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4 years of Modi sarkar: From GST to war on black money, finance ministry remained busiest

By Chennabasaveshwar

The Modi government completed four years on May 26. Prime Minister Modi's government came to power promising 'sabka saath, sabka vikas' in 2014 elections. In his speech delivered at the Central Hall of Parliament, Modi had said that he would meet the MPs again with a report card in 2019. "My government is not for myself but for the country. The government is for the poor and we want to do something for them. ...We want everyone's progress and development but it is as important that we take everybody along with us."

Prime Minister Narendra Modi

Union Finance Minister Arun Jaitley has introduced programmes to cater to needs of common people as promised by PM Modi. Pradhan Mantri Jan Dhan Yojana, Goods and Servies Tax (GST) and Demonetization of currency notes to fight black money set a milestone in the financial history of the country.

Jan Dhan Yojana which aims to bring comprehensive financial inclusion of all the households has covered 30 Per cent of the Indian population. Data shows 31.52 crore Jan Dhan accounts have been opened (As on 25.4.2018) and the total balance in Jan Dhan accounts is Rs. 80871.67 crores (As on 25.4.2018). Share of zero-balance Jan Dhan accounts dropped to 24 per cent in December 2016 from 73 per cent in December 2014.

Pradhan Mantri Sukanya Samriddhi Yojana: A small deposit savings scheme to promote the welfare of girl child and ensure them a secure future was launched in 2015. More than 1.26 crore accounts have been opened and amount of over Rs. 19,183 crores deposited till November 2017

Pradhan Mantri Mudra Yojana: Launched in 2015, to provide financial support for growth (development and refinancing) of micro enterprises sector. Easy loans without guarantee under three categories - Shishu, Kishore and Tarun by the banks. Loan of up to Rs. 50000 is given under sub-scheme 'Shishu' between Rs. 50,000 to 5.0 Lakhs under sub-scheme 'Kishore' and between 5.0 Lakhs to 10.0 Lakhs under sub-scheme 'Tarun'.

Budget allocation for 2018-19 was raised to Rs. 3lakh crore, a hike of 20 per cent over the previous year which was Rs.2.44 lakh crores against Rs. 1.22 lakh crores in 2016-17. In the financial year 2017-18, loans worth Rs. 220596.05 crore was disbursed, compared to Rs. 175312.13 crore in 2016-17 and Rs.132954.73 crore in 2015-16.

Pradhan Mantri Suraksha Bima Yojana: Launched in 2015 with the objective to provide a very affordable insurance scheme for the poor and underprivileged people in the age group of 18 to 70 years with a bank account at a premium of Rs.12 per annum. The schemes provides risk coverage of Rs.2 lakhs for accidental death and full disability and Rs.1 lakh for partial disability.

As on Feb 2018, 13 crore 25 lakh persons have been insured with personal accident cover of Rs.2 lakh on payment of a premium of only Rs.12 per annum.

Pradhan Mantri Jeevan Jyoti Bima Yojana: Launched in the same year to create a social security system for the poor and underprivileged in the age group of 18-50 years by providing a renewable life insurance cover of Rs.2 lakhs with just a premium of Rs.330. As on February 2018, Pradhan Mantri Jeevan Jyoti Beema Yojana (PMJJBY) has benefitted 5.22 crore families with a life insurance cover of Rs. 2 lakh on payment of a premium of only Rs.330/- per annum.

Atal Pension Yojana: Launched in 2015 to provide financial security in old age through guaranteed minimum monthly pension for those working in informal sector or daily wagers in the age group of 18 to 40 years. Government contributes 50 percent of beneficiaries' premium (up to Rs. 1000) for 5 years in new accounts opened before December 31, 2015. As on 5 January, 2018 about 80 lakh subscribers have been enrolled under Atal Pension Yojana.

Pradhan Mantri Vaya Vandan Yojana: Announced by PM on New Year eve of 2017 and launched by the Finance Minister on 21.7.2017 to provide social security and protect elderly. For citizens aged 60 years and above, it was opened for subscription from May 4, 2017 to May 3, 2018. Now PMVVY Pension Investment Limit has been Doubled from Rs. 7.5 lakh to 15 lakh. Now Senior Citizens can get up to Rs. 10,000 pension per month. Scheme has been extended by two years from May 4, 2018 to March 31, 2020. The scheme provides an assured pension based on a guaranteed rate of return of 8 per cent per annum for ten years. As of March, 2018, 2.23 lakh senior citizens have subscribed to PMVVY.

