Key Highlights of Union Budget 2019-20                                                                   

New Space India Ltd. incorporated as a new commercial arm of D/o Space         

Release of Kargil Tribute Song                                                                                   

India’s 10- point ‘Vision for the Decade’ flagged in Budget 2019-20                       

Tax break to rev up electric vehicle sales                                                                 

Government to encourage and facilitate role of women in India’s growth story   

Fiscal deficit target revised downwards to 3.3%                                                     

Gandhipedia to sensitise society                                                                             

Key Highlights of Union Budget 2019-20

GS PAPER - 03 ECONOMY - Government Budgeting

Context :

• The Union Minister for Finance presented the Union Budget 2019-20 before the Parliament.

Key Highlights :

•  Economy :

  • Fiscal deficit in FY 19 has been set at 3.3% of the GDP.

  • Indian economy will become a 3 trillion dollar economy in 2019. Government aspires to make India a 5 trillion dollar economy by 2024-25. To achieve this, there is a need for investment in:

    • Infrastructure

    • Digital economy

    • Job creation in small and medium firms

  • PAN and Aadhaar will become interchangeable. One can use Aadhaar number to file I-T Returns.

  • Rs. 5 lakh minimum limit announced for taxpayers.

  • In view of rising income levels, those in the ₹2-5 crore and ₹5 crore-and-above brackets will see an increase in effective tax rate by 3% (39%) and 7% (42.74%), respectively.

  • No change in personal income tax rates.

  • Increase in cess on fuel by 1 rupee, petrol & diesel to get costlier; while customs duty on gold and precious items increased.

  • Corporate tax with a turnover of up to Rs 400 crore slashed to 25% from a current rate of 30%.

  • GST Council advised to reduce tax rate on Electric Vehicles from 12% to 5%.

  • No charge on digital payments: Merchant Discount Rate charges waived on cashless payment.

•  MSME’s :

  • Proposed easing angel tax for startups.

  • E-verification mechanism for establishing investor identity and source of funds for startups.

  • 2% interest subvention for GST-registered MSME on fresh or incremental loans.

  • ‘Stand Up India' Scheme to continue till 2025.

  • New television channel for start-ups.

  • Pension benefit extended to retail traders with annual turnover less than Rs 1.5 crore.

  • New payment platform for MSMEs to be created.

  • Proposal to provide Rs 70,000 crore capital for PSU Banks.

  • Regulation of HFCs (Housing Finance Cos) to move to RBI from National Housing Bank.

  • Govt to modify the 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.

  • Strategic disinvestment of Air India proposed to be re-initiated.

  • Global Investors Meet to be held in India.

•   Grameen Bharat / Rural India :

  • Gaon, Garib and Kisan are the focus of the government.

  • 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.

  • Every single rural family, to have electricity by 2022.

  • Govt to promote 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 Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE) to develop 75,000 skilled entrepreneurs in agro-rural industries.

  • Pradhan Mantri Matsya Sampada Yojana (PMMSY)

    • A robust fisheries management framework through PMMSY to be established by the Department of Fisheries.

    • To address critical gaps in the value chain including infrastructure, modernization, traceability, production, productivity, post-harvest management, and quality control.

•  Infrastructure :

  • State road networks to be developed in the second phase of Bharatmala project.

  • Rs. 50 lakh crore investment needed in Railway Infrastructure during 2018-2030.

  • Public-Private-Partnership proposed for development and completion of tracks, rolling stock manufacturing and delivery of passenger freight services.

  • Policy interventions to be made for the development of Maintenance, Repair and Overhaul (MRO), to achieve self- reliance in the aviation segment.

  • Outlay of Rs. 10,000 crore for 3 years approved for Phase-II of FAME Scheme.

  • National Highway Programme to be restructured to ensure a National Highway Grid, using a financeable model.

  • Power at affordable rates to states ensured under “One Nation, One Grid‟.

    • Blueprints to be made available for gas grids, water grids, i-ways, and regional airports.

• Youth :

  • New National Education Policy to be brought which proposes - Major changes in both school and higher education, Better Governance systems and Greater focus on research and innovation.

  • The National Research Foundation (NRF) proposed To fund, coordinate and promote research in the country.

    • To assimilate independent research grants given by various Ministries.

    • To strengthen overall research eco-system in the country 

    • This would be adequately supplemented with additional funds.

  • Rs 400 crore allocated for world-class higher education institutions in FY 20 .

  • ‘Study in India’ proposed to bring foreign students to study in Indian higher educational institutions.

  • To make the Indian youth ready to take up jobs in foreign countries, more emphasis on new-age skills like Artificial Intelligence, Internet of Things, Big Data, etc.

•   Naari Tu Narayani/Women :

  • Women SHG Interest Subvention Programme to be expanded to all districts in India.

  • Rs 1 lakh loan to be provided for SHG women members under Mudra Scheme.

  • Rs 3,000 pension per month for workers from the informal sector.

  • Gandhipedia being developed by the National Council for Science Museums to sensitize youth and society about positive Gandhian values

•    Roadmap for future :

  • Simplification of procedures.

  • Incentivizing performance.

  • Red-tape reduction.

  • Making the best use of technology.

  • Accelerating mega programmes and services initiated and delivered so far. 

                                                                                                                                      Source :- PIB

New Space India Ltd. incorporated as a new commercial arm of D/o Space

GS PAPER - 02 GOVERNANCE - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

• Presenting the General Budget 2019-20 in the Parliament, Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman said that a Public Sector Enterprise viz. New Space India Limited (NSIL) has been incorporated as a new commercial arm of Department of Space.

New Space India Limited (NSIL) :

• Purpose : to tap the benefits of the Research & Development carried out by ISRO.

