Union Budget 2019 Highlights: FM Piyush Goyal ends speech; full tax rebate up to Rs 5 lakh the big takeaway

"Vikas has become a Jan Andolan," says finance minister Piyush Goyal. He ends by saying that the Modi government has a saaf niyat (clean conscience), spast niti (clear policy) and atal nistha (unshakeable dedication).

It will be facile and simplistic to dismiss Budget 2019 as a populist document read out by finance minister Piyush Goyal keeping in mind the upcoming Lok Sabha election, which would drain the treasury — a pinch the next government will feel while trying to provide for all the welfare schemes.

A fundamental difference between Congress-era welfare schemes and those by the Narendra Modi government is the distinction between revenue expenditure and capital expenditure. In the first, you spend what you earn, thereby exhausting the reserves. In the second, you invest the money, making it multiply.

No amount transferred via DBT, for example, is an amount that was not being spent earlier. The direct benefit transfer is meant to merely plug the holes in transmission; in other words, it’s to ensure that any sum sent to the intended recipient is received wholly by him and not partly siphoned off by politicians and bureaucrats on the way.

Across the world, lower tax rates have always seen higher revenue collection, as citizens pay taxes more readily. In successive announcements, the finance ministry has announced record-breaking GST collections, showing that the pattern shows no aberration in India. At the same time, less expenditure by businesses and consumers means more money left to invest further in businesses and more left in the consumers’ wallets, enhancing their purchasing power. This cycle will make all the welfare measures sustainable.

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

The finance minister announced that the oceans and coastlines are the sixth dimension of NDA government’s vision for 2030. 

He said that with safe drinking water to all Indians, sustaining and nourishing life, using micro-irrigation techniques; long coastline can be pivotal for the economy. 
 

India will soon become the launchpad of the world, placing an Indian astronaut in space Gaganyaan — an Indian crewed orbital spacecraft — by 2022. 

 

Piyush Goyal said that self-sufficiency in food and improving agricultural productivity with emphasis on organic food.
 
 

Healthy India, with distress-free and comprehensive wellness system for all is the ninth dimension of our vision for 2030, said the finance minister.
 

Piyush Goyal said that with proactive, responsible and friendly bureaucracy, electronic governance is the 10th dimension of NDA’s vision for India for 2030. 
 

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

For all housing projects approved till end of 2019-2020, benefits under Sec 80(i)BA being extended for one more year.

Piyush Goyal said that the monthly consumption of mobile data has increased 50 times in last 5 years. He also said that CSC is transforming small villages to Digital Villages. The finance minister said that at least one lakh villages are expected to get digitalized in the next five years.
 

India is the fastest highway developer in the whole world, 27 kms of highways built each day, projects stuck for decades completed; Sagar Mala will help faster handling of import and export cars.  

Construction of rural roads has tripled. Under Pradhan Mantri Gram Sadak Yojana, 15.8 lakh out of a total 17.84 lakh habitations have been connected with pucca roads. The government has also allocated Rs19,000 crore in 2019-20 under this yojana. 

Piyush Goyal: In the past 5 years under all categories of workers, minimum wages increased by 42%, which is the highest ever. 

The finance minister also announced that the indigenously developed semi high speed train Vande Bharat Express is expected to give Indian passengers world class experience. 

 

Piyush Goyal: There have been recapitalisation of banks amounting to Rs 2.6 lakh crore.

Piyush Goyal: 1,70,000 crore spent for bringing food at affordable rates to poor people

During 2014-18, 1.53 crore houses have been constructed under PM Awas Yojana, says the finance minister.

Piyush Goyal: 21 AIIMSs operating or being established, 14 of these have been announced since 2014

Piyush Goyal said that the government has guaranteed 14% growth in state tax collections.
 

As a major push to infrastructure, Modi government has come up with more than 100 operational airports. Also, domestic passenger traffic has doubled in last five years. 

India has also become the fastest highway developer in the world. 
 

The finance minister also announced fiscal deficit as a proportion of GDP 3.4% for the coming year. This was done considering the farmers’ need for income support. Along with completion of fiscal deficit consolidation programme, we will now focus on debt-to-GDP ratio consolidation.
 

Piyush Goyal said that the capital expenditure has reached 3,36,292 lakh crore. He also said that there has been a rise of 13% in revenue expenditure to Budget expenditure 2019-20. 
 

Piyush Goyal: Standard deduction has been rasied to Rs 50,000 from Rs 40,000.

