Budget Announcements: A Look At All Key Disclosures Made By FM Sitharaman In July Last Year

Recalling the last Union Budget presented by the Modi government on July 5, 2019 after returning to power for the second time following a thumping victory in Lok Sabha elections, the Centre claimed it to be a people's Budget.

Centre claimed it to be a people's Budget and even expressed confidence that it will boost the country's development in the 21st century. (File Photo/ Getty)

New Delhi: Come February 1, Finance Minister Nirmala Sitharaman will have to confront a host of challenges during her second Union Budget presentation pertaining to high inflation, along with subdued economic growth and low job creation. Accordingly, these factors make the Budget presentation for the BJP-led Central government a unique affair, as economy watchdogs and investors eye the financial document for a stimulus package and extensive reforms to arrest the slowdown cycle. However, recalling the last Union Budget presented by the Modi government on July 5, 2019 after returning to power for the second time following a thumping victory in Lok Sabha elections, the Centre claimed it to be a people's Budget and even expressed confidence that it will boost the country's development in the 21st century. Even PM Modi lauded the Budget announcements made by Sitharaman and said that it will give strength to the poor and providing a better tomorrow for the youth. With just little over a week left for the government to present its Union Budget 2020, here’s a look at the highlights of the last budget announcements: - India to become a $5 trillion economy by 20204 - FM Sitharaman proposed a total Budget expenditure of Rs 27,86,349 crore in Financial Year 2019-2020 - Sitharaman also vowed to achieve a nominal gross domestic product (GDP) growth rate of 12 per cent for FY20 - India to become a 3 trillion dollar economy in the current year - A disinvestment target of Rs 1.05 lakh crore was also announced by the Finance Minister for FY20 - Rs 100 lakh crore to be invested in infrastructure in a span of five years - 100 per cent Foreign Direct Investment (FDI) allowed for insurance intermediaries - 2 per cent TDS on withdrawals of Rs 1 crore a year from the bank account on business transactions - Rs 3,000 pension per month for the informal sector workers - Allocation of Rs 65,837 crore for railways and the highest ever outlay for capital expenditure of Rs 1.60 lakh crore - Additional tax deduction of up to Rs 1.5 lakh to be provided on interest paid on loans for self-occupied house owners - Minimum public shareholding in listed companies increased from 25 per cent to 35 per cent - Finance minister also proposed investments in:

• Infrastructure
• Digital economy
• Job creation in small and medium firms
• Initiatives to be proposed for kick-starting the virtuous cycle of investments

- Pension benefits to about three crore retail traders & small shopkeepers with annual turnover less than Rs. 1.5 crore - Rs 350 crore allocated for FY 2019-20 for 2 per cent interest subvention (on fresh or incremental loans) to all GST-registered MSMEs, under the Interest Subvention Scheme for MSMEs - Massive push to all forms of physical connectivity through:

• Pradhan Mantri Gram Sadak Yojana
• Industrial Corridors, Dedicated Freight Corridors
• Bhartamala and Sagarmala projects, Jal Marg Vikas and UDAN Schemes
• State road networks to be developed in second phase of Bharatmala project

- Key highlights in the railway infrastructure sector:

• Rs 50 lakh crore investment needed in Railway Infrastructure during 2018-2030
• Public-Private-Partnership proposed for development and completion of tracks, rolling stock manufacturing and delivery of passenger freight services
• 657 kilometres of Metro Rail network has become operational across the country