Highlights Of Budget 2019-20

Highlights of Budget 2019-20


Interim Budget 2019-20 was presented in Parliament on 01st February 2019 by Shri Piyush Goyal. The budget is an annual official Financial Statement presented by the Government. Hence representatives from the Government share details such as income from taxes in the budget; among others. And how the Government will spend the funds collected during the financial year. Since, Sri. Arun Jaitley was in the US for a medical emergency, Sri. Piyush Goyal, Interim Finance Minister had presented the latest Interim Budget on 1st February 2019.

An Interim budget is a temporary measure before the General Elections passed by an outgoing Government. A full-fledged Budget is then presented by the incoming Government. In this article we present a summary and highlights of the budget 2019-20.

Last Modified – 2019-02-02 17:45:23

Table of Contents

  • Highlights of Budget 2019-20
  • Direct Tax Proposals
  • Proposals for Farmers
  • Proposals for Labour
  • Proposals for Health
  • Proposals for MGNREGA
  • Fiscal Programme
  • Proposals for poor and backward classes
  • Railways
  • Defence
  • Other Announcements



  • Income upto Rs. 5 lakh exempted from Income Tax
  • More than Rs. 23,000 crore tax relief to 3 crore middle class taxpayers
  • Standard Deduction to be raised to Rs. 50,000 from Rs. 40,000
  • TDS threshold to be raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits
  • Existing rates of income tax to continue
  • Tax exempted on notional rent on a second self-occupied house
  • TDS threshold for deduction of tax on rent to be increased from Rs. 1,80,000 to Rs. 2,40,000
  • Benefit of rollover of capital gains increased from investment in one residential house to two residential houses for capital gains up to Rs. 2 crore.
  • Tax benefits for affordable housing extended till 31st March, 2020 under Section 80-IBA of Income Tax Act
  • Tax exemption period on notional rent, on unsold inventories, extended from one year to two years

Need any help with

Income Tax or GST

  • Completely online
  • No Visit required
  • Full Support
  • Dedicated CAs



  • 12 crore small and marginal farmers to be provided with assured yearly income of Rs. 6000 per annum under PM-KISAN
  • Outlay of Rs. 75,000 crore for FY 2019-20 with additional Rs. 20,000 crore in RE 2018-19
  • Outlay for Rashtriya Gokul mission increased to Rs 750 crore
  • Rashtriya Kamdhenu Ayogto be setup for sustainable genetic up-gradation of the Cow resources
  • New separate Department of Fisheries for welfare of 1.5 crore fishermen
  • 2% interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3% in case of timely repayment.
  • Interest subvention of 2% during disaster will now be provided for the entire period of reschedulement of loan 


  • Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers
  • Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month 


22nd AIIMS to be setup in Haryana 


Rs. 60, 000 crore allocation for MGNREGA in BE 2019-20 


  • Fiscal deficit pegged at 3.4% of GDP for 2019-20
  • Target of 3% of fiscal deficit to be achieved by 2020-21.
  • Fiscal deficit brought down to 3.4% in 2018-19 RE from almost 6% seven years ago 
  • Total expenditure increased by over 13% to Rs.27,84,200 crore in 2019-20 BE
  • Capital Expenditure for 2019-20 BE estimated at Rs. 3,36,292 crore
  • Centrally Sponsored Schemes (CSS) allocation increased to Rs. 3,27,679 crore in BE 2019-20
  • National Education Mission allocation increased by about 20% to Rs. 38,572 crore in BE 2019-20
  • Allocation for Integrated Child Development Scheme (ICDS) increased by over 18% to Rs. 27,584 crore in BE 2019-20
  • Substantial increase in allocation for the Scheduled Castes and Scheduled Tribes
  • Allocation for SCs increased by 35.6% – from Rs. 56,619 crore in BE 2018-19 to Rs. 76,801 crore in BE for 2019-20
  • Allocation for the STs increased by 28% – from 39,135 crore in BE 2018-19 to Rs. 50,086 crore in 2019-20 BE
  • Government confident of achieving the disinvestment target of 80,000 crore
  • Focus now on debt consolidation along with fiscal deficit consolidation programme 


