Finance Minister Nirmala Sitharaman on Friday presented the Union Budget in which she hiked tax on petrol and diesel, raised import duty on gold, levied additional surcharge on super rich and brought a tax on high-value cash withdrawals, seeking to spur growth with reduction in corporate tax and sops to housing sector, startups and electric vehicles.
Presenting the maiden budget of Modi 2.0 government in Lok Sabha, Sitharaman, the first full-time woman Finance Minister, proposed measures to ease liquidity crisis facing shadow banking sector (NBFCs) and providing Rs 70,000 crore capital to public sector banks while seeking to raise additional resources through privatisation of some PSUs.
Here's what new has been added to the Union budget:
1. Social Stock Exchange: Finance Minister announced setting up of Social Stock Exchange under the regulatory ambit of Securities and Exchange Board of India (SEBI) for listing social enterprises and voluntary organizations. The exchange will help social enterprises including NGOs to raise capital as equity, debt or as units like a mutual fund.
2. Pradhan Mantri Karam Yogi Maandhan Scheme: Under the newly launched scheme, three crore retail traders and small shopkeepers whose annual turnover is less than Rs 1.5 crore will be eligible to get a pension of around Rs 3000. Enrolment into the scheme will be kept simple requiring only Aadhaar and a bank account and rest will be on self-declaration.
3. New Space India Limited (NSIL): The government is going to setup a new commercial arm of Department of Space to tap the benefits of the research and development carried out by ISRO. The company will spearhead commercialization of various space products including production of launch vehicles, transfer to technologies and marketing of space products.
4. Study in India: The program is going to focus on bringing foreign students to study in Indian higher educational institutions. The government is going to allot an amount of Rs 400 crore under the head “World Class Institutions” for 2019-20 to promote the scheme.
5. 2% TDS on Rs 1 crore and above cash withdrawal: The FM announced levying of TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account.