Towards the very first milestone of Modi government 2, the union budget 2019 has been presented for this year by Finance Minister Nirmala Sitharaman. This is also the maiden budget of her! Keep scrolling to know the highlights of this union budget 2019-2020. Here are some of the top 10 excerpts from her budget announcements.
- Good news for PSU Banks
She states “The government has proposed to allocate Rs 70,000 crore for PSU Bank recapitalisation. One-time six month partial credit guarantee to buy pooled assets of sound NBFCs. The government proposes Rs 100 lakh crore investment for infrastructure over 5 years.”
- Hike in Petrol and Diesel Price
Both petrol and diesel are going to get costlier by Re 1. Ahead of the budget announcement, the stocks had already fallen by 2.42%.
- More Embassies
Sitharaman declared “The government intends to open another four embassies, new ones, in the year 2019-20. This will not (only) increase the footprint of India’s overseas presence but also enable us to provide better and more accessible public services especially to the local Indian communities in these countries.”
- Extension in Structure of RBI
“Regulation of HFCs to move to the Reserve Bank of India (RBI) from NHB. RBI will now be overlooking housing. It will be mentioned in the finance bill as well,” said Nirmala Sitharaman.
- Change in Tax Rate for Companies
Nirmala Sitharaman stated in Lok Sabha “Currently, only 25% tax rate is applicable to companies with an annual turnover of Rs 250 crore. This has been extended to companies with turnover of up to Rs 400 crore. Only 0.7% companies will remain outside of this 25% rate.”
- Tax Deduction on Loans for Electric Vehicles
She said “Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles. This leads to a benefit of Rs 2.5 lakh crore over the tax period of the loan for the loan payer.”
- Tax Deduction on House Loans
Sitharaman announced, “An additional deduction of Rs 1,50,000 on interest on loans borrowed under affordable housing.”
- Custom Duties Increased for Certain Items
The Finance Minister announced, “Basic customs duty on auto parts, optical fibres, digital camera, cashew, certain synthetic rubber, vinyl flooring hiked. Customs duty exempted on components of specified electronic goods. 5 percent customs duty imposed on imported books.”
- Tobacco Imposed with Excise Duty
She said “A nominal basic excise duty imposed on tobacco. Govt to set up digital repository to preserve tribal heritage…”
- New Coin Denominations in Fray
“A new series of coins of Re 1, Rs 2, Rs 5, Rs 10, Rs 20 easily identifiable to the visually impaired were released by the PM on 7th March 2019. These coins will be made available for public use shortly,” said the FM.
In addition, she also proposed National Educational Policy in order to transform the country’s education system and interchangeability of PAN and Aadhaar Card.