As I Pen down My Thought Process towards Interim Budget Presentation of Modi Sarkar, (2019) before the Elections of Lok Sabha 2019, while I Sip my specially brewed South Indian Filter coffee, which opens up my Mitochondria, fills me with lot of Freshness & Positive Energies. Amidst the euphoria of Elections, prevailing in India, & watched Very Keenly across all Sections of the Society in the World.
Before I Put my analysis for Budget-2019 duly presented by our Finance Minister Mr. Piyush Goyal Led by an able Administrator & A Globally Acclaimed Political Leader of world’s Largest Democracy, Bharat, our PM Modi, would start as usual with Swami Vivekananda’s Quotes –
“All the wealth of the world cannot help one little Indian Village if the People are not taught to help themselves. Our Work should be mainly Educational, both moral and Intellectual”.
Before I get into an In-depth analysis of Union Budget of 2019- Let me give a brief on what Exactly is the Definition of Union Budget?
A Budget is the Financial Statement of a Nation. Budget is prepared by the Department of Economics by Ministry of Finance. Before the Formal announcement of the Budget there takes place a popular ‘Halwa Ceremony’ which is observed to maintain the secrecy of the Budget Preparation Process. As Part of this ritual, this ceremony has continued for long. “Halwa” is prepared in a big Kadhai or work and served to the entire staff in the Ministry & No one among the staff associated with the Budget is allowed to any where from there & not even talk to their families till the Budget is Presented. The Name of the Budget as per the Constitution is ”ANNUAL FINANCIAL STATEMENT”, as per Article 112 of Constitution of India.
ANNUAL BUDGET OR ANNUAL FINANCIAL STATEMENT -divided into three Sections—
1.Consolidated Fund of India
2.Contingency Fund of India
3. Public Account
Consolidated Fund of India
The Tax payers Money which are collected as Taxes from all over the Country are deposited in the Consolidated Fund of India& without the consent of the Parliament, the Money from this Fund cannot be withdrawn. Only after the approval from Lok Sabha & Rajya Sabha followed by Signature of the President of India, the Funds can be withdrawn.
Contingency Fund of India
This is otherwise also known as Emergency Fund of India. This is placed at the disposal of the President & is maintained to make advances to meet urgent any unforeseen Expenditure, subject to authorisation by the Parliament.
This Fund consists of Provident Funds, Fund in Saving Accounts, etc. Parliament & Government only can take care of the Funds of Public Account but cannot use them as they belong to the citizens of Nation.
It is very clear from the above that the Contingency Fund can only be used only during Emergency & times of crises, the Nation & hence only Consolidated Funds belongs to the Government, so all the revenues & Expenditures are withdrawn only from the Consolidated Fund of India.
UNION BUDGET—According to the Article 112 of the Indian Constitution, the Union Budget of a Year, also referred to as the annual Financial Statement, is a statement of the estimated receipts, & Expenditure of the Governments for this Particular Year. Union Budget keeps the account of the Government’s Finances for the Fiscal year that runs from April to 31st March. It Contains the details of Government Receipts & Expenditure under the following heads; Actual for the Year
Revised Estimates for the year
Budget Estimates for the year
Components of Union Budget of India:
Revenue Budget – It consists of Revenue Expenditure & Receipts from these revenues. The Revenue receipts include both Tax (revenue like Income Tax, Excise Duty) & Non-Tax Revenue (Interest, Receipts & Profits)
Capital Budget—It Consists of capital receipts like borrowing, Disinvestment) & Long Period Capital Expenditure (Creation of Assets, Investments), Capital receipts are receipts of the Government which create Liabilities or reduce financial Assets, e.g., Market Borrowing, Recovery of Loan, etc., Capital expenditure is the expenditure of the Government which either creates Assets or reduces Liability. Capital Budget is an account of Assets & Liabilities of the Government which takes into Consideration Changes in Capital.
Now Let me Give You All my Viewpoints/ Analysis of INDIAN UNION BUDGET 2019—
Finance Minister Mr. Piyush Goyal, Presented the Interim Budget2019, February1,2019. Let me first Give you all the Highlights of the Budget –
FM Mr. Piyush Goyal, while Presenting the Interim Budget 2019, gave enormous Tax Relief to the Middle-Class Tax Payers, & Proposed Full Tax Rebate under Section 87A for Individuals having Taxable Income up to Rs.5Lk. Thus, Individuals having Annual Income Up to Rs.5Lk will get full Tax Rebate now & won’t be required to pay any Income Tax. Moreover, if someone also avails the Rs.15lk Deduction under Section 80C, then he won’t be required to pay any Income Tax up to Gross Income of Rs.6.5Lk. Besides, this Tax Rebate, the Finance Minister has also Proposed Increase in Standard Deduction from Rs.40,000 to Rs.50,000. This will benefit all Tax Payers, even in the Higher Income Tax Slabs.
