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Finance Minister Piyush Goyal presented the Interim Budget of the central government on February 1, 2019. The
Interim Budget, also known as a vote on account, will seek the Parliament's nod for meeting the expenditure for
the first six months of new fiscal-2019-20. Goyal was appointed interim Finance Minister on January 23 with Arun
Jaitley undergoing treatment in the United States.

 The Interim Budget for 2019-20 puts total expenditure at Rs 27,84,200 crore, marking an increase of
13.3 per cent as compared to Rs 24,57,235 crore in 2018-19.
 The fiscal deficit for 2019-20 is estimated to be 3.4% of the gross domestic product (GDP).
 India's debt to GDP ratio was 46.5 per cent in 2017-18.
 The Fiscal Responsibility and Budget Management (FRBM) Act (Committee Chairman - Nand Kishore
Singh) prescribes the debt to GDP ratio should be brought down to 40 per cent by 2024-25.
 The fiscal deficit has been brought down to 3.4 per cent in 2018-19 from the high of almost 6% seven
years ago.
 The current account deficit (CAD) is likely to be only 2.5% of GDP this year against a high of 5.6 per cent
six years ago.
 Average rate of inflation down to 4.6%.

Presenting the Interim Budget in Lok Sabha, Finance Minister Piyush Goel underlined "ten most important
dimensions that will guide the central government's Vision 2030."

1. Priority to build next-generation infrastructure, both physical as well as social.

2. Digital India: The move will create job opportunity in the country.
3. Clean and renewable energy
4. Expanding of rural industrialisation: Using modern industrial technologies, based on Make in India
approach, using grassroot MSMEs and startups across the country.
5. Cleaning of rivers: To provide safe drinking water to all Indians
6. Oceans and coastlines: Long coastline can be pivotal for the economy, using strength of blue economy
and Sagar Mala
7. Gaganyan project, a outer space programme: Placing an Indian astronaut in space by 2022 is a priority.
8. Self-sufficiency in food: Improving agricultural productivity with emphasis on organic food as an
important dimension.
9. Ayushman Bharat Scheme: Healthy India with distress-free and comprehensive wellness system.
10. Minimum Government, Maximum Governance: With proactive, responsible and friendly bureaucracy,
electronic governance.

Banking Reforms and Insolvency and Bankruptcy Code (IBC)

 The period of 2008-14 will be remembered as a period of aggressive credit growth and, as per RBI, the
primary reason for spurt in non-performing loans and stressed assets. Outstanding loans of public sector
banks ballooned from Rs 18 lakh crore to Rs 52 lakh crore during this period.
 The 4Rs approach of recognition, resolution, re-capitalisation and reforms has been followed.
 To restore the health of public sector banks, recapitalisation has been done with an investment of Rs 2.6
lakh crore.

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Cleanliness

 As a tribute to Mahatma Gandhi’s 150th birth anniversary in 2019, world’s largest behavioural change
movement ‘Swacch Bharat Mission’ was launched by the Government in 2014.
 India has achieved 98% rural sanitation coverage.
 As many as 5.45 lakh villages have been declared “Open Defecation Free.”

Poor and Backward Classes

 10% reservation granted to the economically backward among the general category.
 To provide food grains at affordable prices to the poor and middle classes, about Rs 1,70,000 crores were
spent in the year 2018-19.
 The budgetary allocation for Mahatma Gandhi National Rural Employment Guarantee Scheme
(MGNREGS) by Rs 5,000 crore year-on-year to Rs 60,000 crore in the interim Budget for 2019-20.
 Rs 6,000 will be provided as assured income to poor and marginalised farmers annually.
 Pradhan Mantri Gram Sadak Yojana (PMGSY) is being allocated Rs 19,000 crore in BE 2019-20. Road
construction works under PMGSY has been tripled.
 During the period 2014-18, a total number of 1.53 crore houses have been built under the Pradhan
Mantri Awas Yojana.
 Under ‘Saubhagya Yojna’, all willing families will get electricity connection by March, 2019.

Health Sector

 World’s largest healthcare programme, Ayushman Bharat, was launched to provide medical treatment to
nearly 50 crore people.
 Allocation of Rs 61,398 crore for the health sector, an increase of more than Rs 8,000 crore from Rs
52,800 last year.
 The Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (AB - PMJAY) is allocated 6,400 crore, an
increase of Rs 4,000 crore from last year.
 Close to 10 lakh people have been enrolled in the Ayushman Bharat scheme so far.
 Under the National Urban Health Mission, an amount of Rs 250 crore has been allocated for setting up AB
Health and Wellness Centres.
 Under the National Rural Health Mission, an amount of Rs 1350 crore has been allocated for setting up
Health and Wellness Centres.
 For other health schemes like National AIDS and STD Control Programme funds were increased from Rs
2100 crore to Rs 2,500 crore.
 Lakhs of poor and middle class people are also benefiting from reduction in the prices of essential
medicines through Pradhan Mantri Jan Aushadhi Kendras.
 There are 21 AIIMS (All India Institute of Medical Sciences) operating or being established in the country
presently. 14 of these 21 AIIMS have been announced since 2014.
 22nd AIIMS will be set up in Haryana.
 Another AIIMS which is likely to be set up in Darbhanga, Bihar has not been approved by the Cabinet yet.
 The Aspirational Districts Programme is providing targeted development to the 115 most backward
districts of the country.

