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Interim budget 2019-20 was presented in Parliament on 1st February, 2019 by the Union Minister for Finance, Corporate Affairs, Railways & Coal, Shri Piyush Goyal.

Here are the key highlights of Interim Budget 2019-20.

  • Fiscal deficit has been brought down to 3.4% in FY 19.
  • Rs 60000 crore has been allocated for MGNREGA under PM Gram Sadak Yojana for a year.
  • Rs 19000 crore has been allocated for rural roads under Gram Sadak Yojana.
  • The estimate of current Fiscal Deficit stood at 2.5%.
  • PM Kisaan Samman Nidhi announced at Rs.75000 crore.
  • Ayushman Bharat has treated 1 million people so far.
  • Farmers owing 2 hectares land will get Rs.60000 per year.
  • 22nd AIIMS to come up soon.
  • For workers and labourers, a new pension scheme will come up to ensure an increase in centre’s contribution by 4%. The pension has been increased from Rs.3500 to Rs.7000. Also, the Gratuity payment has been increased from Rs. 10 lakh to Rs. 20 lakh.
  • 2%-5% interest subvention to farmers struck by natural calamities.
  • For workers, who receive grievous injuries will now receive Rs.6 lakh from 2.5 lakh through EPFO.
  •  Government will set up a national centre for artificial intelligence to look into AI programmes.
  • 8 crore free LPG connections under the Ujjwala Yojana has been distributed.
  • Government projects to source 25% material from SMEs, 3% from only women owned SMEs.
  • Defence budget is now increased by Rs.3 lakh crore.
  • Rs. 64,587 crore allocated to Railways for FY20.
  • 1 lakh digital villages will be setup soon.
  • Anti-black money measures have brought undisclosed income of Rs. 1.3 lakh crore back in circulation.
  • Businesses with less than Rs. 5 crore annual turnovers, comprising over 90% of GST payers, will be allowed to return quarterly returns.
  • All income tax returns will now be processed in 24 hours and refunds issued simultaneously.
  • Announced tax exemption for income upto Rs. 5 lakh per year.
  • Standard deduction limit increased to INR 50000 from INR 40000 earlier.
  • TDS threshold on rental income rose from Rs. 180000 to Rs. 240000.
  • No tax on bank interest up to INR 40000.
  • INR 90000 crore disinvestment target for next FY.

Post Author: Sruthi Poduri

Sruthi Poduri works as a Senior Officer in ICICI Bank. She is interested in Banking Laws and is well updated with the recent developments like regulations, guidelines, circulars, notifications etc. issued by RBI. The author can be reached at shrutipoduri@gmail.com.

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