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Interim Budget 2019-2020 - Speech of Piyush Goyal

Interim Budget 2019-2020 - Speech of Piyush Goyal - Budget - Dated:- 1-2-2019 - Interim Budget 2019-2020 Speech of Piyush Goyal Minister of Finance February 1, 2019 Madam Speaker, I rise to present the Interim Budget for the year 2019-20. PART A 2. I am deeply conscious of the absence of Shri Arun Jaitley today. I am sure the House joins me in wishing Shri Jaitley speedy recovery, good health and a long life in the service of the nation. 3. Madam Speaker, the people of India gave a strong mandat .....

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s to fulfil their dreams; an India free from terrorism, communalism, casteism, corruption and nepotism. State of the Economy 6. Madam Speaker, the last five years have seen India being universally recognised as a bright spot of the global economy. The country witnessed its best phase of macro-economic stability during this period. We are the fastest growing major economy in the world with an annual average GDP growth during last five years higher than the growth achieved by any Government since .....

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using etc. 8. From the high of almost 6% seven years ago, the fiscal deficit has been brought down to 3.4% in 2018-19 RE. The current account deficit (CAD), against a high of 5.6% six years ago, is likely to be only 2.5% of GDP this year. We contained the fiscal deficit notwithstanding the Finance Commission's recommendations increasing the share of the States from 32% to 42% in central taxes, which we accepted in the true spirit of cooperative federalism, thereby transferring significantly .....

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d. Many projects were started that could either not be completed or had low capacity utilisation resulting in their inability to pay back their loans. There were high stressed and non-performing assets (NPAs) amounting to ₹ 5.4 lakh crore in 2014. Many more were hidden through restructuring or otherwise which were discovered during Asset Quality Reviews and inspections carried out since 2015. 12. We put a stop to such questionable practices and stopped the culture of phone banking . The 4R .....

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ver a larger geographical spread. Steps against corruption 13. We have ushered in a new era of transparency. We have given a corruption free government. The Real Estate (Regulation and Development) Act, 2016 (RERA) and Benami Transaction (Prohibition) Act, 1988 are helping to bring transparency in the real estate sector. The Fugitive Economic Offenders Act, 2018 will help confiscate and dispose off the assets of economic offenders who escape the jurisdiction of the laws in India. Additionally, w .....

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these institutions, around 25% extra seats (approximately 2 lakh) will be provided so that, there is no shortfall of presently available/reserved seats for any class. 16. To provide food grains at affordable prices to the poor and middle classes, about ₹ 1,70,000 crores were spent in the year 2018-19 which is almost double the amount of ₹ 92,000 crores spent in the year 2013-14. We ensured that everyone gets food and none goes to sleep hungry. ₹ 60,000 crores are being allocate .....

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fter walking on a foot trail, today the situation has changed and a bus can reach her/his village During the period 2014-18, a total number of 1.53 crore houses have been built under the Pradhan Mantri Awas Yojana. 19. Till the year 2014, about 2.5 crore families were forced to live the life of 18th centuary without electricity. Under 'Saubhagya Yojna', we provided free electricity connection to almost every household. By March, 2019, all willing families will get electricity connection. .....

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ough Pradhan Mantri Jan Aushadhi Kendras. 21. There are 21 AIIMS operating or being established in the country presently. 14 of these 21 AIIIMS have been announced since 2014. I am happy to announce setting up of new the 22nd AIIMS in Haryana. 22. The Aspirational Districts Programme is providing targeted development to the 115 most backward districts of the country. The programme has achieved notable results with improved performance on all indicators - health and nutrition, education, agricult .....

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ing structured income support to the poor land-holder farmer families in the country for procuring inputs such as seeds, fertilizers, equipment, labour etc. and to meet other needs. Such support will help them in avoiding indebtedness as well and falling into clutches of money lenders. 25. To provide an assured income support to the small and marginal farmers, our Government is launching a historic programme namely Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN) . Under this programme, vulnerable l .....

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9-20. I am also providing Rs. 20,000 crore in the Revised Estimates of FY 2018-19. 28. During the last five years, for providing affordable loans to farmers, the amount of interest subvention has been doubled. The crop loan to farmers increased to ₹ 11.68 lakh crore in year 2018-19. We have made genuine efforts to remove the hardships of farmers by providing them Soil Health Cards, quality seeds, irrigation scheme and Neem Coated Urea to remove shortage of fertilizers. 29. Animal Husbandry .....

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o provide the benefit of 2% interest subvention to the farmers pursuing the activities of animal husbandry and fisheries, who avail loan through Kisan Credit Card. Further, in case of timely repayment of loan, they will also get an additional 3% interest subvention. 32. To ensure provision of easy and concessional credit and to bring all farmers under KCC fold, our Government has decided to initiate a comprehensive drive with a simplified application form. 33. When natural calamities strike, far .....

