The Indian economy, which stood at $1.85 Trillion five years back, has reached $2.7 Trillion now, and is within capacity to reach $5 Trillion in the next five years.

New Delhi: Union Finance Minister Nirmala Sita Raman focused on her first budget o Gaon, Garib and Kisan. She announced Union Budget for 2019-20 that it will make major investments in developing infrastructure in both Agriculture and allied farm sectors.

     Union Finance Minister Nirmala Sita Raman presenting the 2019-20 budget in Lok Sabha on Friday said that the Government keeps Gaon, Garib and Kisan at the centre of everything it does. Both the “ease of doing business” and the “ease of living” should apply farmers too. She also emphasized the need to replicate zero budget farming, an innovative model, across the country. She also said that farmers are already trained in few states in this regard. The Union Government will invest widely in Agriculture infrastructure, she said. She also said in her speech that the centre will support private entrepreneurship in driving value addition to farmers produce from the field and for those from allied activities, like bamboo and timber from the hedges and for generating renewable energy.

    Modi Government’s maiden budgets are to boost investments while raising petrol and diesel prices, increased tax on the superrich, hiked import duty on dozens of items as it tried to spur growth through higher spending and sops for starters, housing and corporate. She announced on foreign investments in sectors like aviation, infrastructure and media while throwing a life line to the smuggling shadow banks to boost investments and blending in the economy.

Income Tax: In her budget there was no change to the income tax slabs but surcharges on the superrich was hiked. Those taxable income Rs. Two to five crores will now pay 39% tax, while those with five crores income would pay 42.47%. She also said that those in highest income brackets need to contribute more to the nation’s development. She also raised customs duty on gold and precious metals from 10% to 12.5% to mobilize resources. She also allowed on additional income tax deduction of Rs. 1.5 lakhs on interest paid on loan taxes to purchase electronic vehicles has been proposed in the budget.

    She also provided an additional deduction of Rs. 1.5 lakhs interest for first time home buyers purchasing a house not exceeding Rs. 45 lakhs. She also lowered corporate tax on companies with revenue of upto 40 crores to 25% from 30%. Currently the lower rate is applicable only to the companies with revenue upto 250 crores.