Let Me Tell you all taking all this into Account, how will the Tax Payers will get Benefited?
Rebate87/A: As per the existing Provisions, Maximum rebate allowed is Rs.2500 only on the Total Income, up to Rs.3,50,000. Now, for FY 2019-20 both the amount of Rebate & the eligibility limit for claiming the Rebate have been increased. The Rebate which has been increased to Rs.12,500 & also the Limit of Total Income has increased to Rs.5,00,000. Therefore, from FY2019—20, there will be no Tax levied if the Total income comes up to Rs.5,00,00.
Standard Deduction: The Budget 2018, had reintroduced Standard Deduction (in Place of Transport & Medical Allowance) for all the Salaried Class Persons, i.e., all salaried class will get the Standard Deduction of Rs.40,000 from their salary Income. The Limit for Standard Deduction has now been increased to Rs.50,000, thus a salaried class person will get the Standard Deduction of Rs.50,000from his Taxable Salary Amount.
Let me give you all an example, if you take together an Individual Tax Payer having a Gross Salary of Rs.7Lk will now be able to save Rs.15,080 in Taxes. The New Tax proposals will benefit individuals with taxable Income, of Rs.3.5Lk, by Rs.2,600 & Taxable Income of Rs.5Lk by Rs. 13,000. The increase in Standard Deduction from Rs.40,000 to Rs.50,000 will provide a benefit ranging from Rs.2,080 to Rs.3,588. We find under New system being developed, income Tax Assessment to be done in 24hrs. we also see that 99.54% returns have been accepted without any scrutiny. Acceptance of more than 99% Tax returns without Scrutiny is a Historic development, Government is working towards the whole Nation walking on the Path of Honesty: FM Mr. Piyush Goyal.
Direct Tax Benefits: More than Rs.23,000 Tax Relief to Rs.3cr. Middle Class Tax Payers. Individuals with Income Up to Rs.5Lk to get full Tax Rebate
Standard Deduction to be raised from Rs.40,000 to Rs.50,000
TDS Threshold for Deduction of Tax on Rent to be Increased from Rs.1,80,000 to Rs.2,40,000
Tax Collections increased from Rs.6.38LkCr in Year 2013-14—Rs12LkCr. -Fy2019
80% Growth in Tax Base, Number of Returns filed increased from 3.79Cr to 6.85Cr.
Highest ever Growth of 42% recorded in Minimum Wages of Labourers during last 5years.
PRADHAN MANTRI SHRAM-YOGIMAANDHAN— FM Mr. Piyush Goyal, said that the 7th Pay commission recommendations were implemented & New Pension Scheme has been Liberalized. The Government’s Contribution in NPS had been increased 10% to 14%. The Limit of GRATUITY PAYMENTS has been increased from Rs.10Lk to Rs.20Lk. The Limit of Eligibility cover of ESIC has been increased from Rs.15,000/ Month to Rs.21,000/Month. The Minimum Pension for all Labourers has been fixed at Rs.1,000/Month. In Case of death of a labour during the service, the EPFO, contribution has been increased from Rs.2.5lk to Rs.6lk. The Honorarium of all classes, of Labourers under ANGANWADI &AASHA Scheme has been increased by about 50%.
Mega Pension Yojana for unorganized sector workers with Monthly Income of Rs.15,000 or below. Assured Monthly Pension of Rs.3,000 from the age of 60years. Small Monthly Contribution during working age with matching Government Contribution. To Benefit 10cr., Labourers & workers in Unorganized Sector.
PRADHAN MANTRI KISAN SAMMAN NIDHI – Marginal & Small farmers having cultivable land up to 2 Hectares, to be Provided Direct Income Support of Rs.6000/year. Around 12cr., Small & Marginal Farmer Families are expected to benefit- the main objective is to provide an assured Income Support to the Small & Marginal Farmers, the Government is Launching the PM Kisan Samman Nidhi (PM-Kisan) Mr. Piyush Goyal while Presenting the Budget he said.