  • “First right on the resources of country is that of the poor” FM
  • 25% additional seats in educational institutions to meet the 10% reservation for the poor
  • Targeted expenditure to bridge urban-rural divide & to improve quality of life in villages
  • All willing households to be provided electricity connections by March 2019 


  • Allocation to be increased by 21% to Rs. 58,166 crore in 2019-20 BE over 2018-19 BE
  • Arunachal Pradesh came on the air map recently
  • Meghalaya, Tripura and Mizoram came on India’s rail map for the first time
  • Container cargo movement through improved navigation capacity of the Brahmaputra 


  • A new committee under NITI Ayog to identify all the remaining De-notified nomadic and semi-Nomadic tribes.
  • New Welfare development Board under Ministry of social justice and empowerment for development and welfare of De-notified nomadic and semi nomadic tribes 


Defence budget to cross Rs 3,00,000 crore for the first time ever 


  • Capital support of Rs.64,587 crore proposed in 2019-20 (BE) from the budget
  • Overall capital expenditure programme to be of Rs. 1,58,658 crore
  • Operating Ratio expected to improve from 98.4% in 2017-18 to 96.2% in 2018-19 (RE) and to 95% in 2019- 20 (BE) 


  • Indian filmmakersto get access to Single window clearance as well for ease of shooting films
  • Regulatory provisions to rely more on self-declaration
  • To introduce anti-camcording provisions in the Cinematograph Act to control piracy 


  • 2% interest subvention on an incremental loan ofRs 1 crore for GST registered SMEs
  • Atleast 3% of the 25% sourcing for the Government undertakings will be from women owned SMEs
  • Renewed Focus on Internal trade ; DIPP renamed to Department for Promotion of Industries and Internal trade 


The Government to make 1 lakh villages into Digital Villages over next five years 


New National Artificial Intelligence portal to support National Program on Artificial Intelligence 

Achievements during 2014-19

India universally recognized as a bright spot of the global economy during last five years

  • India is now the 6th largest economy in the world from being the 11thlargest in 2013-14
  • Annual average GDP growth during 2014-19 higher than any government since 1991
  • Government has broken inflation’s back from backbreaking inflation during 2009-14: FM
  • Average inflation down to 4.6%, lower than during any other Government
  • Inflation in December 2018 down to 2.19% only
  • Fiscal deficit down to 3.4% in 2018-19 RE from the high of almost 6% seven years ago
  • CAD likely to be only 2.5% of GDP this year against a high of 5.6% six years ago
  • India attracted massive amount of FDI, worth $239 billion, during the last 5 years
  • India is solidly back on track and marching towards growth and prosperity, says FM
  • India becomes the fastest growing major economy in the world
  • Double-digit inflation contained and fiscal balance restored
  • Liberalization of FDI policy, allowing most FDI to come through the automatic route 


  • Assured MSP of minimum 50% to all 22 crops
  • Interest subvention doubled in last 5 years
  • Soil Health card, Neem coated Urea game changer in farm sector 


  • Employment opportunities expanded ; EPFO membership increased by 2 crore
  • Minimum income for every category of workers increased by 42% in last 5 years 


  • 10% reservation for the poorin educational institutions and government jobs
  • Free electricity connection to every household under Saubhagya Yojana
  • World’s largest healthcare programme, Ayushman Bharat, for nearly 50 crore people
  • Aspirational Districts Programme for development in 115 most backward districts
  • Rs. 1,70,000 crore spent during 2018-19 for cheaper food grains to poor and middle class
  • 143 crore LED bulbs provided in mission mode with the cooperation of private sector
  • Poor & middle class are saving Rs. 50, 000 crore p.a. in electricity bills due to LED bulbs
  • 10 lakh patients benefited from free treatment under Ayushman Bharat
  • Jan Aushadhi Kendras providing medicines at affordable prices to poor and middle class
  • 14 out of 21 AIIIMS operating presently have been announced since 2014
  • Government tripled rural roads’ construction under the PMGSY
  • 15.80 lakh habitations out of 17.84 lakh connected with pucca roads
  • Rs. 19,000 crore for PMGSY in BE 2019-20 against Rs. 15,500 crore in RE 2018-19
  • 1.53 crore houses built under PM Awas Yojana during the 2014-18 