More than 1 crore youth are receiving training to earn livelihood under Skill India campaign. “Job seekers has become job creator,” said Piyush Goyal.

Also, under Mudra Yojana, the government has disbursed Rs 15.56 crore loans, amounting to Rs 7,23,000.
 

Piyush Goyal: Individuals with gross income up to Rs 6.5 lakh will not need to pay any tax if they invest in provident funds and prescribed instruments.

HUGE ANNOUNCEMENT! Big cheer from all corners of the House. Defeaning 'Modi, Modi' chants in the House.   

Individual taxpayers earning up to Rs 5 lakh per year to get full tax rebate.

Piyush Goyal said that 56,619 crore made in Budget expenditure 2018-19 for welfare of SCs and STs, increased to 62,474 crore in revenue expenditure 2018-19 has been further increased to 76,800 crore in Budget expenditure 2019-20. 
 

After demonitisation, there has been an increase of 18% in direct tax collections in 2017-18. At least 1.06 crore people were included in the tax base. 

Also, for the very first time, more than 1 crore people filed IT returns. 
 

Piyush Goyal: 6 crore LPG connections provided under Ujjwala Yojana. 
 

The PMSYM will be one of the biggest pension schemes of the world. It will benefit workers with income up to Rs 15,000 crore per month. PMSYM ensures monthly pension of Rs 3,000 per month.

India is poised to become 5 trillion dollar economy in the next 5 years and 10 trillion dollar economy in the 8 years thereafter.
 

Piyush Goyal: The goods and services tax (GST) is possibly the biggest taxation reform since Independence. India has become a common market as a result of tax consolidation. E-way bills have made inter-state movements faster. Ease of doing business has been strengthened.  

The FM said that GST has been reduced continuously, which has resulted in a relief of Rs 80,000 crore to the consumers. He added that most items of daily use fall in the 0-5% tax bracket now.

GST collections in January 2019 is over Rs 1 lakh crore. 

A Group of Ministers (GoM) is looking into how prospective home buyers can benefit under GST.

Finance minister Piyush Goyal said that direct tax collections increased from Rs 6.38 lakh in 2013-14 to almost Rs 12 lakh crore.

He also said that the tax base is up to 6.85 crore from Rs 3.79 crore. 

An anonymised tax system will do all assessment and verification of IT returns electronically within nearly two years. This will be done without intervention of any official, he added.  
 

Single window clearance for filmmakers. Also anti-camcording provision to be introduced to the Cinematography Act to fight piracy

Piyush Goyal: The government plans to set up 1 lakh digital villages in the next 5 years.

The government has opened 34 crore Jan Dhan accounts in the past 5 years. 
 

Piyush Goyal: The government has proposed to increase allocation for the Northeast region to Rs 58,166 crore this year. It will be a 21% rise over the previous year.

Piyush Goyal: All unmanned level crossings on broad gauge network totally eleminated. 
 

Piyush Goyal: The soldiers are the nation's pride. We have implemented one rank one pension. It has been pending for 40 years. Rs 35,000 crore have been already disbursed under OROP. There has been a substantial hike in military service pay.

The defence budget was also enhanced beyond Rs 3 lakh crore.

In his Budget 2019 presentation on Friday, finance minister Piyush Goyal has announced the Prime Minister Shramyogi Yojana. Under the scheme,

1. The limit for bonus has been increased to Rs 7,000

2. The limit for gratuity has been increased to Rs 20 lakh

3. Workers earning up to Rs 15,000 will be benefited

4. 10 crore workers will benefit from the scheme

5. Workers in the unorganised sector will get Rs 3,000 per month as pension for premium as low as Rs 55 and Rs 100 per month.

6. The central government will pay an equal amount in this plan under the just-announcedn Pradhan Mantri Shramyogi Man Dhan Yojna.

 

There have been 75% woman beneficiaries under the Pradhan Mantri Mudra Yojana. The Pradhan Mantri Matritva Yojana provides 26 weeks of maternity leave. 

Piyush Goyal: To ensure cleaner fuel and health assurance, we have introduced the Pradhan Mantri Ujjwala Yojana, a programme to give 8 crore free LPG connections to rural households, 6 crore connections have been given already.

