Union

Budget2019

Planet IPESpecial editionJanuary 2019

MD SPEAKS

It is a forward-looking budget for the common people of the country. As expected, the budget brings relief for middle class taxpayers and farmers. �is is no doubt a pro-growth, pro-farmer budget and strengthens the purchasing power of the Indian middle class. �e budgetary provision clearly points towards a social focus and building up of the social safety net with signi�cant allocations for the labour in unor-ganized sector, for marginal farmers and for rural industries such as �sheries and animal husbandry.

Approximately half of India’s workforce is involved in agriculture which contributes to nearly 17% of the GDP. Launch of Pradhan Mantri Kisan Samman Nidhi with direct transfer of Rs 6,000 per annum to farmers is a signi�cant move. �is scheme will bene�t 12 crore small and marginal farmers with a holding of less than 2 hect-ares of land.

�e focus on a broader vision of building healthy India through Arti�cial Intelligence is also a welcome move. Further, steps such as developing 1 lakh digital villages is a great way forward for the Digital India movement that would bridge the urban-rural divide.

Overall, this seems to be a balanced budget with support to sectors like agriculture and small industries for the holistic development of the nation. However, at the same time, it is equally important that emphasis is laid on e�ective monitoring and evalua-tion of schemes announced and skilling of large unemployed workforce considering nearly 97% lack any formal training. Focusing on these aspects will further acceler-ate the economic growth and lay down a vision and roadmap for the next 10 years.

OVERVIEW

�e Union Budget of India, also referred to as the Annual Financial Statement in the Article 112 of the Constitution, is the annual budget of the Republic of India. An interim budget is presented by the government to meet its expenses in the new �nancial year till the time the next government takes charge. With the term of current government coming to an end, the last budget was presented on Feb 1, 2019 by the Interim Finance Minister Piyush Goyal in the Parliament.

�e major highlight of the budget was the announcement of income tax rebate for individuals having taxable income upto Rs. 5 lakhs/annum, which seems to be relieving the mid-income earners. �e announcement of schemes such as Kisan Samman Nidhi Yojna, Shramyogi Maan-dhan Yojana and hike in MNREGA was yet another step forward in ensuring the upli�ment of the weaker sections of the society. �e mega pension scheme would bene�t nearly 10 crore workers in unorganized sector. With the belief that India is poised to be a 5 trillion economy in the next �ve years, the budget in its vision for the next decade continues to focus on technology, energy e�ciency, clean water, air and better infrastructure for reaching the development goals.

However, the budget has no direct mention of the health, infrastructure and tour-ism sectors and job generation still remains a major area of concern and demands for more e�ective measures. We look forward to e�ective implementa-tion, an impactful and timely delivery of these announced schemes and many other far-reaching proposals while the current government targets to address and deliver panacea to all the major ills.

KEY HIGHLIGHTS OF UNION BUDGET 2019

INFLATION

Direct income

support of

Rs. 6000 per

year to poor

farmers

under PM

Kisan Yojana.

Basic

income tax

limit raised

from

Rs. 2.5 lakh

to Rs. 5 lakh

Pension of

Rs. 3000/

month for

workers in

unorganised

sector

No tax on

Notional Rent

of second

house

Highest

ever capital

expenditure

allocation of

Rs. 1.58

lakh crore

for the

railways

TDS threshold

on interest

on bank

deposits

Rs. 10,000

to Rs. 40,000

(FY 09-14) (FY 15-19)

10.1% 4.7%

Fiscal Deficit target for FY 2019-20 is 3.4%

Current Account Deficit (CAD) likely to be 2.5% of GDP

DIDou

KNOWY

The word ‘Budget’ is derived from French word “bougette”.

Intelligence Bureau takes care of the security during the entire Budget period.

Union Budget of India is also referred to as the Annual Financial Statement in the Article 112 of the Constitution of India.

India’s first Finance Minister, R.K. Shanmukham Chetty presented the first Budget of Independent India on 26th November 1947.

The first-ever budget in India was introduced on 7th April 1860 from East-India Company to British Crown by finance member James Wilson.

Jawaharlal Lal Nehru, who also was in charge of the Union Finance Minister portfolio in 1958-59, was the first prime minister to present the budget.

Former Prime Minister, Morarji Desai has presented the maximum number of budgets so far, these included - 5 annual and 1 interim budget.

The tradition of carrying a Budget briefcase can be traced back to the British, who carried a 'Budget box' on every Budget Day since 1860.

