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InDepth

eted at 4, 16, 034 crore, 2.2 per cent of ture for 2019-20 BE is estimated to be crore in BE 2019-20, as per the ‘Budget
GDP. On the other hand, the Current 3,36, 292 crore. The increase in total at a Glance’ document. Shri Goyal said
Account Deficit widened to 2.7 per cent expenditure is on account of increased in his Speech, “We have pursued the
of GDP in first half of 2018-19 from 1.9 support to agricultural sector, interest public enterprises asset management
per cent of GDP in 2017-18, mainly on payments and internal security, as per agenda to make these enterprises
account of higher trade deficit arising the ‘Budget at a Glance’ document. accountable to the people. As many as
from higher petroleum, oil and lubri- In BE 2019-20, Centrally Sponsored 57 CPSEs are now listed with total mar-
cants imports. Despite the marginal Schemes (CSS) are proposed to be al- ket capitalisation of over 13 lakh crore.
increase, the fiscal deficit to GDP ratio is located 3, 27, 679 crore as against The government received over 1 lakh
well on track to achieve its target level 3, 04, 849 crore in 2018-19 RE. Detailing crore from disinvestment proceeds
of 3 per cent of GDP. further, Shri Goyal said in his Speech during 2017-18.”
The main focus of the ensuing year that allocation for National Educa- As per the Medium Term Fiscal Poli-
will be to improve the expenditure tion Mission is being increased from cy cum Fiscal Policy Strategy Statement,
efficiency and improve tax collections 32, 334 crore in RE 2018-19 to 38, 572 Non-Debt capital receipts on capital
to ensure that the economy moves back crore in BE 2019-20. Also, allocation for side are expected to be 1, 02, 508 crore
to the fiscal deficit path as mentioned Integrated Child Development Scheme in BE 2019-20 indicating an increase of
in the Fiscal Responsibility & Budget (ICDS) is being increased from 23, 357 9, 353 crore over RE 2018-19. Increase
Management (FRBM) Act, says the in non-debt capital receipts is mostly
Medium-Term Fiscal Policy cum Fiscal on account of disinvestment which is
Policy Strategy Statement. Further, the Goyal says that the budgeted at 90, 000 crore (RE 2018-19
above document says that the Gross Tax — 80, 000 crore). Total net borrowings
Revenue of the Central Government is interim budget is not in 2019-20 are projected at 7, 03, 999
budgeted at 25,52,131 crore in BE 2019- inflationary, hopes the crore as compared to 6, 34, 398 crore
20. This reflects a growth of 3, 03, 956 in RE 2018-19. This reflects an increase
crore (13.5 per cent) over RE 2018-19. disinvestment target of 11 per cent over RE.
The Direct Taxes are expected to will be met, and insists The government had promised last
reach 13, 80, 000 crore in BE 2019-20 year that it would carry out reforms
compared to 12, 00, 000 crore in RE jobs are being created in stamp duty levied and collected
2018-19 indicating an increase of 15 per as ‘you don’t grow at on financial securities transactions.
cent over RE. It is expected that direct Goyal said in his Speech, “I am propos-
taxes would be 6.6 per cent of GDP at 7.5 per cent without ing, through the Finance Bill, neces-
the end of 2019-20. Indirect taxes are sary amendments in this regard. The
budgeted at 11, 66, 188 crore in BE 2019- creating jobs’ amendments proposed would usher
20 showing an increase of 11.8 per cent in a very streamlined system. Stamp
over RE estimates ( 10, 42, 833 crore). duties would be levied on one instru-
The increase is mainly on account of crore in RE 2018-19 to 27, 584 crore in ment relating to one transaction and
improvement in GST collections antici- BE 2019-20. get collected at one place through the
pated in 2019-20. “A substantial increase is pro- Stock Exchanges. The duty so collected
Non-tax revenue collections in posed in the allocation for welfare of will be shared with the State Govern-
2019-20 is budgeted at 2, 72, 647 crore the Scheduled Castes and Scheduled ments seamlessly on the basis of domi-
as compared to 2, 45, 276 crore in RE Tribes,” said Goyal. The allocation of cile of buying client.”
2018-19. This shows an increase of 56, 619 crore made in BE of 2018-19 for While giving a vision for fiscal con-
27, 371 crore over RE 2018- 19, as per Scheduled Caste, further increased to solidation, Goyal said in his Speech, “We
the Medium Term Fiscal Policy cum 62, 474 crore in RE is proposed to be have maintained the glide path towards
Fiscal Policy Strategy Statement. The enhanced to 76, 801 crore in BE for our target of 3 per cent of fiscal deficit
finance minister, in his Budget Speech, 2019-20, an increase of 35.6 per cent to be achieved by 2020-21”. The gov-
said that the total expenditure has re- over BE of 2018-19. For the Scheduled ernment will now focus on Debt con-
flected a high increase considering Tribes also, proposed allocation in solidation along with completion of the
low inflation. It has risen by 3, 26, 965 2019-20 BE is 50, 086 crore as against fiscal deficit consolidation programme.
crore or approximately 13.30 per cent, 39,135 crore in BE 2018-19, an increase India’s Debt to GDP ratio was 46.5 per
from 24,57,235 crore in 2018-19 RE to of 28 per cent. cent in year 2017-18. The FRBM Act pre-
27, 84,200 crore in 2019-20 BE. Fur- Regarding Disinvestment proceeds, scribes that the Debt to GDP ratio of the
ther, 2018-19 RE figures have shown the government is confident of cross- government of India should be brought
an increase over BE 2018-19 figures ing the target of 80, 000 crore this down to 40 per cent by 2024-25, the
by 15,022 crore. The Capital Expendi- year and have kept a target of 90, 000 minister added.

Tehelka / 28 february 2019 22 www.Tehelka.com