Piyush Goyal: A pension scheme is being launched called Pradhan Mantri Shram Yogi Mandhan, to provide assured monthly pension of 3000 rupees per month, with the contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age

Finance minister Piyush Goyal's Budget 2019 speech: Instead of a rescheduling of crop loans, farmers severely affected by natural calamities will get 2% interest subvention and additional 3% interest subvention upon timely repayment.
 

Piyush Goyal: For the welfare of farmers and for doubling their income, the government had increased minimum support price by 1.5 times the production cost for all 22 crops. 

The Pradhan Mantri Kisan Samman Nidhi scheme has been approved for assured income support for small and marginal farmers. 

Under this scheme, each farmer with less than 2 hectares landholding will receive Rs 6,000 per year in three instalments. This money will be transferred directly to farmers' bank accounts. The central government will pay the amount. Union finance minister Piyush Goyal in his Budget 2019 speech has announced an increase by 50% in the MSP for 22 different crops.

Goyal said that this initiative will benefit 12 crore small and marginal farmers, at an estimated cost of Rs. 75,000 crore.

Farmers who are severely affected by natural calamities will get 2% interest subvention and additional 3% interest subvention upon timely repayment. This has been proposed in place of rescheduling of crop loans.

 

Prime Minister Narendra Modi's ambitious healthcare scheme Ayushman Bharat, which is also the world's largest healthcare programme, was launched to provide medical care to almost 50 crore people, resulting in 3,000 crore savings by poor families, said Piyush Goyal.
 

Piyush Goyal says that the government has already recovered almost Rs 3 lakh crore in favour of banks and creditors. He adds that big defaulters have not been spared.

Piyush Goyal: India has achieved over 98% rural sanitation and over 5.45 lakh villages have been declared open defecation-free. 
 

Making a departure from Manmohan Singh's "minorities have the first right to the nation's resources", finance minister Piyush Goyal said in his Budget 2019 speech that the poor have the first right to India's resources.

Piyush Goyal: Efforts have been initiated to bring full representation for economically weak backward classes, by giving them reservation in jobs and education (ANI)

Under the Pradhan Mantri Gram Sadak Yojana, construction of rural roads tripled. One lakh 53 thousand under PM Awas Yojna built. It is 5 times than earlier. Free electricity under Saubhagya Yojna. 

After finance minister Piyush Goyal finishes his speech in the Lok Sabha, he will place on the table of the Rajya Sabha a statement of the estimated receipts and expenditure of the government for Budget 2019-20.

Piyush Goyal: I can confidently say, India is solidly back on track and marching towards growth and prosperity (ANI)

Piyush Goyal: Fiscal deficit has been brought down to 3.4% in the revised estimate of 2018-19.

Piyush Goyal in his Budget 2019 speech compares the improved scenario of FDI, indirect taxation in the form of GST, low current account deficit and constant reforms since May 2014 when the NDA government replaced its predecessor UPA.

We are the sixth largest economy in the world. We have restored fiscal balance. We have broken the back of inflation. We had brought average inflation to 4.6%. It came down to 2.19% in Dec, 2018. If we wouldn't have brought down inflation, our families would have spent 30-40% more on basic necessities. Inflation is a hidden tax. This government has done well in tackling inflation. hamne kamar tod mahangai kii kamar hi tod di (we have broken the back-breaking price rise).

CAD likely to be 2.5 percent of GDP.

Government well on track to realising the goal of doubling farmers' income by 2022: Piyush Goyal in Budget 2019 speech.

Finance minister Piyush Goyal rises to present the interim Budget 2019.

(With PTI inputs)

The rupee on Friday depreciated by 9 paise to 71.17 in early trade on the forex market amid strengthening of the American currency and caution ahead of interim budget.

Forex traders said strengthening of the US dollar against some currencies overseas, focus on interim budget and rising crude oil prices weighed on the local unit.

The current government is set to present its last Budget Friday, which is expected to have major announcements to support the farm sector and spur consumption.

At the Interbank Foreign Exchange, the rupee opened at 71.08 then fell further to 71.17 against the US dollar, showing a decline of 9 paise over its previous closing.

On Thursday, the rupee had settled 4 paise higher at 71.08 against the US dollar.

However, positive opening in domestic equities and fresh foreign fund inflows capped the losses for the domestic unit.

Foreign funds bought shares worth Rs 3,006.41 crore from the capital markets on a net basis Thursday, while domestic institutional investors sold shares worth Rs 1,634.32 crore, provisional data showed.

The global benchmark, brent crude oil was trading at $61.49 per barrel, higher by 0.28 per cent.