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onomy and job creations. 36. After submission of the 7th Central Pay Commission Report, the recommendations were implemented immediately. The New Pension Scheme (NPS) has been liberalized. Keeping the contribution of the employee at 10%, we have increased the Government contribution by 4% making it 14%. Maximum ceiling of the bonus given to the labourers has been increased from ₹ 3,500 pm to ₹ 7,000 pm and the maximum ceiling of the pay has been increased from ₹ 10,000 pm to &# .....

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mbers. We must provide them comprehensive social security coverage for their old age. Therefore, in addition to the health coverage provided under Ayushman Bharat and life & disability coverage provided under Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana , our Government proposes to launch a mega pension yojana namely 'Pradhan Mantri Shram-Yogi Maandhan' for the unorganised sector workers with monthly income upto ₹ 15,000. This pension yojana s .....

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zens of this country. To this end, the condition of the De-notified, Nomadic and Semi-Nomadic communities merits special attention. These communities are hard to reach, less visible, and therefore, frequently left out. The Nomadic and Semi-Nomadic communities move from place to place in search of a livelihood. The Renke Commission and the Idate Commission have done commendable work to identify and list these communities. A Committee under NITI Aayog will be set up to complete the task of identif .....

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nnections by next year. Ujjwala is a remarkable success story of our Government programme, defined by a bold yet practical Vision of a responsible and compassionate leadership. 40. More than 70% of the beneficiaries of Pradhan Mantri MUDRA Yojana are women who are getting affordable and collateral-free loans to start their own businesses. Amongst many measures, benefits of Maternity leave of 26 weeks and Pradhan Mantri Matru Vandana Yojana for pregnant women have provided financial support to wo .....

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talysed by the establishment of the National Centre on Artificial Intelligence as a hub along with Centres of Excellence. Nine priority areas have been identified. A National Artificial Intelligence portal will also be developed soon. Empowering MSMEs and Traders 43. Government has undertaken many effective steps to strengthen MSME sector, which provides employment to crores of people. Recently, a scheme of sanctioning loans upto ₹ 1 crore in 59 minutes has been launched. GST-registered SM .....

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Strengthening Defence and National Security 46. Madam Speaker, our soldiers protect our borders in tough conditions. They are our pride and honour. We also respected their dignity. In our Election Manifesto, we had promised to implement One Rank One Pension (OROP). This was pending for the last 40 years and has been resolved by us. The previous Governments announced it in three budgets but sanctioned a mere ₹ 500 crore in 2014-15 Interim Budget; in contrast we have already disbursed over & .....

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s development and quality of life. Whether it is highways or railways or airways or even digi-ways, we have gone beyond incremental growth to attain transformative achievements. 50. Because of 'UDAAN Scheme', today an ordinary citizen is also travelling by air. The number of operational airports has crossed 100 with the commissioning of the Pakyong airport in Sikkim. Domestic passenger traffic has doubled during the last five years leading to large number of jobs being created also. Tod .....

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in wholly developed technology by our engineers will give an impetus to the Make in India programme and create jobs. Capital support from the budget for railways is proposed at ₹ 64,587 crore in 2019-20 (BE). The Railways overall capital expenditure programme is of ₹ 1,58,658 crore. The Operating Ratio is expected to improve from 98.4% in 2017-18 to 96.2% in 2018-19 (RE) and further to 95% in 2019-20 (BE). 52. India provided leadership to the global effort to address the problem of .....

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recommendations. 54. The people of North East have also received significant benefits of infrastructure development. Arunachal Pradesh came on the air map recently and Meghalaya, Tripura and Mizoram have come on India s rail map for the first time. Allocation for the North Eastern Areas is being proposed to be increased by 21% to ₹ 58,166 crore in 2019-20 BE over 2018-19 BE. Digital India Revolution 55. Madam Speaker, India is now leading the world in the consumption of mobile data. Month .....

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re Jan Dhan bank accounts were opened. Aadhaar is now near universally implemented. This has helped ensure the poor and middle class receive the benefits of Government schemes directly in their bank accounts by eliminating middlemen. Entertainment 57. Entertainment industry is a major employment generator. To promote entertainment industry - Single window clearance for ease of shooting films, available only to foreigners, is now going to be made available to Indian filmmakers as well. Regulatory .....

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4% of the income-tax returns were accepted as they were filed. Our Government has now approved a path breaking, technology intensive project to transform the Income-tax Department into a more assessee-friendly one. All returns will be processed in twenty-four hours and refunds issued simultaneously. Within the next two years, almost all verification and assessment of returns selected for scrutiny will be done electronically through anonymised back office, manned by tax experts and officials, wit .....

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tion was extended for the first time to small professionals fixing threshold limit at ₹ 50 lakh. In order to promote a less cash economy, the presumptive profit rate has been reduced from 8% to 6%. The tax rate for companies with turnover of up to ₹ 250 crore, covering almost 99% of the companies, was reduced to 25% which was also applicable to new manufacturing companies without any turnover limits. GST Reform for benefit to consumers and businesses 62. The Goods and Services Tax (G .....

