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Highlights of Union Budget 2018-19: The Complete Analysis
Dear RACE Students,
The whole country is speaking about The BUDGET 2018-19 because the government’s vision and the various benefits to the people will be revealed in the Union Budget. The Union Budget is the Annual Budget of India and the Government presents it on the 1st of February so that all the things mentioned in the Union Budget will be materialized before the start of the new financial year.
Until 2016, the Union Budget was presented in the last date of the February but was changed later. The Union Budget of India is presented by the Finance Minister of India in the Parliament.
Union Budget is the most comprehensive report of the Government’s finances in which revenues from all sources and outlays for all activities are consolidated. The Budget also contains estimates of the Government’s accounts for the next fiscal year called Budgeted Estimates.
The Union Budget which is presented as a finance bill and an appropriation bill have to be passed in both the houses before it comes into effect from the start of India’s Financial Year. This year the UNION BUDGET 2018 has gained more important because this is the first UNION BUDGET after the G Minster ST and the last Union Budget of the present Government.
The General election will be held in the next year, so this UNION BUDGET 2018 has gained more importance.
Union Budget Questions in Bank & SSC Recruitment Examinations
If you are an aspirant preparing for the IBPS Exams or for any PSU or for SSC, then this Union Budget plays an important role in the General Awareness and in the Financial Awareness sections because exams like Syndicate Bank PO – PGDBF and Canara Bank PO – PGDBF has General Awareness and Banking & Financial Awareness as a section.
The First Union Budget was presented by R. K. Shanmukham Chetty on November 26, 1947.
Indra Gandhi is the only women who had held the Finance Minister post.
Moraji Desai has presented the most number of Budget in the parliament. (10 Times).
From 2017 the Railway Budget was added to the Union Budget.
This year the Union Budget was presented by Finance Minister Arun Jaitley in Hindi.
HIGHLIGHTS OF UNION BUDGET 2018-19:
Finance Minister Arun Jaitley presented the Budget and has mentioned the Following,
- The government has implemented a series of structural reforms, and India now stands out as one of the fastest growing economies.
- With the introduction of the goods and services tax (GST), the indirect tax system has been made simpler.
- India is now a $2.5-trillion economy and the government is firmly on path to achieve 8% plus growth soon
- The Growth rate is expected to grow at 7.2% – 7.5% in the second half of 2017-18.
- This budget will focus on Strengthening the Rural Economy.
- Indian Economy is the Seventh Largest Economy in the world.
- Economy to grow by 7.2-7.5 percent in second half of current fiscal.
- Exports to grow by 17% in 2017-18.
- From the ease of doing business, our govt has moved to ease of living for the poor and middle class.
- 470 APMCs has been linked with ENMA and the rest will be linked within march. The government will develop 22,000 Gramin agricultural markets.
- Government proposes to launch ‘Operation Greens’ along the lines of Operation Flood’.
- Operation Green will be launched for agriculture and the Minister allocates ₹500 crore for this.
- Kisan credit card facility extended to fisheries and animal husbandry sectors
- The Finance Minister allocates ₹1,290 crore for development of the bamboo production sector.
- Propose launch of a restructure national bamboo mission with Rs1200 crore, while Rs10, 000 crores has been allocated to fisheries and animal husbandry sector.
- The government want farmers to earn 1.5 times the cost of the produce of their crops.
- Cluster-model approach to be adopted for agricultural production
- Fishery and Aquaculture Infrastructure Development Fund and Animal Husbandry Infrastructure Fund to be set up – total corpus 10, 000 crore rupees
- Removal of crop residue to be subsidized in order to tackle the problem of pollution due to burning of crop residue
- Proposed to raise institutional credit for agriculture to Rs11 trillion for 2018-19.
- Cooking gas being given free to poor under PMUY, 4 crores unconnected being provided electricity connection, stent prices.
- 14.34 lakh crore rupees to be spent for rural infrastructure
- India is firmly on path to achieve 8% plus growth
- Integrated B.Ed programme to be initiated for teachers, to improve quality of teachers
- Eklavya schools to be started for Scheduled Tribe population: By 2022, every block with more than 50% ST population and at least 20, 000 tribal people will have ‘Ekalavya’ school at par with Navodaya Vidyalas.
- Govt to launch Prime Minister’s Research Fellow Scheme which will identify 1000 B.Tech students to do PhD at IITs.
- Two new schools of planning and architecture to be set up; 18 more in IITs and NIITs, says Jaitley
- Air Pollution in Delhi NCR is a cause for concern, the special scheme will be implemented to support Govts of Haryana, Punjab, UP and Delhi NCT to address it and subsidize machinery for management of crop residue.
- Finance Minister Arun Jaitley announces two major schemes for health, one being health and wellness centres.
- The Government has decided to take healthcare protection to a new aspirational level. Launching a flagship National Health Protection Scheme to cover 10 crore poor and vulnerable families, benefiting approx. 50 crore.
- Scheme for revitalizing school infrastructure, with an allocation of 1 lakh crore rupees over four years. Called RISE – Revitalizing Infrastructure in School Education.
- Providing 5 lakh rupees per family per year for medical reimbursement, under National Health Protection Scheme. This will be world’s largest health protection scheme.
- One Govt. medical college to be ensured for every 3 parliamentary constituencies by upgrading 24 district-level colleges.
- 8 crore free gas connections, 4 crore electricity connections.
