“The future depends on what you do today” said Mahatma Gandhi ji. Country in last 5 years has witnessed a major development in basic infrastructure and facilities like roads, railways, housing, LPG gas connections, toilets, electricity. The further progress of nation depends on steps taken today. This budget correctly emphasizes on improving agriculture, infrastructure, ease of doing business, investments and banking. This budget also respects everyone from all sections of society from farmers, marginalized people to taxpayers. Importance is also given to climate and water conservation. These steps definitely will help in achieving a better India for every citizen.
India is agriculture-based economy. Present government has emphasized a lot on agrarian sector and set a goal of doubling farmer’s income by 2022.In this budget, 2.83 lakhs crores is allotted for agriculture and allied industries. 16 point formula for farmers is proposed. Government kept a goal to give 15 lakh crores loans to be given to farming and allied industries. Kisan credit cards to be given to farmers. Farm markets to be liberalized. On PPP basis Food Corporation of India (FCI) to build ware houses for storing farm products. Government is planning to build a cold chain of storage for milk, fish, meat, vegetables, fruits, flowers etc. for storage and easy transport of perishable goods. To achieve this more ware houses with cold storage facilities will be established.
For fast transport of perishable farm products, Indian railways to set up “kisan rails” -Trains with cold storage facilities to transport domestically and aviation ministry will launch “Krishi Udaan”-Aero planes with cold storage facilities to transport nationally and internationally. NABARD schemes to be expanded. Zero budget natural farming will be increased. Soil tests to be done. Portal for online natural organic products “Jaivik kethi” shall be strengthened. Nearly,6.11 crores farmers benefited from PM fasal bhima yojana. PM Krishi Sanchai Yojana promoted micro irrigation and farming of pulses. Solar pumps to be given to 20 lakh farmers. Solar energy production units in non-cropping rural areas shall be expanded. Measures to improve farming and water conservation in 100 water scarce districts. Integrated farming systems in rain fed areas shall be expanded. Dhanya laxmi seed banks will be started involving women. Special clusters for horticulture will be developed. Animal artificial fertilization measures will be promoted. Fisheries and exports to be promoted and youth to be trained in this aspect.
Government has taken steps to increase ease of doing business and create better environment for wealth creation. Banks deposit insurance raised from one lakh to five lakhs. Simplified GST will be implemented from 1 april,2020. Companies need not pay Dividend distribution tax. New investment clearance cell will be set up for entrepreneurs. Real estate tax holiday extended by one year. Policy for single window e-logistics clearances will be established. 27,300 crores allotted for encouraging industries and commerce.
To boost “Make in India” incentives will be given for encouraging exports and duties will be levied on some imports. For SMEs the turnover for audit has been increased from 1 crore to 5 crores. Increase liquidity support to NBFCs by government guaranteeing securities. Measures will be taken to provide SMSE more cash from banks and NBFCs. 3.5 lakh crores cash to be provided to government banks. Big boost is given to start ups. Tax holiday of 5 years will be given for startups with turnover up to 100 crores. 2.1 lakh crores to be raised by dis investment.
Budget aims at bringing relief and respect to tax payers of the nation. Simplification of filing taxes by removing 70 exemptions and deductions. Tax rate percentages reduced as below as per incomes between
2.5 to 5 lakhs from 5% to 0
5 to 7.5 lakhs from 20% to 10%
7.5 to 10 lakhs from 20% to 15%
10 to 12.5 lakhs from 30% to 20%
12.5 to 15 lakhs from 30% to 25%
Tax to be paid by a person earning 15 lakhs has decreased from 2,73,000 to 1,95,000. Gain of Rs.78,000 to the taxpayer. Amount of 8000 crores for quantum computing Income tax relief is giving 40,000 crores cash into the hands of middle-class people, thereby increasing purchasing capacity. 60 lakhs new income tax payers added last year. Tax payers charters to be started, India being the fourth country to do so after USA, Canada, Australia. New scheme for settlement of disputes of direct taxes announced which will bring more cash into the system. Disputed Income tax if paid before 31 march 2020 shall be settled without any penalties. Tax evasion charges to be decriminalized and converted to civil charges. Households saved around 4% on expenses due to GST. All these measures are expected to put nearly 1 lakh crores in hands of people increasing the purchasing capacity.
Government has given lot of importance to infrastructure. Strengthening infrastructure will provide more jobs and boost economy. Government has set a goal of “Water and net for all”. Amount of 3.6 Lakh crores is allotted for “Jaljeevan mission” with the aim of giving tap connection to every house by 2024. Measures for water harvesting and desalinization will be exclusively allotted 11500 crores. As a part of digitalization of villages, 6000 crores allotted for pan India internet services by Bharath net. In the first target 1 lakh gram panchayats will be provided internet and join national grid. Transport infra structure is allotted 1.7 lakh crores. This includes development of 2500 kms axis controlled highways,9000 kms of economic corridors, 2000 kms of coastal and port roads, 2000 kms of strategic high ways.
A road map is developed for investing 103 lakhs crores in infrastructure in next 5 years on 6500 projects in drinking water, safe and clean energy, health care, roads, railways, metros, housing, airways, education institutes, logistics, ware housing, irrigation projects. By 2024 100 new airports to be built under UDAN scheme. To develop Bangalore suburban railway 18600 crores allotted. This year 11000 kms railways to be electrified. Solar centers to be established along railway lines. More Tejas like trains to be promoted. National gas grid to increase from 13600 kms to 27000 kms. Tourism development is allotted 2500 crores.
The benefits should reach the needy. This budget has taken measures for the welfare of poor and marginalized. For education amount of 99,300 crores is allotted. Health sector is given 69,000 crores. Ayushman Bharath hospitals to be started in 100 more cities. Every district to have a medical college. TB to be eliminated by 2025.Swachh Bharath scheme is allotted 12300 crores. Pension fund Regulatory authority act will be amended to establish new Pension trust. Skill development is given 3000 crores. Nutrition improvement is given importance with 35000 crores budget. For the welfare of Scheduled castes 85,000 crores and Scheduled tribes 53,700 crores allotted. An amount of 28,600 crores allotted for women welfare. Manual scavenging to be abolished completely in a step wise manner. To provide clean air in metros 4400 crores allotted.
Old thermal projects to take steps decrease carbon emissions. Defense budget is increased by 6% to 3.37 lakh crores. For developing Jammu and Kashmir 30757 crores and Ladakh 5598 crores have been allotted. A common way of entrance for recruitment of non-gazette jobs is proposed.
This government is determined to boost economy by reviving agriculture and promoting investments. This budget is a part of continuous process in measures taken in that direction. Understanding the difficulties, this government has brought reforms in the middle of year after budget session like decreasing corporate tax, removing surcharge on FPIs, etc. Central government’s loan burden has decreased by 48.7%. FDIs increased to record high of 284 billion dollars.
For the past 3 months GST collections have crossed one lakh crores. Fiscal deficit target for this year has been set at 3.8% which is reasonable. These are the difficult times with global economic recession and this budget aims at increasing trust factor and promoting investments. It also has goals of strengthening agriculture, infra structure, health and education sectors. This budget respects wealth creators and decreases tax harassment. Utmost importance has been given to the welfare of marginalized people and preserving environmental resources. Government wants to see that ever rupee spent shall reach deserved. This echoes the principle of Gandhiji. Today efforts are being made to build a better and safe India for every citizen.