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Budget 2019: Highlights

Friday, July 5, 2019 • Telugu Comments
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The Finance Minister announced that Public Sector Banks will be given Rs 70,000 crore this fiscal year.  This is meant to give a fillip to business by expanding credit.  Increased availability of credit expected to boost job creation.

A new series of coins of Re 1, Rs 2, Rs 5, Rs 10, Rs 20 will be issued. These are designed to help the visually-impaired easily identify the denomination.

You can now file Income Tax returns by quoting the Aadhar number.  PAN is no longer mandatory.  This is because 120 crore Indians now have Aadhar.

Disinvestment to continue with vigour:

Strategic disinvestment of select Central Public Sector Enterprises will be prioritized.  Disinvestment target for 2019-20 is Rs 1,05,000 Cr.

Fiscal Deficit is 3.3 percent of GDP, says the FM.

Cess hike on fuel:

Budget proposes to raise special additional excise duty and road and infrastructure cess by Rs 1 a litre on petrol and diesel.

Companies with annual turnover of Rs 400 cr will be under the bracket of 25% (tax). It's under this bracket that all but 0.7% companies fall.

The FM claims that Non-Performing Assets (NPAs) have been recovered to the tune of Rs 4 lakh crore since 2016.  The introduction of IBC made it possible, improving the financial position of the public sector banks.

Hike in surcharge with taxable income with income Rs 2 crore and Rs 5 crore. Effective tax hike is 3% and 7%.

"After surcharge for those earning above 50 lakh and 1 cr, also for those earning 2 cr+ or 5 cr+ now. This is a move that will hurt growth and not raise much revenue. The skilled are mobile in today’s world, India is 4% of global GDP, 40% plus taxes not justified for our services," opines Harsh Gupta.

Affordable housing gets a boost. Additional deduction of Rs 1.5 lakh on interest paid on loans borrowed upto 31 March 2020 for purchase of house up to Rs 45 lakh.  This comes as good news to the middle class, especially those living in cities.

Increase in custom duty on gold and other precious metals from 10% to 12.5% proposed.

Prime Minister Modi describes the budget as middle-class friendly, infrastructure boosting, and growth enhancing.  The Congress party says that it is a mere repetition of old and unfulfilled promises.

Linking Self-Help Groups to MUDRA proposed. It will be scaled to all districts.  Raising credit limit to Rs 1 lakh proposed. The move will boost employment.

Government will now borrow in foreign currencies as well.  "This is not wise from macroeconomic perspective.  It's a slippery slope that will leave the economy vulnerable to foreign flows," columnist Somnath Mukherjee says.

Middle class unhappy as petrol, diesel and gold set to become costlier.

2% TDS on withdrawal of cash above Rs 1 crore per year. 

National Housing Board not to regulate the housing sector.  Reserve Bank of India to do it from now.

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