Gold Monetization Scheme, Sovereign Gold Bond Scheme, and India Gold Coins: In order to reduce the country's reliance on the imports of gold to meet the domestic demand and to reduce the demand for physical gold 'Gold Monetization Scheme' was launched in 2015. As on Mar 10, 2017 as much as 6,410 kg gold has been mobilized under the scheme so far, according to the reports received till February 18 this year.

Sovreign Gold Bonds was launched to provide a new financial instrument of investment to public at large and reduce the demand for physical gold. The target mobilization under the scheme at Rs. 15,000 crore in 2015-16 and at Rs.10,000 crore in 2016-17. Revision of guidelines of Sovereign Gold Bonds Scheme approved by Cabinet on 26th July2017.

Stand- Up India: Launched in 2016, to support entrepreneurship among women and SC & ST communities by facilitating bank loans between 10 lakh and 1 Crore to them. To benefit at least 2.5 lakh entrepreneurs. The number of loans given by Public Sector, Private and Regional Banks under the Stand-up India Scheme are 51,888, 2,445, and 1,009 respectively up to 07.03.2018 since inception of the Scheme.

Regional Rural Banks sanctioned 180 loans to borrowers of Scheduled Castes (SC) category as on 07.03.2018 since inception of the Scheme. 56260 Self Unemployment Insurance, SUI applications sanctioned for 12194 crores. 44460 SUI applications disbursed for 6641 crores and 7424 online SUI loan applications submitted of which 2641 SUI online loans have been sanctioned.

Demonetization and fight against black money: PM Modi delcared war against black money with demonetization of Rs 500 and 1000 currency notes as the first step on 8th November, 2016.

'Demonetization' in 2016 with demonetization of Rs 500 and 1000 currency notes as the first step. There is a major fillip in digital transactions and unearthing of substantial amounts of black money.

  • 50 lakh new bank accounts opened to enable cashless transaction of wages.
  • 26.6% increase in number of taxpayers added from FY 2015-16 to FY 2016-17
  • 27.95% increase in number of e-returns filed

Value of IMPS transactions increased almost 59% from August 2016 to August 2017, 2.24 Lakh shell companies were struck off, undisclosed income worth Rs. 29,213 crores was detected and admitted and revenues of the ULBs across the country increased. Income Tax Department (ITD) launched Operation Clean Money (OCM) on 31st January 2017 to leverage technology for e-verification of cash deposits made during the demonetization period i.e. 9th November to 30th December 2016.

Formation of SIT & curbing of black money: Special Investigation Team, SIT set up at the First Cabinet Meeting after the NDA Government assumed office.

GST: One Nation, One Tax; One Nation-One Market

  • Rolled out on the midnight of 30 June 2017 and came into effect from 1 July 2017.
  • GST is administered by both Centre and States and has subsumed several state and central indirect taxes such as State VAT, Central Excise Duty, Purchase Tax and Entry Tax.
  • 4 Tax Rates- 5%, 12%, 18%, 28%
  • Reduction in overall taxes on goods, estimated to be 25-30%
  • National Anti-Profiteering Authority: Constitution of the National Anti-Profiteering Authority so that benefits of lower prices of goods and services are passed on to the consumers.
  • Lead to ease of doing business and increase in tax revenue collections.

Benefits of GST

Decrease in Inflation due to

  • Reduction in Cascading effect of Taxes
  • Overall Reduction in Prices

Ease of Doing Business due to

  • Common National Market
  • Benefits to Small Taxpayers
  • India has moved up from 142nd to 100th rank in the Ease of Doing Business ranking of the World Bank.

Decrease in "Black" Transactions due to

  • Self-Regulating on line Tax System
  • Non-Intrusive and transparent Tax System

More informed consumer due to

  • Simplified Tax Regime
  • Reduction in Multiplicity of Taxes

Poorer States to gain due to

  • GST being a destination based Tax
  • Consumer States to benefit the most
  • Abolition of CST

Make in India boost due to

  • Exports to be Zero Rated
  • Protection of Domestic Industry - IGST

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