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State of the Economy
–India universally recognized as a bright spot of the global economy during last five years
–“Country witnessed its best phase of macro-economic stability during 2014-19”, says FM
–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
–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
Farmers
–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
Labor
–Employment opportunities expanded ; EPFO membership increased by 2 crore
–Minimum income for every category of workers increased by 42% in last 5 years
Poor and Backward Classes
–10% reservation for the poor in 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
Women development to women led development
–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
Youth
–Over one crore youth trained under Pradhan Mantri Kaushal Vikash Yojana
–Self-employment boost through MUDRA, STAND-UP and START-UP India
MSME and Traders
–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)
Income Tax
–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
–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
Infrastructure
–Civil Aviation – UDAN Scheme
–Number of Operational Airports crossed 100
–Latest: Pakyong airport in Sikkim
–Domestic Passenger traffic doubled in last 5 years
Roads
–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
Waterways
–Flagship programme of Sagarmala along the coastal areas
–For first time, container freight movement started on Kolkata to Varanasi inland waterways
Railways
–‘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
Climate Change
–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
India Revolution
–More than 3 lakh Common Service Centres (CSCs) exist to deliver services to the citizens
–India now leading the world in the consumption of mobile data
–Monthly consumption of mobile data increased by over 50 times in the last five years
–Under Make in India, mobile and parts manufacturing companies increased from 2 to more than 268 providing huge job opportunities
Jan Dhan-Aadhaar-Mobile (JAM) and Direct Benefit Transfer
–In the last five years, nearly 34 crore Jan Dhan bank accounts opened
–Aadhaar now near universally implemented
–Ensure the poor and middle class receive the benefits of Government schemes directly in their bank accounts by eliminating middlemen
Customs and trading across borders
–Customs duties on 36 capital goods abolished
–Digitization of import and export transactions
–RFID technology to improve logistics
Steps against corruption
–Government walked the talk on corruption and ushered in a new era of transparency: FM
–RERA and Benami Transaction (Prohibition) Act have brought transparency in real estate
–The Fugitive Economic Offenders Act, 2018 to help confiscate economic offenders
–Government conducted transparent auction of natural resources such as coal & spectrum
Drive against Black money
–Undisclosed income of about Rs 1,30,000 crore brought under tax through initiatives like Black money Law, Fugitive Criminal offenders Act, Demonetisation etc.
–Benami assets worth Rs 6,900 crore have been attached
–18% growth in Direct tax
Banking Reforms and Insolvency and Bankruptcy Code (IBC)
–The IBC has institutionalized a resolution-friendly mechanism
–Government has stopped the culture of “phone banking”: FM
–Government adopted 4Rs approach of recognition, resolution, re-capitalization & reforms
–Government has implemented measures to ensure ‘Clean Banking’
–Government has already recovered Rs. 3 lakh crore in favor of banks and creditors
–Government has invested Rs. 2.6 lakh crore for recapitalization of public sector banks
Cleanliness
–Government launched Swachh Bharat Mission as a tribute to 150 years of Gandhi Ji
–FM thanks 130 crore Indians for translating Swachh Bharat into a national revolution
–India has achieved 98% rural sanitation coverage
–5.45 lakh villages have been declared “Open Defecation Free”
Defence
–OROP under implementation in full spirit with Rs 35,000 crore already disbursed
–Military pay service hiked
Other achievements
–Government put a stop to questionable practices of hiding high NPAs
–Swachh Bharat Mission as the world’s largest behavioral change movement
Key message in the Interim Budget 2019-20
–Moving towards realizing a ‘New India’ by 2022 –
–Clean and healthy India with universal access to toilets, water and electricity to all
–An India where Farmers’ income would have doubled
–Ample opportunities to youth and women to fulfil their dreams
–An India free from terrorism, communalism, casteism, corruption and nepotism
Vision for the next Decade
–Foundation for India’s growth and development laid in the past 5 years
–Poised to become a Five Trillion Dollar Economy in the next five years
–Aspire to become a Ten Trillion Dollar Economy in the next 8 years thereafter.