The presentation & contents of Union budget 2019-20 by Nirmala Sitharaman Honorable Finance Minister was far better than expectation . The Pension benefits being offered to 3 crore shopowners with annual turnover of less than Rs 1.5 crore under new scheme called Pradhan Mantri Man dhan Scheme is a welcome step as finally the honest Tax collector & payer is geting something they deserved.
The current budget proposals seem to reiterate steps to simplify the GST compliance recommended by the GST council by introducing single return, automated refund mechanism, centralized e-invoicing, the abolition of e-waybills etc. This will improve compliance and will result in revenue buoyancy.
The increase of turnover of companies who can avail of 25% tax slab to 400 crores would lead to further capital in the hands of businesses to invest in further growth.
The focus on electric mobility for both manufacturers as well as consumers as well as incentives for components that are critical for electrification of commuting. This step is especially heartening. Reducing our oil import bill through such measures would have a compounding effect on the economy.
The allocation of hundred lakh crores for infrastructure is most welcome.
A start-up channel on Doordarshan will help budding entrepreneurs to shape their ideas and guide them about complex issues of compliance and taxation.
The proposal to discourage business payments in cash and levy of 2 percent TDS on cash withdrawal exceeding Rs 1 crore in a year from a bank account will bring in tax compliance and also increase revenues for the government.
Proposal to streamline multiple labour laws into 4 labour codes. This step to simplify, rationalise and consolidate the fragmented laws thereby leading to easier implementation will result in better growth.
It would be interesting to see the extent and form of relaxation that is announced to local sourcing norms in relation to FDI in single brand retail.
Budget 2019 has proposed to bring in a Model Tenancy Law. This will be finalised and circulated to the states. Archaic rental laws in the country so far have proved disadvantageous for both, tenants and landlords. The new rental act will bring the required institutional framework in the country and make it more organised and fair for landlords and tenants.
Govt to launch ‘Study in India’ programme to attract foreign students in higher education is appreciable step towards making India an Education Hub .
To harness India’s space ability commercially, a public sector enterprise, New Space India Limited (NSIL) is being incorporated to tap benefits of ISRO . Over a period India has emerged as a major space power time has come to harness our ability commercially.
Increase in duty of Petrol and diesel would lead to spiralling effect of increase in overall prices of items across the shelf & it may prove to be last nail in the coffin of the Automobile industry which is already in trouble.
Another problematic industry – Telecom had no mention in the Budget.
Overall it is a welcome budget with setting up of a roadmap for a 5 trillion economy in years to come .