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• Individual taxpayers with annual income up to 5 lakh rupees will be exempted. • Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if

they make investments in provident funds and prescribed equities.• Standard tax deduction for salaried persons raised from 40,000 rupees to 50,000 rupees.• Gratuity limit increased from 10 lakh to 30 lakh rupees.• Businesses with less than Rs. 5 crore annual turnover, comprising over 90% of GST payers,

will be allowed to return quarterly returns. • Almost all assessment and verification of IT returns will be done electronically by an

anonymized tax system without any intervention by tax officials.

• Unorganised sector workers to be paid the pension of Rs. 3000 per month after 60 years of age under Mega Pension Yojana.

• Allocation of Rs. 19,000 crore for development of roads in rural areas under Pradhan Mantri Gram Sadak Yojana (PMGSY).

• Clean banking to be implemented under 4R approach: Recognition, Resolution, Recapitalization and Reforms. • TDS on fixed deposits to be increased from the existing Rs 10,000 to Rs 50,000. • Additional Rs 1-2 crore capital investment in banks for public sector general insurers.

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TAXATION

RURAL AREAS

BANKING

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• Benefits under Section 80-IBA of the Income Tax Act being extended for one more year, i.e. to the housing projects approved till 31st March 2020 under Affordable housing.

• Proposal to extend the period of exemption from levy of tax on notional rent, on unsold inventories, from one year to two years.

• Proposal to exempt levy of income tax on notional rent on a second self-occupied house.• Benefits of Rollover of Capital Gains under section 54 of the Income Tax Act to be in-

creased from investment in one residential house to two residential houses for a tax payer having capital gains up to Rs. 2 crore.

• TDS threshold for deduction of tax on rent to be increased from Rs. 1,80,000 to Rs. 2,40,000.

• Income tax rebate on interest of home loan to be increased from the present Rs. 2 lakh to Rs. 5 lakh.

• Scheme to sanction loans up to Rs. 1 crore in 59 minutes to be launched. • GST-registered SME units will get 2 percent interest rebate on incremental loan of Rs. 1

crore. • Businesses with less than Rs. 5 crore annual turnover comprising over 90 percent of GST

payers to be allowed to file quarterly return. • Out of 25% sourcing by all government undertakings, the material to the extent of at

least 3 percent to be sourced from women-owned SMEs.

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REAL ESTATE

MICRO SMALL AND MEDIUM ENTERPRISES (MSME)

RAILWAYS• Capital expenditure allocation of Rs. 1.58 lakh crore for the Railways, the highest ever for

the national transporter. • Vande Bharat Express, indigenously developed semi-high speed (train), soon to give

Indian passengers world class experience.• Operating Ratio expected to improve from 96.2% in 2018-19 (RE) and further to 95% in

2019-20 (BE).

AGRICULTURE

• Poor farmers holding less than 2 hectares of land to get direct income support of Rs. 6000 per year under Pradhan Mantri Kisan Samman Nidhi.

• Two per cent interest subvention to farmers pursuing animal husbandry and fishery when loans are taken through Kisan Credit Card.

• Doubling of Farmer’s income: All 22 crops put under Minimum Support Price (MSP).• Additional 3% interest subvention on crop loans to farmers affected by natural calamities.

The budget is clearly farm-focused. Farmers, unorganised sector, MSME and middle class are beneficiaries with the agricultural sector getting the biggest support. The move to provide -5% interest subvention for

farmers struck by natural calamities is a protective measure, especially for a marginal farmer.

HEALTH AND SANITATION

• Nearly 1.5 lakhs sub-centres and primary health centres would be transformed as Health and Wellness Centres by 2022.

• Poor families to receive Rs. 5 lakh per family per year for secondary and tertiary hospitalization under Pradhan Mantri Jan Arogya Yojna (PMJAY)

• After 21 established and 14 sanctioned AIIMS, 22nd AIIMS to be established in the state of Haryana

A significant highlight in the Interim Budget is the vision for ‘Healthy India’ with a distress-free healthcare and wellness system by 2030.The announcement of a National Centre on Artificial Intelligence is also a big positive. We are hopeful that this will further benefit the doctors for better detection and treatment of non-

communicable diseases.

IPE IN MEDIATHE

NEWS

THE

NEWS

Ashwajit Singh appeared on post budget panel discussions LIVE on Aaj Tak and NDTV India. While both pre-post budget aspects were discussed at length, he emphasized on a robust implementation of schemes for a more effective and long term impact on the social sectors.

Ashwajit Singh and Anil Kumar Bansal appreared on Aaj Tak’s digital channel Biz Tak for a LIVE chat show. The discussion focused on schemes announced in the Budget 2019-20.

