertaken in Assam in the coming three years.

    Railways
    Budget 2021 provides for Rs. 1,10,055 Crores towards the expenditure to be incurred by Indian Railways.

    Urban infrastructure
    • Augmentation of public bus transport services at a cost of around Rs. 18,000 Crores through the Public Private Partnership model
    • Around 1,016 kilometers of metro and RRTS being constructed in 27 cities
    • Central counterpart funding to be provided to:
    a. Kochi Metro Railway Phase II
    b. Chennai Metro Railway Phase II
    c. Bengaluru Metro Railway Project Phase 2A and 2B
    d.  Nagpur Metro Rail Project Phase II
    e.  Nashik Metro

  • The Western Dedicated Freight Corridor (DFC) and Eastern DFC would likely be formally commissioned by June 2022. Several other DFC projects such as the Kharagpur to Vijayawada corridor, Bhusaval to Kharagpur to Dankuni corridor, and Itarsi to Vijayawada corridor are also under the pipeline.

    Additionally, 100% electrification of Broad-Gauge routes is also expected to be completed by December, 2023.
  • To promote further safety, an automatic train protection system is also to be implemented, which would work to eliminate train collisions due to human error.

 

~ Power Sector ~

  •  To introduce a revamped power distribution sector scheme with a capital outlay of Rs. 3,05,984 Crores over a period of 5 years

  • To launch a Hydrogen Energy Mission in 2021-22 for generating hydrogen from green power sources.

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~ Financial reforms ~
  • A single Securities Markets Code has been proposed, which would rationalize and consolidate multiple securities laws including the SEBI Act, 1992, the Depositories Act, 1996, the Securities Contracts (Regulation) Act, 1956, and the Government Securities Act, 2007.
  • Formation of an institutional framework for the corporate bond market, an investor charter for all financial products, and setting up of regulated gold exchanges.
  • Proposal to increase FDI limit of insurance companies from 49% to around 74%, which would effectively enable foreign ownership in the sector.
  • Government of India has proposed to start up an Asset Reconstruction Company (ARC) and an Asset Management Company (AMC) to take over stressed assets of PSBs for value realization. Around Rs. 20,000 Crores has been earmarked for recapitalization of PSBs in the year 2021-2022.

 

~ Fiscal Position ~

  • Union Budget estimates for expenditure in 2021-2022 pegged at Rs. 34.83 Lakh Crores – including Rs. 5.54 Lakh Crores as capital expenditure, an increase of 34.5% over the BE figure of 2020-2021.

  • The Contingency Fund of India to be augmented from Rs. 500 Crores to Rs. 30,000 Crores through Finance Bill

  • Fiscal deficit for FY22: Budget estimate at 6.8% of GDP

  • Fiscal deficit for FY21: Revised estimate at 9.5% of GDP

~ Taxation proposals ~

  • The budget proposed that senior citizens aged 75 and above, who receive only pension income and interest on deposits, need not file their annual income tax returns. The paying bank would be responsible for deducting taxes from the concerned senior citizen’s income and depositing it on their behalf.

  • The turnover threshold limit for tax audits would be raised to Rs. 10 Crore from Rs. 5 Crore for assessees who carry out 95% of their transactions through digital means.

  • Additional deduction of Rs. 1.5 Lakhs under Section 80EEA of the Income Tax Act, offered on the interest paid on home loans for affordable housing, was extended till March 31, 2022. Affordable housing projects to be eligible to avail a tax holiday for one more year – till 31st March, 2022.

  • ULIP proceeds will be taxable for salaried employees making a contribution to EPF over and above Rs. 2.5 Lakhs during any year. In such cases, the interest on contributions over Rs. 2.5 Lakhs will be taxable as a part of the employee’s total income. In the case of ULIPs, if the premiums paid during any year exceed Rs. 2.5 Lakhs, the proceeds from the policy will be taxable as capital gains at the time of maturity. Proceeds paid out on death, however, remain exempt from tax.

  • Reduction in time limit for reopening of income tax assessment from 6 years to 3 years – only in cases of serious tax evasion, where there is evidence of concealment of income of Rs. 50 Lakhs or more in a year, the time limit for reopening income tax assessment to be 10 years.

  • Faceless Income Tax Appellate Tribunal Centre: All communication between the Tribunal and the appellant to be electronic.

  • Dividend payment to REIT/ InvIT to be made exempt from TDS.

 

~ Rationalization of Customs Duty ~

  • The Finance Minister proposed to review over 400 old exemptions and sought to bring out a revamped customs duty structure by October, 2021.

  • Union Budget 2021 aims to promote domestic manufacturing and self-reliance, several key measures with regard to customs duty were proposed. This included an increase in the customs duty on the import of certain electronic and mobile phone parts, solar inverters, solar lanterns, capital equipment and auto parts, cotton, raw silk and silk yarn, and denatured ethyl alcohol, among others.

  • In an attempt to reduce the burden on MSMEs and other small industries, the customs duty on various key products was effectively reduced. Non-alloy stainless steel products, iron and steel scrap, copper scrap, nylon chips and fibers, and naphtha, among others were on the list. This move can help reduce the cost of manufacturing.

  • To boost domestic MSME production and demand for their products, the customs duty on a few other products were also raised. This included steel screws, plastic builder wares, prawn feed, and synthetic gemstones among others. The exemption given to imported leather goods also stands withdrawn.

 

~ Education Sector ~
  • A Central University to be set up in Leh for accessible higher education in Ladakh.
  • More than 15,000 schools to be qualitatively strengthened to include all components of the National Education Policy (NEP)
  • 100 new Sainik Schools will be set up in partnership with NGOs/private schools/states
  • Over Rs. 3,000 Crores to be provided for realigning the existing scheme of National Apprenticeship Training Scheme (NATS) for providing post-education apprenticeship, training of graduates and diploma holders in Engineering.

 

~ Disinvestment ~
  • Proposal for strategic disinvestment of BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam limited etc. to be completed in 2021-22.
  • Two more Public Sector Banks and one General Insurance company to be privatized.
  • IPO of LIC set to be issued in 2021-22.

 

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Highlights of Union Budget 2019-20: Analysis & Important points

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Highlights of Union Budget 2019 - 20 - Analysis & Important points

Union Budget 2019-20 highlights and Analysis

Download Union Budget 2019-20 Highlights PDF

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.

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Union Budget 2019 – Provisions for Assam & NE

Interim Budget 2019

Union Budget 2018-19