Happy-go Budget

With elections in sight, the Modi government's last budget in this term attempts to keep all constituencies happy

Happy-go Budget
Happy-go Budget

Key Highlights

*GDP growth in 2018/19 estimated at 7.2 per cent

*Fiscal deficit for 2018/19 seen at 3.4 per cent of GDP

*Fiscal deficit for 2019/20 estimated at 3.4 per cent of GDP

*Fiscal deficit for 2020/21 and 2021/22 estimated at 3 per cent of GDP

*Government’s commitment earlier was to bring down the fiscal deficit to 3.1 per cent of GDP by the end of March 2020, and to 3 per cent by March 2021

*India’s current account deficit for 2018/19 seen at 2.5 pct of GDP


*Gross market borrowing seen at Rs 7.1 lakh crore in 2019/20

*Net market borrowing seen at Rs 4.73 lakh crore in 2019/20

*Government to buy back Rs 50,000 crore worth of bonds in 2019/20

*To raise Rs 1.08 lakh crore via cash management bills in 2019/20

*Debt to GDP ratio to be brought down to 40 per cent by 2024/25


*Revenue receipts seen at Rs 1.98 lakh crore in 2019/20 (2.2 per cent of GDP)

*Capital receipts seen at Rs 8.06 lakh crore rupees in 2019/20


*Total expenditure in 2019/20 budgeted at Rs 27.84 lakh crore

*Capital expenditure for 2019/20 seen around Rs 3.36 lakh crore in centrally sponsored schemes

*Defence budget raised to beyond Rs 3 lakh crore in 2019/20

*To allocate Rs 64,587 crore for railways capital expenditure in 2019/20

*Allocation to northeast region to be increased by 21 per cent over previous fiscal


*To allocate Rs 75,000 crore ($10.56 billion) per year to support farmers’ incomes

*Impact of Rs 20000 crore in current fiscal year

*Vulnerable farmers to receive Rs 6,000 per year under new scheme

*Farmers affected by natural disasters to receive 2 per cent interest subvention, additional 3 per cent if they repay loans on time

*To provide 2 per cent interest subvention for farmers pursuing animal husbandry, fisheries

*To allocate Rs 1,9000 for construction of rural roads in 2019/20


*Income tax exemption limit doubled to Rs 500,000 in 2019/20, tax slabs for others unchanged

*Benefit of rollover of capital tax gains to be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to Rs 2 crore; can be exercised once in a lifetime

*Average monthly tax collection at Rs 97,100 crore per month so far this year

*SMEs registered under the GST to get 2 per cent interest subvention on loan of Rs 1 crore


*Dividends to govt from the RBI and public sector financial institutions seen at Rs 82,910 crore in 2019/20

*Dividends to government from RBI and public sector financial institutions dividends revised to Rs 74,140 crore in 2018/19

*Other banks to come out of Prompt Corrective Action list


*To launch social security coverage for workers in unorganised sector

*New scheme to provide assured monthly pension of Rs 3,000 per month, with contribution of Rs 100 per month, for workers in unorganised sector after 60 years of age

*Scheme will benefit

10 crore workers in unorganided sector, may become the world’s biggest pension scheme for unorganised sector in five years

*Government to allocate Rs 60,000 crore for a rural employment scheme in 2019/20

(Figures are rounded off)