TIL Desk Budget 2019/ Finance Minister Nirmala Sitharaman tables the first budget of Modi 2.0. govt. Key Highlights from Budget 2019:
*The first term of PM Narendra Modi led NDA govt stood out as a performing govt. Between 2014-2019 he provided a rejuvenated centre-state dynamics, cooperative federalism, GST council and strident commitment to fiscal discipline. The people of India have validated their two goals for our country’s future: national security and economic growth From 1.85 trillion dollars in 2014, the economy has reached 2.7 trillion US dollars; we can very well reach 5 trillion dollars in the next few years: FM Sitharaman
* The Indian economy will grow to become a $3 trillion economy in the current year itself. It is now the sixth largest in the world. 5 years ago it was at the 11th position. ‘It took us over 55 years to reach $1 trillion dollar economy. But when the hearts are filled with hope, trust & aspiration, we in just 5 years, added $1 trillion’. India Inc, our job creators, are the nation’s wealth creators; together, we can prosper. I wish to propose no. of reforms to kickstart virtuous cycle of growth : FM Sitharaman
*Chanakya Neeti sutra says ‘Kaarya purusha kare na lakshyam sampa dayate’. Meaning with determined human efforts the task will surely be completed. India’s first indigenous payment ecosystem for transport based on National Common Mobility Card was launched PM in March 2019, enabling people to pay multiple types of transport Schemes such as ‘Bharatmala’, ‘Sagarmala’ and UDAN are bridging the rural and urban divide, improving our transport infrastructure charges : FM Sitharaman
* FAME II scheme aims to encourage faster adoption of electric vehicles by right incentives and charging infra. comprehensive restructuring of National Highways Programme to be done, to ensure creation of National Highways Grid of desirable capacity. Railway infra would need an investment of 50 lakh crores between 2018 and 2030; PPP to be used to unleash faster development and delivery of passenger freight servicesPlans to reach 5 trillion USD economy- • Heavy investment in infrastructure, • Digital Economy , • Job creation
*Several reforms would be undertaken to promote rental housing, current rental laws are archaic as they do not address lessor-lessee relationships fairly Online portal for ease of access to credit of up to Rs 1 crore within 59 minutes for MSMEs. Pension benefit to be extended to around 3 crore retail traders and shopkeepers with an annual turnover less than 1.5 crores under Pradhan Mantri Karam Yogi Man Dhan Scheme: FM Sitharaman
*Credit Guarantee Enhancement Corporation will be set up in 2019-20, action plan to deepen markets for long-term bonds with specific focus on infra sector to be put in place Govt will invite suggestions for further opening up of FDI in aviation sector, media, animation AVGC and insurance sectors in consultation with all stakeholders. 100% FDI will be permitted for insurance intermediaries: FM Sitharaman
*The government has given a massive push to all forms of physical connectivity via 1. PMGSY, 2.Industrial corridors, 3. Dedicated freight corridors, 4. Bharatmala, 5. Sagarmala, 6. Jal Marg vikas, 7. UDAN schemes. Interoperability of RBI depositories and SEBI depositories necessary for seamlesss transfer of treasury bills; govt. will take necessary measures in this regard in consultation with RBI and SEBI: FM Sitharaman
*Interoperability of RBI depositories and SEBI depositories necessary for seamlesss transfer of treasury bills; govt. will take necessary measures in this regard in consultation with RBI and SEBI. With the changing economic scenario it’s important to upgrade roads connecting villages to rural markets. For this Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road length over the next 5 years. India has emerged as a major space power. It is time to harness our ability commercially. To harness India’s space ability commercially, a public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO: FM Sitharaman
*Pradhan Mantri Gram Sadak Yojana – Phase 3 envisaged to upgrade 1.25 lakh km of road length at an estimated cost of 80,250 crore rupees 9.6 crore toilets have been constructed since Oct 2, 2014. More than 5.6 lakh villages have become open defecation free. We have to build on this success. I propose to expand the Swachh Bharat mission to undertake sustainable sold waste management in every village To provide Non-resident Indians (NRIs) seamless access to Indian equities, NRI portfolio investment route to be merged with foreign portfolio investment route: FM Sitharaman
