Union Budget 2019 by Foreign Minister Nirmala Sitharaman

Days after the cabinet of the second term of the Modi government was formed, the date of the Budget 2019 was revealed. After the astounding success in Lok Sabha elections 2019, portfolios of Modi 2.0 cabinet were issued, and Nirmala Sitharaman became the first full-time Finance Minister of India. New Foreign Minister will present the Union Budget 2019-20 in Parliament on July 5. The Budget session will last 10 days, which will begin from June 17 and is scheduled to end on July 26, 19. FM Sitharaman is likely to commence her Budget speech 2019-20 at the around 11 am.

 

Interim Budget 2019

 

In the interim budget 2019 put forward by former Foreign Minister Piyush Goyal, the outlay was revised for six key social schemes focused on enhancing the welfare of farmers and the poor, in addition to announcing a new program aimed at direct cash transfers to farmers. Apart from that allocation across three other schemes focused on rural India was raised.

In the budget, the fiscal deficit for 2020-21 is expected to be 39.4% of GDP. The budget set aside ?6,000 for farmers having up to two hectares of land under Pradhan Mantri Shram Yogi Mandhan. Subscribers have to pay a monthly amount of Rs.100 if aged 29 years and Rs.55 if the subscriber is of 18 years of age. Income tax relief under section  87A for income up to ?500,000. Standard deduction of ?50,000 for salaried class.

 

What to expect?

 

In her budget, the 59-year-old JNU alumni Sitharaman will have to address slowing economy, financial sector troubles like rising NPAs and liquidity crisis in NBFCs, job creation, private investments, exports revival,  agrarian crisis and raise public finance without compromising on fiscal prudence.

“While India will not remain unaffected from the global economic situation and domestically too there are challenges, the common man does have a lot of hope from the Budget,” said Kuldip Kumar, Partner & Leader, Personal Tax, PwC India.

 

Suggestions

 

In the Budget 2019-20, FM would be holding intensive consultations with trade and industry bodies, besides other stakeholders. Business associations  like CII (Confederation of Indian Industry) and FICCI (Federation of Indian Chambers of Commerce & Industry) have already made detailed presentations on their suggestions for the Budget.

Big Industry chambers, in their representation to the finance ministry, have also proposed for the abolition of MAT (Minimum Alternate Tax)  and reduction in corporate and personal income tax as these steps would help in increasing consumption and turn to promote economic growth.