- World’s largest govt-funded health programme – ‘National Health Protection Scheme’ to cover 10 crore poor and vulnerable families by providing up to Rs 5 lakh per family per year. About 50 Cr beneficiaries will be covered under it.
- Govt plans to construct 2 crores more toilets under Swachhbharat Mission. The target of 3 lakh crore for lending under PM MUDRA Yojana.
- ‘Revitalising of Infrastructure and Systems in Education’ to be launched, with a total investment of Rs 1 lakh crore in next 4 years.
- India’s sunrise food processing sector allocation doubled from INR 715 Cr to INR 1400 Cr in 2018-18; state-of-the-art facilities proposed to be set up in 42 mega food parks.
- 600 crore allocated for nutritional support to all tuberculosis patients & upgrading 24 new govt medical college & hospitals.
- Govt. to contribute 12% of EPF contribution for new employees in all sectors.
- 7148 crore outlay for textile sector in 2018-19.
- Air Pollution in Delhi NCR is a cause for concern. A special scheme will be implemented to support governments of Haryana, Punjab, UP and Delhi NCT to address it and subsidize machinery for management of crop residue.
- Allocation for SC welfare – Rs. 56, 619 cr and Rs. 39, 135 cr for ST welfare.
- Govt will contribute 12% of wages of new employees in EPF for all sectors for the next 3 years.
- 70 lakh formal jobs have been created this year. Govt will contribute 12% of the wages as EPF in all sectors for the next three years.
- Contributions from women employees will be brought down from 12% to 8%.
- All trains to be progressively provided with WiFI, CCTV and other state-of-the-art amenities: 4267 unmanned railway crossing will be eliminated in next two years.
- 5 lakh WiFi hotspots to be set up in rural areas to provide easy Internet access.
- Kisan credit card facility extended to fisheries and animal husbandry sectors
- Government to take all steps to eliminate the use of cryptocurrencies which are being used to fund illegitimate transactions.
- SEBI may consider mandating large corporates to use bond market to finance one-fourth of their fund needs.
- 1 crore houses to be built under Pradhan Mantri Awas Yojana in rural areas
- Govt. announced Amrut program to focus on the water supply to all households in 500 cities. Water supply contracts for 494 projects worth 19, 428 core will be awarded.
- National Logistics Portal as a single online window to link all stakeholders, to be developed by Dept. of Commerce.
- Government insurance companies to be merged into a single entity, and subsequently listed in the stock exchange, as part of the disinvestment programme. Disinvestment target for 2017-18 has been exceeded.
- National Insurance Co, Oriental Insurance Co and United Assurance Co to be merged into one entity and subsequently listed. (as said above).
- Govt has initiated strategic disinvestment in 24 PSUs, including Air India.
- Govt will evolve a scheme to provide a unique ID to every enterprise on lines of Aadhaar.
- 80, 000 crore disinvestment target for 2018-19, the target for 2017-18 has been exceeded and will reach 1 lakh crore rupees.
- Proposed NHPS will be a game changer in terms of PPP and will stimulate private sector investments in healthcare.
- Regional Connectivity Scheme ‘UDAN’ shall connect 56 unserved airports and 31 helipads in the country.
- Recapitalisation to enable PSU banks to lend Rs. 5 lakh crore more.
- Divestment target set at Rs. 80, 000 crore.
- “Road construction has scaled new heights, confident that 9000 km highway construction will be complete by 2017-18”.
- ’12, 000 wagons, 5160 coaches and 700 locomotives being procured. There are significant achievements of physical targets by Railways’.
- Automatic revision of MPs’ emoluments every five years, indexed to inflation.
- National Committee chaired by PM, including CMs, Gandhians and representatives from various walks of life for the year-long commemoration of the 150th birth anniversary of Mahatma Gandhi.
- Revised fiscal deficit estimate for 2017-18 is 3.5% of GDP, the fiscal deficit of 3.3% expected for 2018-19.
- 100% tax deduction for the first five years to companies registered as farmer producer companies with a turnover of Rs. 100 crore and above.
- 100% tax rebate for farmer producer companies having a turnover of Rs. 100 cr
- No change in personal income tax rates for salaried class.
- Companies with turnover of up to Rs. 250 cr to be taxed at 25%.
- Taxpayer base has risen from 6.47 crore in 2014-15 to 8.27 crore in 2016-17.
- Personal Income Tax rates unchanged; Rs. 40k standard deduction in lieu of present exemption.
- Employees PF Act to be amended to reduce the contribution of women to 8% from 12% with no change in employer’s contribution.
- 99 cities selected for smart cities project with an outlay of Rs 2.04 trillion.
- Over Rs 1.48 trillion to be allocated for railways in next fiscal.
- 4, 267 unmanned railway crossings on broad gauge routes to be eliminated in next two years.
- Customs duty on mobile phones increases to 20% form the current 15%.
- For senior citizens, exemption of interest income on bank deposits raised to Rs50, 000.
- Rs 7.5 lakh per senior citizen limit for investment in interest-bearing LIC schemes doubled to Rs 15 lakhs.
- Education and health cess to be increased from 3% to 4%.
- All senior citizens can claim the benefit of reduction Rs50, 000/ year with respect to any general health expenditure and health insurance premium.
- Long-term capital gains in equities exceeding Rs 1 lakh to be taxed at the rate of 10%.