Arun Jaitley presents election-bound budget with a revolutionary healthcare scheme for poor
New Delhi, Feb 1 (IBNS) Ahead of the election year in 2019, Union Finance Minister Arun Jaitley on Thursday presented a wide-ranging Union Budget that envisages a landmark healthcare scheme for the poor proposing to bring 500 million people under it with an annual hospitalisation limit of up to Rs 5 lakh while keeping the personal income tax limits unchanged.
The Budget focused on agriculture production aiming to send a message to the suffering farmers while promising to boost growth and create jobs.
Jaitley said the national healthcare scheme will cover 50 crore (500 million) beneficiaries (10 crore or 100 million families) and going to be the world's largest government funded healthcare programme.
"We will build a new India in 2022. It will generate lakhs of jobs for women," said Jaitley.
It will be extended further after ascertaining the results of this scheme, said Jaitley.
According to Bloomberg, farmers and villagers and companies with exposure to agriculture, emerge as the biggest winners while Bond investors might just be the biggest losers.
Jaitley announced a Rs 2000 crore investment for developing the agricultural market promising farm output at record level.
He said India is on road to achieve 8% growth.
He said 9000 km national highways will be completed.
Senior citizens have been given top priority in the budget. For senior citizens, the tax exemption on deposits of Rs. 10000 has been increased to Rs. 50000.
Jaitley also announced a capital expenditure allocation of Rs 1.48 lakh crore for the railways, the highest ever for the sector, with a greater emphasis on modernisation and passenger safety.
Prime Minister Modi later called the budget friendly for all groups and aimed at focusing on ease of living and ease of business.
HIGHLIGHTS
 Budget guided by mission to strengthen agriculture, rural development, health, education, employment, MSME and infrastructure sectors.
 Government says, a series of structural reforms will propel India among the fastest growing economies of the world. Country firmly on course to achieve over 8 % growth as
manufacturing, services and exports back on good growth path.
 MSP for all unannounced kharif crops will be one and half times of their production cost like majority of rabi crops: Institutional Farm Credit raised to 11 lakh crore in 2018-19
from 8.5 lakh crore in 2014-15.
 22,000 rural haats to be developed and upgraded into Gramin Agricultural Markets to protect the interests of 86% small and marginal farmers.
 “Operation Greens” launched to address price fluctuations in potato, tomato and onion for benefit of farmers and consumers.
 Two New Funds of Rs10,000 crore announced for Fisheries and Animal Husbandary sectors; Re-structured National Bamboo Mission gets Rs.1290 crore.
 Loans to Women Self Help Groups will increase to Rs.75,000 crore in 2019 from 42,500 crore last year.
 Higher targets for Ujjwala, Saubhagya and Swachh Mission to cater to lower and middle class in providing free LPG connections, electricity and toilets.
 Outlay on health, education and social protection will be 1.38 lakh crore. Tribal students to get Ekalavya Residential School in each tribal block by 2022. Welfare fund for SCs gets a boost.
 World‟s largest Health Protection Scheme covering over 10 crore poor and vulnerable families launched with a family limit upto 5 lakh rupees for secondary and tertiary treatment.
 Fiscal Deficit pegged at 3.5 %, projected at 3.3 % for 2018-19.
 Rs. 5.97 lakh crore allocation for infrastructure
 Ten prominent sites to be developed as Iconic tourist destinations
 NITI Aayog to initiate a national programme on Artificial Intelligence(AI)
 Centres of excellence to be set up on robotics, AI, Internet of things etc
 Disinvestment crossed target of Rs 72,500 crore to reach Rs 1,00,000 crore
 Comprehensive Gold Policy on the anvil to develop yellow metal as an asset class
 100 percent deduction proposed to companies registered as Farmer Producer Companies with an annual turnover upto Rs. 100 crore on profit derived from such activities, for five years from 2018-19.
 Deduction of 30 percent on emoluments paid to new employees Under Section 80-JJAA to be relaxed to 150 days for footwear and leather industry, to create more employment.
 No adjustment in respect of transactions in immovable property where Circle Rate value does not exceed 5 percent of consideration.
 Proposal to extend reduced rate of 25 percent currently available for companies with turnover of less than 50 crore (in Financial Year 2015-16), to companies reporting
turnover up to Rs. 250 crore in Financial Year 2016-17, to benefit micro, small and medium enterprises.
 Standard Deduction of Rs. 40,000 in place of present exemption for transport allowance and reimbursement of miscellaneous medical expenses. 2.5 crore salaried employees and pensioners to benefit.
 Relief to Senior Citizens proposed:-
Exemption of interest income on deposits with banks and post offices to be increased from Rs. 10,000 to Rs. 50,000.
 TDS not required to be deducted under section 194A. Benefit also available for interest from all fixed deposit schemes and recurring deposit schemes.
 Hike in deduction limit for health insurance premium and/ or medical expenditure from Rs. 30,000 to Rs. 50,000 under section 80D.
 Increase in deduction limit for medical expenditure for certain critical illness from Rs. 60,000 (in case of senior citizens) and from Rs. 80,000 (in case of very senior citizens) to Rs. 1 lakh for all senior citizens, under section 80DDB.
 Proposed to extend Pradhan Mantri Vaya Vandana Yojana up to March, 2020.
Current investment limit proposed to be increased to Rs. 15 lakh from the existing limit of Rs. 7.5 lakh per senior citizen.
(Reporting by Sujoy Dhar)
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