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“This is not just an Interim Budget, but a medium for country development. The country is changing because of the ‘josh’ of the Indian citizens. Development has become a movement in our government,” says Mr. Goyal.
He recites a poetry in Marathi: “I keep one foot, thousands of paths open up. For new India, we have taken such empowering steps that endless possibilities have opened up.”
“We have only created the foundation now, now with the people together we will make a huge building of this country. Our intent is clean, policy is clear and resolve is unshakeable. With this I commend the Budget to the House,” he concludes.
Now comes the tax proposal part of the Budget. Piyush Goyal praises the tax payers, says your tax provides toilets, healthcare, education and many more. “Thank you tax payers!” Mr. Goyal says.
Individual tax payers with income upto Rs. 5 lakh taxable income will get full tax rebate, Mr. Goyal announces.
Opposition Bench opposes to it, but Treasury Bench members chant “Modi! Modi!”
Even those earning ₹6.5 lakh will not have to pay tax, if they invest in specified savings, Mr. Goyal adds.
The tax slabs, however, will remain unchanged. An estimated three crore middle class tax payers will be benefitted, Mr. Goyal states.
Fiscal deficit pegged at 3.4 per cent in the Interim Budget.
Capital expenditure is pegged at 3.36,292 lakh crore. Expenditure is expected to rise by 13% from revised estimate 2018-19 to budget estimate 2019-20, Mr. Goyal says.
The focus will be on debt consolidation, he adds.
We are poised to become a $five trillion economy in the next five years, Mr. Goyal says and says the government’s vision is to make India a $10 trillion in next eight years.
He proposes a 10-point vision for 2030 in his Interim Budget.
– a next-gen infrastructure
– a Digital India
– a pollution free India that drives on electric vehicles.
– Expanding rural industrialisation
– Clean Rivers with safe drinking water
-developing the coastline and harnessing the blue economy
-placing an Indian astronaut in place
-Making India self-sufficient in food, exporting food and organic farming
-Healthy India, a distress-free healthcare and comprehensive wellness system
Thanking the honest tax payers, Mr. Goyal says the direct tax collection has been increased substantially. More than 99.5% returns were accepted as is, he adds.
All returns will be processed in 24 hours and refund will be initiated, he announces. Under a new technology the entire process will be done in the back-end so that a tax payer need not interact with an official, he says.
GST has resulted in increased tax base, increased collection and made country a one market nation, Mr. Goyal says. He also lauds the functioning of the GST Council where all State Finance Ministers are a part of.
Over 90 per cent of GST filers will be allowed to file it on a quarterly basis.
Nearly 45 crore Jan Dhan accounts were opened in the last four years.
To promote entertainment industry, single window clearance for Indian filmmakers will be introduced. In order to eliminate piracy, he announces a new scheme. Anti-camcord regulations will be introduced in the Indian Cinematograph Act to prevent piracy and contact theft of Bollywood films.
Mr. Goyal also mentions Hindi movie Uri in the speech!
India is now leading the world in mobile data consumption. The cost of data and voice call is among the lowest in the world.
More than three lakh people are digitally serving the people, he adds. Villages are being converted to digital villages. We will make eight lakh digital villages in the next five years, he says.
India’s installed solar capacity has grown 10 times in last five years, Mr. Goyal says.
The people of northeast received significant infrastructure development. Allocation has been increased for the region.
All unnmanned level crossing in broad guage network has been eliminated, Mr. Goyal, who also holds Railway portfolio, says. The Railways gets Rs. 64580 crore in this Buget. The operating ratio is expected to be 98 per cent, he adds.
Mr. Goyal says the country has more than 100 functional airports and the domestic air passenger traffic have doubled.
The Sagarmala will develop ports. For the first time container movements have been started in inland water ways. It will be extended to northeast through Brahmaputra.
The Budget speech now turns to the welfare of soldiers. The OROP has been announced by our government. We have already disbursed Rs. 35000 crore under OROP.
Millitary Service Pay has also been hiked substantially, he says.
The Defence Budget has crossed Rs. three lakh crore for the first time. Additional funds will be provided, if necessary, he adds.
A new Board will be created for nomadic and semi-nomadic community.
Mr. Goyal says the BJP’s manifesto promised clean fuel for cooking. The government has given six crore free cooking gas connection.
More than 70% of beneficiaries of PM Mudra Yojana are women, Mr. Goyal says.
The 16.53 crore loans have been disbursed under Mudra Yojana, he says and adds that Rs 7.23 lakh crore have been disbursed through the scheme. A two per cent interest subvention for MSMEs with loans upto Rs. 1 crore is announced.
Job seekers have become job giver, Mr. Goyal says listing out schemes such as Stand Up India and Start Up India.
An AI portal will be developed soon, he announces.
25 per cent of sourcing for government projects will be from MSME, of which three per cent will be from women entrepreneurs.
With such growth, obviously more jobs are created, Mr. Goyal says and informs the House the NSSO report on employment will be presented soon.
EPFO membership has gone up by 2 crore in five years indicating formalisation of the economy. In last five years, all classes of workers saw a 42 per cent increase in wages which is highest so far, he adds.
The seventh pay commission recommendations were implemented swiftly.