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Agriculture

PM-KISAN

 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)”.
 This Pradhan Mantri Fund Scheme has been constituted with an aim to double farmers' income by 2022.
 Direct annual income support of Rs 6,000 to farmers with land holding of two hectares.
 This income support will be transferred directly into the bank accounts of beneficiary farmers, in three
equal installments of Rs 2,000 each.
 The programme would be made effective from 1st December 2018 and the first installment of Rs 2,000
for the period up to March 31, 2019.
 Rs 75,000 crore will be allocated for the scheme for 2019-20 and Rs 20,000 crore has been set apart in the
revised estimates for the current year 2018-19.

Other points

 For the first time in history has fixed the minimum support price (MSP) of all 22 crops at minimum 50%
more than the cost.
 Rashtriya Gokul Mission is allocated Rs 750 crore.
 Setting up of “Rashtriya Kamdhenu Aayog” to enhance production and productivity of cows.
 Government has decided to create a separate Department of Fisheries.
 Rs 1.7 lakh crore has been allocated on food subsidy.
 2% interest subvention would be provided to the farmers pursuing activities of animal husbandry and
fishery who avail loans through the Kisan Credit Card (KCC).
 Allocation of Rs 14,000 crore for the crop insurance scheme -- Pradhan Mantri Fasal Bima Yojana for
2019-20 -- as against Rs 13,000 crore an year ago.
 The total outlay for the Ministry of Food Processing Industries is Rs 1,196 crore in 2019-20 as against Rs
1,000 crore in the revised budget for 2018-19.
 The government has allocated of Rs 1.92 lakh crore for the Food Ministry, out of which Rs 1.84 lakh crore
has been set aside for food subsidy.

Labour and Workers Dignity

 The New Pension Scheme (NPS) has been liberalized.

 Keeping the contribution of the employee at 10%, Govt. has 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 ` 21,000 pm.
 The ceiling of payment of gratuity has been enhanced from ` 10 lakhs to ` 20 lakhs.
 Minimum pension for every labourer has been fixed at ` 1,000 per month.
 In the event of death of a labourer during service, the amount to be paid by EPFO has been enhanced
from ` 2.5 lakh to ` 6 lakh.

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Pradhan Mantri Shram-Yogi Maandhan yojana

 For the unorganised sector workers, government announced mega pension yojana namely ‘Pradhan
Mantri Shram-Yogi Maandhan’, a scheme to provide an assured monthly pension of Rs 3,000 per month
for workers in the unorganised sector who earn up to Rs 15,000 per month.
 A worker joining the scheme on attaining 29 years of age or above will have to contribute Rs 100 per
month while those joining the at the age of 18 will have to contribute Rs 55 per month.
 A sum of `500 crore has been allocated for the Scheme.

Empowering Women

 Under Pradhan Mantri Ujjwala Yojana, government were to provide 8 crore free LPG connections. More
than 6 crore connections have already been given and the remaining will get free gas connections by next
year.
 More than 70% of the beneficiaries of Pradhan Mantri MUDRA Yojana are women.
 Benefits of Maternity leave of 26 weeks and Pradhan Mantri Matru Vandana Yojana for pregnant women
empower them to participate in work.

Empowering Youth

 Through Pradhan Mantri Kaushal Vikas Yojana, over 1 crore youth are being trained to help them earn a
livelihood.
 Under MUDRA Yojana 15.56 crore loans have been disbursed amounting to Rs 7,23,000 crore.
 National Programme for Artificial Intelligence will be launched.
 National Centre on Artificial Intelligence (AI) as a hub along with Centres of Excellence to leverage the
power of AI, will be established.

Empowering MSMEs and Traders

 A scheme of sanctioning loans upto Rs 1 crore in 59 minutes has been launched.

 All MSME units registered with the Goods and Services Tax (GST) will now have 2 per cent interest
subvention for loans up to Rs 1 crore.
 Increased the share of government procurements from MSMEs through Government eMarketplace
(GeM) to 25 per cent, including 3 per cent from MSMEs run by women.
 Till date (at the time of presenting budget), GeM has registered transactions of more than Rs 17,500 crore
which has led to savings of 25-28 per cent.