“Vulnerable Landholding Farmer Families, having Cultivable Land up to 2Hectares, will be provided Direct Income Support at the Rate of Rs.6,000/year. This Income Support will be Directly Transferred into the Bank Accounts of Beneficiary Farmers, in three equal Instalments of Rs.2,000 each. This will be funded by Government of India. Around 12 Cr., Small & Marginal Farmer Families are Programme would be made effective from 1st December 2018. & the 1st Instalment for the period up to 31st March 2019 would be paid during this year itself. This Programme will entail an Annual Expenditure of Rs.75,000 Cr.” PM-Kisan would not only Provide assured supplemental income to the most Vulnerable Farmer Families, but this would also cater to the Urgent needs before Harvest Season. PM-Kisan will definitely lead to Empowerment of Farmers, towards Sustainability & Self Reliant which will lead to a respectable living.
Rashtriya Gokul Mission—This is in regards to Animal Husbandry, FM said “I have Increased the allocation to Rs.750 cr. (Cow Protection) I announce the setting up of “Rashtriya Kamdhenu Aayog”, to upscale sustainable Genetic Upgradation of Cow Resources& to enhance Production & Productivity of Cows. The Aayog will also look after effective implementation of Laws & Welfare Schemes for Cows”.
Department of Fisheries: The Government has decided to create a Separate Department of Fisheries, FM Mr. Piyush Goyal, announced the facility of extension of Kisan Credit Card Scheme (KCC), to Animal Husbandry& Fisheries Farmers. FM announced the Interest Subvention of 2%, to the Farmers, Pursuing the activities of Animal Husbandry & Fisheries, who avail Loan through Kisan, Credit Card. If the Loan amount is repaid, they will also get an additional 3% Interest Subvention.
Crop Loans: FM provided the Interest Subvention, of 2%, from National Disaster Relief Fund (NDRF), Prompt Repayment of 3%, for the entire Period of Reschedulement of their Loans, especially when Natural calamities strike, Farmers, are generally unable to repay their crop Loans. A Big relief for those Farmers who are left out, for whichever reason, from the Crop Insurance Scheme, of the Government
Now I will List out the Government’s Statement of 2030- 10 Points—
1. Physical & Social Infra
2. Digital India
3. Clean & Green India
4. Rural Industrialization
5. Clean Rivers
6. Oceans & Coastline
7. Space Mission
8. Self-Sufficiency in Food Production
9. Health Care
10. Minimum Government, Maximum Governance
Let us Ponder Upon Inflation, which is most debated since UPA regime & brought down Effectively by Modi Sarkar—
Since Last 5years, Government has been successful in bringing down Average Inflation to 4.6%, which is lower than that of Erstwhile Government led by Economist PM Manmohan Singh, former PM. In fact, we find that Inflation in December 2018, was down to 2.19%, only. If Inflation was not brought under control, families would have spent more than 30-40% more on Food, Clothing, consumer Durables, Housing, etc. 2009-2014, Inflation Rate was @ 10.1%
Fiscal Deficit—Modi Sarkar has to commended & lauded for their efforts to induce fiscal Discipline, by bringing Fiscal Deficit has been brought down to 3.4%, in 2018-19 in comparison to 6% of almost 7years ago. The Fiscal Deficit has been contained effectively, notwithstanding the recommendations of Finance Commission’s, the share of the States from 32% to 42%, I central Taxes, by upholding the principles of co-operative Federalism, which will involve transferring Higher amounts to States.
Growth & FDI—FM Mr. Piyush Goyal, opined by saying that there is a situation which is created for higher Growth in decades to come, now has been set, after implementation of Bold & Structural Reforms like GST-Good & Services Tax & other Taxation Reforms. Since last 5years, country witnessed the Macro- Economic Stability, & thereby achieved a Tag called Fastest Growing Nations/Emerging Markets of the world, wherein we saw an Annual Average GDP Growth achieved ever since Economic Reforms began in 1991. India will attract massive amount of FDI $239Bn during last 5years, as FDI was allowed through automatic route.
Now I will Give You other Allocations for Major Schemes in Point wise Description—
2. PM Gram Sadak Yojana— Rs.19,200Cr- BE-2019-20, as against Rs.15,500cr.in RE 2018-19
3. PM Awas Yojana-2014-18—1.53cr Houses have been built
4. By March 2019, Housholds will be fully electrified,143 Cr LED Bulbs, have been Provided resulting in saving of Rs. 50,000 Cr.
