Fiscal deficit :

• For the second year in a row, the government’s fiscal consolidation path has slipped from the budgeted targets. For FY19, fiscal deficit target has been revised up to 3.4% of GDP from the Budget estimate of 3.3% of GDP. The government had also exceeded its Budget target of fiscal deficit of 3.2% of GDP. The revised estimate for FY18 had also been revised up to 3.5% of GDP.

Pradhan Mantri Kisan Samman Nidhi

• Under this Rs 6,000 per year will be transferred directly the bank accounts of farmers with less than 2 hectares land, in three instalments.
• There are 12.56 crore marginal and small farmers having less than 2 hectares (5 acre) holdings. If Rs 6,000 is paid to each farmer, the total outlay will be Rs 75,360 crore. 

Income Tax exemption up to Rs 5 lakh

• For those with a taxable income of up to Rs 5 lakh annually, the government has announced a one-time tax rebate. An individual falling in this bracket will have to file his/her income tax returns and will get a full rebate. The announcements result in tax saving of up to Rs 12,500 for all taxpayers. If benefits under 80c are included, individuals with income of up to Rs 6.5 lakh will have to pay no tax. Besides, interest income of up to Rs 40,000 will attract no tax.

Insolvency and Bankruptcy Code 

• Insolvency and Bankruptcy Code pressured large borrowers to repay loans and has been effective in improving recovery of the banks. Recoveries pegged at Rs 3 lakh crore. He said with three banks already coming out of the RBI’s Prompt Corrective Action framework, the government expects the remaining banks to come out of the PCA shackles soon. Removal of PCA restrictions will help banks to improve lending.

Big push to real estate

• The government announced a series of benefits including no tax on rental income of up to Rs 2.4 lakh on second house, capital gain benefit under Sec 54EC doubled to Rs 2 crore and allowing it to be deployed in two houses. The decisions are focused on unsold inventories and pushing demand in the real estate sector.

Govt’s strategy for nomadic tribes

• A committee under the Niti Aayog to identify the most marginalised Denotified, Nomadic, and Semi-nomadic Tribes not currently classified as ST, ST, OBC, in the Union Budget 2019. The Indian Express had first reported the proposal.
• The Union government’s plan to implement a few, if not most, of the recommendations of Idate Commission is a political move coming at a time when it is facing severe backlash for implementing the 10 per cent reservation for economically weaker sections in general category.