This document provides an overview of the key aspects of the 2019-2020 Union Budget of India. It discusses the meaning and types of budgets, as well as key figures from the previous, current, and upcoming fiscal years' budgets. It then summarizes some of the major policy initiatives and economic indicators highlighted in the interim budget, such as inflation reduction, banking reforms, infrastructure development, support for farmers and women, and tax proposals. The budget aims to support economic growth and development across various sectors.

1. By
JYOTHI S.
Asst. Professor,
GFGCW, Holenarasipur
UNION BUDGET
2019-2020

3. Meaning
P.E.Taylor
‘Budget is the master financial plan of the
government. It brings together estimates of
anticipated revenue and proposed
expenditure for the budget years’.

4. Three sets of figures
Actual figures of revenue and expenditure of the previous
financial year (2018-2019)
The revised estimates of revenue and expenditure of the
current financial year (2019-2020)
The estimates of revenue and expenditure for the coming
financial year (2020-2021)

5. Budget
Receipts
Revenue Budget
Tax Non tax
Capital Budget
Recovery
of loans
Other
Receipts
Borrowings
Expenditure
Revenue
expenditure
Plan
Non
Plan
Capital
expenditure
Plan
Non
Plan

8. TYPES OF BUDGET
Balanced budget
Surplus budget
Deficit budget

9. Other types of budget
1.Annual Budget, Supplement Budget, Interim
Budget or Long Term Budget.
2. Single or Multiple Budget.
3. Conventional or Cash Budget.
4. Departmental Budget, Performance Budget or
Programme Budget.

10. 5.Revenue budget or capital budget
6. Executive budget
7. Plan Budget or Non-plan Budget.
or legislative budget
8. Incremental Budget or Zero Base Budget

11. Budget
Deficit
• BD = Total expenditure – Total Revenue
Revenue
Deficit
• RD = Revenue expenditure – Revenue Receipts
Fiscal
Deficit
• FD = Total expenditure – Revenue Receipts + Recovery of Loans + Other
receipts
Primary
Deficit
• PD = Fiscal Deficit – Interest payments

13. Interim Budget 2019-2020
State of the Economy:
 India was 11th largest economy in the world in
2013-14, now, the 6th largest in the world.

15. Inflation
 The average rate of inflation during 2009-
2014 was 10.1%.
The average inflation now brought down to
4.6%.

16. Banking Reforms and Insolvency and Bankruptcy
Code (IBC)
 non-performing assets (NPAs) amounting to
5.4 lakh crore in 2014.
 stopped the culture of “phone banking”.
 The 4Rs approach of recognition, resolution, re-
capitalisation and reforms has been followed.
 An amount of close to 3 lakh crore has already
been recovered in favour of banks and
creditors.

17. Saubhagya Yojana
free electricity connection to almost every
household.
approximately 50,000 crore per year in electricity bills
of poor and middle class families.

18. Farmer's progress and Increase in Income
 fixed the minimum support price (MSP) of all 22 crops at
minimum 50% more than the cost.
Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN)
Under this programme, vulnerable landholding farmer families,
having cultivable land upto 2 hectares, will be provided direct
income support at the rate of 6,000 per year. This income support
will be transferred directly into the bank accounts of beneficiary
farmers, in three equal instalments of 2,000 each.

19.  Kisan Credit Card scheme (KCC)
 the crop loans are rescheduled for natural affected farmers
and they get benefit of interest subvention of 2% only for
the first year of the rescheduled loan.

20. Pradhan Mantri Shram-Yogi Maandhan
 the unorganised sector workers with monthly income upto
15,000. This pension yojana shall provide them an assured
monthly pension of 3,000 from the age of 60 years

21. Women’s development
 More than 70% of the beneficiaries of Pradhan Mantri
MUDRA Yojana are women.
 benefits of Maternity leave of 26 weeks.
 Pradhan Mantri Matru Vandana Yojana for pregnant women
have provided financial support to women while empowering
them to participate in work.

22. Strengthening Defence and National
Security
 to implement One Rank One Pension (OROP).
 Defence Budget will be crossing 3,00,000 crore for
the first time in 2019-20..

23. Infrastructure development
 UDAAN Scheme
 Arunachal Pradesh came on the air map recently and
Meghalaya, Tripura and Mizoram have come on India’s rail
map for the first time.

24. Jan Dhan-Aadhaar-Mobile (JAM)
 In the last five years, nearly 34 crore Jan Dhan bank accounts
were opened. Aadhaar is now near universally implemented

25. Tax Proposals
 annual income up to 5 lakhs will get full tax rebate.
 Standard Deduction is being raised from the current
40,000 to 50,000.
 TDS threshold on interest earned on bank/post office
deposits is being raised from 10,000 to 40,000.