The ESI cover limit has been increased to Rs. 21,000. The minimum pension was also increased to Rs. 1000.
Half of the GDP comes from the unorganised sector, Mr. Goyal says. A mega pension scheme will be launched for the organised sector workers with income of less than Rs, 15,000. They will be able to earn Rs. 3000 after the age of 60 years. The scheme will be called PM Shramyogi Maan Dhan Yojana.
An unorganised sector worker will have to pay as little as Rs.100 per month. The government will match an equal amount. This year, the government is ready to pay Rs. 500 crore for it and any more resources that may be needed, Mr. Goyal says.
Rashtriya Kamdhenu Aayog will be set up. “This government will never back off when it comes to protecting our mother cow,” Piyush Goyal says.
India is the second largest dairy producing nation in the world. Two per cent interest subversion for farmers pursuing animal husbandry. An addition three per cent interest subversion will be given for those who repay the loan in time.
All farmers affected by severe natural calamities will be given interest subversion for the entire period of three per cent of loans. An additional three per cent subversion if the loan is paid on time, he declares.
The farmers were not getting their due. We have ensured the MSP is at least 50% per cent of the produce. We have procured agriculture produce in record quantities, Mr. Goyal adds.
Mr. Goyal says bumper harvest and small land holdings as the reason for low farm income. Government will provide 6000 per annum for small and marginal farmers upto two hectares of land. The scheme has been named Pradhan Mantri Kisan Samman Nidhi. The money will be transferred directly to the bank accounts in three installments. The scheme is funded completely by the Central Government.
As many as 12 crore farmers will be benifitted. The scheme is being retrospectively implemented from December 2018. PM Kisan will pave the way for farmers to earn and live a repectable living, Mr. Goyal says.
Rs. 20,000 crores given in the current fiscal for this purpose.
We launched the world’s largest healthcare programme, Ayshman Bharat, to provide medical treatment for 50 crore people. As many as 10 lakh people have been benefitted so far, he adds.
He also says through Jan Aushadhi Kendra, many poor people are able to get affordable medicines.
14 out of 21 AIIMS were set up under this government. The 22nd AIIMS will come up in Haryana, Mr. Goyal says.
Mr. Goyal now speaks on 10 per cent quota granted to the economically backward among the general category. Mr. Goyal says seats will be increased in educational institutions to implement the scheme.
We have managed to bridge the rural-urban divide in the country, Mr. Goyal says. The villages must also have the facilities of a city, he says and lists out various steps taken in this regard. Gram Sadak Yojana gets extra allocation.
Over one crore fifty three lakh houses were constructed in the last five years. By March 2019, every household will have electricity, he adds.
Defaulting managements are either paying or closing their businesses. Re-capitalisation of PSU banks were done , he adds.
We have run a corruption-free government, the Finance Minister declares. He lists out RERA and Fugitive Economic Offenders Act as measures to tackle corruption. He also says auctions were transparent in his regime.
The Swacch Bharat Mission is a holistic programme and has succeeded in changing the mindset of people. People have converted it to a movement, he says and thanks the people for making it a success.
Ahead of the general elections, Piyush Goyal says by 2024 India will have housing for all, free from corruption, communalism and nepotism.
He says India is the fastest growing economy today. He likens inflation to a burden of tax. Inflation has been brought down to 4.1 per cent, he adds. A family would have paid more than 40 per cent, had we not tamed inflation, Mr. Goyal says.
The fiscal deficit has been brought down to 3.1%. The Current Account Deficit has also been brought down. India has attracted maximum foreign investments. This period also seen massive rapidisation of FDI.
Mr. Goyal terms Goods and Services Tax as a “path-breaking” reform. Mr. Goyal also highlights the banking reforms taken up by the NDA government in the last four-and-a-half years.
As Mr. Goyal speaks on banking reforms, Opposition members remind him of high NPAs. However, Mr. Goyal is backed by thumping from Treasury Benches.
Lok Sabha assembles. Finance Minister Piyush Goyal rises to present the Union Budget. “I rise to present the Interim Budget for 2019-20.”
Mr. Goyal says he is missing Arun Jaitley today and joins the house to wish him a speedy recovery. Mr. Jaitley is undergoing medical treatment in the USA.
“I can solidly say India is back on track,” Mr. Goyal says.
Anything for Railways? This is another major question that lingers as Piyush Goyal is also in-charge of the Railways portfolio.
The NDA government did away with the practice of a separate Railway Budget and merged it with the Union Budget. On February 2016, Suresh Prabhu became the last Railway Minister to present the Railway Budget. After three years, another Railway Minister, will be presenting a Budget, but in the capacity of Finance Minister!
The difference between the total revenue and the total expenditure, better known as fiscal deficit, is a major cause of concern. Last Budget, presented by Arun Jaitley, pegged the fiscal deficit target at 3% of the GDP. However, it appears that the target has been exceeded.
There were rumours that the government is seeking Reserve Bank surplus to meet the fiscal deficit, a charge the then Finance Minister Arun Jaitley had refuted.
The Union government, last year, launched the Ayushman Bharat scheme to provide affordable treatment to the poor. However, the medical expenditure in the country is high, according to experts.
The healthcare sector wants the government’s interim Budget to include tax measures to help the middle class better mitigate health risks.