Infrastructure Development

 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.
 India is the fastest highway developer in the world with 27 kms of highways built each day.

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 The flagship programme of Sagarmala along the coastal areas of the country will develop ports for faster
handling of import and export cargo.
 For the first time, container freight movement has started on inland waterways from Kolkata to Varanasi.
 Introduction of the first indigenously developed and manufactured semi high-speed “Vande Bharat
Express” will give the Indian passengers world class experience with speed, service and safety.
 Capital support from the budget for railways is proposed at Rs 64,587 crore in 2019-20 (BE).
 The Railways’ overall capital expenditure programme is of Rs 1,58,658 crore.
 Operating ratio of railways will come down to 95 per cent in 2019-20 from 96.2 per cent in 2018-19.
 International Solar Alliance, the first treaty based international inter-governmental organisation
headquartered in India, set up to promote renewable energy.
 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 Rs 58,166 crore in
2019-20.

Digital India

 Monthly consumption of mobile data increased by over 50 times in the last five years.
 India currently has over 430 million smartphone users.
 More than 3 lakh Common Service Centres (CSCs) employing about 12 lakh people, are digitally delivering
several services to the citizens.
 Mobile and its parts manufacturing companies have grown from 2 to 268 now, creating thousands of jobs
in both urban and rural areas of the country
 The Government will make 1 lakh villages into Digital Villages over next five years.
 Jan Dhan-Aadhaar-Mobile (JAM) and Direct Benefit Transfer have been game changers.
 In the last five years, nearly 34 crore Jan Dhan bank accounts were opened.

Taxation Reforms

 The measures taken against black money by the Centre since 2014 have brought income of Rs 1,30,000
crore to tax.
 Direct tax collections went up by 18 per cent in 2017-18 and the tax base expanded by 1.06 crore with
more than one crore filing tax returns in the financial year 2017-18.
 GST collections in January 2019 have crossed Rs one lakh crore.
 Businesses with less than Rs 5 crore annual turnovers will be allowed to return quarterly returns.
 All returns will be processed in 24 hours and refunds issued simultaneously.

Tax Proposals

 Individual taxpayers having taxable annual income up to Rs 5 lakhs will get full tax rebate and therefore
will not be required to pay any income tax. The earlier was Rs 2.5 lakhs.
 Even persons having gross income up to Rs 6.50 lakhs may not be required to pay any income tax if they
make investments in provident funds, specified savings, insurance etc.

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 Direct tax collections have moved up from Rs 6.38 lakh crore in 2013-14 to almost Rs 12 lakh crore while
the tax base swelled from 3.79 crore to 6.85 crore.
 For salaried persons, Standard Deduction is being raised from the current Rs 40,000 to Rs 50,000.
 Tax deduction at source (TDS) threshold on interest earned on bank/post office deposits has been
raised from Rs 10,000 to Rs 40,000.
 TDS threshold on annual rental income has been raised from Rs 1.8 lakh to Rs 2.4 lakh.
 The benefit of capital gains of up to Rs 2 crore will be increased to investment on two residential houses.
This benefit can be availed only once in a lifetime.

Other Important Allocations:

 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 being increased from ` 32,334 crore in RE 2018-19 to ` 38,572
crore in BE 2019-20.
 Allocation for Integrated Child Development Scheme (ICDS) is being increased from ` 23,357 crore in RE
2018-19 to ` 27,584 crore in BE 2019-20.
 The Centre allocated a budget of Rs 1,03,927 crore to Ministry of Home Affairs (MHA).
 The Ministry of External Affairs (MEA) has been allocated a budget of Rs 16,061 crores. Bhutan
consistently continues to receive the largest chunk of the total aid, with a Rs 2,615 crores grant in 2019-
20
 With a vision to expand the countrys space programme and sending an Indian astronaut into space by
2022, allocated of more than Rs 10,000 crore for space programme. Under various heads, while Rs 7,483
have been allocated to the Space Technology, Rs 1,885 are earmarked for Space Applications. The INSAT
Satellite Systems got Rs 884 crore.
 The government has provided a token amount of just about Rs 1 lakh as budgetary support to the ailing
national carrier Air India which has been saddled with a debt burden of around Rs 55,000 crore.
 Rs 3 lakh crore allocated for the Defence Budget for the financial year 2019-20
 The government had implemented the One Rank, One Pension concept and had already disbursed Rs
35,000 crore.
 The Centre announced the introduction of single-window clearance for Indian filmmakers to shoot their
films - a provision that was earlier available only to international filmmakers.
 Announced the introduction of anti-camcording provisions to control the menace of privacy, following
which the House erupted into cheers of "How's the Josh".
 A committee under the NITI Aayog has been formed to complete the task of identifying nomadic and
semi-nomadic communities which are not yet classified.

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