5. Massive Scale of Health Care—Aayushman Bharat-Medicines available at affordable rates, PM Jan Aushadhi Kendras, 21 AIIMS, operating/ already established-14 announced, 22nd AIIMS to be set up in Haryana
6.Allocation of welfare schemes for SC& ST—Rs.56,619Cr. increased to Rs.62,474Cr.Rs.76,801Cr., ST—Rs.50,086Cr.-2019-20
7. Ujjawala Yojana—Aiming to Deliver 8Cr.Free LPG Connections, 6Cr. LPG connections have been given Connections.
8. Artificial Intelligence Portal will be dev eloped soon as National Programme on AI
9. GeM- Resulted in 25-28% average Savings, Transactions of over Rs.17,500Cr have taken Place
10.For the 1st Time, Defence Outlay will be of Over Rs.3Lk Cr.
11. Infrastructure-Domestic Passenger Traffic Has Doubled during last 5years, India has fastest Highway Developer-27/Km each day.
11. Railways –Capital Support from Budget Proposed at Rs.64,587Cr., in 2019-20, All Unmanned Levels Crossed, on broad Gauge Network eliminated, Vande Bharat Express Launched with world class Experience with speed, service & Safety
12. India’s Installed Solar Generation Capacity has grown over Ten Times fm 2018-19
13. Entertainment Industry- A Single Window Clearance for Ease of Shooting Films, now Available to Indian Filmmakers.
FM Mr. Piyush Goyal, through the Finance Bill, Necessary Amendments to Levy Stamp Duties on one Instrument relating to one Transaction & get Collected at one Place through the Stock Exchange. The Duty collected will be shared to state Government.
As I End My Analysis on Budget 2019—A Budget for 132Cr.Bharatvasis, there is something for Everyone. The Interim Budget Gave us a 360-degree approach of Modi Sarkar’s Policies, Interim Budgets are also seen as an Opportunity for the current Day Government to illustrate their Performances since last five years by putting facts & Figures before the People of India. There is a Vision Statement Envisaged by FM Mr. Piyush Goyal’s Budget Speech. This Budget also goes to show that Modi Sarkar’s Budget is Kisan-Centric Budget. A Big Boost for Consumption., as we all know Consumption Engines Growth Process of Economy. I Feel It’s a final Nail in the Coffin of Suit-Boot Ki Sarkar’s jibe. Market Reacted very Positively to the Budget, Sensex & Nifty gained after a dull moment in the initial stages of Budget Presentation, I feel most Importantly Economic Reforms like IBC is working very well, pushing the Economy towards Upwards Trajectory Position, Very Encouraging to see Relaxed Interest Rates on Rental Investments. A Gamechanger Budget for Farmers, Aam Aadmi. For the 1st time in last 70 years, Internal Trade is going to be Part of Ministry of Industrial Promotion. A Blueprint of Visionary Budget, Pro-poor, it’s very encouraging, very balanced, feel good, looking into the concerns of Small & Marginal Farmers, this Budget will go a very Log way to overhaul Sustainable Development Goals, and also Infrastructure Led Development, Our PM walked the talk of SABKA SAATH SABKA VIKAS, through his various Reforms to give India A new Perspective from Third World Nations to Fastest/Emerging Markets of the World.
Thank You FM Arun Jaitley, Interim FM Piyush Goyal for giving such a visionary Financial Statement for India, PM Modi who is not only a crusader of Anti- Corruption movement, a Termite which crept into the Economy for quite Some time, Pulled the Economy From Shambles, Shattered State of NPAs in 2014 & Gave us Bold & structural Reforms, Economic & Tax Reforms & moved Economy to an aspiring $5Trillion Economy- A Future Vision- A Committed Thought Process of Making our Youth to Move from JOB CREATORS TO JOB SEEKERS. PM Modi who believes in two Buzzwords CONNECT & CONNECTIVITY
Every Voter Matters, Every Vote Matters, My Vote for Vikas & Parivartan, My Vote for Bold & Decisive Leadership, My Vote for Empowering 132cr. Bharatvasis through Vikas Policies, My Vote for oiling the wheels of Production, My Vote for Progressive, Vibrant & full of Reforms for Indian Economy. Let’s take a Pledge as an Indian to make this Vikas Yatra Scripted by our PM Modi continue for Ages to Make Bharat as not only a superpower, but a better, cleaner, greener, Safer Place to Reside.
#IWillVoteForNAMO, Let’s Vote-It’s our Constitutional Right/ Authority to exercise our Right with Prudence to Elect the Right Representative who will Empower his Citizens, to uphold the Principles of Democracy- #RightToVote
Salutations to our Armed Forces
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