Highlights of Budget 2019-20

Budget 2019 Highlights


  1. Taxes

  • No change in personal income tax rates.
  • Additional Rs 1.5 lakh tax relief on home loans.
  • Govt hike custom duty on fuel by 1 rupee, gold and precious items; Petrol & diesel to get costlier.
  • Increase in surcharge on super rich: 3% surcharge on Rs 2 crore income; 7% on Rs 5 crore andabove.
  • Annual turnover limit for 25% corporate tax raised to Rs 400 crore from Rs 250 crore.
  • Taxpayers with annual turnover of less than Rs 5 crore to have to file only quarterly.
  • Direct tax revenue has increased by 78%.
  • Interchangeability of PAN and Aadhaar for ITR who don’t have PAN cards.


  1. Affordable housing

  • Rental laws to be reformed. Modern tenancy law will be shared with states to promote house


  1. For Rural India

  • Gaon, Garib and Kisan are the focus of our government.
  • New Jal Shakti ministry will work with states to ensure Har Ghar Jal for all rural houses by
  • Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road lengthover the next 5 years.
  • Govt will set up 100 new clusters for 50,000 artisans in FY-20.
  • To invest Rs 80,250 cr for upgradation of roads under PM Gram Sadak Yojana.
  • Every single rural family except those unwilling to have electricity by 2022.


  1. Agriculture

  • Govt to promote innovative 0 Budget farming.
  • 10,000 new farmer producer organisations.
  • 80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries
  1. Ease of living

  • Rs 3,000 pension per month for informal sector workers.
  • Aadhaar card under 180 days for NRIs on arrival in India.
  • Govt to open embassies in countries where India doesn’t have a resident diplomatic mission as


  1. Women Empowerment

  • Nari tu Narayani: Women SHG Interest Subvention Programme to be expanded to all districts inIndia
  • Rs 1 lakh loan to be provided for SHG women members.
  • Every verified woman SHG member having a Jan Dhan account can avail Rs 5,000 rupees overdraft facility.


  1. Transportation

  • Inter-operable One Nation One transport card: National transport card for universal travel whichcan used on various modes of transport (road, railways etc). The card can also be used as an ATM card for withdrawing money.
  • Govt plans to create MRO (Manufacturing, Repair and Operate) industry.
  • PPP to be used to unleash faster development and the delivery of passenger freight services.
  • Comprehensive restructuring of National Highways Programme for creation of National Highways Grid.
  • Government envisions using rivers for cargo transport; it will also decongest roads and railways.

Note: Govt will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase EVs


  1. Education

  • Govt to launch ‘Study in India’ programme to attract foreign students in higher education.
  • Allocate Rs 400 crore for world-class higher education institutions in FY20.
    To unveil new education policy.
  • National research foundation to fund, coordinate and to promote research in the country.
  • New Higher Education Commission with focus on higher autonomy.
  • New national education policy to propose changes in school, higher education.


  1. Economy

  • Fiscal deficit in FY19 at 3.3% of the GDP.
  • Govt will start raising part of borrowing in foreign currency.
  • Govt external debt to GDP is among the lowest in the world.


  1. Banking reform

  • On purchase of high-rate pooled assets of NBFC amounting of Rs 1 lakh core in this FY, govt willprovide one-time 6-month credit guarantee.
  • Propose to provide Rs 70,000 crore capital for PSU Banks.
  • Regulation of HFCs (Housing Finance Corporations) to move to RBI from National Housing Bank.


  1. To promote digital payments

  • 2% TDS on withdrawals of Rs 1 crore in a year from bank accounts for business payments.
  • No change on digital payment: MDR charges waived on cashless payment.


  1. Railways

  • A new PPP model will usher the new dawn of Indian railway.
  • Railways to be encouraged to invest more in suburban rail network via SPVs.
  • Railway infrastructure will need an investment of Rs 50 lakh crore between 2018 and 2030.
  1. MSME

  • Propose easing angel tax for startups.
  • Angel tax: Won’t require scrutiny from Income Tax department for startup.
  • 2% interest subvention for GST-registered MSME on fresh or incremental loans.
  • ‘Stand Up India’ Scheme to continue till 2025.
  • Propose to commence television channel for start-ups.
  • To extend pension benefit to retail traders with annual turnover less than Rs 1.5 crore.
  • New payment platform for MSMEs to be created.


  1. Tourism

  • 17 iconic world-class tourist sites to be developed.


  1. FDI

  • Local sourcing norms will be relaxed for the Single brand retail sectorGovt of open FDI in aviation, insurance, animation AVGC and media


  1. Investment

  • Existing KYC norms for FPIs to be rationalized and simplified to make it more investor-friendlyLong-term bonds for market.
  • To allow FIIs & FPIs investment in debt securities issued by NBFCs.
  • Credit Guarantee Enhancement Corporation to be set up long-term bonds with specific focus oninfra sector.
  • Propose Social Stock Exchange under SEBI for listing social enterprises & voluntary organizations.
  • To merge NRI portfolio route with FPI route.
  • To hike statutory limit for foreign investment in some companies.
  • To set up a credit guarantee enhancement corporation.
  • Govt will take up measures to make RBI & SEBI depositories inter-operable.
  • SEBI to mull increasing minimum public shareholding to 35% from 25%.
  • User friendliness of trading platforms for corporate bonds will be reviewed, including issuesarising out of capping of International Securities Identification Number.
  • To deepen corporate tri-party repo market in corporate debt securities.
  • Plan to enable stockexchanges to allow AA rated bonds as collaterals.
  • Annual Global Investors’ Meet for attracting global players to come and invest in India.
  • To allow FPIs to subscribe to listed debt papers of REITs.


  1. Divestment

  • Govt to modify 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 FY20


  1. Auto sector

  • FAME II scheme aims to encourage faster adoption of electric vehicles by the right incentives andcharging infrastructure


  1. State of the economy

  • Railways will require investment of Rs 50 lakh crore from 2018-30
  • Schemes such as BharatMala, Sagarmala and UDAN are bridging rural urban divide and improvingour transport infrastructure.
  • Gandhipedia’ is being developed to sensitize the youth about positive Gandhian values.
  • The unambiguous mandate by the people in the recent election has set the ball rolling for the New
  • NPAs recovery of Rs 4 lakh crore over the last four years, NPAs down by Rs 1 lakh crore in the lastone year.
  • Rashtriya Swachhta Kendra to be inaugurated at raj ghat on Oct 2, 2019.


  1. Space

  • India has emerged as a major space power. It is time to harness our ability commercially.
  • A public sector enterprise, New Space India Limited (NSIL) has been incorporated to tapbenefits ofISRO.


  1. Sports

  • To popularise sports at all levels, National Sports Education Board for development ofsportspersons to be set up under Khelo India.
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