*Ensuring India’s water security & providing access to safe drinking water to all Indians is a priority. A major step in this direction has been the constitution of Jal Shakti MinistryThis new Ministry will look at the mgmt of our water resources & water supply in an integrated & holistic manner and will work with states to ensure ‘Har Ghar Jal’, to all rural households by 2024 under ‘Jal Jeevan Mission’. I draw attention to the women of India, ‘Naari tu Narayaani’. This Government believes that we can progress, with greater women participation: FM Sitharaman
*Under PMAY (Urban), over 81 Lakh houses with investment of about Rs 4.83 Lakh Cr have been sanctioned of which construction has started in about 47 Lakh houses. Over 26 Lakh houses have been completed of which nearly 24 Lakh houses have been delivered, to beneficiaries. To popularise sports at all levels, National Sports Education Board for development of sportspersons to be set up under Khelo India. I propose to consider issuing Aadhaar Card for Non Resident Indians (NRIs) with Indian passports after their arrival in India without waiting for the mandatory 180 days: FM Sitharaman
*Non-performing asset(NPAs) recovery of Rs 4 lakh crore over the last four years, NPAs down by Rs 1 lakh crore in the last one year ‘Gandhipedia’ is being developed to sensitize the youth about positive Gandhian values. India’s sovereign external debt to GDP is among the lowest globally at less than 5%, she points out. A new series of coins including for Rs 20 will be made available for public use shortly: FM Sitharaman
*To further encourage women entrepreneurship, Women Self Help Group (SHG) Interest Subvention Programme to be expanded to all districts in India India’s sovereign external debt to GDP is among the lowest globally at less than 5%. Govt will start raising a part of its gross borrowing program in external markets in external currencies. For purchase of high-rated pooled assets of financially sound Non Banking Finance Companies amounting to 1 lakh crore rupees during 2019-20, one-time six-month partial credit guarantee to be given to PSBs : FM Sitharaman
*Government has already moved GST council to lower the GST rate on electric vehicles (EV) from 12% to 5%. Also to make EVs affordable for consumers our Govt will provide additional income tax deduction of 1.5 lakh rupees on the interest paid on the loans taken to purchase EVs A new series of coins of Re 1, Rs 2, Rs 5, Rs 10, Rs 20 easily identifiable to the visually impaired were released by the PM on 7th March 2019. These coins will be made available for public use shortly. Net owned fund requirements to be reduced from 5000 crore to 1000 crore rupees, to facilitate onshoring of international insurance transactions and enable opening of branches by foreign reinsurers : FM Sitharaman
*For purchase of high-rated pooled assets of financially sound Non Banking Finance Companies amounting to 1 lakh crore rupees during 2019-20, one-time six-month partial credit guarantee to be given to PSBs Direct tax collection increased by 78%; Tax collection rose from 6.38 lakh crore rupees in 2013-14 to 11.37 lakh crore rupees in 2018Strategic disinvestment of select Central Public Sector Enterprises will continue to be a priority; strategic disinvestment of Air India will re-initiate; 1 lakh 5000 rupees is disinvestment target for 2019-20: FM Sitharaman
*As I stated earlier, we have taken a slew of measures to ease burden on small and medium earners. Those having annual income up to Rs 5 lakhs are not required to pay any income tax. We are thankful to tax payers who play an important role in nation building. To resolve the so-called Angel Tax issue, the startups & their investors who file requisite declarations & provide information in their returns will not be subjected to any kind of scrutiny in respect of valuations of share premiums. I propose to increase special additional excise duty and road and infrastructure cess each one by 1 rupee a litre on petrol and diesel: FM Sitharaman
*To provide further impetus to affordable housing, additional deduction of 1.5 lakh rupees on interest paid on loans borrowed upto 31 March 2020 for purchase of house up to Rs 45 lakhs: FM Sitharaman