Ashwajit Singh participated in the LIVE coverage on pre-budget discussion on NewsX and NDTV 24*7 where he spoke about budget expectations on direct cash transfer schemes, MNREGA, Women empowerment etc.

Soumen Bagchi appeared on India News for a panel discussion on Budget Expectations and discussed about the existing schemes and expectations of infrastructure sector.

NEWS

THE

NEWS

Tanya Singh features in The Week- Smartlife in an exclusive article “Workplaces that care”

Tanya Singh, Director- IPE Global, shares her views on how corporates are increasingly chalking out wellness programmes for their employees that are ‘need and evidence-based’, as they are beginning to see how it could influence the profitability index graph in the long term.

Anil Bansal - Director and Ram Khandelwal – Associate Director, Urban & Infrastructure Development featured in Elets Smart City Portal in the article ‘Making City Partnerships work’. Anil Bansal expressed his views on the importance of city partnerships, scope for international collaborations and how it can help achieve both development and economic agenda.

Himanshu Sikka, Chief Strategy and Diversification Officer and Lead – Health, Nutrition and WASH shared his views in Firstprint newspaper (Indore edition) on the expected budget allocation to healthcare sector. While highlighting major healthcare needs, he suggested, “National Health Policy 2017 aimed to double the Government spend- from the existing 1.15% of the GDP to 2.5% by 2025. In order to achieve this, we want that the health budget should at least increase by 20-30% year on year.”

Himanshu Sikka features in Firstprint newspaper on pre-budget expectations

Elets Smart City Portal exclusively covers Anil Bansal and Ram Khandelwal

THE

NEWSIPE Global implemented Rajpusht project featured in Rajasthan’s regional newspapers - Dainik Aadhar, Dainik Bhor, Dainik Navjyoti, Jaipur Times, Samachar Jagat, Sanjeevani Today and The Public Side

Dr. Dinesh Agarwal gets featured in The Mint (National Newspaper) on “Ayushman Bharat Scheme”

Dr. Dinesh, Senior Technical Advisor- Health, Nutrition and WASH gets exclusively covered in the national newspaper, The Mint on 30th January 2019 on Ayushman Bharat Scheme. The article talks about “Investing in Primary Health Care-key for Universal Health Coverage” and the scheme which has been designed keeping in mind the 71st NSSO Survey. He also highlights on how the newly set up Health and Wellness center (HWC) will be able to cater for nearly 80 percent of routine health care needs.

Under the project portable digital weighing machines would be installed in 55 SNCU’s (Special Newborn Care Units) within the medical colleges and district hospitals in Rajasthan.

IPE NEWSDESK

IPE Global presents GIS Mapping assignment of schools at The World Bank, Ethiopia

IPE Global organises sessions on financial literacy for Government school girls in Udaipur and Dholpur districts in Rajasthan

IPE Global presents the progress and prototypes of GIS Mapping assignments of all schools in Ethiopia at The World Bank in Addis Ababa. Along with CSM Technologies as lead, IPE is conducting a nation-wide mapping. The report would form the basis of new school allocation in the country.

Interactive sessions on financial literacy were organized by IPE Global team for the girls in government secondary schools in the districts of Udaipur and Dholpur. The sessions focused on covering basic but important topics of financial literacy such as banking system, kind of bank accounts, how to withdraw money from bank, saving money, use of money in a wise manner, distinguishing the items of need and luxury etc.

THE

NEWS

THE

NEWS

IPE Bangladesh celebrated its first anniversary on January 15, 2019.

Congratulations!Sachin Sharma and Sonia Duhan, City Team Leaders- Urban Reforms & Infrastructure, received an

award from GMC of city for best performance and continuous excellent performance respectively under Haryana SBM project.

Babu Lal Sharma, Communication Expert- Urban Reforms & Infrastructure, has been awarded by Dr. Jitendra Kumar Soni, Project Director, RUIDP for his contributions to the Rajasthan Urban

Infrastructure Development Project (RUIDP) on Republic Day.

THE

NEWS

Republic day celebrations at the New Delhi office

The event witnessed great enthusiasm and team spirit among different teams during an interactive Quiz conducted both offline and online. Congratulations to the Winning Team!

Winners Shantanu Das, Pooja Dhooper, Abhirup Bhuni (EPFM & URBED)

Runners up Salim Altaf, Mohd. Mohsin Ganai, Yawar Ali (Urban) Winner of online quiz Satya Pratap, Lucknow

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