Today was a historical day for Narendra Modi ji’s government. The first female finance minister, Nirmala Sitharaman ji presented the budget for this year. This is the maiden budget of the second term of the NDA government. People had a lot of expectations from this budget. And I am pleased to note that the government did not disappoint its citizens. I have highlighted the key announcements made in this year’s budget for the following sectors:
General economy
The announcements made in today’s budget were everything that the common man was yearning to hear. Foremost, there have been no hikes in the personal income tax rates. This is indeed music for many ears. The government has also provided an additional Rs 1.5 lakh tax relief on home loan for purchase of a house up to Rs 45 lakhs.
Personally, I also feel that changes related to tax scrutiny is a great win. Nirmala ji announced that the assessment will be now done without any human interface. Income tax notices will be issued in an anonymous manner. The assessments will also be done at random. This is a very significant move given that payment of taxes was heavily dependent on human interaction which can lead to unnecessary fishing by the tax department.
Nirmala ji also announced that the economic growth of the country is one of top agendas for the government. The government will also undertake various reforms are being undertaken in many spheres to improve GDP growth. I’m extremely optimistic that under Modiji’s pragmatic leadership, the growth story of India will reach new heights.
Another great move has been the announcement that merchant discount rates (MDR) charges will be waived for digital payments. This is truly laudable as Modiji wants the digital economy to progress by leaps and bounds.
To simplify the life of common man, Aadhar card will now be available on arrival for NRIs. A momentous announcement has been that PAN and Aadhar card can now be used interchangeably. This move is extremely helpful for those who do not have PAN. While filing the returns, the individual can simply quote the Aadhar number where quoting the PAN is mandatory.
To support the citizens of the informal sector, a monthly support of Rs. 3000 will be provided. This is an excellent move as well and demonstrates the welfare nature of the government.
The government has also paid attention to the empowerment of women. Under the Nari tu Narayani scheme, Women SHG Interest Subvention Programme will be expanded to all districts in India. Every verified woman SHG member who has a Jan Dhan account can avail Rs 5,000 as an overdraft facility. This will be extremely beneficial for the rural women who wish to be independent.
Relief has also been provided to corporate India. Corporate tax rate @ 25% will be applicable only for companies with annual revenue up to Rs 400 Crore. The threshold has been increased from Rs. 250 crore. A big relief has been provided to startups as well: in case of angel tax payment, there will be no further scrutiny on valuation once the documents have been provided.
For electric vehicles, the GST has been reduced to 5%. An additional tax deduction of Rs. 1.5 lakh will be available on the interest paid on loans for electric vehicles. This is indeed a smart move on the part of the government given the demand of electric vehicles.
Agriculture
The budget introduced a host of reliefs for the agriculture sector of the country. Nirmala ji stated in her budget that ease of doing business and ease of living is equally applicable to the farmers. She encouraged the farmers to adopt a zero budget farming which will help them double their income. In a zero budget farming, it is possible to adopt a self-sustainable method to raise crops. This approach requires minimum external intervention. In my opinion, this is indeed a great move by the government which help the farmers in the long run.
Nirmala ji also announced that 10,000 new Farm Producer Organisations will be established over the next five years. This will be very helpful for the farmers as it will work towards developing economies of scale for the farmers. She stressed on the focus of the government to develop the agricultural infrastructure of the country. The government will support entrepreneurships which add value to the produce generated by the farmers. For crops such as bamboo and timber, the government would focus on value-addition from the hedges and for generating renewable energy. I really appreciate the way Nirmala ji articulated that Annadata can also be Urjadata.
Further, the government will set up a mechanism which will help in the direct marketing of produce. This will be undertaken through the farmer’s cooperative organization. In my opinion, this is an excellent move as it will provide a fair price to the farmers for all of the efforts put in by them.
Tourism
Nirmala ji also spoke about the reforms for the tourism sector. 17 model sites will be built by the government which will increases the influx of tourists in the country. She also said that one hundred new clusters will be set up in 2019-20 to enable 50,000 artisans to come into the economic value chain. This move deserves to be appreciated as it will help the local artisans to display their creations through a better platform.
The government also plans to create a Digital Tribal Repository. This repository will store the photos, videos, details of origin, education, lifestyle, skill sets, traditional arts and other anthropological information. This is a wonderful initiative of the government to preserve the heritage of the country. I must congratulate Nirmala ji on this stupendous effort.
Conclusion
Overall, this budget has exceeded the expectations of the common man. The numerous reforms announced by the government will go a long way to improve the quality of lives of the people. Once again, the government has proved that it firmly believes in Sabka Saath, Sabka Vikas. Nirmala ji is confident that the goals announced in the budget will be achieved through minimum government, maximum governance”. I too hope for the best!
