INTERIM BUDGET-2019:


What is interim budget?
It is the temporary budget presented by the outgoing government. It can be later be adjusted or cancelled by the next government.

Budget in Constitution:
Article 112- To have an Annual Financial Statement
Article 265- No tax shall be levied or collected except for the authority of law.
Article 266- No expenditure shall be incurred except for the authority of the legislature.

Parts of Budget and estimates:
The budget can be divided into revenue budget and capital budget.
Revenue Budget: It is a statement of estimated revenue receipts and expenditure incurred from such revenue. The receipts and expenditure in this budget are recurring in nature. Receipts being Taxes, income from selling goods and services, dividends and profits, interests, grants are given etc and expenditure being interests paid, subsidies, defence, salaries and pension, grants etc
Capital Budget: It is a statement of estimated capital receipts and capital expenditure of the government over the fiscal year. It is non-recurring. Capital receipts being internal and external debts, loans recovered, disinvestment etc and capital expenditure being loans given and capital goods and assets etc.
From the above image, we understand the proportion of funds allocated to different streams and received from different sources.


 From the above image reference, we understand that the Budget 2019-20 is estimated to be 27 Lakh crore.

Some Gyaan:
Revenue deficit= Revenue expenditure-Revenue receipts
Effective revenue deficit= Revenue deficit- Grants
Fiscal deficit= Total expenditure- Total receipts except for borrowings
Primary deficit= Fiscal Deficit-interests payments


BUDGET HIGHLIGHTS-2019

Farmers and agriculture:
·       12 crore small and marginal farmers to be provided with an assured yearly income of Rs. 6000 per annum under PM-KISAN Samman Nidhi program
·        Outlay of Rs. 75,000 crore for FY 2019-20 with additional Rs. 20,000 crore in RE 2018-19
·        Outlay for Rashtriya Gokul mission increased to Rs 750 crore
·        Rashtriya Kamdhenu Ayog to be set up for sustainable genetic up-gradation of the Cow resources
·        New separate Department of Fisheries for the welfare of 1.5 crore fishermen
·        2% interest subvention to Farmers for Animal husbandry and Fisheries activities; an additional 3% in case of timely repayment.
·        Interest subvention of 2% during the disaster will now be provided for the entire rescheduling period of the loan

Labour
·        Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers. Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month

Health
·        22nd AIIMS to be set up in Haryana

MGNREGA
·        Rs. 60, 000 crore allocation for MGNREGA in BE 2019-20

Some Gyaan:
Mahatma Gandhi National Rural Employment Guarantee Act, 2005 ensure wage employment of 100 days for every household member in the financial year in rural areas.

Direct tax:
·        Income up to Rs. 5 lakh exempted from Income Tax
·        Standard Deduction to be raised to Rs. 50,000 from Rs. 40,000
·        TDS threshold to be raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits
·        Tax exempted on notional rent on a second self-occupied house
·        TDS threshold for deduction of tax on rent to be increased from Rs. 1,80,000 to Rs. 2,40,000

Some Gyaan:
Tax deducted at source was introduced in order to collect the tax from every source of income. The employer/deductor liable to make payment to the deductee shall deduct the tax at source and remit the same to the government. The deductee can claim for the credit of TDS.

Fiscal Program
·        Fiscal deficit pegged at 3.4% of GDP for 2019-20
·        Target of 3% of the fiscal deficit to be achieved by 2020-21.

Poor and Backward Classes
·        25% additional seats in educational institutions to meet the 10% reservation for the poor
·        Targeted expenditure to bridge urban-rural divide & to improve the quality of life in villages
·        All willing households to be provided electricity connections by March 2019

North East
·        Allocation to be increased by 21% to Rs. 58,166 crore in 2019-20 over 2018-19

Vulnerable sections
·        A new committee under NITI Ayog to identify all the remaining De-notified nomadic and semi-nomadic tribes.
·        New Welfare development Board under Ministry of social justice and empowerment for development and welfare of De-notified, nomadic and semi-nomadic tribes

Some Gyaan:
Denotified tribes are the vimukta Jati or criminal tribes addicted to systematic commission of non bailable offences.  The tribe was considered denotified if one of the persons of the tribe commits a crime. This made it difficult for such tribes to renew themselves.

Defence
·        Defence budget to cross Rs 3,00,000 crore for the first time ever

Entertainment Industry
·        Indian filmmakers to get access to Single window clearance as well for ease of shooting films

MSME and Traders
·        2% interest subvention on an incremental loan of Rs 1 crore for GST registered SMEs
·        Renewed Focus on Internal trade; DIPP renamed to Department for Promotion of Industries and Internal trade

Some Gyaan:
Micro small and medium enterprises development Act, 2006 defines any manufacturing unit with investment less than 25 lakh to be micro, 25lakh-5 crore to be small and 5 crore-10 lcrore to be medium enterprises.

Digital Villages
·        The Government to make 1 lakh villages into Digital Villages over the next five years

New National Artificial Intelligence

·        New National Artificial Intelligence portal to support National Program on Artificial Intelligence

  Gratuity
·        Also, the tax free gratuity has been hiked from 20 lakh to 30 lakh.

Some Gyaan:
Gratuity is the monetary benefit given by the employer to the employee after the retirement without any contribution of the employee in the process under the payment of gratuity act, 1972.

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