Vision for $5 trillion Strengthening economy driven by connectivity KEY investment Infrastructure FEATURES Transforming rural lives Gandhipedia to sensitize New Jal Shakti society OF BUDGET Mantralaya to ensure Har India’s soft power 2019-20 Ghar Jal Harnessing India’s space Enhancing ease of direct abilities and indirect taxation Pradhan Mantri Vision to become $5 Karam Yogi Enhanced interest trillion economy driven deduction for affordable Maandhan by ‘virtuous cycle’ of housing loan investment Pension benefits to Tax benefits for India becomes sixth retail traders and small corporate tax payers largest economy shopkeepers Pradhan Mantri Reform, Perform, Scheme of faceless Transform agenda: Matsya Sampada electronic tax Yojana (PMMSY) GST, IBC, RERA etc. assessment Establish robust Changing common Aadhaar and PAN to be man’s life: fisheries management interchangeable framework MUDRA, UJJWALA, SAUBHAGYA etc. 1 PUSH TO INVESTMENT: INFRASTRUCTURE DEVELOPMENT Bharatmala phase 2 to be Road launched. State road networks will be developed World’s third largest UDAAN: Number of domestic aviation Operational Airports crossed Air market 100 Jal Marg Vikas project and Sagarmala initiatives: improving Shipping and logistics, reducing transportation cost and increasing Inland competitiveness. waterways Operating Ratio improving PPP in railways infra 657 km Metro rail network 98.4 development already operational. 100 96.2 95 Rail National Common Mobility 96 Card launched. 92 2017-182018-192019-20 (RE) (BE) 2 PUSH TO INVESTMENT: INFRASTRUCTURE DEVELOPMENT Houses under PMAY-U: Promotion of rental Sanctioned: 81 lakh housing: Model tenancy law Construction started: 47 lakh Housing to be finalised. Completed: 26 lakh Delivered: 24 lakh Gas Water grids grids Measures for boosting infrastructure financing Vision for Credit Action plan to To permit connectivity infrastructure Guarantee deepen long transfer of Enhancement term bonds FII/FPI Regional I-ways Corporation to market investment in airports be set up in debt securities 2019-20 issued by IDF- NBFCs to domestic Power investors grids 3 PUSH TO INVESTMENT: INDUSTRIAL DEVELOPMENT Empowering Interest subvention scheme Social stock exchange for MSMEs and Payment platform for bill social for MSMEs: `350 crore filing for MSMEs to be listing social enterprises and enterprises allocated for 2019-20 created: to address delays voluntary organisations Make in India Changes in customs duties to promote Make in India Startups Exclusive TV channel E-verification for establishing investor promotion for startups identity and source of funds to resolve tax issues relating to fund raising FAME Scheme Phase-2 Customs duty exemption on certain Push to commenced e-vehicle parts E-vehicles Income tax deduction of interest on loans for e-vehicle purchase 4 GROWTH & MACRO-ECONOMIC STABILITY: VISION FOR $5 TRILLION ECONOMY GDP Fastest growing major economy in the CAD world 11th largest economy in 6th largest economy 5.6% of GDP 2.1% of GDP 2013-14 in 2019-20 in 2013-14 in 2018-19 GDP Growth rate (%) CAD as % of GDP 8.2 4.8 8.25 8 6.0 4.3 5.0 7.4 7.2 4.0 7.5 3.0 2.1 6.8 1.7 1.8 2.0 1.3 1.1 6.75 1.0 0.7 0.0 6 FDI & FPI India attracted $64.4 bn worth of FDI in 100% FDI to be permitted for 2018-19 Insurance intermediaries Statutory limit for FPI investment in a Local sourcing norms to be eased for company increased to sectoral limit FDI in single brand retail 5 ON THE PATH OF FISCAL CONSOLIDATION AND INFLATION MANAGEMENT Fiscal Deficit (% of GDP) CPI Inflation (in %) 6.6 9.0 6.1 5.9 8.0 4.9 7.0 4.3 4.5 3.9 4 4.1 3.9 6.0 3.4 4.9 3.5 3.5 3.4 3.3 5.0 2.6 4.0 3.0 2.0 1.0 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Apr-14 Oct-14 Apr-15 Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18 Oct-18 Apr-19 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Disinvestment Receipts (in ₹ crore) Central Govt. Debt (% of Also, India’s 1,00,045 sovereign 1,05,000 51.4 51.6 GDP) 80,000 external debt to GDP 49.9 49.5 ratio amongst the 48.4 lowest 48 globally at less than 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2017-18 2018-19 (RE) 2019-20 (BE) (Actuals) (RE) (BE) 5%. (Actuals) 6 BUDGET AT A GLANCE Revenue Receipts (in ` crore) Capital Receipts ( in ` crore) 8,23,588 19,62,761 7,06,740 7,16,475 7,27,553 20,00,000 17,25,738 17,29,682 8,00,000 14,35,233 15,00,000 6,00,000 10,00,000 4,00,000 5,00,000 2,00,000 0 0 2017-18 2018-19 2018-19 2019-20 2017-18 2018-19 2018-19 2019-20 (Actuals) (BE) (RE) (BE) (Actuals) (BE) (RE) (BE) Revenue Expenditure (in ` crore) Capital Expenditure (in ` crore) 3,38,569 24,47,780 21,41,772 21,40,612 3,00,441 3,16,623 25,00,000 18,78,833 3,50,000 2,63,140 20,00,000 2,80,000 15,00,000 2,10,000 10,00,000 1,40,000 5,00,000 70,000 0 0 2017-18 2018-19 2018-19 2019-20 2017-18 2018-19 2018-19 2019-20 (Actuals) (BE) (RE) (BE) (Actuals) (BE) (RE) (BE) 7 BUDGET AT A GLANCE RUPEE COMES FROM RUPEE GOES TO 8% 9% 20% Subsidies 9%- Non Centrally Borrowings 4% Sponsored Tax 9% and Other Schemes Revenue Customs Liabilities Defence 18% 23% 7% Interest States’ Share of Finance 21% 19% Payments taxes & Duties Comm. & Corporate Tax GST Transfers s 8%-Union 13% 8% Excise Central Duties Sector Other 3% Non Expenditure debt Schemes 16% Capital Income Tax Receipts 5% Pensions 8 TAX PROPOSALS Threshold for applicability of lower corporate tax rate of FACELESS E-ASSESSMENT 25% increased from ₹250 crore to ₹400 crore. A scheme of faceless electronic Enhanced interest deduction up to ₹3.5 lakh for purchase assessment involving no human of an affordable house. interface to be launched this year Deposit taking and systemically important non-deposit taking NBFCs can now pay tax in the year they receive interest for certain bad or doubtful debts. DIRECT TAX REFORMS TDS of 2% on cash withdrawal exceeding ₹1 crore in a PAYING OFF year from a bank account to promote less cash economy. Increase in tax collection by Effective tax rate for individuals having taxable income 78% from ₹6.4 lakh crore in above ₹2 crore has been increased. 2013-14 to ₹11.4 lakh crore in 2018-19 No charges or MDR on specified digital mode of payments. These modes are to be compulsorily provided by large ENHANCING EASE OF TAX businesses. PAYERS Sabka Vishwas Legacy Dispute Resolution Scheme Aadhaar and PAN to be made interchangeable proposed for quick closure of service tax and excise related litigations. 9 REFORM, PERFORM, TRANSFORM Banking & Record Recovery of ₹4 lakh crore in last GST IBC 4 years due to IBC and other measures 1. Taxpayers having annual turnover of Provision coverage ratio of Proposed further recapitalisation less than ₹5 crore can now file banks highest in 7 years of PSBs: ₹70,000 crore quarterly returns. 2. Fully automated GST refund module Average recovery under various shall be implemented. recovery regimes (in %) 43 3. An electronic invoice system is 45 23 proposed that will eventually eliminate 35 25 the need for a separate e-way bill. 15 5 DRT, SARFAESI, Realisation by Further simplification of GST Processes Lok Adalats, etc: Financial Creditors 2007-17 under IBC: 2017-19 SWACHH BHARAT More than 95% cities and 5.6 lakh villages declared ODF More than 45,000 public and community toilets uploaded on Google Maps To expand Swachh Bharat Mission to undertake sustainable solid waste management in every village. 10 TRANSFORMING RURAL INDIA Pradhan Mantri Gram Sadak Yojana PMAY-G (PMGSY) Outlay (in ₹ crore) 1.5 crore rural homes completed 1.95 crore houses proposed for second phase. 19000 Average days for completion: 20000 15500 22.6% 314 (2015-16) 114 (2017-18) jump 15000 PMGSY 10000 Completion Target advanced 2022 2019 5000 97% of targeted habitations covered 0 30000 km built using green technology 2018-19(RE) 2019-20(BE) MGNREGA Outlay (in ₹ crore) Rural Electrification 60000 60000 100% Households 9% Electrified jump 58000 55000 56000 UJALA leading to annual cost savings of 54000 ₹18,341 crore 52000 2018-19(BE) 2019-20(BE) 11 FARMER WELFARE AND WATER SECURITY Boost to agro-rural industries through cluster Pradhan Mantri Matsya Sampada Yojana launched based development under SFURTI scheme with focus on bamboo, honey and khadi clusters 100 new clusters to be set up to enable The scheme will address critical gaps in strengthening 50000 artisans during 2019-20 value chain, including infrastructure, modernisation, production, productivity and quality control 100 Business Incubators to be set up to enable 75000 entrepreneurs under ASPIRE Constitution of Jal Shakti Mantrayala To ensure Har Ghar Jal to all rural households by 2024 under Jal Jeevan Mission 1592 critical and over exploited blocks Focus on Integrated demand and supply side management identified under Jal Shakti Abhiyan at local level, creation of local infrastructure for rainwater harvesting, groundwater recharge and household waste water management 12 WOMEN’S DEVELOPMENT TO WOMEN LED DEVELOPMENT Allocation for ICDS (in ₹ crore) 70% of beneficiaries 2019-20 (BE) 27,584 under MUDRA scheme are Women 2018-19 (RE) 23,357 20,000 22,000 24,000 26,000 28,000 8 Crore free LPG connections to To expand women SHG interest More than 7 be given under subvention programme to all districts crore Ujjwala Yojana ₹1 lakh loan under MUDRA scheme for connections one woman in every SHG already given 13 LABOUR AND YOUTH WELFARE Pradhan Mantri Laghu Vyapaari Mann-Dhan Pradhan Mantri Shram Yogi Maan Dhan (PM-SYM) Yojana (PMLVMY) About 30 lakh workers have joined the scheme Pension benefits to around 3 crore retail traders and small shopkeepers with annual turnover less than Rationalising of labour laws into 4 labour codes ₹1.5 crore.