• The Company will spearhead commercialization of various space products including production of launch vehicles, transfer to technologies and marketing of space products.

• To harness this ability commercially.

                                                                                                                             Source :- PIB

Release of Kargil Tribute Song

GS PAPER - 01 HISTORY - Post-independence consolidation and reorganization within the country.

Context :

• As the nation celebrates the 20th anniversary of Kargil Vijay Diwas this year on 26 July, Chief of the Army Staff released Kargil Tribute Song to honour, salute and pay homage to the Kargil martyrs and war veterans.

• The 20th anniversary celebrations are aimed at ‘Remembering their sacrifice’, ‘Rejoicing in their victory’ and ‘Renewing the pledge’ to go beyond the call of duty when called upon.

Kargil Vijay Diwas :

• India observes Kargil Vijay Diwas on 26th July every year to mark the anniversary of the day we achieved victory over Pakistani infiltrators in the 1999 Kargil War.

• This day is also a day of remembrance for the hundreds of Indian soldiers who were martyred in this war initiated by Pakistan.

                                                                                                                             Source :- PIB

India’s 10- point ‘Vision for the Decade’ flagged in Budget 2019-20 

GS PAPER - 02 GOVERNANCE - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

• Citing its genesis in the Interim Budget 2019-20 presented in February 2019, the Finance Minister flagged ten points of the Government’s ‘Vision for the Decade’:

  • Building physical and social infrastructure;

  • Digital India reaching every sector of the economy;

  • Pollution free India with green Mother Earth and Blue Skies;

  • Make in India with particular emphasis on MSMEs, Start-ups, Defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices;

  • Water, water management, clean Rivers;

  • Blue Economy;

  • Space programmes. Gaganyan, Chandrayan and Satellite programmes;

  • Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables;

  • Healthy society – Ayushman Bharat, well-nourished women & children. Safety of citizens;

  • Team India with Jan Bhagidari. Minimum Government Maximum Governance.

                                                                                                                              Source :- PIB

Tax break to rev up electric vehicle sales

GS PAPER - 03 ECONOMY - Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Context :

• Budget 2019 proposes to offer additional income tax exemption of ₹1.5 lakh to vehicle buyers, while also pitching to make India a global manufacturing hub for such vehicles.

Key Highlights :

• Tax Deduction :

  • To make electric vehicles affordable to consumers, our government will provide additional income tax deduction of ₹1.5 lakh on the interest paid on loans taken to purchase electric vehicles

  • Finance minister said , this will amount to a benefit of around ₹2.5 lakh over the loan period to the taxpayers who take loans to purchase electric vehicles.

• Lowe Price : To further help bring down the prices, the government has moved the GST Council to lower the rate on electric vehicles from 12% to 5%

• Custom Duty Exemption :

  • customs duty is being exempted on certain parts of electric vehicles, including e-drive assembly and on board charger, to further incentivise e-mobility.

• Finance Minister has also allocated Rs 10,000 crore to the Faster Adoption and Manufacturing of Electric Vehicles(FAME II) scheme for faster adoption of electric vehicles.

                                                                                                                               Source :- The Hindu

Government to encourage and facilitate role of women in India’s growth story

GS PAPER - 02 GOVERNANCE - Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Context :

• Aiming to design a roadmap for women empowerment and their increased participation in the Indian economy through gender budgeting, Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs, offered sops focused on women while presenting her maiden budget in Parliament

Gender budgeting :

• The government has supported and encouraged women entrepreneurship through various schemes such as MUDRA, Stand up India and the Self Help Groups (SHG) movement.

• In order to further encourage women enterprise, the budget has a proposal to expand the Women SHG interest subvention programme to all districts

• The minister has proposed that for every verified women Self Help Group (SHG) member,having a Jan Dhan Bank Account an overdraft of Rs.5,000 will be allowed.

• One woman in every SHG will also be made eligible for a loan up to Rs. 1 lakh under the MUDRA Scheme.

                                                                                                                                                         Source :- PIB ; Livemint

Fiscal deficit target revised downwards to 3.3%

GS PAPER - 03 ECONOMY  - Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. Inclusive growth and issues arising from it.

Context :

• The government aims to cut its fiscal deficit target to 3.3% of GDP in 2019-20 against 3.4% estimated earlier, finance minister Nirmala Sitharaman said in her maiden Budget speech.

Reason :

• The main reason for decrease in fiscal deficit target is that there was an increase on the revenue side while expenditure is being controlled.

Government plan to achieve Fiscal deficit target :

• disinvestment income

  • Disinvestment is defined as the action of an organisation or government selling or liquidating an asset or subsidiary.

• higher taxes on the rich and

• increased excise duties on petrol,diesel,precious metals and tobacco products.

                                                                                                                       Source :- The Hindu

Gandhipedia to sensitise society

GS PAPER - 01 HISTORY -  Modern Indian history from about the middle of the eighteenth century until the present significant  events, personalities, issues

Context :

• A “Gandhipedia” was being developed in order to sensitize society, particularly the youth, about Gandhian values, Finance Minister informed in her Budget 2019-2010 speech.

Gandhi Pedia :

• With the government marking the 150th birth anniversary of Gandhi with several programmes throughout the year, an encyclopedia-like “Gandhipedia” would be among the efforts to spread his values.

• The National Council for Science Museums (NCSM), based in Kolkata, is developing a Gandhipedia “to sensitize” youth and society “at large” about positive Gandhian values.

• This comes about 10 months after President launched a web portal http://gandhi.gov.in/ to provide people with free access to an online repository of Gandhian literature, philosophy, audios, videos and rare photographs of the Father of nation

• The Minister, however, did not share more details on ‘Gandhipedia’ project of the NCSM, which functions under the Union Culture Ministry.

                                                                                                                                   Source :- PIB

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