Interim Budget 2019

submitted by:
Harshwardhan prajapati
Ic-2k14-18
 Introduction
 The interim budget 2019-20, has been announced by the Mr. Piyush Goyal, Union ministry
of finance, Government of India, in the parliament on February1, 2019.

 As finance minister mention in his speech during the presentation of interim budget, India is
recognized as a bright spot of the global economy and the nations is in the best phase of
macroeconomic stability.

 India is the fatest growing economy with the annual GDP growth rate during last five years,
which is higher than the growth achieved by any other government since LPG reforms of
1991 (markets, 2019).

 The interim budget is focuses mainly on welfare measures, rural development, digital India,
economically weaker sections, socially deprived communities and other various policies like
MNREGA, PM AwasYojana, etc.
Following are the new schemes which were announced in the
interim budget 2019-20:

 Pradhan Mantri Kisan Sanman Niddhi

 Rashtriya Kamdhenu Aayog
 Pradhan Mantri Shram-Yogi Maandhan
Key highlights of interim budget 2019-20

 1. Deficit trends and inflation

when government revenue falls short of its expenditure then it is known as fiscal deficit . It is
also termed as Shortage of revenue. It is a signal of total borrowings required by the
government. The fiscal deficit target at 3.4 percent of GDP for fiscal year 2019-20 and fiscal
deficit was 3.3 percent of GDP in the year 2018- 19 .
 2. Tax Bonanza

In the Interim budget 2019-20, seems to be middle class friendly by announcing the income tax
exemption for individual taxpayers having taxable income up to 5 lakhs Rs, will not be need to
pay any income tax. Even person having an income up to 6.5 lakh also don’t need to pay income
tax of they make investment in provident fund, insurance or specific savings. Such steps are
welcome by increasing the minimum taxable limit which may encourage many other non-salaried
individuals to file the correct taxes. By giving the exemption the government is trying to bring
more people into formal economy.
 3. Digital India

India is now leading in the mobile consumption data. Since, last five year the monthly
consumption of mobile data is got increase by fifty percent. More than three lakh common
service centers are employing about 12 lakh people for delivering several services to the citizen
digitally. The expansion of CSCs also create digital infrastructure in the villages. The
government will make 1 lakh village into digital villages over next five years. This step will
improve the education and healthcare services by bringing technologies in to remote villages and
it is one of the fastest ways to bridge the gap between rural and urban area.
 4. Cleanliness drive

A year 2019, is a 150th birth Anniversary so in tribute to Gandhiji, the Government of India
introduced the world’s largest behavioural change movement with the Swachh Bharat Mission.
India has accomplished 98% rural sanitation attention and as many as 5.45 lakh villages have been
declared "Open Defecation Free." It is a holistic programme and has succeeded in changing the
mindset of our people. With the help of people and people participation, they transformed it from a
Government Scheme to a national movement. The people of India, adopted this scheme whole
heartily.
 Fiscal Deficit gap to widen in 2019-20

The fiscal deficit for 2018-19 as per the revised estimates is pegged at 3.4% of the GDP. The fiscal
responsibility target of 3.3% for 2018-19 has been missed and the gap is significant for 2019-20
where the target is 3.1% and the estimate are now pegged at 3.4%. Given this is an election year,
this might not have been entirely unexpected. The Government has announced significant schemes
to boost farmers’ income and tax reliefs targeted at population at the base of the tax bracket. The
gross tax revenue as a percentage of GDP is expected to be 11.9% for 2018-19 (as against 12.1%
estimated in last year’s budget), mainly on account of lower GST collections.
 conclusion

 In the recent years, India had emerged towards fastest growing economy and it is also
expected one of the top three powers of world in the next ten to fifteen years with the strong
democracy and partnerships but it continues to face the challenges related to inequality and
exclusion. As per the protocol, the BJP-led NDA government was about to present the
interim budget, but it seems to be full-fledged budget to win back rural and urban votes.
India is moving towards constructing a New India by 2022. In the concluding remark from
the finance minister, he said “This budget is not merely an interim budget but it shows the
country’s development path. During the present government, development has become a
mass movement during the year 2014-18.”
 Beyond Budget

 Some of the significant clarifications/ announcements currently awaited by the industry are
listed below
  Angel Tax
  Several important GST clarifications related to treatment of BPO services as intermediary,
Head office and branch office transactions remain not clarified.
  Reduction in TDS rate on software payments
  Final Significant Economic presence rules awaited
  Need for domestic mobilisation of investments
  Roadmap for corporate tax rationalisation for large companies