Budget 2019 in Linked Inn by Sonal Nainwani

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Just look at the Government Budget 2019 and how is was understood to an author

With the Lok Sabha Elections scheduled to take place in few months, Finance Minister Piyush Goyal presented interim budget on February 1, 2019. The FY19 fiscal deficit was pegged at 3.4% of the GDP with the current account deficit at 2.5% of the GDP. The FY20 fiscal deficit target set at 3.4%.

Last 5 years has witnessed a lot of reforms in the Indian Economy. India from being the 11th largest economy in the world in 2013-14, is today the 6th largest economy in the world.  The average inflation rate has been reduced from double digit to the single digit. The Modi government came up with the biggest tax reforms in the Indian Economy with the implementation of the GST. India also attracted the massive amount of FDI during the last Years. The government also took anti-black money measures in the form of Black Money Law and Demonetisation to eliminate the ills of the black money from our country.

Talking about the vision for next decade, he also said that we are poised to become a Five Trillion Dollar Economy in the next five years and aspire to become a Ten Trillion Dollar Economy in the next 8 years thereafter.

Now, let's talk about the budget which is presented, ever for the first time in the history of the Indian Economy, by the Chartered Accountant:

Real Estate:

The Minister came with a number of tax benefits for the real estate sector in the affordable housing category.  The sector which has been facing a lot of slowdown may expect a boost with these measures.

The budget announced the relief to real estate developers by extending the benefits of Sec 80 IBA of the Income Tax Act for the one more year i.e. upto 2020. The major proposal came out to remove tax on notional rent on the second house if it is vacant.

The budget also proposed to extend the period of exemption from levy of Tax on notional rent, on unsold inventories, from one to two years.

Poor and Backward Class:

Keeping the existing reservation as it is, the government have ensured 10% reservation in the Educational Institutions and Government for the poors. The allocation to MNERGA stood at Rs. 60,000 crores.

The world's largest healthcare programme - "Ayushman Bharat" has been launched to provide medical treatment to nearly 50 crore people. This programming is helping lakhs of poor people in both rural and urban areas.

Farmers:

The government is launching a programme - "Pradhan Mantri Kisan Samman Niddhi (PM-KISAN)" which will provide direct income support at the rate of Rs. 6000 per year to the farmer families having cultivable land upto 2 hectares. This is going to have a significant positive impact on the small farmers and the rural economy.

Also, it provided 2% interest subvention to the farmers pursuing the activities of animal husbandry and fisheries and 3% additional interest subvention on timely repayment of loan.

 Labour and Workers:

He came with a Mega Pension Yojana - "Pradhan Mantri Shram Yogi Mandhan" for the employees of the unorganised sector. Under PMSYM, monthly pension of Rs. 3000 is assured for the workers after the age of 60 years. This scheme, if implemented properly, is going to provide them with the reasonable standard of living.

Defence & National Security:

Implemented "One Rank One Pension" Scheme which was pending for the last 40 years and budget also proposed the highest ever allocation to Defence with RS. 3,00,000 crore.

Digital India:

India is now leading the world in consumption of mobile data. With the decrease in the prices of data, the consumption of data has increased at a very high rate.

The government proposed to make 1 lakh villages into Digital Villages over next five years which in definitely important form the point of view of the Digital India.

Taxpayers:

The budget proposed a few key changes to provide relief to taxpayers. The most important proposal is to provide full tax rebate to the individuals with income upto Rs. 5,00,000. This is going to benefit middle class taxpayers.

Another important proposal came for salaried taxpayers with standard deduction being hiked to Rs. 50,000. The budget also proposed to increase the limit of TDS on Fixed deposits from that Rs. 10,000 to Rs. 40,000.

Final Take:

The budget 2019 has come up very well. It addressed the needs of farmers and poors ensuring the improvement in the Indian economy. It recommended major changes in the Income Tax benefitting medium class taxpayers and real estate developers. The budget also came with various pension schemes for different group of people.

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