Key highlights: Modi’s election budget explained in 10 easy points
Taxation:
* Tax rebate raised for income up to Rs 500,000
* Benefit of rollover of capital tax gains increased from one residential house to two houses
* This roll over on capital gains up to Rs 2 crore can be exercised once in a lifetime
* Income Tax returns to be processed within 24 hours and returns will be paid immediately in next 2 years
Agriculture:
*Rs 6,000 per year assured income for small and marginal farmers
* Govt to allocate Rs 75,000 crore for the scheme
Rural sector
* Budgetary allocation of Rs 19,000 crore for construction of rural roads under Gram Sadak yojana in 2019/20
* Government to allocate Rs 60,000 crore for a MNREGA scheme
Employment:
* New social security coverage scheme for unorganised sector workers
* Assured monthly pension of Rs 3,000 rupees per month, with contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age
* Scheme to benefit 10 crore workers in unorganized sector, may become the world’s biggest pension scheme for unorganized sector in five years
GST:
* Group of Ministers to suggest ways to reduce GST for house buyers
* Small and medium-sized businesses registered under the GST to get 2 percent interest subvention on loan of Rs 1 crore
Economy :
* Average monthly tax collection at Rs 97,100 crore per month so far this year
* Gross market borrowing seen at Rs 7.04 lakh crore in 2019/20
* Goyal says expects other banks on the central bank’s Prompt Corrective Action list to be removed soon
Fiscal maths:
* Fiscal deficit for 2018/19 seen at 3.4 percent of GDP
* Fiscal deficit for 2019/20 estimated at 3.4 percent of GDP
* deficit for 2020/21 seen at 3 percent of GDP
* Government’s stated commitment earlier was to bring down the fiscal deficit to 3.1 percent of GDP by the end of March 2020, and to 3 percent by March 2021
* India’s current account deficit for 2018/19 seen at 2.5 pct of GDP
* Debt to GDP ratio to be brought down to 40 percent by ..
Railways:
*Railway’s operating ratio seen 96.2% in FY19 Vs 95% FY20.
*Railway capex for FY20 set at record Rs 1.6 lakh crore
* Today there is not a single unmanned railway crossing on the broad gauge in India
Defence Budget:
* Govt increases defence budget to over Rs 3 lakh crore. Govt will provide additional funds for Defence, if needed.
* Govt disbursed Rs 35,000 crore under OROP scheme in the last few years
