It is a statement of estimated receipt and expenditure of the government of India. It is presented each year on the last working day of February by the Finance Minister of India in Parliament. The budget, which is presented by means of the Financial bill and the Appropriation bill has to be passed by the Houses before it can come into effect on April 1, the start of India’s financial year.
Important types of Budget-
Zero Based Budgeting – Zero-based budgeting is a budgeting method where every expenditure must be justified every budget cycle. When the company begins a budget process, they start from zero. Each department must request funds via a detailed plan describing what each allocation of funds will be used for and what benefits the company will receive from it.
Outcome Budgeting – Outcome Budgeting is a budget process that aligns resources with results . It’s a budgeting tool that integrates strategic planning, long range financial planning, and performance management.
Gender Budgeting – Gender Budget Initiatives are tools and processes designed to facilitate a gender analysis in the formulation of government budgets and in the allocation of resources. It attempts to break down or disaggregate the government’s mainstream budget according to its impacts on women and men.
Total Receipt= Revenue Receipt + Capital Receipts
Total Expense= revenue Expense + Capital Expense
UNION BUDGET 2019-20
The Union Budget for 2019-20 was announced by Mr Piyush Goyal, Union Minister for Finance on February 1, 2019. Total expenditure for 2019-20 is budgeted at Rs 2,784,200 crore (US$ 391.53 billion), an increase of 13.30 per cent from previous 2018-19 union budget (revised estimates).
Features of Interim Union Budget 2019-20
Overview of the economy
• India is at present the quickest developing real economy in the world and the 6th biggest economy, contrasted with eleventh biggest in 2013-14.
• India will be a US$ 5 trillion economy in the following five years and might turn into a US$ 10 trillion economy in the following eight years from that point.
• The normal expansion rate in the nation has gone down definitely to 4.6 percent in the present government’s residency, lower than swelling under some other past government.
• Monetary deficiency of the Government of India is relied upon to be 3.4 percent of the GDP for 2019-20 and 2018-19 (reconsidered gauges). Banking Reforms
• A number of measures have been undertaken for clean banking in recent years such as through the Insolvency and Bankruptcy Code (IBC)
•Recently, the Prompt Corrective Action (PCA) restriction was removed from three banks, namely – Bank of India, Maharashtra Bank, and Oriental Bank of Commerce (OBC).
Swacch Bharat Mission
• As a tribute to Mahatma Gandhi’s 150th birth commemoration in 2019, the NDA Government propelled an all-encompassing project ‘Swacch Bharat Mission’ in 2014. The program has been changed over into development.
• Under the mission, 98 percent rustic sanitation inclusion has been accomplished.
• 5.45 lakh towns have been announced Open Defecation Free (ODF).
• India will command the 150th birth commemoration of Mahatma Gandhi in October 2019.
For Poor and Backward Classes
• The government is working to reduce the rural-urban as well as a class divide in the country.
• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has been allotted Rs 60,000 crore (US$ 8.44 billion) for 2018-19.
• A new pension scheme named ‘Pradhan Mantri Shram-Yogi Mandhan’ will be launched for workers in the unorganized sector, with an outlay of Rs 500 crore (US$ 70.31 million) for 2019-20. This would provide them an assured monthly income of Rs 3,000 (US$ 42.19) from 60 years of age.
• NITI Aayog will set up a committee to identify de-notified, nomadic and semi-nomadic communities, which are not yet classified. A welfare improvement barricade will likewise be set for these networks’ strengthening.
• The Government undertook various initiatives to boost farmers’ income. Govt. ensured to give the Minimum Support Price (MSP), at least 50 percent of the produce and introduced the pro-farmers policy.
• Rs 750 crore was dispensed for the Rashtriya Gokul Mission.
• It announced to set up the ‘Rashtriya Kamdhenu Aayog’ for production and productivity of cows.
• A different ‘Branch of Fisheries’ will be made to support the fisheries part.
• Under the Kisan Credit Card plot (KCC), 2 percent intrigue disruption will be given for ranchers seeking after creature farming and an extra 3 percent intrigue disruption will be given for the individuals who reimburse the advance in time.
• Farmers, influenced by serious characteristic cataclysms, will be given the advantage of intrigue subvention of 2 percent and brief reimbursement motivation of 3 percent for the whole time frame on auspicious reimbursement of their credits.
Wages, salaries and pensions
• The enrollment of Employees’ Provident Fund Organization (EPFO) has gone up by 2 crores in five years.
• In the most recent five years, all classes of laborers saw a 42 percent expansion in wages.
• The Seventh Pay Commission proposals were actualized quickly.
• The New Pension Scheme (NPS) has been liberating.
• Maximum ceiling of the bonus for the laborers has been increased from Rs 3500 to Rs 7000 per month and the maximum ceiling for the payment has been increased from Rs 10,000 to Rs 21,000 per month
• In case of death of a worker amid administration, the sum to be paid by EPFO has been expanded from Rs 2.5 lakh to Rs 6 lakh.
• The Employee’s State Insurance (ESI) spread cutoff has been expanded to Rs 21000 from Rs 15000 every month.
• Railways will get Rs 64,587 crore (US$ 9.08 billion) in 2019-20. Operating ratio of the railways is expected to improve to 95 per cent in 2019-20.
• The container cargo movement will be introduced to North-East areas as well.
• Around 100,000 villages will be made digital villages in the next five years.
• A National Centre on Artificial Intelligence will be created.
• Pradhan Mantri Gram Sadak Yojana (PMGSY) has been supported with Rs 19,000 crore (US$ 2.67 billion) in 2019-20.
• Singular taxpayers with yearly pay up to Rs 500,000 (US$ 7,031.34) will get full duty refund and henceforth won’t be required to make good on any regulatory obligation. Therefore individuals with gross salary up to Rs 650,000 (US$ 9,140.74) may get full assessment exception with explicit speculations. This is relied upon to give a tax cut of around Rs 18,500 crore (US$ 2.60 billion) to around 30 million white-collar class citizens in the nation.
• Standard derivation for pay rates people are being expanded from Rs 40,000 (US$ 562.51) to Rs 50,000 (US$ 703.13).
• Annual assessment on notional lease for the second self-involved house will be exempted.
• Limit for assessment deducted at source (TDS) for enthusiasm on bank and mail station stores is expanded from Rs 10,000 (US$ 140.63) to Rs 40,000 (US$ 562.51).
• Advantage of rollover capital gains up to Rs 2 crore (US$ 0.28 million) will be expanded from the interest in one private house to two houses. This can be benefited ideal.
Vision for the Next Decade
• To manufacture physical and social framework for a US$ 10 trillion economy.
• To make a Digital India that effects life all things considered.
• Make India contamination free flourish with electric vehicles and a sustainable power source.
• Extend rustic industrialization utilizing present-day innovation.
• To have clean streams, safe drinking water and effective utilization of water.
• Make our coastline and sea waters control India’s development.
• To send an Indian space explorer to space by 2022 and make India a lunch cushion for satellites of the world through our space program – Gaganyaan.
• Make India independent in sustenance fare to address the world’s issues.
• A pain-free and social insurance and a utilitarian and complete wellbeing framework.
• Make India a base government and greatest administration country.