The discussion on any budget can be on many fronts. But for a common person who doesn’t want to go through a sea of economic and financial jargon, the question always remains simple. What is in the budget for me? We have tried to answer this in a simple way.
I Am from Middle-Class- Tell Me What This Budget Offers?
First, the government acknowledged your contribution in the form of honest taxpaying.
- Individuals with up to Rs 5 lakh income need not pay any income tax. This was declared already in the interim budget 2019-20.
- Additional deduction up to 1.5 lakh for interest on home loans borrowed up to March 31, 2020, on homes of value up to Rs 45 lakh. That takes the total deduction to Rs 3.5 lakh.
- When you purchase an electric vehicle, there’s an additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to purchase such vehicles.
- PAN and Aadhaar made interchangeable for tax purposes, ensuring greater ease of process.
I Live in Rural India – What About Me?
The government has categorically said that ‘Antyodaya’ is its model and ‘Gaon-Garib- Kisan’ will be their central focus. If you are a farmer, artisan, fishermen or any other kind of skilled person living in rural India, these budget proposals may help you.
- Focus on zero budget farming with pilots that can later be replicated across the country.
- The government has committed to spend resources to re-energise traditional industry under SFURTI scheme with focus on bamboo, honey and khadi clusters.
- 100 new clusters for traditional industries to be set up to help 50,000 artisans to find their way into the economic value chain.
- 10,000 new farmer producer organisations to empower farmers and increase their income.
- 80 livelihood business incubators and 20 technology business incubators to be set up to enable 75,000 entrepreneurs in agro-rural industries.
- Pradhan Mantri Matsya Sampada Yojana to strengthen the fisheries value chain, including infrastructure, modernisation, production, productivity and quality control
Rural India should soon neither be envious about urban life nor forced to migrate to the cities, as the proposals in this budget further focused on ease of living in rural India.
- By 2024, all rural households will get water connection. A beginning in this regard has already started with the identification of 1,592 critical and over-exploited blocks under Jal Shakti Abhiyan.
- 1.95 crore houses will be built under Pradhan Mantri Awas Yojana Gramin.
- Gone were the days when one thought connectivity was for the cities only. 97% rural habitants are already connected under PM Gram Sadak Yojana. Now, the budget proposes to invest Rs 80,250 crore more for upgradation of roads under this scheme.
I am Youth of Aspirational India – What About Me?
The budget strengthens various avenues that were created in the last five years and also opens up opportunities to pursue one’s interests in research and development arena.
- National Research Foundation to be established to fund, coordinate and promote R&D.
- Rs 400 crore to be provided for ‘World Class Institutions’ for FY 2019-20.
- Setting up of a Higher Education Commission of India.
- Study in India initiative to bring foreign students to higher educational institutions.
- National Sports Education Board to be setup under Khelo India.
- The world will be needing the skilled labour in the days to come. The budget has laid the foundation to harness this opportunity to India’s advantage as it proposes skill development of youth for new age skills such as Artificial Intelligence, IoT, Big Data, 3D Printing, Virtual Reality etc.
- Rules in the Startup sphere, especially in taxation, have been further relaxed. An exclusive TV channel to focus on various aspects of this segment is proposed. This will pave the way the young Indians from even outside urban areas to be employment providers.
- Corporate tax rate of 25% in now applicable on companies having annual turnover of Rs 400 crore, as opposed to the earlier threshold of Rs 250 crore. This cover 99.3% of all companies. This means more investment and more jobs in these companies.
We Came out in Record Numbers to Vote This Time, What’s in It for Women?
The budget made a big statement that indicate a paradigm shift in the policy approach. It has said that the government has moved from women-centric approach to women-led development. It aptly described it with the phrase, “naari tu narayani”. The progress has been already made previously with 70% of Mudra beneficiaries being women and more than 7 crore gas connections provided to poor women. Now, such grassroots efforts are being further strengthened.
- Expansion of women Self Help Groups’ interest subvention programme to all districts
- Rs 1 lakh loan under MUDRA scheme for one woman in every SHG
- Every woman SHG member having a verified Jan Dhan account will get an overdraft facility of Rs 5,000
I Am a Small Businessman, How Does the Budget Impact Me?
- First of all, small businessmen can come out from the worry of what happens to them when they age. The government has announced a pension scheme for around 3 crore retail traders and small shopkeepers with annual turnover less than Rs 1.5 crore. This is called Pradhan Mantri Karam Yogi Maandhan Yojana
- Rs 350 crore has been allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans.
- The government will create a payment platform for MSMEs to enable filing of bills and payment on the platform itself. This will ease the lives of small businessmen as it will address the delays in payments.