  • 6 crore free LPG gas connections provided under Ujjwala Yojna ; All 8 crore by next year
  • 70% of MUDRA Loan availed by Women
  • Maternity leave extended to 26 weeks
  • Financial support for pregnant women under Pradhan Mantri Matru Vandana 


  • Over one crore youth trained under Pradhan Mantri Kaushal Vikash Yojana
  • Self-employment boost through MUDRA, STAND-UP and START-UP India 


  • Up-to Rs 1 crore loans can be availed in less than an hour
  • 25%-28% is the average savings due to GeM (Government e-Market place) 


  • Tax collections nearly doubled in five years- from Rs. 6.38 Lakh crore in 2013-14 to almost Rs. 12 lakh crore this year
  • 80% growth in tax base- from 3.79 crore to 6.85 crore in five years
  • Tax administration streamlined- Last year, 99.54% of the income-tax returns accepted as were filed
  • Technology intensive project approved to improve assessee friendliness –In two years, returns to be processed in 24 hours and refunds issued simultaneously
  • Earlier benefits given to middle class-
    • Basic exemption limit increased from Rs. 2 lakh to Rs. 2.5 lakh
    • Tax rate reduced from 10% to 5% for the tax slab of Rs. 2.5 lakh to Rs. 5 lakh
    • Standard deduction of Rs. 40,000 introduced for the salaried class
    • Deduction of savings under section 80C increased from Rs. 1 lakh to Rs. 1.5 lakh
    • Deduction of interest for self-occupied house property raised from Rs. 1.5 lakh to Rs. 2 lakh
  • Special benefits and incentives already given to small businesses and startups-
    • Overall compliance processes simplified.
    • Threshold for presumptive taxation of business raised from Rs. 1 crore to Rs. 2 crore
    • Benefit of presumptive taxation extended for the first time to small professionals fixing threshold limit at Rs. 50 lakh
    • Presumptive profit rate reduced from 8% to 6% to promote a less cash economy
    • Tax rate for about 99% companies reduced to 25% 


  • GST made India a common market
  • GST led to increased tax base, higher collections and ease of trade
  • Inter-state movements now faster, more efficient, and hassle free
  • Responsive and sensitive reduction of tax rates – Most items of daily use now in the 0% or 5% tax slab
  • Relieving the businesses and service providers-
    • Exemptions from GST for small businesses doubled from Rs. 20 lakh to Rs. 40 lakh
    • Small businesses having turnover up to Rs. 1.5 crore pay only 1% flat rate and file one annual return only
    • Small service providers with turnover upto Rs.50 lakhs can opt for composition scheme and pay GST at 6% instead of 18%
    • Soon, businesses comprising over 90% of GST payers to be allowed to file quarterly return
  • Encouraging GST revenue trends – The average monthly tax collection in the current year is Rs. 97,100 crore per month as compared to Rs. 89,700 crore per month in the first year 


  • Civil Aviation – UDAN Scheme
  • Number of Operational Airports crossed 100
  • Latest: Pakyong airport in Sikkim
  • Domestic Passenger traffic doubled in last 5 years 


  • India is the fastest highway developer in the world
  • 27 kms of highways built each day
  • Stuck projects completed – Eastern Peripheral Highway around Delhi- Bogibeel rail-cum-road bridge in Assam and Arunachal Pradesh 


  • Flagship programme of Sagarmala along the coastal areas
  • For first time, container freight movement started on Kolkata to Varanasi inland waterways 


  • ‘Safest year’ for railways in its history
  • All Unmanned Level Crossings on broad gauge network eliminated
  • Semi high-speed “Vande Bharat Express” introduced – first indigenously developed and manufactured 


  • International Solar Alliance
  • To promote renewable energy
  • First treaty based international inter-governmental organisation headquartered in India
  • Installed solar generation capacity grown over ten times in last five years
  • Now creating lakhs of new age jobs

We can be easily reached at communications@goforfiling.com incase you have any questions about the article.

Need help with any registration services, filing or any other compliances or services, we can be reached at the above email.

Leave a Reply

Your email address will not be published. Required fields are marked *