Meanwhile, domestic equity market opened on a higher note. The 30-share BSE benchmark Sensex, was trading at 36,364.70, up 106.13 points in early trade. The wide-based Nifty was also trading up by 30.20 points at 10,861.15.

Union minister of state for railways Manoj Sinha has said he expects a higher investment in his department from finance minister Piyush Goyal's Budget 2019. "The way the Centre has increased its investment in Railways, from installing CCTV cameras to Wi-Fi, I believe the investment in Railways will certainly be increased," Sinha said.

Telugu Desam Party (TDP) MPs dress in black to protest against the central government ahead of the presentation of the interim #Budget2019. They are protesting in Parliament premises demanding special category status for Andhra Pradesh.| Via ANI

Leader of opposition in the Lok Sabha Mallikarjun Kharge has expressed a negative opinion about the Budget even before it has been presented.  He said the BJP government would try to introduce populist schemes, eyeing the Lok Sabha polls. " Budgets they've presented so far haven’t really benefitted the general public. Only ‘Jumlas’ will come out today. They have only four months. When will they implement the schemes?" Kharge said.

Watch video: MyNation travelled across India through the hinterlands to talk to the farmers of India and what they want from this Union Budget.

From the farmlands of Uttar Pradesh to the ones in Madhya Pradesh, MyNation tried to get a sense of what our farmers want. And the bucket list of demands is quite long - ranging from a fair price for their produce, lowering diesel rates to loan waivers.

The BSE benchmark Sensex has jumped over 100 points ahead of the Budget presentation by Union finance minister Piyush Goyal amid heavy buying by foreign portfolio investors. The 30-share index was trading 119.01 points or 0.33%, higher at 36,375.70.

Similarly, the 50-share NSE Nifty rose 34.15, or 0.32% to 10,865.10.

On Thursday, the 30-share Sensex rallied 665.44 points, or 1.87% to close at 36,256.69; and the broader Nifty soared 179.15 points or 1.68% to 10,830.95.

This lends credence to MyNation's preview where the expectation of a market-friendly Budget was posted.

Unlike Telangana, the farmer benefit model of which the Centre is reportedly studying, there is no nationwide data or formula to determine who is a farmer. For, the land records are fuzzy; besides, there is a larger population of farmers who are sharecroppers and daily-wage labourers in farmlands not owned by them. Therefore, even if a sop is announced by the Narendra Modi government, it will benefit just a minuscule section of the population of farmers.

The loan waivers offered by all parties in power and in opposition are worse. It addresses merely the small section of farmers that take loans from banks. The larger section that borrows from local moneylenders remains unattended. Also, since the reimbursement to the banks from the government arrives late, the banks are reluctant to offer further loans to farmers whose earlier repayments due were waived off.

The only, long-time solution is to treat farming as a business like any other business where the farmer, like a typical businessman, fixes the rate of his produce in a market that he runs. As of now, most farmers sell crops at prices determined by a cartel of brokers and traders. The government buys foodgrains at the assured minimum support price only if the farmer fails to sell his produce in the given season.. 

President Ram Nath Kovind has given his consent to the Budget. The Cabinet meeting to discuss the Budget proposals is in progress at the moment.

Union power, coal and railways minister Piyush Goyal has been given the additional charge of finance due to an indisposed Arun Jaitley, who has held the portfolio since May 2014, receiving medical treatment in the United States. Goyal is expected to present a market-friendly Budget, given the business background of his family. The issue of jobs is expected to be addressed by making the business environment easier so that recruiters find it easier to hire people to serve their expanding clientele. Farmers are expected to get relief through a direct benefit mechanism to plug the loopholes. Given the fiscal constraints, Goyal is not expected to jump on to the bandwagon of farm loan waiver, regardless of the pressure of populism exerted by the Congress.
 

Piyush Goyal arrives at the Parliament for Cabinet meet.

Finance minister Piyush Goyal would present the Budget at 11 AM. Lot is expected from Modi government’s sixth and last Budget, especially with the general election only a couple of months away. But offering too many freebies may burden the government coming in after the 2019 elections. So that is something which the finance minister will also have to factor in. 

The government has been committed to eliminate the black money menace in the country. Piyush Goyal said that several anti-black money measures were adopted and this not only helped to bring an undisclosed income of about 1.30 lakh crore rupees to the fore, but also deregistered 3.38 lakh shell companies.