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s, finalised the GST rates collectively mostly lower than pre-GST rates. Since then, GST has been continuously reduced providing relief of about ₹ 80,000 crore annually to consumers. Most items of daily use of the poor and middle class are now in the 0% or 5% tax slab. Cinema goers who were subjected to multiple taxes up to 50% are mostly paying much lower tax at 12% now. Our Government wants the GST burden on home buyers to be reduced and accordingly we have moved the GST Council to appoi .....

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ed to ₹ 89,700 crore per month in the first year. The State revenues are improving with guaranteed 14% annual revenue increase for the first five years. Customs and Trading Across Border Reforms 66. To promote the Make in India initiative, we have undertaken rationalization of customs duties and procedures. Our Government has abolished duties on 36 capital goods. A revised system of importing duty-free capital goods and inputs for manufacture and export has been introduced, along with intr .....

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d. Growth of 18% in direct tax collection in 2017-18 and increase in tax base by as many as 1.06 crore people filing income tax returns for the first time in FY 2017-18 is mainly on account of demonetization. Vision for the next Decade 68. Madam Speaker, the NDA Government headed by Hon'ble Prime Minister Shri Narendra Modi has laid the foundation for India s growth and development for times to come. We have resolved many problems which were coming in the way of realising our full potential .....

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n of our Vision is to create a Digital India reaching every sector of the economy, every corner of the country and impacting the life of all Indians. Digital Infrastructure and digital economy of 2030 will be built upon the successes achieved in recent years in digitisation of Government processes and private transactions. Our youth will lead us in this endeavour with innumerable start-ups creating digital India, and millions of jobs in this eco-system. 72. Making India a pollution free nation w .....

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. Fifth Dimension of our Vision for India of 2030 is Clean Rivers, with safe drinking water to all Indians, sustaining and nourishing life and efficient use of water in irrigation using micro-irrigation techniques. 75. India s long coastline has the potential of becoming the strength of the economy, particularly through exploitation of the Blue Economy, to ensure better standards and quality of life for a large number of people living in the coastal areas. Our efforts in the Sagarmala programme .....

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e support of necessary health infrastructure. Our Government has rolled out the Ayushman Bharat scheme. By 2030, we will work towards a distress free health care and a functional and comprehensive wellness system for all. Such a healthy India built with the participation of women having equal rights and concern for their safety and empowerment. 79. Our Vision can be delivered by Team India - our employees working together with the elected Government, transforming India into a Minimum Government .....

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82. Total expenditure rises from ₹ 24,57,235 crore in 2018-19 RE to ₹ 27,84,200 crore in 2019-20 BE, a rise of ₹ 3,26,965 crore or approximately 13.30%. This reflect a high increase considering low inflation. Capital Expenditure for 2019-20 BE is estimated to be ₹ 3,36,292 crore. Centrally Sponsored Schemes (CSS) are proposed to be allocated ₹ 3,27,679 crore in BE 2019-20 as against ₹ 3,04,849 crore in 2018-19 RE. Allocation for National Education Mission is .....

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eived over ₹ 1 lakh crore from disinvestment proceeds during 2017-18. We are confident of crossing the target of ₹ 80,000 crore this year. 85. We have maintained the glide path towards our target of 3% of fiscal deficit to be achieved by 2020-21. India s Debt to GDP ratio was 46.5% in year 2017-18. The FRBM Act prescribes that the Debt to GDP ratio of the Government of India should be brought down to 40% by 2024-25. Along with completion of the fiscal deficit consolidation programme, .....

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to the poor who lived in darkness for generations. The tax you pay will provide health care to 50 crore brothers and sisters, and children. It is you who is ensuring respect, dignity, and a secure future to our retired jawans through One Rank One Pension. Thank you, taxpayers. 88. Because of major tax reforms undertaken by us during the last four and half years, both tax collections as well as the tax base have shown significant increase and we have made progress towards achieving a moderate ta .....

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provident funds, specified savings, insurance etc. In fact, with additional deductions such as interest on home loan up to ₹ 2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance, medical expenditure on senior citizens etc, persons having even higher income will not have to pay any tax. This will provide tax benefit of ₹ 18,500 crore to an estimated 3 crore middle class taxpayers comprising self employed, small business, small traders, salary .....

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f capital gains under section 54 of the Income Tax Act will be increased from investment in one residential house to two residential houses for a tax payer having capital gains up to ₹ 2 crore. This benefit can be availed once in a life time. 94. For making more homes available under affordable housing, the benefits under Section 80-IBA of the Income Tax Act is being extended for one more year, i.e. to the housing projects approved till 31st March, 2020. 95. Also, for giving impetus to the .....

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