Major Economic Reforms undertaken by Arun JaitleyAbhishek Kumar / 2020-01-30 05:46:18
Arun Jaitley, energetic minister of finance and corporate affairs widely known for his political career passed away on 24th August 2019. He was a MP of BJP who worked hard for India’s betterment during the first term of the BJP government.
In 5 years as minister of finance and corporate affairs, he always took powerful decisions for the growth of the economy. India achieved 77th rank among the world's 190 Nations for ease of doing business during his tenure. He boosted India's economy which helped India to become 3 trillion dollar economy and is expected to reach 5 trillion dollars in 5 years
Some major economic reforms introduced in Arun Jaitley's tenure:
GST has been proved to be one of the greatest economic reforms of all time. It has bought ease to tax payment for millions in our country. Following are the changes made through GST:
- In India, every business is now bound to file their tax returns and get GST Registration Online. This regulation has created a great impact on businesses. The strict rules and heavy fines made this reform successful.
- Trade and commerce have become much easier after GST.
- This has increased the rate of businesses in India.
2-Udyog Aadhaar (MSME Registration)
A 12 digit UIN (unique identification number) assigned by the Ministry of MSME (Micro, Small, Medium, Enterprise) to all MSME enterprises for registration is called Udyog Aadhaar. This linking of aadhar number to MSME registration created the idea for Udyog Aadhar Registration in 2015.
Udyog Aadhaar Certificate can provide with various benefits:
- Business loan
-ISO CERTIFICATION government fees will be reimbursed.
-Government fees on Barcode will be reimbursed.
After this reform, the businessman is not required to go through a lengthy process to get their registration done. They can instead provide these documents and get their MSME registration done:
1. Aadhar number
2. Business name
3. Nature of business
4. Owner's name
5. Bank account details
3.) Jan Dhan Yojna
This reform was done and citizens of India have a bank account. It was one of the most successful reforms during Arun Jaitley's tenure. Currently, more than 35.4 crore bank account under Jan Dhan yojana has been opened.
4.) No income tax for those having Income up to ?5 lacs
During Budget 2019, Arun Jaitley introduced Zero Income tax on income tax up to 5 lacs which was previously 3 lacs. This reform gave relaxation to the small businessman and helped them skip heavy taxes. The government also increased the rebate from a limit of Rs. 2500 to a limit of Rs. 12500. This advanced will be given to the taxpayer having an annual turnover of up to 5 lacs.
5.) Reduction of GST on Real Estate
GST is tremendously reduced on real estate in the view of planning “housing for all by 2022” in the 34th council meeting. This gave a boost to the sale of real estate. The rates changes as follows:
Type of real estate
GST slashes from
12% to 5%
8% to 1%
6.) Banning of Unregulated Deposit Schemes
Banning of unregulated deposit was introduced by the Lok Sabha on 31st July 2019 to protect people from getting cheated by the fraud financial schemes such as Sharda chit fund in Bengal.
This reform was the biggest reform in decades done to reduce corruption, Terror-funding, fake currency, and black money. Demonetization was about banning 500 and 1000 rupees notes and brings in new notes to the economy in 2016. This came as a huge thud because it was informed in the evening that the notes will be meaningless after midnight. Over time this promoted digital India and made payment much easier by promoting online transactions.