SME Times News Bureau | 23 Jul, 2019
Minister of State for Finance
& Corporate Affairs Anurag Singh Thakur on Tuesday said that economic
growth remains high on the agenda of the Government and to boost the Economic growth
further various measures has been announced in the Budget 2019-20.
In written reply to a question in
the parliament, Thakur said as per the estimates available from National
Statistical Office, the growth of Gross Domestic Product (GDP) at constant
market prices was 5.8 percent in the fourth quarter (January-March) of 2018-19,
which is lower than the growth achieved in last five years.
The Economic Survey 2018-19 noted that the base
effect arising from a high growth of 8.1 percent in the fourth quarter of
2017-18 and contraction in ‘Agriculture & allied’ sector, growth moderation
in Industry sector and stress in non-banking financial companies contributed to
this lower growth in fourth quarter of 2018-19.
The Government has announced various measures in
the Budget 2019-20; which include, further liberalisation of Foreign Direct
Investment policy, increasing the annual turnover limit from Rs.250 crore to
Rs. 400 crore for a lower corporate tax rate of 25 percent, additional income
tax deduction of Rs.1.5 lakh on the interest paid on loans taken to purchase
electric vehicles and moving the GST council for reduction of GST rate on
electric vehicles from 12 percent to 5 percent, etc.
The Government has also increased the scope of
voluntary pension scheme for retail traders and shopkeepers with an annual
turnover of less than Rs 1.5 crore.
The budget provides a push to infrastructure
development with the intention to invest Rs 100 lakh crore in infrastructure
over the next five years and by restructuring of National Highway Programme.
Scheme of Fund for Upgradation and Regeneration
of Traditional Industries (SFURTI) has been started to facilitate cluster based
development to make the traditional industries more productive, profitable and
capable for generating sustained employment opportunities. Customs duty on certain raw materials and capital goods has
been reduced to promote domestic manufacturing.
had expandedthe cash transfer scheme “PM-Kisan” providing an income support of
Rs.6000 per year to all farmers, which was limited to farmers with a land
holding of less than 2 hectares.
Further to give focused attention to issues of
growth, the Government has constituted a five-member cabinet committee on
investment and growth chaired by Hon’ble Prime Minister.